Study Forecasts Trouble For University Finances

Harvard is "heading for financial trouble," the Carnegie Commission on Higher Education reported Thursday in a study of the finances of 41 universities and colleges throughout the country.

"At Harvard University, increasing costs are relentless. During the 1960's operating costs rose at the average of 12 million a year much due to inflation," the report found.

Right now the federal government contributes about a third of the University's operating income. But federal support to Harvard is declining and federal fellowship and train-ship cutbacks are serious.

For the first time in fifteen years Harvard University is operating at a deficit. Federal cutbacks have severely weakened the School of Education, School of Design and Divinity School.

"It is a fair presumption that fiscal austerity in Washington hit the School of Education harder than the Law School," the Harvard memorandum Harvard and Money reported.

Graham T. Allison, assistant professor of Government, said, "It is clear that the Education School has had severe financial difficulties in the last years." Both Yale and Johns Hopkins Universities have already been forced to close their MAT programs.

"Our growth rate of income is no longer keeping pace and the chances of its being made to do so in the immediate future appear bleak indeed," said President Pusey.

Pusey is a member of the Carnegie Commission. Informed sources indicate that he played a major role in bringing about this financial study-one of the several on various topics the Commission is issuing this year.

Clark Kerr, Commission chairman, said that if educational institutions are to prosper the federal and state governments will have to contribute substantially more funds than in the past.

"The financial relation between the Federal Government and the entire higher educational system raises a host of unanswered questions," commented Harvard and Money.

According to Francis M. Bator, professor of Political Economy, ways will have to be invented to channel public funds to private institutions while "keeping the independence and integrity of these private institutions." Bator helped draft Harvard and Money.