Economic slowdown may force cutbacks
By KEVIN ALLEN
News Writer
An economic downturn and subsequent budget cuts are causing some students to worry about the financial health of the University and the effects those cuts will have on tuition and financial aid.
These concerns have arisen in the wake of a moratorium on the University's ambitious construction projects, the cancellation of plans to subsidize a larger, more comprehensive health insurance plan for graduate students and a 10 percent loss in the University's endowment during the 2002 fiscal year.
According to administrators, the University remains financially sound, but said that students could expect a reduction in spending and a probable increase in tuition in the near future.
As most students realize, tuition goes up every year and this year will likely be no different. However, according to Dennis Moore, a spokesperson for the University, the financial situation this year is worse than previous years and the next tuition increase may reflect that.
Moore also said the temporary freeze on construction plans is the only major step that has been taken so far regarding the University's budget, and that all funding cuts are speculation until the Board of Trustees makes final decisions about next year's budget at their meeting in early February.
"People on campus are already aware that things are going to be trimmed back," said Moore. "Everyone is looking for ways to economize, but the situation is not so draconian that we'd have to cut research projects and things like that."
Students can also depend on funding for their financial aid packages to remain stable, said officials. "Financial aid policies employed for this year will remain in tact for this year and next year," said Joe Russo, director of Financial Aid.
Russo concedes that other resources may need to be utilized in order to maintain the current level of financial aid. The goal of the financial aid office is always to maintain, if not improve, the level of financial aid that students receive, said Russo.
"That's an indication of the high priority the administration has for financial aid for students," he said.
Long-term decisions about financial aid will be made at the February Board of Trustees meeting.
After losing 10 percent of the University's endowment, which currently totals $2.55 billion, Moore said the University may consider changing its investment strategies, but that is not necessarily a result of the declining endowment.
"Investment strategies are always fluid, in good times and in bad," he said. "The University has a very diverse portfolio and we use many different fund managers."
A drop in donations has also impacted the University's economic situation. Overall giving to colleges and universities decreased last year for the first time since 1975, and many academic institutions have been forced to cut costs and layoff employees.
All News Stories for Monday, January 27, 2003
