A comparison of sources of revenue in selected black and white institutions of higher education from 1971 through 1979

Abstract

The purpose of this study was to compare the sources of revenues received by Historically Black Colleges to the sources of revenues received by predominantly white colleges during the 1970’s.

More specifically, seventy-six HBC were paired with seventy-six predominantly white colleges, and the basis of control (public or private), Carnegie classification, size, and geographic location, were arranged into two groups. Public comprehensive colleges, both black and white, were identified as group 1. Private liberal arts colleges, both black and white, were identified as Group 2. The sources of revenues for these two groups were analyzed to determine how sources of revenues compared between black and white colleges, within groups, fiscal years 1971 through 1979. The sources of revenues were (a) tuition and fees, (b) federal government revenues, (c) state and local government revenues, (d) private gifts, grants and contacts, (e) endowment, (f) other sources of revenues, and (g) total revenues.

Fourteen null hypotheses were formulated to determine if statistically significant differences existed between black and white colleges, within each group, for each of the seven sources of revenues. Data were obtained from the Higher Education General Information Surveys of the National Center for Education Statistics. The MANOVA procedures were used to analyze the data and the .05 level of significance was required to reject the hypotheses.

Analysis of the data for black and white public comprehensive colleges showed:

1. There was not a statistically significant difference between black and white public comprehensive colleges for revenues received through the sources of tuition and fees; private gifts, grants and contracts; endowment; and other sources of revenues.

2. There was a statistically significant difference between black and white public comprehensive colleges for revenues received through the sources of federal government revenues, state and local government revenues, and total revenues.

Analysis of the data for black and white private liberal arts colleges showed:

1. There was not a statistically significant difference between black and white private liberal arts colleges for revenues received through the sources of endowment and other sources of revenues.

2. There was a statistically significant difference between black and white private liberal arts colleges for revenues received through the sources of tuition and fees; federal government revenues; state and local revenues; private gifts, grants and contracts; and total revenues.

The MANOVA procedures were also used to analyze the sources of revenues for public comprehensive colleges with black land grant institutions removed.

Chapter five listed some of the past operational practices of historically black colleges which may have contributed to the higher cost of operation where revenues are calculated on a per student basis.