Revenue Sources in the Budgets of Public Higher Education Institutions. An Empirical Examination of Financial and Non-Financial Performance Criteria

Abstract

In the case of public higher education system, revenue generation has been and still is an issue addressed both nationally and internationally. Specifically, dependence on a single source of funding can cause financial instability at public universities. Therefore, strategic management at the level of educational institutions should aim at attracting sources of income other than those generated by state budget subsidies, and their use under conditions of financial autonomy can ensure the achievement of the objectives proposed by the institutional strategic plan. By identifying a model of comparative indicators at university level, appropriate information can be provided that reflects reality and provides applicable recommendations. Putting these aspects together, the aim of the present research is to investigate the performance criteria – financial and non-financial – that underpin the rationale and execution of the budget within the public higher education system. The opinions of over 130 academics and administrative members from more than ten universities were analysed through questionnaires in order to bring to the fore how they perceive the relationships between financial and non-financial performance criteria in the budgeting process. The empirical investigation intended to answer the following research questions: Which financial and non-financial performance criteria related to budgeting and budget execution are given more importance by teaching and administrative staff in the public higher education system? How do academics and administrative staff view the budgeting and implementation at their own institutions (effective, efficient or rather high performing)? Are there significant differences between the reports of different categories of subjects (with different hierarchical positions within higher education institutions) on financial and non-financial performance criteria and on the effectiveness, efficiency and performance of budgeting and budget execution at the level of their own institutions?

Keywords

• budget
• financial and non-financial performance criteria
• effectiveness
• efficiency
• public higher education system