Task Force Recommendations on Budget Priorities
The Task Force on Budget Priorities was appointed by President Kemeny in October 1972 with the charge that it recommend an institution-wide strategy whereby the College could carry out the mandate of the Trustees that net budgetary growth be slowed from 6% to 5% a year without compromising educational quality.
The task force was not created as a budget-cutting committee. Its assignment, within the overall 5% growth limit, was to establish priorities which might involve increased expenditures in some categories, a hold-the-line policy in others, and cutbacks in others. The task force did not have time to review the budget program by program; its study was made instead on the basis of major budget categories.
To serve as chairman the President named Dean John W. Hennessey Jr. of Tuck School. On April 1 Dean Hennessey submitted the report agreed upon unanimously by the 17 task force members who represented faculty, students, administration, staff, and alumni. President Kemeny accepted the recommendations in their entirety and in turn submitted them to the Trustees at their April meeting as guidelines for College budgeting for the next four years.
The report's preface, written by Dean Hennessey with the agreement of his colleagues, stated that the single most important judgment of the committee was that the annual increase in net budget expense could be slowed to 5% without compromising the quality of education at Dartmouth. A favorable factor, it was pointed out, is that the College is now beginning a period of natural consolidation after considerable change and growth.
Central to the deliberations of the task force, the preface continued, was the postulate that the most important criterion for judging any suggested change was the effect it would have on the quality of teaching and learning at Dartmouth. "The quality of the Dartmouth educational experience depends fundamentally on the quality and diversity of the faculty and student body," it was stated.
Top priority therefore was given to the quality of instruction and to the availability of funds that would make the levels of faculty compensation fully comparable to those of other institutions in Dartmouth's group. It was recommended, and the Trustees have approved for 1973-74, an infusion of funds that will bring faculty compensation up to the desired levels. Thereafter the Arts and Sciences net budget should rise at an average annual rate of 5%, unless the competitive situation requires that more faculty compensation funds be freed by tightening in areas of lesser priority.
Three other areas in which the task force recommended an upgrading were the Library, added staff for development, and fringe benefits for staff employees. Constraint to the 5% growth guideline was recommended for Hopkins Center, those areas of Arts and Sciences that support instruction, and alumni affairs. In all other areas - student affairs, administration and business management, Kiewit Computation Center, health service, Tucker Foundation, and athletics - it was recommended that the annual growth rate in net expense be less than 5%. Greatest cutback of all should be in the area of plant facilities, which should have a growth rate as close to zero as possible.
The professional schools are on a fixed "subvention" basis, and the task force recommended continuation of this policy, meaning no increase in the net expense operating budgets of these schools over the period ahead.
Concerning the Library, the report stated that as with faculty compensation, the Library has a short-term need for an infusion of new funds for acquisitions, staff compensation, and new services, after which it should operate within the guideline of 5% annual growth. It recommended more interlibrary collaboration and questioned the policy of automatically purchasing duplicate copies of books and periodicals in certain situations.
In the areas where cutbacks in the. growth rate were proposed, the task force offered these specifics:
Student Affairs - After certain 1973-74 commitments are met, average annual growth should be limited to 3%. Priority should be given to the recruitment of the best possible student body. To the fullest extent possible there should be consolidation and refining of staffing assignments among the offices of the deans, student counseling, admissions, and financial aid.
General Administration - Growth should be rigorously restrained in both total cost and size. Consolidation and redistribution of services are recommended.
Kiewit Computation Center - Program growth and innovation should be possible with a reduction in College funds required; perhaps a positive contribution can be made through new revenue from the marketing of DTSS software.
Tucker Foundation - Constraint to 3% growth in average annual net expense. Recommended review of activities which are primarily of community service and only secondarily involve students and faculty.
Health Service - While meeting fixed commitments for 1973-74, a thorough study should be made to constrain net cost and produce new revenues. The need for such comprehensive free services was questioned.
Business and Financial Management - Recommended: a 2% net expense growth after 1973-74. Among suggested economies are quicker collection of accounts receivable; lesser amounts of cash in checking accounts: better student loan collection; reduction in outstanding travel allowances; a discount on $1-million of travel business done by the College each year; competitive-bid purchasing with the aim of saving 5% a year; elimination of present losses on student housing, Dartmouth Dining Association, rental housing, recreational properties, and the Hanover Inn.
Athletics - Constraint to 3% annual increase, except for programs which implement coeducation and year-round operation. New facilities using scarce funds and increasing operating costs should be rigorously avoided. Concern is expressed over the sizable growth in the athletic enrollment budget.
Members of the task force, in addition to Dean Hennessey, were Peter A. Bien, Professor of English; James F. Hornig, Dean of Graduate Studies; Carl F. Long, Dean of Thayer School; Louis Morton, Daniel Webster Professor; Melvin Spiegel, Professor of Biology; Brunetta R. Wolfman, Assistant Professor of Urban Studies; Leonard M. Rieser '44, Vice President and Dean of the Faculty; George H. Colton '35, Vice President of the College; Donald L. Kreider, Vice President and Dean of Student Affairs; Rodney A. Morgan '44, Vice President for Administration; Robert S. Bachelder '73, Michael R. Cornelius '75, Ned W. Dearborn '73T and Victor F. Zonana '75, student representatives; Gerald J. Cullen, Library Business Manager; and E. Ronan Campion '55, alumni representative. Robert S. Putnam, Assistant Comptroller, served as secretary; and William P. Davis Jr., Budget Officer, and Burton I. Wolfman, Director of Institutional Research and Analysis, served as consultants.
