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VOLUME 16, NuMBER 5 JANUARY, 197 0 UNIVERSITY OF PENNSYLVANI A President Harnwell Cites Need for Economy As Costs Outrun Income in University Budget President Hainwell told a special meet- ing of deans, directors and department chairmen on December 19, that increases in operating costs are outrunning growth in the University's revenues and that the Finance Committee of the Trustees has directed that every effort be made to re- duce anticipated expenditures for the re- mainder of this fiscal year as well as to achieve a balanced budget in 1970-71. Dr. Harnwell pointed out several basic causes for the inelasticity of the Univer- sity's income in comparison to its ex- penditures, and cited the limitations upon each of the major sources of revenue. "At independent institutions such as ours," he said, "commitments to student financial aid have offset each increase in tuition to a greater degree, thus reducing the net gain in revenue which would be applicable to other purposes." With respect to Federal grants, he noted that almost every grant requires a commitment of University funds, and "this tends to aggravate the budget im- balance rather than to alleviate it." In- come from invested funds continues to increase, he reported, but despite more aggressive management of investments, the income from these funds generally represents a declining portion of total revenues at the University and at com- parable institutions. Although total gifts from private sources have exceeded $22 million in each of the past four years, more than twice the amount contributed annually ten years ago, Dr. Harnwell pointed out that only ten to 15 per cent of these gifts generally can be applied to the operating budget. "Most gifts from private sources, and especially the largest ones, are restricted to specific purposes, usually buildings or endowment, and as such do little to help in the particular problem of balancing the operating budget," he explained. The annual appropriation from the Commonwealth of Pennsylvania has been instrumental in the University's ability to hold operating deficits to manageable levels, Dr. Harnwell said. The state ap- propriation process itself, however, has added a major element of uncertainty to the University's revenue picture and there- fore into the annual budgetary process and long-range planning, he added. "These are strategic dollars, for they are almost totally unrestricted, but as yet no action has been taken on our appropria- tion for the current fiscal year," Dr. Harnwell stated. "Efforts to place the system (of ap- propriations) on a firm base by develop- ing an educational rationale and estab- lishing objective criteria for the dollar amount of support began in the mid- 1950's and are continuing," Dr. Harnwell said. "The State Board of Education's Master Plan for Higher Education, pub- lished in 1966, recognized the importance and cost of graduate education by pro- posing that independent institutions re- ceive grants of $5,000 per doctoral can- didate enrolled. Several versions of this proposal have been included in legislation introduced in the General Assembly, but none of the bills has come to a vote. Currently, the State Board is revising the Master Plan, and the Commonwealth's concern for private higher education is receiving particular attention. "Fourteen other independent colleges and universities in Pennsylvania are state- aided, not including the three state-related universities - Temple, Pittsburgh, and Penn State. Although appropriations to (continued on page 4) Possible Economies Are Examined In Budget Subcommittee Reports Citing the directive of the Finance Committee of the Trustees that efforts be made to reduce anticipated expendi- tures for the remainder of fiscal 1970, and that a balanced budget be sought for fiscal 1971, President Harnwell told the special meeting of deans, directors, and department chairmen on December 19, that four subcommittees of the Univer- sity Budget Committee have been formed to help implement these directives. Re- ports from the subcommittees were pre- sented at the meeting. Dr. Harnwell, who serves as chairman of the Budget Committee, said that the subcommittees were formed in the follow- ing areas: Academic-chairman, Dr. Otto Springer, professor of German; Graduate Fellowships - chairman, Dr. John N. Hobstetter, dean of the Graduate School of Arts and Sciences and vice-provost for research; Admissions and Financial Aid- chairman, Dr. Robert Maddin, director of the School of Metallurgy and Materials Science; and Administrative - John C. Hetherston, vice-president for coordinated planning. In the absence of Dr. Maddin, Mr. He- therston reported for both the Administra- tive Subcommittee and the Subcommittee on Admissions and Financial Aid. Mr. Hetherston noted that the Sub- committee on Admissions and Financial Aid was to consider the short-range as- pects of the related matters of tuition and scholarships, the size of the entering class, and room rental rates. Concerning tuition and fees, Dr. Maddin has met with the Committee on Tuition and Fees and is awaiting its recommendations. He said that Harold E. Manley, vice- president for business and financial af- fairs, has informed the subcommittee that little or no overall University budgetary improvement can be expected in relation to possible adjustments in the residential rate schedule. In considering the size of the entering class, the subcommittee has consulted with the Committee of Deans (continued on page 2)

