Revenue Sharing: A Tiger by the Tail

The dynamics of a self-supporting summer budget consist of a simple, three-step process. First, self supporting programs must pay all direct operational costs; second, revenue must exceed expenses; and third, the institution must decide what to do with the surplus. As with most summer term administrative processes, there are almost as many answers to that final question as there are programs. In some places, the money goes to the central administration. In others, a reserve account is created that is used for a variety of projects, which may or may not relate to the summer program. In still others, there may be incentive pay for faculty, grants for program development, or a subsidy for academic projects of value to the institution. Summer deans and directors usually approach the question of the disposition of surplus revenue from the standpoint of the summer program itself. Their interest is in using these funds to improve or expand summer offerings, or to provide an incentive for academic departments to design more efficient and profitable programs. It is this latter purpose that is best served by revenue sharing.