New budget meets deficit goals

President Clinton isn't the only one promising to eliminate a budget deficit in the next few years. Yale's top financial officers announced that they are on target to eliminate the deficit in the University's operating budget by the fiscal year 1997-98 when they released this year's budget in a press conference on Thurs., Sept. 26.

Revenues

Unlike their counterparts in Washington, Republican-style budget cuts are not the driving force behind Yale's budgetary success. The University has actually increased spending in several key areas affecting student life on campus, including capital maintenance and both undergraduate and graduate financial aid.

In a press conference announcing the new budget, Deputy Provost Chip Long stressed the University's commitment to Yale's neglected infrastructure by pointing to an increase of $3.7 million for capital maintenance in this year's budget. "We have for many years neglected buildings," Long said. "We can't distinguish between good buildings and good programs; we can't have good chemistry classes when the roof leaks," he added. The University's rejuvenated commitment to its infrastructure underscores a significant change in policy. In order to prevent the current problems arising as a result of deferred maintenance from occuring in the future, Yale will focus on maintaining buildings in a continual fashion in the coming years.

Major renovations of the residential colleges, Sterling Memorial Library, and the Payne Whitney Gymnasium make up the bulk of the University's rehabilitation efforts. Gary Fryer, director of public affairs, insisted that the new onslaught of construction projects is not related to Yale's preparation for its 300th anniversary in 2001. However, Yalies will have to endure some significant consequences of the construction drive in the next five years. Students will have a hard time using parts of Sterling Memorial Library, and Berkeley College students still face the possibility of relocation when their college is renovated next year.

Long pointed out that Yale's drive to balance the budget and continue renovating the campus' aging infrastructure is made more difficult due to circumstances beyond the University's control. In an era of fiscal belt-tightening throughout the nation, "We can't count on increases in government funding and contracts," the deputy provost said. In addition, as doctors' salaries continue to plummet due to radical restructuring in the health insurance industry, the income that the University gains by providing medical services is declining.

Further complicating matters is the lack of a resolution to Yale's labor disputes. "We have to take a rough guess on where we're going to be [financially] after the contract," Long said. However, Gary Sax, director of Budget and Planning, is not convinced that this uncertainty is a problem. "A budget is a set of educated guesses," he said. Sax adds that his office plans ahead for fluctuations in the University's financial condition.

Budget expenses

Regarding the labor issue, Long contends that despite the budget's current flexibility, "We are not signaling how tough or generous we're going to be at the bargaining table" through the release of this year's budget.

Despite the University's uncertainty about the effects of the pending labor dispute, Long is hoping that Yale can repeat last year's low tuition and board hikes, which partially accounted for its high ranking in Money magazine's "Best Buys in College Education." In a statement that is sure to please financially strapped Yalies, the Deputy Provost asserted, "I believe we do have the discipline to keep tuition costs down."

In addition, Fryer points to the $107 million allocated for financial aid this year, 11 percent of the operating budget, as further proof that the University is dedicated to making a Yale education affordable.

Responding to charges by Locals 34 and 35 that Yale could increase spending on its gargantuan $5 billion endowment as one way to solve the current budget disputes. Fryer said the University must continue its five percent spending rule on income earned through the endowment in order to continue "to do what we're doing for a long time."

Fryer added, "Just imagine if a significant portion of our budget is people, and the market goes down [affecting the endowment]--we could not avoid making corrections which hurt people" unless the strength of the endowment is conservatively maintained. Maybe this year's Washington policymakers should take a lesson from Yale.