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Page 1: President HarnwellCites Needfor Economy AsCosts ... · President HarnwellCites Needfor Economy AsCosts OutrunIncomein UniversityBudget PresidentHainwelltoldaspecial meet-ing of deans,

VOLUME16, NuMBER 5 JANUARY, 1970

UNIVERSITY OF PENNSYLVANIA

President Harnwell Cites Need for EconomyAs Costs Outrun Income in University Budget

President Hainwell told a special meet-ing of deans, directors and departmentchairmen on December 19, that increasesin operating costs are outrunning growthin the University's revenues and that theFinance Committee of the Trustees hasdirected that every effort be made to re-duce anticipated expenditures for the re-mainder of this fiscal year as well as toachieve a balanced budget in 1970-71.

Dr. Harnwell pointed out several basiccauses for the inelasticity of the Univer-sity's income in comparison to its ex-penditures, and cited the limitations uponeach of the major sources of revenue."At independent institutions such as

ours," he said, "commitments to studentfinancial aid have offset each increase intuition to a greater degree, thus reducingthe net gain in revenue which would beapplicable to other purposes."With respect to Federal grants, he

noted that almost every grant requires acommitment of University funds, and"this tends to aggravate the budget im-balance rather than to alleviate it." In-come from invested funds continues toincrease, he reported, but despite moreaggressive management of investments,the income from these funds generallyrepresents a declining portion of totalrevenues at the University and at com-parable institutions.Although total gifts from private

sources have exceeded $22 million in eachof the past four years, more than twicethe amount contributed annually ten yearsago, Dr. Harnwell pointed out that onlyten to 15 per cent of these gifts generallycan be applied to the operating budget."Most gifts from private sources, andespecially the largest ones, are restrictedto specific purposes, usually buildings orendowment, and as such do little to helpin the particular problem of balancingthe operating budget," he explained.The annual appropriation from the

Commonwealth of Pennsylvania has beeninstrumental in the University's ability tohold operating deficits to manageablelevels, Dr. Harnwell said. The state ap-

propriation process itself, however, hasadded a major element of uncertainty tothe University's revenue picture and there-fore into the annual budgetary processand long-range planning, he added."These are strategic dollars, for they arealmost totally unrestricted, but as yet noaction has been taken on our appropria-tion for the current fiscal year," Dr.Harnwell stated.

"Efforts to place the system (of ap-propriations) on a firm base by develop-ing an educational rationale and estab-lishing objective criteria for the dollaramount of support began in the mid-1950's and are continuing," Dr. Harnwellsaid. "The State Board of Education'sMaster Plan for Higher Education, pub-

lished in 1966, recognized the importanceand cost of graduate education by pro-posing that independent institutions re-ceive grants of $5,000 per doctoral can-didate enrolled. Several versions of thisproposal have been included in legislationintroduced in the General Assembly, butnone of the bills has come to a vote.Currently, the State Board is revising theMaster Plan, and the Commonwealth'sconcern for private higher education isreceiving particular attention.

"Fourteen other independent collegesand universities in Pennsylvania are state-aided, not including the three state-relateduniversities - Temple, Pittsburgh, andPenn State. Although appropriations to

(continued on page 4)

Possible Economies Are ExaminedIn Budget Subcommittee Reports

Citing the directive of the FinanceCommittee of the Trustees that effortsbe made to reduce anticipated expendi-tures for the remainder of fiscal 1970,and that a balanced budget be sought forfiscal 1971, President Harnwell told thespecial meeting of deans, directors, anddepartment chairmen on December 19,that four subcommittees of the Univer-sity Budget Committee have been formedto help implement these directives. Re-ports from the subcommittees were pre-sented at the meeting.

