If the Cut Is So Deep, Where Is the Blood?: Problems in Research on the Effects of Financial Restraint

Publicly funded universities in North America claim that budget restrictions of varying severity and duration have invariably adverse consequences for their academic programs. However, research studies have largely failed to demonstrate such deterioration, and evidence provided by universities has not been persuasive to government funding agencies. This paper examines the methodological problems involved in research on the impact of financial restraint and factors which limit the effectiveness of university briefs which attempt to determine their own financial needs. The paper emphasizes the role of “academic quality” in the public debate on higher education funding, especially in Ontario, and the problems resulting from its elusive nature. The author concludes that probably the best hope for progress in studying the impact of financial restraint on universities lies in the practice of program review, then linking that information—with all of its weaknesses—with financial information.