Knowles Plans To Limit Costs

In a letter sent yesterday to faculty members, Dean of the Faculty Jeremy R. Knowles outlined possible actions that the Faculty of Arts and Sciences (FAS) may take to battle its $11.7 million deficit, including a reduction in annual salary increases and a possible curtailing of some undergraduate programs.

Although the 10-page letter does not recommend any cuts, Knowles says he plans to limit the average annual growth in the funding for the library, the athletic department and the College by six percent. This spending cap may mean that some programs may have to be curtailed as fixed costs rise with inflation.

The letter outlines the scope of the budget deficit and says that while cost-cutting actions last year resulted in almost $6 million in savings, the deficit is still growing. Knowles' letter projects a $23 million deficit for the 1996-97 academic year if no steps are taken to reduce the gap between FAS's income and expenditures.

The University will need to sell shares of its unrestricted capital in the endowment, reducing the amount of flexible funds available for the faculty in the coming years, the letter says.

Some projected actions, according to the letter, include pressuring nonfederal sponsors to contribute to indirect costs and restricting the growth of departmental operating costs.

In addition, the size and salaries of FAS employees--the largest single expense of the faculty budget--must be moderated.

Faculty members probably will not see large salary increases in the near future, Knowles said in an interview yesterday.

"It is unlikely that the average faculty salaries will rise more than inflation in the coming few years," he said.

And Knowles said the number of workers employed by the faculty is expected to decrease through "attrition andtransfer."

The FAS currently employs about 750workers--including professional positions andsupport staff--on its central budget, at a cost ofnearly $25 million per year, according to RobertA. Rotner, associate dean of the faculty foradministration.

Last year, former acting Dean of the Faculty ofArts and Sciences Henry Rosovsky eliminated 20full-time support staff positions by attrition,removing a cost of about $500,000, Rotner said.

This year, Rotner added, the FAS hopes toreduce 20 more positions by attrition. Inaddition, the faculty will not fill 10 of thevacancies created by a newly-instituted earlyretirement plan.

"We're becoming a leaner organization," Knowlessaid.

Knowles said yesterday there will be no declinein tenure offers.

"A larger concern in that respect is theuncapping of retirement in the end of 1993,"Knowles said. "That has a more serious implicationfor the replacement and turnover of our faculty."

Admissions Safe

Knowles said the faculty's need-blindadmissions system will not change. The growingneed for financial aid among students, he said,will put an increased strain on the budget.

But Knowles said yesterday that he still hopesto carry out new projects, including some of thedorm renovations that are currently being planned.

"The FAS has a very small reserve fund, whichwill allow the first nibble at this largeproblem," he said yesterday

The FAS currently employs about 750workers--including professional positions andsupport staff--on its central budget, at a cost ofnearly $25 million per year, according to RobertA. Rotner, associate dean of the faculty foradministration.

Last year, former acting Dean of the Faculty ofArts and Sciences Henry Rosovsky eliminated 20full-time support staff positions by attrition,removing a cost of about $500,000, Rotner said.

This year, Rotner added, the FAS hopes toreduce 20 more positions by attrition. Inaddition, the faculty will not fill 10 of thevacancies created by a newly-instituted earlyretirement plan.

"We're becoming a leaner organization," Knowlessaid.

Knowles said yesterday there will be no declinein tenure offers.

"A larger concern in that respect is theuncapping of retirement in the end of 1993,"Knowles said. "That has a more serious implicationfor the replacement and turnover of our faculty."

Admissions Safe

Knowles said the faculty's need-blindadmissions system will not change. The growingneed for financial aid among students, he said,will put an increased strain on the budget.

But Knowles said yesterday that he still hopesto carry out new projects, including some of thedorm renovations that are currently being planned.

"The FAS has a very small reserve fund, whichwill allow the first nibble at this largeproblem," he said yesterday