Dr. Harnwell, who serves as chairmanof the Budget Committee, said that thesubcommittees were formed in the follow-ing areas: Academic-chairman, Dr. OttoSpringer, professor of German; GraduateFellowships - chairman, Dr. John N.Hobstetter, dean of the Graduate Schoolof Arts and Sciences and vice-provost forresearch; Admissions and Financial Aid-chairman, Dr. Robert Maddin, directorof the School of Metallurgy and MaterialsScience; and Administrative - John C.

Hetherston, vice-president for coordinatedplanning.

In the absence of Dr. Maddin, Mr. He-therston reported for both the Administra-tive Subcommittee and the Subcommitteeon Admissions and Financial Aid.Mr. Hetherston noted that the Sub-

committee on Admissions and FinancialAid was to consider the short-range as-pects of the related matters of tuition andscholarships, the size of the entering class,and room rental rates. Concerning tuitionand fees, Dr. Maddin has met with theCommittee on Tuition and Fees and isawaiting its recommendations.He said that Harold E. Manley, vice-

president for business and financial af-fairs, has informed the subcommittee thatlittle or no overall University budgetaryimprovement can be expected in relationto possible adjustments in the residentialrate schedule. In considering the size ofthe entering class, the subcommittee hasconsulted with the Committee of Deans

(continued on page 2)

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Subcommittees(continued from page 1)

of the Undergraduate Schools and withthe Committee on Admissions. The sub-committee is examining the implicationsof an increase in the size of the enteringclass and in the number of transfer stu-dents admitted. The total undergraduateenrollment would increase to the 7,800level which is projected in the IntegratedDevelopment Plan. This is based on theassumption that half the students in theCollege and the College for Womenwouldcomplete their requirements on the aver-age in seven terms, while Wharton andengineering students would continue totake eight terms. Therefore the total un-dergraduate student body would be inresidence 3.82 academic years. Accord-ingly a larger entering class includingtransfer students would be justified tomaintain the present level of enrollment.Mr. Hetherston emphasized that Dr. Mad-din's report concluded with a recommen-dation that financial aid policy and ad-missions policy "be reconsidered throughnormal University committee channels atthe earliest possible time, looking towardformulating a longer range, coordinatedpolicy on admissions and financial aid."

Reporting next for the AdministrativeSubcommittee, Mr. Hetherston noted thatmany possibilities are being explored toachieve economies in administrative of-fices. He cited as areas under study,publications, printing expenses, xeroxingpractices, certain cleaning and mainten-ance services, and the possible poolingof secretarial services. Budget administra-tors have been reminded that vacancies.in A-i (administrative staff) positionsmay not be activated without prior ap-proval, and that travel for A-i personnelin the business divisions will be permittedonly when it is absolutely essential.He emphasized that the greatest co-

operation will be obtained if equivalentcuts are made throughout the Universitygenerally and that in making these cuts,administrators wish the University com-munity to know that the extent of someservices and activities inevitably will notbe as great as the administrators as indi-viduals would like them to be.

In the absence of Dr. Springer, Dr.Hobstetter reported for the AcademicSubcommittee as well as for the Subcom-mittee on Graduate Fellowships.

Concerning the work of the AcademicSubcommittee, Dr. Hobstetter said that a"fair share" of budget reductions wouldhave to be drawn from the A-2 budget(faculty), and that cuts of up to 10 percent would be needed in the A-1, A-3 andcurrent expense budgets of the academicdepartments. The task of the Academic

Two Directors Named to PostsAt New Annenberg Center

Herbert L. Shore has been appointedDirector of Perlorming Arts and RichardKirschner has been named Managing Di-rector of the Annenberg Center for Com-munications Arts and Sciences, which isscheduled to open in the spring. Their ap-pointments were announced by Dr. GeorgeGerbner, Dean of The Annenberg Schoolof Communications.Theater groups with which Shore has

worked include the Brandeis Forum Thea-tre at Brandeis University, the Universityof Denver Theater, the Stanford Theater,the San Francisco Labor Theater, Circlein the Square, and in the-Philad1phia area,the Hedgerow Theatre and the Neighbor-hood Playhouse. He has directed morethan 75 productions including a numberof original plays and American premieresof works by foreign playwrights. His ownplays have been produced in England,Asia, and Africa as well as in this country.A theater arts faculty member at Bran-

deis University (1961-64) and at the Uni-versity of Denver (1964-67), Shore wasgranted leave in 1965 to serve as Drama

Consultant in Uganda, Kenya, and Tan-zania on a grant from the African andAmerican Universities Program. For thepast four years, he has been chairman ofthe department of theatre arts and directorof the Theatre Ensemble at UniversityCollege, Dar es Salaam, Tanzania.

