Faculties Hit Hard By Budget Difficulties

Several of Harvard's graduate schools are facing budgetary red ink this year as the University continues to deal with financial hardships caused by the ongoing recession, officials said yesterday.

The announcement of the shortfalls comes at a time when the Faculty of Arts and Sciences is making efforts to cut expenses in order to reduce a growing deficit that is already nearly $12 million.

"Several faculties are having some difficulty," said Vice President for Finance Robert H. Scott. "It's not unexpected and it's inn the places you would expect."

Scott said Graduate School of Design and the Medical School are facing budget deficits this year.

In addition, an article in this month's Harvard Magazine labelled the Kennedy School of Government as "close to the edge" of its budget. But Scott said the Kennedy School and Harvard's five other graduate schools are not running deficits this year, although he said the schools are experiencing tough times.

"Anyone would say they're not having an easy year but [the Medical School and Design School] are having even less of an easy year," he said .

Scott added that the Medical School's troubledfinances are in part due to cutbacks in governmentfunding for indirect costs incurred in researchprojects.

Universities are traditionally reimbursed forsuch costs. But after a recent scandal thatrevealed overcharging by several universities,Harvard voluntarily reduced the amount itrequested in reimbursement.

Scott said the Design School was traditionallyand trouble due to its size and relatively highoverhead.

Outgoing Design School Dean Gerald M. McCuesaid this year's actual deficit is about half ofthe $500,000 shortfall that was expected. He saidthat the school made several staff reductions lastyear, although he said no further layoffs areplanned.

McCue added that the problem will remain to beconfronted by his successor, Garbe Professor ofArchitecture and Urban Design Peter G. Rowe. "It'sbeen difficult for me and I suspect it will bedifficult for him, but it's something that he'sfamiliar with and recognizes that he will have todeal with," McCue said

Scott added that the Medical School's troubledfinances are in part due to cutbacks in governmentfunding for indirect costs incurred in researchprojects.

Universities are traditionally reimbursed forsuch costs. But after a recent scandal thatrevealed overcharging by several universities,Harvard voluntarily reduced the amount itrequested in reimbursement.

Scott said the Design School was traditionallyand trouble due to its size and relatively highoverhead.

Outgoing Design School Dean Gerald M. McCuesaid this year's actual deficit is about half ofthe $500,000 shortfall that was expected. He saidthat the school made several staff reductions lastyear, although he said no further layoffs areplanned.

McCue added that the problem will remain to beconfronted by his successor, Garbe Professor ofArchitecture and Urban Design Peter G. Rowe. "It'sbeen difficult for me and I suspect it will bedifficult for him, but it's something that he'sfamiliar with and recognizes that he will have todeal with," McCue said