COLUMBIA UNIVERSITY RECORD  January 21, 1994  Vol. 19 No. 14

     RUPP SEEKS A SOLID FOUNDATION; ISSUES GUIDE FOR 1994-95 BUDGET

      President Rupp issued guidelines Jan. 6 for Columbia's next budget 
      year, 1994-95, that will eliminate a remaining shortfall of $12 
      million, achieve a balanced budget and "establish a solid 
      foundation on which we will then be able to build constructively 
      in future years."

      In a letter to deans and administrators with budget 
      responsibility, he outlined recommendations made by a task force 
      chaired by David Auston, dean of the School of Engineering and 
      Applied Science.

      Under the plan recommended by the task force, schools will be 
      asked to prepare budget plans reflecting average budget growth of 
      only about 1.5 percent, based on assumed average income growth of 
      5 percent. Central administrative units will prepare plans with a 
      5.25 percent decrease in funding.

      Rupp said a discretionary fund of $5.5 million will be available 
      to support high priority initiatives and to facilitate long-term 
      cost reduction efforts.

      Allocations from the fund will be used to amplify priorities 
      determined by each budget administrator, not to restore activities 
      that have already been cut.

      He said that in March each dean and budget administrator will make 
      a budget presentation to the University Planning and Budgeting 
      Committee. Each administrator will be asked to present a plan for 
      meeting budget guidelines as well as proposals for discretionary 
      funding. Rupp said he will participate in each meeting.

      In announcing next year's budget strategy, Rupp noted that the 
      current year, 1993-94, is the second in a three-year plan to 
      eliminate what could have been a $87 million shortfall if left 
      unaddressed.

      The problem has been caused in significant part by rising fringe 
      benefit costs, significant losses of aid from New York State, and 
      a cut in the indirect cost recovery rate. During the last two 
      fiscal years significant steps have been taken to reduce the 
      potential shortfall by requiring schools and administrative 
      departments to set aside additional funds to pay for fringe 
      benefits and by constraining the rate at which operating expenses 
      have grown.

      A more thoroughly revised budget system, while desirable, will 
      await the appointment of a new chief financial officer, he said.

      The other members of the budget task force are: Michael Crow, vice 
      provost; Gordon Eaton, director of Lamont-Doherty Earth 
      Observatory; Meyer Feldberg, dean of the Graduate School of 
      Business; Imara Jones, president of the Columbia College Student 
      Council; Eduardo Macagno, associate vice president for arts and 
      sciences and dean of the Graduate School of Arts and Sciences; 
      Christian Meyer, professor of civil engineering and chairman of 
      the Senate Budget Committee; John Morgan, professor of 
      mathematics, and Elaine Sloan, vice president for information 
      services and University librarian.

      The text of Rupp's letter appears in related article.

      Next week's "Record" will present an overview of the 1993-94 
      budget by the University's office of management and budget.