Before his appointment here, Kirschnerwas a consultant to the Special StudiesProject of the Rockefeller Brothers Fund.He was Executive Director of the TheatreDevelopment Fund, supervising its in-augural program of subsidy to Broadwaytheater. He also served as General Man-ager1)1 the Saratoga Performing Arts Cen-ter in Saratoga Springs, N.Y., the summerhome of the New York City Ballet andthe Philadelphia Orchestra.From 1955 to 1962, Kirschner held ad-

ministrative posts at the American Shake-speare Festival Theatre & Academy inStratford, Con"., where he handled pro-motional and fund-raising activities and,as Educational Director, created the firstmajor American program of theatricalperformances for student audiences.

Subcommittee, he said, is to recommendhow these reductions may be made whileat the same time maintaining the existinglevel of teaching programs if that is pos-sible. The Subcommittee feels that theregular budgeting process should be usedto the greatest possible extent in eachSchool. Each Dean is being given a tar-get reduction for his A-2 budget and thesetarget amounts are proportionately equal.

Each Dean is being asked to developwith his department chairmen the meansof achieving this reduction. Scholarlyleaves and promotions are being affectedbut by far the greatest reductions are be-ing obtained by the inactivation of vacantpositions for next year. Deans are freeto argue for exceptions to the targets,but only on the basis of demonstrableneed to maintain existing programs atpresent levels. "The Subcommittee un-derstands that these limitations are re-gressive and would be extremely seriousif continued much beyond next year. Asinterim emergency measures, however,they seem wholly inescapable," Dr. Hob-stetter said.

The Subcommittee on Graduate Fellow-ships is just forming, Dr. Hobstetter said,and its timetable is not as pressing. "Thepotential savings it might achieve seem un-likely to be large, but we cannot ignorethis in an effort to save money for instruc-tional purposes," he said. The full-time

enrollment in the Graduate School ofArts and Sciences, he noted, has declinedalmost 20 per cent in the past two yearsand some other schools have also seendeclines. Tuition income has declined inproportion, but graduate fellowship aidfrom University sources has not yet beendecreased. "Since Federal fellowship pro-grams have fallen to about one-half theirearlier number, the proportion of our stu-dents supported by the University hasactually increased," Dr. Hobstetter said.The Subcommittee on Graduate Fel-

(continued on page 5)

Map Collection Is ReopenedThe Department of Geology has an-

nounced that the University's topographicmap library is once again in order andopen for use. It is temporarily located inRoom 5, Hayden Hall.Through the cooperation of William T.

Pecora, director of the United States Geo-logical Survey, and Morris R. Jones, chiefof its Branch of Distribution, more than6,000 current topographic maps of thenation were presented to the University.

All U. S. Geological Survey maps inprint ranging in scale from 1:24,000 to1:1,000,000 are now available, in additionto a large number of historically importantout-of-print maps from the University's oldcollections. Altogether, the library now hasapproximately 18,000 maps.

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Current Funds 1968-1%9 (Chart 1)

4% Endowment and other invested income7% Gifts and grants8% State appropriations

20% Student fees

25% U.S. Government

36% Sales and services of organized activities

.a2% Libraries3% Plant operation and maintenance-5% Auxiliary enterprises-7% Student aid8% Administration and general

24% Organized research

25% Instuction and departmental research

26% Organized activities relatedto instructional departments

How it was provided ($149,898,522)Howit was spent ($151,647,416)

Basic Budget 1968-1969 (Chart 2)

3% Endowment and other invested income

17% Sales and services oforganized activities

23% State appropriations

57%Student fees

.4% Libraries5% Organized activities related

to instructional departments-9% Plant operation and maintenance11%Student aid

11% Administration and general

14% Auxiliary enterprises

46% Instruction and departmental research

How it was provided ($51,012,814) How it was spent ($52,835,035)

Restricted Budget 1968-1969 (Chart 3)1% Student fees.5% Endowment and other invested income9% Sales and services of organized activities

