The Relationship Between Alternative Strategies of Funding and Institutional Financial Health for Public Research Universities

Abstract

The state support for public research universities has been volatile and has decreased to levels lower than before the downturn. Institutions adopt other sources of funding, but do these sources ensure financial health? This study assesses the financial security of public research universities and examines the relationship between strategies of funding and financial success. The results show that about 39.33% of the public research universities examined were financially unhealthy. The results also found state and local appropriations and institution endowments to be significantly associated with institutional financial health. The implications for policymakers and institutional leaders are discussed.