Higher Education

Responsibility Center Management for Higher Education

Colleges and universities have been receiving less money each year from state appropriations. According to a report by the State Higher Education Executive Officers Association (SHEEO, 2019), “FY 2018 saw the smallest ever changes in net tuition revenue and total educational revenue per student.”


In addition to less funding, higher education institutions are faced with decreasing tuition revenue and research grants, and rapidly growing increases to financial aid. In fact, the 2018 NACUBO Tuition Discounting Study shows that out of every tuition dollar, 44 cents goes towards student financial aid (NACUBO, 2018). Consequently, schools are turning to alternative budgeting models to manage their revenue more efficiently. In particular, Responsibility Center Management has caught the attention of colleges and universities because it is designed to align fiscal strategy with achieving academic priorities.