10% Gifts and grants

36% Hospitals-patient receipts

39% U.S. Government

2% Administration and general2% Organized activities related

to instructional departments6% Student aid15% Instruction and departmental research

37% Organized research

38% Hospitals

How it was provided ($98,885,708) How it was spent ($98,812,381)

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Budge:(continued from page 1)

the University do not approach the mag-nitude of those to Temple, Pittsburgh andPenn State, the Commonwealth's supportis built into our fiscal structure."He then called on Harold E. Manley,

vice-president for business and financialaffairs, to discuss the current cash situa-tion of the University, as well as the out-look for the current fiscal year and for1970-71. Mr. Manley noted that, whilethe University has available a total of$22.9 million in lines of credit, its presentborrowing to meet current expenses totals$14.8 million as of December 19 (com-pared to $7.7 million at this time lastyear). The $7 million of additional bor-rowing is accounted for by the delay instate appropriations as well as an in-crease in hospital accounts receivableand slower payments from Federal gov-ernment sources.

Turning to the budgetary outlook, Mr.Manley said that, as of December 18,the estimated operating deficit in 1969-70would be nearly $5.2 million. After ap-plication of the accumulated balance (asof July 1, 1969) in the Operating Re-serve Fund and the estimated receipts for1969-70 in this fund (e.g., Annual Giv-ing and unrestricted endowment income),there would be an estimated overdraft inthe Operating Reserve Fund of more than$900,000 by the end of fiscal 1970 inJune. The basic educational operatingbudget for fiscal 1969 is depicted in chartNo. 2.

Mr. Manley said that the critical deficitsituation exists in this budget, rather thanin the "restricted" budget, which is de-picted in chart No. 3. Shown in thischart is income over which the Univer-sity can exercise no discretion in appor-tionment to activities on the expenditureside and which cannot be put to uses inany other budget. For example, by di-rection of the Trustees, the UniversityHospital and the Graduate Hospitalmust operate completely within their ownfinancial resources. These hospital bud-gets represent 38 per cent of the "re-stricted" budget expenditures. The "re-stricted" budget is essentially balancedwith income offsetting expenditures.

Moving on to the basic educational op-erating budget, Mr. Manley pointed outthat tuition is the largest component inthis area, while the state appropriation issecond largest (see chart No. 2). Thesetwo sources provide 80 per cent of in-come applicable to this budget. Underthe policy toward which the Universityhas been striving that no prospective un-dergraduate student should be deterredfrom enrolling because of financial rea-sons, student aid (exclusive of loans) has

Yale and N.Y.U. Budget ProblemsDescribed in Recent Statements

Excerpts from recent statements by of-ficials of New York University and YaleUniversity highlight the increasing diffi-culty of balancing budgets this year atsome of the nation's largest independentuniversities.

In a memorandum issued in late Oc-tober to deans, directors, and facultymembers of Yale University, ProvostCharles H. Taylor, Jr., said: "The basicproblem for Yale's budget in 1970-71(in common with that of many otheruniversities) is an anticipated increase ofincome which is significantly below therate of recent years. It is substantiallyless than would be necessary to maintainall current activities at present levels andstill keep up with the general inflationof university costs."...The Officers and the Corporation

committees have agreed on two princi-ples: First, we are determined not to losethe momentum gained in recent years, es-pecially as we believe the situation,though serious, will probably improvesignificantly in the years beyond 1970-71.Second, Yale's survival as a leading uni-versity depends more upon being dis-tinguished in what we do than on thescope of what we do. It will be better,we are convinced, to cut back selectivelyon the University's activities than to doeverything we are now doing a little lesswell.

"We intend not to fall back from theadvances made in faculty and staff salariesand to keep pace with competitive andinflationary pressures... We have recom-mended and the Corporation has ap-proved the general proposition that weshould make our cuts in terms of things,rather than people, in seeking these sav-ings. Secondly, we must adopt a policy ofno net increases in the present numbersof faculty and staff... All senior teach-ing positions vacated for whatever reasonwill revert to the University... The main-tenance of junior faculty positions in par-ticular schools and departments will de-pend upon demonstrable teaching needs.

