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ERIC Number: ED052755
Record Type: RIE
Publication Date: 1971-Jun
Pages: 7
Abstractor: N/A
Financial Stress in Academe.
Morgan Guaranty Survey, p3-9 Jun 1971
The financial crisis that higher education is facing is largely an outgrowth of the unprecedented expansion that has occurred within the system during most of the past decade and a half. Budgets have increased more than sixfold since 1955 and enrollment has nearly tripled. This expansion, which was fostered in part by a marked increase in federal support after sputnik went up in 1957, led to overextension of numerous institutions. A key element in the rising college budgets were the unusually large gains that faculty salaries registered. Other factors leading to increased expenditures were foundation grants that required colleges to continue the projects, and growing student demands for services. Institutions have responded to the financial squeeze, which began in the latter 1960's when funds from government and voluntary contributors ceased to rise at their earlier rapid rates, by stepping up charges to students, holding down enrollment growth, and curbing advances in faculty salaries. There is growing recognition by the colleges of the need to improve planning, to reevaluate the directions in which they have expanded, and to search for ways to put college finance on a more stable footing. (AF)
Publication Type: N/A
Education Level: N/A
Audience: N/A
Language: N/A
Sponsor: N/A
Authoring Institution: N/A