1994-95 University Finances Strong

Fiscal year 1994-95 was a bright one for the University, but some clouds loom in the future, according to Harvard's annual financial report released this week.

The University's revenues grew by 6.5 percent, but expenses only increased 5.7 percent last year. Harvard also reduced its operating deficit from $13.3 million in 1993-94 to a more modest $3.3 million in the past year.

The University currently has net assets of $8.7 billion--$7 billion in its endowment and $1.7 billion in other assets. Harvard has outstanding debt of $1.2 billion, with average annual interest of 6 percent.

The past year was a particularly strong one for giving. The five-year, $2.1 billion capital campaign raised more than $323 million in its first year. Total giving was up 12.2 percent from 1994, according to the 56-page report.

Investments also did well, returning nearly 17 percent, the highest percentage in recent years.

Despite the positive results of the past year, the report gives reason to be concerned about the future.

Vice President for Finance Allen J. Proctor '74 and Treasurer of Harvard College D. Ronald Daniel wrote in an introduction that the University could not continue to expect such high returns.

In addition, the report revealed that more than 70 percent of Harvard's research support comes from the Federal government. Many in the University community are worried that congressional budget cuts could substantially reduce such federal funding.

Proctor and Daniel wrote that Harvard needed to increase corporate sponsorship in anticipation of this predicted decrease in Federal support.

Paul C. Martin '52, dean of the Division of Applied Sciences, said that he was extremely worried about future funding.

"It would be disastrous if we were cut," he said in an interview yesterday. "For 50 years, there has been a contract with universities to fund research. You can't just turn off these kinds of operations on a dime."

Martin said he does not think private corporations will be able to recover the lost money if the $250 million in sponsored research is cut severely.

"I don't see much possibility that foundations or industry will come up with the money at the required level," he said

"It would be disastrous if we were cut," he said in an interview yesterday. "For 50 years, there has been a contract with universities to fund research. You can't just turn off these kinds of operations on a dime."

Martin said he does not think private corporations will be able to recover the lost money if the $250 million in sponsored research is cut severely.

"I don't see much possibility that foundations or industry will come up with the money at the required level," he said