"In sum, then, this will be a budgetyear in which many expenses, especiallyfor physical improvements, must be defer-red... "I am confident that it will bepossible to maintain Yale's momentumin the essential support of individual fac-ulty, students, and staff, the persons onwhose quality Yale's excellence depends."

In a December memorandum to thefaculty, students and staff of New YorkUniversity, President James M. Hesterstated:"A confluence of circumstances is put-

ting severe financial pressure on the Uni-versity at the very time when the effectsof inflation necessitate substantial in-creases in faculty and staff salaries. This

(continued on page 5)

increased in the past decade in all divi-sions of the University from $3.6 millionto $11.3 million, of which nearly $6 mil-lion is supported by the basic operatingbudget. Under such a policy, the Uni-versity has found that each time tuitionis raised, the net amount realized (afterthe necessary additions to student aidbudgets) becomes smaller. For the cur-rent academic year, tuition was increasedgenerally by $200 to a level of $2,350per year (compared to $1,400 ten yearsago) but the University realized only 57cents of additional income from each ex-tra dollar of tuition, while the other 43cents were allotted to student aid. "Witha continuation of this policy, it is evidentthat a point could be reached when 100cents of every tuition dollar, gainedthrough an increase, would automaticallybe returned to student aid budgets tomaintain the current aid policies," Mr.Manley said.

Projecting beyond the current situationinto fiscal 1971, Mr. Manley said that a"real" deficit of $3.4 million could occur,

even without making provision for infla-tionary factors in costs of salaries, sup-plies or services. In detail, the operatingdeficit for fiscal 1971 would reach $5 mil-lion to which must be added the $900,000overdraft of the Operating Reserve Fund(as of June 30, 1970). Receipts of about$2.5 million from Annual Giving and en-dowment income would be applied to this$5.9 million total deficit to reduce it tothe $3.4 million "real" deficit.

Mr. Manley cited as a "last line of de-rense" certain unrestricted funds, totalingabout $9 million, which are now investedand functioning as endowment, but whichcould be expended by decision of theBoard of Trustees.

Dr. Harnwell then noted that there arecertain factors which bear more heavilyon the financial position of major univer-sities than on smaller, more specializedinstitutions. The principal reason amongthese is the responsibility of universitiesfor graduate and professional education,which is the most expensive single type of

(continued on page 5)

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Budget(continued from page 4)

education. "The academic influence aswell as the expenses of graduate and pro-fessional education are evident at Pennsyl-vania in terms of faculty salaries, costs ofresearch, the size of libraries, and the needfor extensive computer facilities," he said.He also called attention to the recent

self-study of 10 major independent uni-versities, which showed that, as a group,they operated at a surplus which was con-stantly decreasing from 1961 to 1966.Then they crossed into a deficit opera-tion and now anticipate increasing deficitsin the years ahead. The universities par-ticipating in the study, in addition toPennsylvania, were Brown, Chicago, Co-lumbia, Cornell, Dartmouth, Johns Hop-kins, Princeton, Stanford and Yale. Dr.Harnwell also referred to a recent studyconducted by Dr. William Bowen, provostof Princeton University, for the CarnegieCommission on the Future of Higher Edu-.cation (under the leadership of Dr. ClarkKerr, former Chancellor of the Universityof California) which showed that the typ-ical independent university with a bal-anced budget in 1965-66 would show anannual operating deficit of $20 to $28million in 1975-76, if present trends andpolicies continued. As shown in Dr. Bow-en's study, the factors primarily respon-sible for productivity gains in the econ-omy at large have not affected higher edu-cation to a similar extent. The cost ofeducation will continue, therefore, to riseat a rate in excess of the general cost in-dex of the economy. At Pennsylvania, asat other similar institutions, the criticalfactor on the expenditure side is not somuch the increasing number of graduateand professional school students, as it isthe increasing cost per student for educa-tion.

