Conant Report Shows 20 Million Budget Rise

Annual University expenditures totalled $20,000,000 more in 1951-52 than in 1931-32, retiring President Conant noted in his last Annual Report. Total expenditures for 1931-32 reached $13,807,084.46. For 1951-52, they climbed to $33,636,900.25.

Said Conant, "This budgetary expansion in the last few years is by no means a unique Harvard phenomenon. Quite the contrary . . . we are relatively conservative."

Conant cited the fact that while Harvard depends on government contracts for only eight percent of its annual income, "several leading institutions . . . are today operating with as much as half of their income form Government research contracts."

However, along with the tremendous budgetary increase, the Capital Funds of the University have also increased markedly. In June, 1932, Capital Funds were 130 millions at book value, 85 millions at market value; in June of last year, they were at 258 millions book value, and 308 millions, market value.

The reasons for the expanded budget, Conant explained, were the "temporary expansion of the student body in the demobilization period and the three-term calendar in many faculties. One would have imagined that with the return to more usual operating conditions and a reduced student body, the total expenditures would have fallen. Instead of which they rose rapidly and continued to rise."

Conant added that, in terms of the purchasing power of the 1940 dollar, total expenditures for last year increased only 50 percent over those of 1940-41; in terms of actual figures, the budget more than doubled.

A comparison of the sources of income of faculties shows that whereas two decades ago, the Faculty of Arts and Sciences relied on tuition, fees, and endowments for 89 percent of its income, it now depends on these sources for only 68 percent. A big, 16 percent chunk of income in the form of government contracts for 1952 was not available in 1932.

The Graduate Schools of Business Administration, Education, Law, Medicine, and Public Health all experienced budgetary increases of more than 100 percent during the two-decade period.

The Faculty of Arts and Sciences spent some four million dollars 20 years ago; last year the figures had risen above nine. Expenditures for the Dining Halls mush-roomed from one million to three million dollars.