Austin Community College succeeds in creating a local tax base in 1986, adding $10 million annually to its budget. At the time, faculty salaries are low and the campus is crowded and run down. Faculty, staff, and students expect that the new source of income will immediately be put to use to solve the campus’ major problems. The president must consider his priorities and carefully plan for this new source of income. The case invites readers to use ratio analysis to assess the financial picture at the college and to determine what the institutional priorities should be.
Subjects: Financial Management, Financial Analysis, Cash/Funds Flow
Setting: Public, Community College
*Permission to reprint can only be purchased after the actual case has been purchased as a PDF or hard copy.
