King's College London (KQC) newsletter
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ASSIVE REDUCTIO TO FUNDS' FACI G U IVERS TIES
GOVERNME T EXPE DlTURE PLA S It i tated in the White Paper on Government expenditure plan 1986/87 to 19 / 9 that 'The Government expect the Univer ities to continue achieving economie in order to maintain tandards within the ca h available'.
The Implication of thIS statement bel:ome clear when the funning for niver~lties, ba ed on the Government's own as umptions regarding inflation, are examined. University recurrent grant over the next three years are scheduled to increase in cash terms by approximately 2.6% per annum. The cash increases when incorporated with the Government' inflation assumptions of 4.5% in 1986/ 7,3.5% in 1987/88 and 3% in 198 /89 in effect imply a 'real' reduction in re ources of 3% over the three year period. Traditionally the Government's inflation a sumptions have proved to be extremely optimistic. In 1985/86 alone, the assumption for the publi sector pay factor was 3.0%, against an approximate overall actual average percentage increase of 5.6%. In real terms therefore, the Universities funding levels may be reduced by at least 8% and possibly more.
WHAT DOES THIS ME TO KJ G'S COLLEGE LO DON (KQC)? King's College London (KQ ) is facing particular financial problem of its own, without considering the impact of such a massive funding reduction. In financial terms the merger has created an environment in which it is difficult to utilise resources in the most efficient
manner. multi- ite operation with its duplicated and in some case, quadruplicated activities, has brought about a hort term escalation in expenditure levels. dd to this the significant salary increase factor arising from departmental restructuring and promotion , etc, and it can be een that the College i faclJ1g a erious transitional financial problem. nother serious financial problem has al 0 emerged in the current e ion. The original po tgraduate student number projections, which were based on offers made and past recruitment levels, have proved to be optimistic. Since the student number forecasts may be directly translated into income, a significant income shortfall has arisen. Whether this situation is a 'one-off' phenomena remains to be seen. Past long term financial projections have correctly predicted reductions in 'real' resource, although it would be true to say that even though the level of reduction prOjected was considered extremely pessimistic at the time, these have proved to be less than the College has experienced in 19 5/ 6 and is likely to experience in ub quent years. A recent ten year financial proJection, incorporating the factors mentioned above, highlights the ituation. On pre ent expenditure levels the next two years represent a serious financial problem and the College financial viability after that depends entirely on its ability to implem('nt co t savings in a site mtionalisation exercise.
The level of deficit now expected in 1985/6 inclUding the School of Medicine and Dentistry i ÂŁ639K, ri ing 10 some ÂŁUM in 1986/87. Thereafter it is projected that the annual level of deficit will gradually reduce until a mall surplus is generated in 1989/90.
Wendy Savage speaking on Women and Medicine 0/1 10 March, in the final Centre of Medical Law and Ethics Lent term lecture. Dr Savage, who is Consultant Obstetrician and Gynaecologist at the I,ondon Hospital, is currently suspended from duties pending the result of an inquiry into her professional competence. The inquiry has been interpreted by some as a 'trial' of her methods - encouraging active childbirth and both Dr Savage's lecture and the questiuns that followed it indicated that medici/1e is not an easy career for women, whether medical students or at the 'top' of the profession.
The College is mal< ing strrnuou effort to get the niver ity to recognise, in a tangible way, the problems of mulLi- ite operation. IL has al 0 sought assurances from the niversity ourt department that the new GC resource formula, which it is considered will benefit King's, will be applied to London Institute in 19 6/ 7. evcrtheless, even if the College is succe sful in the e two areas, there appears liLLlc alLernative to further 'belt-lightening' exercise in J 9 6/ 7. DO Ball Finance Officer