Debating The Right Spending Ratio
from Inside Higher Ed
Context is key for governing boards trying to exercise oversight of colleges and universities. It can also be surprisingly hard to come by, according to the American Council of Trustees and Alumni. ACTA released new research in an attempt to give trustees a financial benchmark for administrative spending and instructional costs. The group crunched 2015 data from more than 1,200 four-year nonprofit institutions to come up with median ratios of administrative spending to instructional spending for colleges and universities of various sizes and classifications.
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