Dr. John N. Hobstetter, vice-provostfor research and dean of the GraduateSchool of Arts and Sciences, commentedon the academic implications of the cur-rent budgetary situation. "We must pro-vide for each educational program thefunds it needs to establish or maintain itsquality, but at the same time we must ad-just the number of programs to fit ourmeans," he said.He noted that the new Academic Plan-

fling Committee has begun to assess theneeds of all programs and that it will rec-ommend five-year program budgets. Itwill continue to work for the progress ofthese programs and to recommend adjust-ments as developments occur or as oppor-tunities open."The core of the University must be

preserved and its quality protected andimproved," Dr. Hobstetter continued."Around the core are the special strengths

Towne School Faculty JoinHighway Research Project

in association with three other univer-sities, taculty of the department of civilengineering m the Towne School of Civiland Mechanical Engineering have joinedto form a Consortium of University Re-search Teams which is working under agrant of almost $300,000 from 21 statehighway departments to see if state high-way research and development activitiescan be coordinated.

Serving as a co-principal investigator inthe project is Dr. Sidney Shore, professorof civil engineering and director of thegraduate division in civil engineering. Hesaid that this project will examine problemsof designing and building horizontally-curved highway bridges. The project, whichis administered by the Bureau of PublicRoads of the U. S. Department of Trans-portation, will attempt to eliminate dupli-cation of efforts; to promote better coop-eration between states, bridge designers,and university researchers; and to permitcost reduction for the participating states.

Participating in the consortium are fac-ulty of Carnegie-Mellon University, Syra-cuse University, and the University ofRhode Island. Other University facultymembers participating in the project areDr. Frederic Roll, professor of civil engi-neering, and Dr. John Wilson, assistantprofessor of civil engineering.

Subcommittees(continued from page 2)

lowships will look into all these trends,and also into the possibilities of increas-ing student loans relative to fellowships,and will recommend possible savings fornext year. "It will be difficult to avoida recommendation that the total studentaid funds be reduced in proportion to de-clining enrollment," Dr. Hobstetter said.

that give us our distinctive character.These too, must be protected and im-proved. Still further around the core arethe candidate programs. Some of thesewe shall be able to build; others not.These decisions will be hard, but if theyare judicious . . . I feel certain that wecan have a solvent University," he con-cluded.

Dr. Harnwell added that "we have in-tended to suggest that this University pro-poses to continue to move forward, albeitin a more selective fashion than in recentyears, while we seek a more acceptablebalance in revenue and expenditure. Forthe present, at least, this requires an inten-sified effort at effective use of our re-sources and it requires the elimination ofall unnecessary expense."

Statements(continued from page 4)

condition is true of virtually every privateand public institution in the country. Weare determined to find ways to providesuch increases and to avoid unmanage-able operating deficits, but this will re-quire redirection of resources throughoutthe University. For this reason we areappointing a Commission on EffectiveUse of Resources made up of faculty,students, and administrators to serve asthe central body for a number of commit-tees that will analyze our income andexpenditures in every major area of Uni-versity activity."We can take courage from the fact

that many forces are working in the Uni-versity's favor: increased popularity ofthe urban university; acceptance by thestate of the obligation to provide financialsupport to private higher education; con-tinuing success of our fund-raising; theprobability of eventual federal institu-tional support of both public and privatehigher education; increasingly wide rec-ognition of the rising quality of theacademic programs and facilities of NewYork University.

"At the same time, a number of tem-porary forces are currently working toour disadvantage. Among them are thedraft regulations that have reduced en-rollment in our graduate and professionalschools; current cutbacks in federal sup-port for research and training; inflationthroughout the country with particularlysevere effects in New York City. In ad-dition, the impact on our budget of thecurrent and projected costs of operationsof new physical facilities is being feltduring this period.

"While some of the problems that weface are presumably temporary, the over-all combined impact is extremely seriousand requires intensive analysis and vigor-ous action. We must review all our or-ganizational structures and practices inboth academic programs and supportingservices to determine how we can useour resources for maximum educationalquality while avoiding deficits that wouldundermine the viability of the Univer-sity."

In a supporting memorandum, N.Y.U.Chancellor Allan M. Cartter wrote that"it is obvious that 1970-71 cannot be a'business-as-usual' year." He reportedthat projected expenditures will have tobe reduced by seven per cent to bringthe operating deficit to manageable pro-portions, and added that "normal budgetnegotiations can wring two to three percent out of most budgets without greatdamage, but to find seven per cent re-quires a fresh look at our traditionalstructure, procedures, and commitments."

