<p>A couple of observations:</p>
<p>Shawbridge is right about the graying of academia, and not only at Harvard. I gather that Harvard could have offered golden parachutes to its senior faculty some years ago at the same time as Berkeley, but it actually made retirement unattractive to most. I think it had to do with health insurance.
Shawbridge is right, too, about the bloated administration. There’s been a plethora of deans, each with his or her staff.
Harvard does still have an enviable endowment but having larger payout means less money to invest and thus less money to make good on the lost income. Harvard also borrowed heavily under Larry Summers, and interest on these loans is what is causing the difficulties.<br>
Harvard could probably address its deficit by rescinding its extremely generous finaid, keeping it for families making less than $80k. I was told, however, that it was the Corporation that had pushed to extend it to families with income of up to $180k, and since it’s the Corporation that decides on the payout, this finaid program is not about to be cut back.
There’s been a salary freeze that affects faculty and administrators. Unionized staff, however, will continue to enjoy the 4% per year increase that was negotiated last year. Unless, of course, Harvard tries to renegotiate this deal.</p>