College Finance

"College financing is basically simple. Receipts come from tuition, contributions, income from endowment, and lately ..., government or state grants of one kind or another. Money can be disposed of in four ways: faculty salaries, nonteaching expenses, capital building, or adding to the endowment. One of my colleagues jokingly pointed out a fifth way: simply wasting it."

"I have always explained to the students and to the faculty that a good formula is fifty percent of all receipts should go for faculty salaries, twenty-five percent for nonteaching expenses, and the remainder for capital and building endowment. This formula can be varied five percent or so on any of the major divisions, but continued disregard of it will lead to institutional difficulties."