UA-R-GC-1914-01-01-1986-11_Page-002

Board or Trustees -2- November-13, 1986 Dr. Pedersen gave a brief report to the Board highlighting the major dcvelopmcnts at the University. lIis full report is presented in his November 1986 letter to the Board (Attachment A). Reporting 011 the new cabinet recently installed by President Mubarak, Dr. Pedersen said that it was hoped that the changes will result in better cooperation between the Egyptian Government and the Till f'rlll1t:-i.olllll MClllctnry Fund wj thout triggcr :!.IIF, )loli ticnl problems within Egypt. Egypt is suffering from heavy debt burdens, a flat economic environment, and little growth in real income. On AUC's hudget situation, the Presidcnt reported thot the budgets are geLling lightcr, with the 1985/86 budget showing a 4% :I.ncrease in JIlCOIlIC wlth El 15-20% increase in expenditures. As a result, no appreciable surplus is anticipated. The budget for 1986/87 is expected to be in balance but only because of a considerable increase from the income of the new Trust Fund. While the endowment has increased by $2 million, Dr. Pedersen informed the Board that this was essentially appreciation, not new income. If the Egyptian Government decides to float its currency, the value of the funds held in trust for the University by the U.S. Embassy would drop further. On tuition for 1987/88, Dr. Pedersen advised the Board that a new format for expressing tuition charges will be adopted effective Septermber 1987. As a result of the new format, there will be one tuition, the "full tuition," equivalent to what is now called the international rate. What was previously called the "local tuition" raLe will be expressed as a subsidy that will bring the effective costs of the highest ranking students down to the customary local level. AbOut half of the students will receive this subsidy. The student body in 1986/87 is about the same size as 1985/86 because the number of students graduated (or not returning) was larger than anticipated and roughly equalled the number of new students admitted. About 600 new students enrolled in the current semester, half of whom entered on the subsidized rate and half on the full tuition. Contrary to expectations, the overall enrollment level of students from abroad has not dropped significantly in 1986/87. The University is also adopting a system of providing assistance to year abroad students from state universities who might otherwise not be able to afford AUC's tuition that will reduce their effective costs to their own university's out-of-state tuition level. On ilcadcnrlc nl[ltLers, Or. Pedersen reported thnt the LOllg Range Planning Committee had submitted an interim report suggesting changes in the core curriculum and other program modifications. The Academic and Research Committee has requested the Administration to report to the Board at the May 1987 meeting on the impact of the proposed changes, including the financial aspects, changes in the student body, faculty, teaching loads, space, support staff, an