CAMBRIDGE, Mass., June 17 (UPI) -- Harvard University, the richest educational institution in the world, is making deep budget cuts because of an endowment hit hard by the slump, officials say.
Officials say the financial crunch is hurting the university at every level from introductory freshman courses to advanced graduate programs and research, The Boston Globe reported.
Professors who are retiring or leaving for other universities are not being replaced. There will be fewer teaching fellows next year to lead the small discussion classes that are part of large lecture courses for undergraduates.
While the university has a large endowment, the recent decline in value has been the biggest in Harvard history, the report said. Harvard also depends more than most other universities on endowment income for operating expenses.
Some on the faculty say Harvard, like many institutions and individuals during the boom years, borrowed too much for new buildings, and now those debts are coming due.
Departments have been told to cut to 2005 levels. While many faculty fear the results, some are optimistic.
"Of course, Harvard was a great university in 2005 and so will still be after the cuts,'' said Gary King, who teaches government and directs the Institute for Quantitative Social Science.