UA-R-GC-1914-01-01-1979-05-31_Page-004

-4- The present strained relations between Egypt and other Arab countries jeopardize the ability to raise dollars from those sources. Mr. Ke1berer is concerned that the ARAMCO donation ($165,OOO last year) may not come in the future. On the other hand, improved relations between Egypt and the United States are drawing more American companies to Egypt and this opens fund raising possibilities. The dormitory and faculty hou$ing situation is critical. Rapidly increasing rents in Cairo and the expiration of leases on presently held units mean that the University will have to obtain its own housing for students and faculty. AID has been asked for LE 3.~ million, and this is being followed up. A matching grant from the Kresge Foundation is also a possibility. Tuition for both Egyptians and non-Egyptians has been increased sub­stantially over the past several years, and will continue to be increased some­what. However, tuition offers only limited hope for additional income because it is a relatively small percentage of the total budget, and because there are upper limits to what the students can afford. As tuition increases, the need for scholarships for needy students increases. More is needed now. Budget - 78/79 - For this year the University should have an essentially bal­anced budget. Mr. Hedlund summa'rized the attached budget sheets and noted that the new format will eventually be useful when the administration sorts out which income is restricted and unrestricted and can show totals for income and expenses. The big dollar deficit projected earlier shrunk to $61,000 because of $500,000 income from AID and $165,000 from ARAMCO, which were hoped for but not projected earlier. This small deficit will appear after LE 153,000 in additional expenses have been incurred for construction work and bonuses to custodians, among other things . These additions were approved by th