Harvard Faculty Deficit May Reach $2.4 Million

The Faculty of Arts and Sciences may run a $2.4 million operating deficit--the largest in its history--in 1968-69, Dean Ford reported at yesterday's Faculty meeting.

Ford's budget report also showed that the Faculty had a surplus of more than $1 million for 1967-68, even though Ford had predicted a deficit last year.

The unexpected surplus last year, Ford said, came from "a better recovery than we had anticipated." But the 1968-69 budget will be much harder to rescue from its projected deficit than last year's was, he added.

The projected budget shows a drop of more than $1 million in Faculty income. Much of this will come from discontinued government grant programs, Ford said.

The Faculty's projected expenses are also more than $3.5 million higher than last year. Salaries for Corporation appointees will rise by $1.2 million, the report predicted, and nearly every other expense item will increase every by about 10 per cent.

Not Enough

If the projected $2.4 million deficit actually occurs, Ford said, the Faculty's "departmental balance" will not be enough to cover the deficit. The departmental balance is a reserve fund--of some $500,000--saved from Faculty surpluses, which can be used to make up any year's deficit. The last time the Faculty had a deficit-- one of $131,000 in 1966-67--the departmental balance was used to cover it.

The Faculty will probably have to borrow from the University Treasury if the 1968-69 deficit is larger than $500,000, Ford said. "We either have to borrow from them," he said after the meeting, "or else dip into unrestricted endowment--and that is something that northeastern universities are notably reluctant to do."

Ford added that a continued pattern of increasing deficits in the next few years could force a reassessment of the Faculty's plans and priorities for spending. "We would go to the Corporation, we would go to the students and the faculty," he said, "and ask 'What do we cut out? Where must we save money?"

After Ford gave his report, John T. Dunlop '46, David A. Wells Professor of Political Economy and director of the Faculty committee studying recruitment and retention of Harvard faculty, began discussion on his committee's report.

Before yesterday's meeting, several professors speculated that the Faculty would act on some of the Dunlop committee's proposals--especially those dealing with elimination of the Instructor post at Harvard. Ford said last night, however, that Dunlop gave only "introductory comments," and that action on the proposals might come in November. Dunlop was not available for comment after the meeting.