Financial constraints still squeeze schools.

• Position: College finance

The nation's colleges and universities, buffeted by cuts in public funding and other financial problems in the early 1990s, have tightened their belts considerably, according to a report by the American Council on Education (ACE). While the crisis atmosphere of recent years appears to have eased, a large portion of senior administrators rate their institution's financial condition as weak, and a growing share give low grades to the adequacy of student financial aid. Schools increasingly are relying on tuition revenues for general fund support, and 40% show falling enrollment.

In an effort to adjust to financial constraints, most have reorganized or restructured their operations. Eighty percent of the administrators surveyed noted that their institutions have tightened the monitoring of expenditures; 71% have reviewed the mission of their academic units and increased scrutiny of academic programs; and 64% have reorganized their administrative offices.

"Reorganization and redirection may be the defining themes of the 1990s for American higher education," notes Elaine El-Khawas, ACE vice president for policy analysis and research. "Even with a somewhat improved budget picture at some institutions, the financial difficulties of recent years have established a powerful momentum for streamlining operations, controlling costs, and reducing expenses. On the negative side, this may result in a reduced range of academic offerings and an erosion of student services. Over all, however, we can expect colleges and universities to be 'learner...