5

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Retirement Plans Are SetBy Leonard C. Dill, Jr.Leonard C. Dill, Jr., assistant to the

president for community relations, has an-nounced his plans to retire this month.

Mr. Dill held executive posts at the Uni-versity for nearly 30 years. A 1928 gradu-ate of the College, he was alumni presidentof his class for 10 years after graduation.

In June, 1940, he liquidated his Phila-delphia investment firm, L.C. Dill, Jr., andCompany, to become secretary of the Gen-eral Alumni Society.He became director of alumni relations

in 1960, and in 1964-65 he directed theBicentennial program of the School ofMedicine. In 1965 he took on the assign-ment of developing and directing the PeaceCorps training program at the Universityfor volunteers going to India. In 1968, Mr.Dill accepted the newly-created post ofassistant to the President for communityrelations. In this position, he helped openUniversity facilities to community use,bringing as many as 1500 youngsters ontothe campus for summer recreation pro-grams.

"Leonard Dill epitomizes the loyalty anddedication which has been characteristic ofso many of the University's alumni and ad-ministrative staff over the years," said Pres-ident Harnwell. "His willingness to takeon new and experimental assignments at allstages of his career has stood the Univer-sity in good stead especially in the periodsof change, ranging from the early buildingof an alumni body, to the present emer-gence of the field of community relations."In retirement, Mr. Dill will continue aschairman of the board of the 137-year-oldjewelry firm of Bailey, Banks &Biddle.Healso remains active as a trustee of theCommunity College of Philadelphia, a postto which Mayor James H. J. Tate ap-pointed him in June, 1969.

APPOINTMENTS:DR. FAY AJZENBERG-SELOVE, research

professor of physics, has been appointed amember of the Committee of Nuclear DataCompilations of the Division of NuclearPhysics of the American Physical Society.DR. MICHAEL P. CAVA, professor of

chemistry, has been named to the editorialadvisory board of the Journal of OrganicChemistry, published by the AmericanChemical Society.

DR. DONALD N. LANGENBERG, professorof physics, has been appointed to the Na-tional Academy of Sciences!National Re-

Management Team at WorkOn Hospital Expansion PlanA management team is providing plan-

ning services for expansion of UniversityHospital.Arthur R. Freedman, director of the

Office of Planning and Design, and RalphL. Perkins, executive director of Univer-sity Hospital, said that MDCSystems Corp.of Philadelphia, and American Medi-Corp,Inc. of Bala-Cynwyd, Pa., have been se-lected to prepare an implementation planfor the design and construction phases ofthe expansion project. The team will alsoprovide engineering services to review theprogram's economic and other require-ments, and will manage the project duringconstruction phase.The results of the team's study will be

presented to the University and the Boardof Trustees in January prior to the continu-ation of design and start of construction.

search Council Panel advisory to the cryo-genics division of the National Bureau ofStandards.

DR. GEORGE CARDONA, professor of lin-guistics, has been named to the Interna-tional Bibliography Committee of theModem Language Association of America.

AUTHORS:DR. I.0REN EISELEY, Benjamin Franklin

Professor of Anthropology and the Historyof Science, is author of The UnexpectedUniverse, published by Harcourt, Braceand World.

DR. LuThER L. TERRY, vice-presidentfor medical affairs, is author of To Smokeor Not to Smoke (with Dr. Daniel Horn)published by Lothrop, Lee & Shepard Co.

DR. DONALD N. LANGENBERO, professorof physics, is co-author (with B. N. Taylorand W. H. Parker) of The FundamentalConstants and Quantum Electrodynamicspublished by the Academic Press.

STAFF APPOINTMENTS:Trrus D. HEwItYK has been named as-

sistant director of the Office of Planningand Design, where he has been principalplanner.

TRAVELERS & SPEAKERS:DR. DAVID SOLOMONS, professor and

chairman of the department of accounting,spoke on "Intracorporate Conflicts in In-ternational Business" as part of the KingMemorial Lecture at the University ofBritish Columbia. He also addressed agroup of faculty there on "The Determina-tion of Asset Values."

Among other things

Almanac is publishedmonthly during the aca-demic year by the Uni-versity for the informa-tion of its faculty andstaff.News items should be

sent by the first of themonth to:

Editor510 Franklin Building

University ofPennsylvaniaPrinting Office