UA-R-GC-1914-01-01-1983-11_Page-028

• • • BOARD OF TRUSTEES Government Relations Committee De v e lopment Committee November 1983 [);PLOF,AT J ONS RLGAJ<DI NG fl'7Ut-,E POUND fINAN CING Of AUC ('01,(, f PI Of 1-. POUl\D El i:r)J 'y; .~EN T AUC ennue}}y r ece iv e E e US-hJD subsidy for current operat­ln c ~xpenses of roughly LE 3 million and b e tween S500,OOO and S9Ul,000. Alreedy app ropriated PL-'80 pounds have pre-financed AU e 'E subsidy through its 1985/Sf academic year; dollar amount~ comf a nnually t~roug h n e ~ US app ropriations. In ttlf: J96(" E, Al [; d e e l d ee the: e p o und endO .... "1Tlent should bf: este blishe6 iron US-o~n e d PL-'6 0 pounds sufficient to support AUe ~ithout r e q ui rjn~ additiona l annual pound subsidies. Funds Wf:re s e t i::sid ~ Dy hID for that purpose in 196~. In practice, ho .... 'ever, thE: bu ) t. of those fund 5 was requ ired, and given, for AUe's current opf:rating expenditures rather than for endowment, and lt is these funds that have pre-financed AUC through 1985 /8t. The US-o~ned PL-480 pounds frOTh which this funding came are no longer excess currency thUE no Thore PL-480 pounds will be available for AUe's future subsidy. Other sources of pound sup­port will therefore bf: required starting in 1986/8~. Aue's annual support requirement in 1986/87 and subsequent years, even after substantii::l tuition increases and a successful private fund rcising campaign, will remein at about the present level, i.e. LE 3 million and $1 million a year. However, the proportion of AUC's annual budget which those amounts represent (once ov~r 60~ and now about 27%) will by 1986/87 probably bE: reduced to close to 20~ due to increases in other sources of in­comE:. In recent months AUC and the US Embassy have been exploring ways in which AUC's expected pound subsidy requirements could be met 1n 1986/87 under condltions which PL-480 pounds are not available. The University and the Embassy consider that for the long range health of the institutlon the best course, in the context of substantial current American econonmic assistance to Egypt, would be to restore the concept of 0 pound endowment for AUC