CatholicU to slash budget 20%, cites decline in law school

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timbs4339
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CatholicU to slash budget 20%, cites decline in law school

Postby timbs4339 » Tue Apr 16, 2013 3:37 pm

revenues.

--LinkRemoved--

I didn't do so good at the maths. Someone please tell me how a decline in revenue from 10% of the student body results in a need to cut 20% overall operational expenditures?

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MarkinKansasCity
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Joined: Thu Jun 14, 2012 10:18 am

Re: CatholicU to slash budget 20%, cites decline in law school

Postby MarkinKansasCity » Tue Apr 16, 2013 3:40 pm

timbs4339 wrote:revenues.

--LinkRemoved--

I didn't do so good at the maths. Someone please tell me how a decline in revenue from 10% of the student body results in a need to cut 20% overall operational expenditures?


Fixed costs vs. Operational Costs.

Operational costs are being cut by 20%. If fixed costs are half the budget, and revenues drop 10%, then variable (operational) costs must be cut by 20%. Yay math.

timbs4339
Posts: 2733
Joined: Sat Apr 02, 2011 12:19 pm

Re: CatholicU to slash budget 20%, cites decline in law school

Postby timbs4339 » Tue Apr 16, 2013 3:44 pm

MarkinKansasCity wrote:
timbs4339 wrote:revenues.

--LinkRemoved--

I didn't do so good at the maths. Someone please tell me how a decline in revenue from 10% of the student body results in a need to cut 20% overall operational expenditures?


Fixed costs vs. Operational Costs.

Operational costs are being cut by 20%. If fixed costs are half the budget, and revenues drop 10%, then variable (operational) costs must be cut by 20%. Yay math.



It's not like there are going to be zero paying law students, though. Revenue from the law school then must be much higher than 10% of the budget.

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MarkinKansasCity
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Re: CatholicU to slash budget 20%, cites decline in law school

Postby MarkinKansasCity » Tue Apr 16, 2013 3:47 pm

timbs4339 wrote:
MarkinKansasCity wrote:
timbs4339 wrote:revenues.

--LinkRemoved--

I didn't do so good at the maths. Someone please tell me how a decline in revenue from 10% of the student body results in a need to cut 20% overall operational expenditures?


Fixed costs vs. Operational Costs.

Operational costs are being cut by 20%. If fixed costs are half the budget, and revenues drop 10%, then variable (operational) costs must be cut by 20%. Yay math.



It's not like there are going to be zero paying law students, though. Revenue from the law school then must be much higher than 10% of the budget.


Or fixed costs are most of the budget. Schools have a shitload of infrastructure to maintain. Buildings, utilities, and maintenance are non-negotiable. That leaves operations. The proportions may change, but I still think this is a fixed/variable cost issue as far as reconciling the numbers goes.

Pokemon
Posts: 1860
Joined: Thu Jan 12, 2012 11:58 pm

Re: CatholicU to slash budget 20%, cites decline in law school

Postby Pokemon » Tue Apr 16, 2013 8:32 pm

timbs4339 wrote:revenues.

--LinkRemoved--

I didn't do so good at the maths. Someone please tell me how a decline in revenue from 10% of the student body results in a need to cut 20% overall operational expenditures?


Hopefully this will not affect the educational quality of CatholicU.




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