Tuition Rising, Chapters 10 and 11

Tuition Rising, Chapters 10 and 11 - of converting those...

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Chapter 10: Deferred Maintenance, Space Planning and Imperfect Information Deferred Maintenance - deferring planned maintenance is risky because facility to take action at an appropriate time may cause the costs of keeping the facility in good operating condition to increase dramatically - incentive for administration to skip planned maintenance expenditures to increase budget for faculty salaries, tuition, etc. Space Planning - “Sage Shuffle” - example of imperfect information that resulted in a less than optimal decision and increased university’s costs Chapter 11: Costs of Space Universities’ Physical Plants - physical plants contribute directly to the educational mission of the institution (classrooms, research labs) and to student life (forms, dining, etc) - costs of operating and maintaining buildings limit university’s ability to dec tuition and inc faculty salaries - compare endowment : replacement value of buildings - 5 th lowest ratio - (1) because part of university is supported by NY state, we never had the option
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Unformatted text preview: of converting those funds into endowment-(2) cost of construction varies widely-(3) intensity of science program varies widely-(4) institutions with large volumes of federal research funding may fund some operations and maintenance through ICR-(5) cost of land varies widely Price System?-Say’s Law = supply creates its own demand-always unmet space needs at the university and needs increase if more space is available-space estimates would allow deans to identify the space costs associated with each department, just as they identify the costs of faculty, TAs, etc-systematic failure to increase space costs in calculations will cause a university to spend too much on space intensive activities with a high operating and maintenance cost-allow mkt prices to determine allocation of space: Arizona State University’s “sealed bid” auction for offices (in first year = $133 per office, in fifth year = $350 per office)...
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This note was uploaded on 09/20/2009 for the course ILRLE 6480 taught by Professor Ehrenbergr during the Fall '07 term at Cornell.

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