Study Shows Financial Troubles in Higher Ed

Continuing a trend of widespread financial woes for higher education, 1991-92 saw a rise in budget cuts and tuition increases among the nation's public and private colleges, according to a survey released yesterday.

The study, conducted by the American Council on Education (ACE), surveyed a range of national colleges and universities. Fifty-seven percent of respondents said they cut their budgets during the 1991-92 academic year. Only 45 percent had experienced cuts the previous year.

Thirty-five percent of private colleges were forced to trim their budgets last year, the survey said. Fifty-five percent of private institutions were forced to raise their tuitions.

"I think this is, clearly, the most difficult period financially for higher education in a very long time," Presi- dent Neil L. Rudenstine said in an interviewyesterday. "Even though there have been prolongedperiods of squeezes, I'm not sure there's beenanything quite so deep as this."

"There is not a private college inMassachusetts which is not trying to save money,"said Clare M. Cotton, president of the Associationof Independent Colleges and Universities inMassachusetts.

Northeastern University has laid off "a numberof people," and Harvard has implemented an earlyretirement program, Cotton said.

But while private institutions have beenrunning "a pretty tight ship for the past decade,"they are generally better off then publiccolleges and universities, according to ACEspokesperson David R. Merkowitz.

"They have more flexibility...they aren'tsubjects of the state appropriations process," hesaid.

And the cuts private colleges have made notharmed those schools' academic programs, Cottonsaid. In some public colleges, students have beenunable to complete their degrees on time becausetheir departments have been eliminated. cottonsaid he knows of no similar incidents in anyMassachusetts private colleges.

The budget cuts and tuition increases haveresulted from both the national recession and thestates' fiscal difficulties, Merkowitz said. Butthe problem is also a product of longer-termtrends, he said.

Financial responsibility for such programs astransportation, prisons, housing and health carehas been shifted from the federal level to statelegislatures, he said. Higher education in thepublic sector must now compete with them for statelegislatures' attention. And unlike highereducation, many of those programs are notdiscretionary, he said.

"There's no indication that funding patternsare going to turn around very quickly," Cottonsaid.

Rudenstine said the lack of financial supportis a serious problem, and has been since 1970. Itis difficult to predict the resiliency of theeconomy, he said, but if the economic slumpcontinues, the effects could be extremelydamaging.

"Scarcer resources will be the order of theday," Rudenstine said.

Yet colleges' current financial hardships donot indicate declining-interest in highereducation, Merkowitz said. In fact, enrollment offirst-time, full-time undergraduates has increasednationwide, he said.

"This is not an industry in decline. Demand forhigher education is more than it's ever been,"said Merkowitz. The problem is in "institutionsnot having the resources to respond to thedemand."

Ira E. Stoll contributed to the reporting ofthis article.

"There is not a private college inMassachusetts which is not trying to save money,"said Clare M. Cotton, president of the Associationof Independent Colleges and Universities inMassachusetts.

Northeastern University has laid off "a numberof people," and Harvard has implemented an earlyretirement program, Cotton said.

But while private institutions have beenrunning "a pretty tight ship for the past decade,"they are generally better off then publiccolleges and universities, according to ACEspokesperson David R. Merkowitz.

"They have more flexibility...they aren'tsubjects of the state appropriations process," hesaid.

And the cuts private colleges have made notharmed those schools' academic programs, Cottonsaid. In some public colleges, students have beenunable to complete their degrees on time becausetheir departments have been eliminated. cottonsaid he knows of no similar incidents in anyMassachusetts private colleges.

The budget cuts and tuition increases haveresulted from both the national recession and thestates' fiscal difficulties, Merkowitz said. Butthe problem is also a product of longer-termtrends, he said.

Financial responsibility for such programs astransportation, prisons, housing and health carehas been shifted from the federal level to statelegislatures, he said. Higher education in thepublic sector must now compete with them for statelegislatures' attention. And unlike highereducation, many of those programs are notdiscretionary, he said.

"There's no indication that funding patternsare going to turn around very quickly," Cottonsaid.

Rudenstine said the lack of financial supportis a serious problem, and has been since 1970. Itis difficult to predict the resiliency of theeconomy, he said, but if the economic slumpcontinues, the effects could be extremelydamaging.

"Scarcer resources will be the order of theday," Rudenstine said.

Yet colleges' current financial hardships donot indicate declining-interest in highereducation, Merkowitz said. In fact, enrollment offirst-time, full-time undergraduates has increasednationwide, he said.

"This is not an industry in decline. Demand forhigher education is more than it's ever been,"said Merkowitz. The problem is in "institutionsnot having the resources to respond to thedemand."

Ira E. Stoll contributed to the reporting ofthis article.