Image provided by: Texas A&M University
About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (Aug. 25, 1971)
Page 4 College Station, Texas Wednesday, August 25, 1971 THE BATTALIOt Many universiti' 1 £• mi ^fir£K^Ti IT» 11 WASHINGTON, D.C.—Some of the nation’s major public-support ed state universities report they wound up the last academic year with deficits in operating funds and that costs will again outstrip budgets in the current year. In addition, more than half of the nation’s principal state univer sities and land-grant colleges say they can hope to do no more this year than maintain the status-quo unless additional resources are found to deal with staggering and constantly escalating costs and needs. The findings are disclosed in a new survey of the precise finan cial state of health of 99 multi campus public institutions of higher education holding mem bership in the 84 year-old Na tional Association of State Uni versities and Land-Grant Colleges. Seventy-eight of these institu tions i-esponded to a detailed questionnaire circulated by the Association. University of Maryland Presi dent Dr. Wilson Elkins, who also is President of the Association, commented that the study shows clearly that the financial crisis now buffeting U.S. higher educa tion very definitely includes pub lic universities and colleges. “A great many of these insti tutions have been forced by the financial squeeze to resort to stopgap measures which could ir reparably damage the fabric of public higher education in this country,” Elkins said. State universities and land- grant colleges reporting deficits in operating funds for the 1969-70 academic year included: The Uni versity of Alaska, Florida State University, Massachusetts Insti tute of Technology, and Cornell University — land-grant institu tions which are private members of the Association—the Univer sity of Michigan, Rutgers, South ern University, the University of New Hampshire, Oklahoma State University, Tennessee State Uni versity, the University of Ver mont and Virginia State College. Among public institutions pre dicting they also will end up the current year in the red are Alabama A&M University, Mas sachusetts Institute of Technol ogy, Cornett, University of Hous ton, University of Michigan, Uni versity of Maine, University of Alaska, Florida State University, Oklahoma State University, Uni versity of Vermont and Rutgers. Highlighting the mounting fi nancial crisis in higher education is the fact that up until five years ago, not a single public-support ed university in the United States had an operating funds’ deficit. The trend actually started in 1966-67 when the University of Nebraska reported an operating deficit for the year. By 1968-69, the trend had de veloped into a full-scale decline when nine state universities and land-grant institutions ended up with operating deficits. Some public universities are prevented by state law from run ning deficits. These institutions have therefore been forced to take extreme measures as a first step rather than a last resort. Others have had to dip into general re serve and endowment funds. Although a number of pressured institutions have put general funds and savings to work to ease the financial bind, most working capital of this type already has been depleted, the Association study shows. Some universities have been forced to borrow large sums of money for operating costs. Pennsylvania State University, for example, has for the past two years resorted to private lending institutions to find funds to meet operating costs because state ap propriations were not made in time to meet day-to-day expenses. Pennsylvania State reports it has borrowed a total of $88.55 million which will cost the uni versity in excess of $2 million in interest charges. The University of South Caro lina has been able to avoid a de ficit only by dipping into unre stricted endowment principal, which it has used for operating expenses. Rutgers and Cornell ended up with deficits last year even after going into endowment principal. Massachusetts Institute of Technology reports it has had to borrow money for student loans and capital costs. Universities also have tried to cope with financial pressures by instituting stringent economy measures. Sixty-nine of the 78 universi ties responding to the Associa tion survey report they have taken stopgap economy measures to help them stem the cost spiral. In order of frequency mention ed, these included: • Deferment of maintenance (44 institutions) • Elimination of new programs (42 institutions) • Faculty-staff freezes and cut backs (40 institutions) • Extension and research cut backs (17 institutions) • General reduction of expen ditures (13 institutions) Universities participating in the survey made the point that the three most frequently men tioned economy measures cannot be permitted to become a way of life if these institutions are to continue to maintain their pre eminence as viable academic cen ters. Deferment