The Finances of Higher Education Institutions. Higher Education Survey, Survey Report Number 8.

As part of the congressionally mandated Higher Education Cost Study, a Higher Education Survey (HES) was conducted to provide reliable national estimates on the financial condition of higher education and the sources of tuition increases as perceived by financial officers at higher education institutions. Questionnaires were mailed to financial officials at 473 higher education institutions, excluding specialized schools (e.g. medical schools, dental schools, etc.). Results indicated that (1) respondents were more satisfied with their institutions' ability to control expenditure than with their ability to obtain revenue; (2) tuition and fees increased at a rate between two and three times the rate of inflation from 1980-1981 to 1988-1989. Public institutions identified the greatest impact on tuition as coming from a combination of state tuition policy requirements and a decrease in the proportion of state/local funding. Private institutions regarded the greatest impact on tuition as coming from an increase in operating expenditures, increased institutional student aid, and a decrease in the proportion of Federal funding. Financial officials felt, however, that increases in tuition would have little effect on the number of students applying for admission to their institutions. Appended are 21 tables, technical notes, and the survey questionnaire. (LT)