Financial squeeze forcing changes.

U.S. colleges and universities are in the midst of a major realignment of their academic programs and services in response to severe financial pressures, according to the American Council on Education (ACE). Budgetary constraints especially are causing many schools to change enrollment policies as well as practices relating to faculty hiring, teaching, and tenure. While these measures are designed to allow institutions to adjust to limited financial resources, many also have the effect of limiting access to and in higher education.

ACE's 10th annual survey of changes in academic and administrative practices revealed that public colleges and universities continue to be plagued by financial difficulties. For a second consecutive year, more than two-thirds saw no real increases in their operating budgets once inflation was taken into account. Administrators are not optimistic that the end to budget constraints is near. About half expect further reductions next year. Twenty-nine percent at four-year and 39% at two-year public colleges said their school's over-all financial condition was "very good" or "excellent."

Twenty-one percent of institutions have taken steps to limit enrollment. Public four-year schools were most likely to report such efforts (34%), followed by independent colleges (20%) and public two-year schools (15%). The main reason cited by the vast majority of public institutions was reduced state/local funding. Caps on enrollment at independent colleges were imposed primarily because of limits...