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Strong Market Helps University to a Good Year Cornell Chronicle Volume 15, Number 4 Thursday, September 15, 1983 It's the time of year when Cornell workers join area farmers in bringing in the harvest of corn. Strong Market Helps University to a Good Year Controller Ostrom Reports Year-End Results to Trustees Thanks to a strong stock market, a solid the net revenues of the faculty practice we have survived successfully another dif- the estimated level, and a reduction in the fund-raising effort and tight budget man- plan, and a decrease of less than $200,000 ficult year in an era of constant fiscal costs of utilities due to favorable weather agement, the University had an excellent for the statutory units. strain. The balancing act between revenues and energy conservation measures. year financially in 1982-83, it was an- Nearly $12 million of current funds, given and expenditures continues to be a tenuous For the fourth consecutive year, the nounced by John S. Ostrom, university principally for restricted purposes, were one we will hope to be able to maintain." Medical College's operating budget was in controller. transferred to plant funds for construction One area where results were mixed was balance, Ostrom noted. Major factors cited After having fallen almost $50 million in and renovation projects. The largest in sponsored research, Ostrom said. Re- were continued growth in the next revenues the previous year, the value of Cornell's amount of these transfers was $9 million flecting changing directions in federal fun- from the faculty practice plan, a 25 percent endowment funds increased 43 percent to for the new geological sciences building ding, the university had expected research increase in the tuition rate, investment an all tine high of $486 million at June 30, now under contraction. volume to decrease significantly during the income above projection, and increased 1983, the end of the university's fiscal year, In addition, $2.7 million of current funds year. indirect cost recoveries from private Ostrom said. were set aside for investment, principally "However," he said, "final numbers sources. The unit value of shares in the Long by the statutory colleges. Income from showed the total sponsored volume almost While federally-funded research levels Term Investment Pool, which operates like these funds will support future operations, identical to the prior year. Experiencing a were down, support from private sources a mutual fund for the university's endow- Ostrom said. modest upturn in the fourth quarter, vol- increased 15 percent. Revenues of the ments, was $32.33 at year-end, up from While the year showed the university in a ume was up slightly for endowed Ithaca and faculty practice plan were approximately $23.12 at the previous year-end. strong financial position, Ostrom indicated down modestly for the other two divisions." $5 million in the month of June and totalled Total gifts were up 25 percent to $56.7 the need for caution. "Most other major Endowed Ithaca reported an increase in $51 million for the year. pillion. The greatest increase was at the research universities began experiencing a unrestricted current fund balances of The statutory colleges operated prac- Medical College which reported $19.6 mil- decline in funds for sponsored research as $533,000, a decrease of $500,000 from the tically at breakeven with current funds lion, up $7 million over last year. early as 1982," he said. "While Cornell's level projected at the end of the third decreasing only $167,000, Ostrom said. Ostrom noted that the gift totals in the position seems strong, the future directions quarter. The major reasons for this de- While total revenues for the statutory financial statement are not identical to the of federal funding are not clear. crease from prior estimates were an in- colleges were up $6.7 million to $154.5 •61.5 million recently announced by the "Additionally, the reductions in state crease in expenditures of $950,000 over million, externally-sponsored research was Office of University Development because funding for the statutory colleges which prior estimates as departments absorbed down. ?f differences in timing between the report- took effect in the spring will place con- funds saved from prior years' budget oper- "Like the endowed, the rate of decrease lng and receipt of gifts. siderable pressure on their operations dur- ations. These were offset in part by an in sponsored research, slowed in the fourth Additions to endowments and funds func- ing the current year. There is a sense that increase in indirect cost recoveries over quarter and indirect cost recoveries were tioning as endowment were $18 million, a above the level projected at March 31," he substantially greater amount than in the said. "The 1982-83 operating results were Past several years, he said. aided by authorization from the state for . All three major divisions - endowed the use of $1.9 million of appropriations whaca, the statutory colleges, and the 'In Transition' from overpayment of utility costs in the Medical College in New York - reported prior year. These monies were used to Parent operations were above or close to That's what we're calling a special four-page pullout section in the center of this cover projects for upgrading utility sys- °reakeven, Ostrom said. Current un- issue, which deals primarily with employee news. For an explanation of future plans tems and to cover a portion of the costs of l^stricted fund balances increased $6.5 that involve both the Chronicle and Networking, and plans to put complete Job accessory instruction provided by the en- "Wlion - $500,000 for endowed, $6.1 million Opportunities in Chronicle each week, turn to page 5. dowed colleges." Or the Medical College, principally from 2 Thursday, September 15, 1983 Sharing the Wealth of a University's Knowledge Hoffmann Outlines His Committee's Direction "We are thinking about instituting a In a talk before the Ithaca School series of Saturday workshops-lectures for District teachers last week, Roald Hoff- high-school students and teachers. The idea mann, chairman of the university's new is that an expert in a field might give a Committee on Education and the Com- presentation on his or her work. It would be munity, outlined a system for sharing preceded by a lecture by another person on effectively "Cornell's intellectual re- the principal lecturer's work and field, sources—scientific, humanistic, artistic— building up background, and putting things with the academic programs of several in perspective. A discussion might follow nearby school districts." the main lecture.... Hoffmann, Nobel laureate and the John "We are planning for a series of summer A. Newman Professor of Physical Sci- workshops for teachers. Some of these will ences, and professor and chairman of be in subject areas, some on the method- chemistry, spoke of a series of meetings ology and philosophy of the educational that had been conducted on campus over process.... the summer, largely through the leadership "We know that education is hard work of David Burak, which had drawn together and not razzle-dazzle. But occasionally it is . Cornell educators and many members of useful to focus attention on education in the ' the community, inside and outside of public same way that we as a nation, for better or education. for worse, look at the Super Bowl or the He said that the committee hopes "to Oscar Ceremonies. There are approximate- provide an exportable model for such in- ly 15,500 elementary and secondary stu- teractions elsewhere in the state, or in the dents within a 10 mile radius of Ithaca, nation, transferable to other colleges and many of whom would not benefit to a universities and their neighboring desirable degree from the programs of- schools." fered to the above-mentioned districts - Here are some of the points he made in i.e., Ithaca, Lansing, and Newfield. We are his talk: looking into the possibility of having some "Laboratory and research equipment is sort of Education Day or Fair at Cornell, present in abundance at any major re- Before his talk at Ithaca High School, Roald Hoffmann (left) chats with Nancy either this fall or next spring, where we search institution. We hope to facilitate the Ridenouer, Ithaca High science teacher, Joel Radin, assistant superintendent of would invite groups from as many surroun- transferal of equipment which may no schools, and David Burak, who is staff person for the university's Committee on ding schools as would be logistically longer be state-of-the-art, but is still useful Education and the Community. feasible. This Education Day would consist for instructional purposes at the secondary of a number of panels, lectures, seminars, and/or primary level. the participation of Cornell faculty in as tourists, as hosts to tourists, as busi- laboratory demonstrations, performances "We have benefited much from the ad- Newfield's October teacher training work- nessmen and women. Knowing only English and such. We would involve many different vice of Ithaca area teachers and adminis- shops, especially for elementary teachers we make a bad impression and we fail to departments and colleges doing on a larger trators in thinking of programs that are who have little background in science sell effectively the products of our labor. scale what the Agricultural College used to useful and feasible. Nancy Ridenour, an education.... Second, we become better human beings by do with its Farm and Home Days and what IHS science teacher has, for instance, There are hundreds of lectures and cul- partaking of the literature of the world, of the Vet School and Physics Department do written in a letter to us of certain areas in tural activities at Cornell.
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