of maintenance is an easy first step in any economy wave. Yet extended reliance on this can lead to deterioration which serves only to worsen the overall picture. The University of California reports that a backlog of major maintenance needs to arrest de terioration on its nine campuses now stands at $6 million and is mounting rapidly. The University also reports that efficient use of existing facilities often has been prevented due to a lack of funds for necessary alterations to re store or convert outdated class rooms, laboratories and libraries. President Phillip R. Shriver of Miami University reports in the survey that there are now dem onstrable needs on his Oxford, Ohio campus alone for at least a half million dollars in deferred maintenance. In dealing with faculty and staff cutbacks, institutions in some cases have simply failed to fill positions as they have be come vacant. Other universities report they have not been able to add badly-needed faculty mem bers to teach increasing numbers of students. The situation at South Dakota State University offers a drama tic illustration of the strains cre ated by faculty and staff cut backs. The University reports the actual head count of students on its campus has grown 105 per cent in the past decade but it has been able to increase the number of instructors by only 50 percent. Faculty cutbacks have been ac companied by a curtailment in new programs, with 42 state uni versities reporting the elimination of new programs. Universities surveyed also re port they have carried out inten sive examinations of priorities in efforts to cut back costs. University of California at Los Angeles Chancellor Charles E. Young established special faculty committees to review a number of academic programs in the light of present and projected levels of state support. The committees were assigned to look for ways to save money through reduction, consolidation or elimination of programs. Ag journalism funds available Clayton Fund Scholarships will again be available this fall for agricultural journalism majors at Texas A&M. Dr. R. C. Potts, associate dean of agriculture, said The Clayton Fund of Houston has authorized use of up to $5,000 for the awards to be made during the 1971-72 school year. The dean said The Clayton Fund was funded by W. L. Clay ton, founder of Anderson, Clayton & Company. NOT TOO LOUD JUST WHISPER THIS . For the first time, Meal Coupon Discount Books espe cially designed for day students, will be sold at the same low price to any member of the student body, faculty and staff. Discount booklets may be purchased at the MSC Cafeteria and the Department of Food Services office, Sbisa Hall for immediate use. ‘QUALITY FIRST” President Willard Boyd of the University of Iowa called on every unit at the university to suggest ways of reducing existing expen ditures by five percent while in dicating the most critical new needs for the next biennium. President Robben Fleming of the University of Michigan also in stituted a searching examination of all programs in order to come up with an overall three percent budget reduction for 1971-72. The survey of financial prob lems at state universities and land-grant colleges revealed a growing list of pressing unmet needs at member institutions. Topping the list are additional faculty, new programs, additional classrooms and faculty and staff salary increases essential to keep pace with the inflationary spiral in the cost of living, additional equipment, plant maintenance and research funds. The outlook for public institu tions is even more critical when enrollment trends are studied. Experts predict that in another decade from 10 to 12 million stu dents will crowd into the nation’s universities and colleges compar ed with 7.5 million today. Of these new students, at least 80 per cent are expected to enroll in tax-sup- ported public institutions. The new survey by the National Association of State Universities and Land-Grant Colleges points out that an analysis of all other sources of university revenue leads to the conclusion that the possibility of increased federal support is the least explored. The facts disclosed in the sur vey indicate that federal aid di rectly to all inst; as well as pub meeting operating costs would be the most desirable form for this type of support. The survey results makeitclei:] that unrestricted operating aidfc institutions would best enable n. cipients to use the money when it is most needed. Some woiilj apply funds to faculty salaris some to innovative program some to interest on indebtednes ties stress tl this kind of program could 1 strongest feature. Hi Neighbor Says... WELCOME 1971-1972 AGGIES VMM NOW IN PROGRESS (i Buy Where Your Housing Dollar Gives You Tomorrows Home Today INTEGRITY QUALITY PERMANENCY . ... .. .... ....... . Marvin Durrani, Mgr. (an exciting new dimension in housing thatyou can afford | HI NEIGHBOR MOBILE HOME INC 3330 TEXAS AVE. (SOUTH HWY. 6, EAST BY PASS) COLLEGE STATION, TEXAS 1