Parking price problem in Arizona state university [essay example] (part 1)

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Introduction

Arizona State University is a very reputed university at Arizona State in United State of America, which higher education system is being suffered by rigorous budget cut currently. The government has predicted that in next year this cut will be 20% more than the current year and said the university to be prepared. To tackle this problem Arizona State University has attempted to eliminate several jobs and programs. The budget crisis has gone beyond the expected proportion and so that it is very essential to take some initiatives to overcome the budget crisis. Only the 15% of the total budget comes from the state funding and rest 75% comes from tuitions, fees, parking, sporting events etc. So the university has to device any way out to support the excess budget.

Nature of existing problem

Recently the university has taken many strategies to solve budget crisis problem, where raising the parking price one of the strategies. ASU wants to increase their revenue of parking services trough increasing the parking price and desires to support the budget crisis needed for other programs. The parking place is situated on the northeast corner of College Avenue and Apache Boulevard. Parking and Transit Services (PTS) is an auxiliary business service of ASU and the revenue of it is used to carry its own expenses as well as parking structure debt service. All the cost of services provided by Parking and Transit Services are borne by the income generated through the sale of parking decals, visitor parking and citation revenue. Since Arizona State University is situated at the center of the city, where the space to park is very limited as well as the Tempe campus is being enlarged and extended there will be scarcity of parking spaces for research, academic and residential buildings. Other hand since the parking inventory is being continuously reduced the only technique to carry the financial requirements of parking and transportation issues is to increase the parking rate. The current parking rate will not support the many requirements of the ASU Tempe campus in future. For many years the parking rates on Tempe campus charged by the ASU was less than the market price, but Parking and Transit Task Force suggested to raise it to the market price (Rietveld & Stough, 2005: 137). The Parking and Transit Task Force suggested the latest charges, which will finance all the developments and new agendas and the university administration approved the suggestion. Not only the Parking and Transit Task Force suggested to increase the parking price to the market value but also to provide the price menu to the faculty, staffs and students.

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