Most colleges are finding they must cut back spending and find ways to increase income, no longer relying on raising tuition. Although consolidating jobs, cutting academic programs, reducing financial aid, and delaying construction are already common among larger schools, small colleges fear the impact on their already limited budgets. (MSE)

Northeastern University (Massachusetts) has reduced its size by one-fifth, cut $60-million from its budget, eliminated 700 jobs, dropped or merged several programs, frozen salaries, and cut other costs in a successful retrenchment effort. Many agree the "rightsizing" was handled in a fair, humane way; others are angered. (MSE)

A weak stock market has resulted in lowered returns on college endowment investments. Many institutions had funds tied up in American stocks and bonds, which performed poorly. Although most institutions say their endowed programs or scholarships are not adversely affected, some programs are being reduced or eliminated as a result. (MSE)

A survey of 411 institutions of higher education is analyzed in terms of the short-term and long-term financial pressures on colleges experiencing cuts in operating budgets. Noted are the heavy impact of budget cuts on public institutions and the increased numbers of traditional first-year students. (DB)

Increasingly, colleges and universities are cooperating to save money. Tactics include sharing of administrators; multicampus employee insurance policies; joint faculty appointments, departments, and programs; and electronically linking library collections. Obstacles include institutions' fear of losing identity and difficulty in reaching…

Although colleges and universities continue to lay off employees, they are more selective about whom they lay off and how, by combining administrative departments, dropping weak academic programs, and hiring external companies to do jobs once performed by school personnel. Focus is on the long-term, not short-term, cuts. (MSE)

Financial pressures brought on by economic recession and increasing costs of academic materials are causing academic libraries to cancel journal subscriptions, reduce book orders, neglect book preservation, cut staff positions, and reduce general services while seeking new revenue sources. Examples of libraries cutting back include those at…