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Show Klondike of tuition, federal grants... BY PHILLIP M.HOWARD JR. Chronicle Staff Comparing the University to a hard-pressed prospector wading the Klondike of tuition and government gov-ernment grants to a Sutter's Mill of alumni gifts and state appropriations appropri-ations may not be far wrong. Quiet desperation sets in when the life-giving sources of University Univer-sity funding dwindle. And that 1 may just be the mood the University Univer-sity is beginning to find itself in-quiet desperation as to its financial fi-nancial future. "About two-thirds of the na-.. na-.. Upoq and universities. felt not only throughout the country, but also here at the University. Four Sources of Funds The University is funded through four main sources. They are: tuition, government grants and aid dealing with any form of research such as heart or upper air research, alumni gifts of which an example would be the money donated by businessman J. Willard Marriott to the library, and finally state appropriations. One-Third from State bulletin of March 23, the appropriations appro-priations act passed by the Legislature Legi-slature "provides S50.4 million in state support to higher education, of which $23.5 will go to the University. This figure represents an 11.1 percent increase statewide state-wide and a 9.5 percent increase for the University. "However, in view of anticipated antici-pated enrollment increases," the bulletin continues, "and a 5.5 percent hike in the consumer price index, the new appropriation appropria-tion does not represent an increase in-crease in state support to the University ." I i.j j.1 r president of the University, said the budget has not been made for next year, but he points out that 1972 will be a critical year for funds. "Funds have been delayed, and there is no money for improving improv-ing existing programs." Coming Year Important In the funding area of government govern-ment grants and aid, Dr. William S. Partridge, the University's vice president for research, sees the coming year as even more important impor-tant than the past for obtaining finds that most chancellors, presidents, presi-dents, provosts and deans Irace the beginning of their financial difficulties to the last three or four years, when several things happened at once: There was a decline in the rate of income growth, an increase in the range of activities considered desirable on campus many more expensive graduate programs were initiated, for example-and a rise in academic aca-demic standards. In short, costs rose rapidly while income rose slowly. "In response to this new condition, condi-tion, which came hard on the hills nfliKh rlnvs earlier in the decade. with a total of some 5.6 million students, are either in financial difficulty or headed for it," reads an article from the February edi- tion of Fortune Magazine entiled, "A Purely Academic Depression." Carnagie Commission This estimate was made recently re-cently by the staff of the Carnegie Commission on Higher Education and was based on a report prepared pre-pared for the commission and the Ford Foundation by Dr. Earl F. Cheit, a professor of business administration ad-ministration at Berkeley and erstwhile erst-while executive vice chancellor at that school. The so called Cheit report, enti- Inasmuch as the University receives re-ceives roughly one third of its operational funds from state appropriations, ap-propriations, it sends a budget to the State Board of Higher Education, Educa-tion, detailing .what it thinks it will need to run the University for the coming year. The Board looks over the proposals, cut any financial finan-cial flotsam or transfers in areas say from building to maintenance. Every school of higher education educa-tion in the state submits budgets to the board, which inturn lumps them into one bill which is presented pre-sented to the Legislature's Appropriations Appro-priations Committee for Higher Education. The proposed budget is processed, pro-cessed, usually getting cut before ine ureaiuiown, men, oi state support to the University (excluding (exclud-ing federal funds) goes something like this: Areas given additional funds for 1971-72 are in instruction and general support up $ 1 .8 million to $19,489,000; the College of Medicine Medi-cine up $ 1 82,000 from $2,200,000 set for 1970-71; and curiously, the Seismograph Station Sta-tion which received nothing last year will receive $40,000. Those areas which were cut are: Center for Economic Development Develop-ment cut $10,000 from last year's $100,000 budget; disadvantaged students (Blacks, Chicanos, Indians, Indi-ans, Whites) will receive $95,000, a loss of $5,000 over last year; and finally, the Utah Museum of Natural History, which received federal grants. But he added, "if the departments depart-ments do not have enough money, it makes the situation difficult, becuase the federal government expects the University to match funds. They want to subsidize, but not in the full amount." And indeed, there are also alumni donations which many pooh-pooh as ineffective. But Lee Ence, director of the Alumni Association, As-sociation, hopes to keep the existing exist-ing alumni programs operational. She says the Alumni Association works in three ways to solicit funds. It deals with on-campus programing and community com-munity relations between the so called "town and gown;" regional programing to establish