The policies of most research-oriented universities with regard to reimbursement for faculty time from grants and contracts can probably be summed up in a single sentence: "Let's get as much as we can." Several areas of concern arise from this situation: (1) the university's ability to plan its future, develop real goals and objectives, govern and control itself, and determine a balance of activities are threatened; (2) money granted on a year-to-year basis creates instability; (3) federal regulation threatens the institutions; (4) federal control of areas of research performed by the universities endangers the principles of research; (5) inconsistency in institutional policy on faculty reimbursement creates inequity between universities; (6) occasional abuses of the grant system damage the entire academic and research community; and (7) some universities and faculty members have come to resemble other pressure groups, occasionally becoming arrogant in the process. (Author/MSE)