chapters throughout the United States schools first declined new obligations, obliga-tions, then scaled down new activ- i " itics, then reduced costs, such as maintenance, that were not central cen-tral to the academic program-and finally made cuts in the academic program itself." Dr. Cheit says his classifications are not intended to be judgements of the quality of programs in different schools or, for that matter, mat-ter, the quality of management. He says among the 1 1 institutions institu-tions in the sample judged to be in financial difficulty are such prestigious pres-tigious schools as Standford and the University of California at Berkeley, as well as New York University and Fisk University (which is one of the most prominent promin-ent of the predominantly black schools). AID L U S M T N $$$APPROPRIATION S $$$$$$ G T S T RESEARCH S A A I T N S FEDERAL TUITION T S A N C E Disproportionate Representation "What is notable about these 1 is the disproportionate representation repre-sentation of private colleges, small black colleges and colleges in urban ur-ban settings. The income squeeze ; has been building up for a long time at private colleges, which also discovered in recent years that the new programs and gener- . ally higher standards were not matched by larger gifts and could not be offset by higher tuition." He concludcds his report by saying that 18 institutions "headed for financial difficulty" include such national research-oriented research-oriented universities as Harvard, Chicago and Michigan; liberal-arts colleges such as Carleton and Pomona, Po-mona, and the City Colleges of Chicago. "The schools on this list are, by definition, not reducing basic educational edu-cational quality to stay solvent, but they are trimming expenses, raising tuition and scrambling harder for private contributions." Although the University was not mentioned as one of those schools included in Dr. Chcit'i survey, it appears to fall into the category of institutions "headed for financial difficulty." If one used Dr. Click's criteria, this categorization cate-gorization is quite accurate. It is apparent that many current services ser-vices and programs will not be able to plan for reasonable growth or will even have to be cut back in order to accomodate the limited funding which has been made available to the University for the coming year. Whether or not the University can pull out of its present course will depend on many factors, not the least of which is the general economic situation of the country. I tied. "The New Depression in I Higher Education," is based upon detailed on-site campus interviews at a sample of 41 institutions, ranging from large private universities univer-sities like Harvard to small two-year two-year public community and parochial colleges. Three Categories of Need Dr. Cheit divides the 41 sel-J" sel-J" ected schools and universities into II three categories: "in financial dif-1 dif-1 ' ficulty, headed for financial diffi-lJ diffi-lJ culty or not in financial difficulty." Institutions were put l' in the first category if financial problems had forced them to give ,i: up services or programs earlier considered. Those "headed for fi-:!,' fi-:!,' nancial difficulty" either could S not count on continuing current ' services or programs or could not plan for reasonable program growth. But where does our University ,l stand in this report? Administrative officials con-' con-' tactcd recently at the Park Bldg., were understandably noncommittal non-committal on the University's fi- ' nancial future, because neither the budget has been drawn up for the coming year, nor has a tuition .f salary increases and other financial decisions been finalized. ' t; Changes in Presidency jit ipf One reason given by a Park erW Bldg- source for this delay, was ale?'; the recent changing of the presi- .. dential guard, from Dr. James C. J10 Fletcher to Dr. Alfred C. Emery, lull!5 professor of law and former pro- ! vst at the University. In any event, the commotion ilj raised by certain collegiate proph- I fj I s of doom who augur economic fl.W gloom for the campus, is being It it becomes part of the General State Appropriations bill. Yet if there is any cut in the state's requested revenue, said Chronicle staffer Craig Hansen, who covered the recent legislative session, it will be felt in the appropriations allotted for the schools. Mr. Hansen also said for every additional $600,000 the University Univer-sity needs, the tuition is raised roughly $10. So according to a Park Bldg. $60,000 last year, will not receive any tiling, and the bulletin says this will put this non-profit organization organ-ization on campus in "serious financial straits." Areas which will receive funds equal to last year are: research and training grants, community medicine, hospital, geological survey sur-vey and coal research. In view of the above, what do the cuts mean and what can the University expect? Mr. Ted E. Davis, financial vice for University alumni; and fund raising by person to person solicitation, solicit-ation, direct mail or by telephone. The latter is part of a new national na-tional approach called "telcfund-ing," "telcfund-ing," in which 40 or so volunteers make calls to alumni and others for two hours, hoping to raise money. Began Three Years Ago Meanwhile, Dr. Cheit and his report for the Carnegie Commission Commis-sion and the Ford Foundation, ...Sutters Mill of alumni gifts, subsidy |