U. running $2 mil. deficit for current year

JEREMY KAHN and STEPHEN SANFORD All but three of the University's 12 schools are breaking even on their current budgets, Comptroller Alfred Beers told a University Trustees committee yesterday. The University is currently running a $2 million deficit as a result. While the Annenberg School and Graduate School of Fine Arts, respectively, have deficits of $200,000 and $225,000, the Graduate School of Education has a $425,000 surplus, he said, speaking before the Trustees' Budget and Finance Committee. The Hospital of the University of Pennsylvania is currently operating with a $33.2 million excess, Beers added. Executive Vice President Janet Hale said yesterday these figures reflect how the schools are doing so far in meeting their budget schedules and are not final figures for the fiscal year. Beers' report to the committee was part of the Trustees annual two-day winter meetings. The meetings began on campus yesterday despite temperatures that hovered near zero degrees for most of the day and forced the University to close. Since Van Pelt Library was closed, several Trustees meetings had to be moved from their scheduled locations in the library to the Faculty Club. The Trustees' University Responsibility Committee unanimously approved a report urging the University to re-invest in South Africa. In 1987, following a firestorm of student protest against South Africa's policy of apartheid and the University's continued investment in the racially-segregated nation, the University Trustees voted to sell off all University stock in companies which refused to withdraw from South Africa. These holdings then totaled approximately $35 million. "The Committee concludes that South Africa has now made substantive progress in dismantling the legal structure of apartheid," the Committee's report said. "Restrictions on the University's investment policies that were based on lack of such progress are no longer applicable." The committee also discussed ways of improving the University's relationship with the West Philadelphia community. "I believe that Penn can make a stronger contribution to society, especially in West Philadelphia," said Glenn Bryan, director of the University's Office of Community Relations, speaking before the Trustees. "I think it's important for community relations to be proactive, not only crisis based." Bryan also spoke about putting out a newsletter called the Community Union as "an attempt to begin to let the community know what we're doing and informing them about the opportunities and services at Penn." Bryan said that in working on acquiring the Philadelphia Civic Center it has been important for the University to get community input and involvement. Rae Scott-Jones, executive director of the West Philadelphia Improvement Corps -- a consortium of community organizations, residents, and businesses that work on community projects -- told the Trustees he is concerned about what actions they plan to take. "My visions are for a thriving community for everyone," said Scott-Jones, adding he has been frustrated by University actions in the past. "Many, many efforts in the past have been very fragmented. Now, they're more connected. I hope the University continues to lead the charge. By being involved in a real community, students are being educated tremendously. I really think that it's mutually beneficial." The committee also discussed other urban schools with better community programs, including the University of Southern California and Yale University. "There are little parts that work in different places," said Engineering junior Garth Feeney, who is the committee's student representative. "We should try to put them together." Also at the Budget and Finance Committee, Hale briefed committee members on expected state and federal budget appropriations to the University in February. If the Commonwealth follows through on a "handshake agreement" with the University, the state budget will include $35 million for the University, Hale said. As for federal funding, Hale said she expects increases of 2.9 percent from the National Institutes of Health and 7.8 percent from the National Science Foundation. Currently, the University receives appropriations totaling $110 million from NIH and $17 million from NSF, Hale added. Executive Vice President of the Medical Center William Kelley briefed Trustees on the impact of the Clinton Health Care Plan on the University's ability to provide care to patients, conduct medical research and teach students. Kelley told Trustees he recently went to Capitol Hill to express concerns about the Health Care Plan to Senate Finance Committee Chairman Daniel Patrick Moynihan (D-N.Y.). In other business, the University is finalizing a 10-year contract with Philadelphia Electric Co. which would amount to a five percent discount over the University's total electric bill, Vice President for Facilities Arthur Gravina said. Under the new contract, Gravina said the University can expect to save $1.2 million in 1995. The Trustees Stated Meeting is scheduled to be held today in the Hoover Lounge of Vance Hall, beginning at 2:30 p.m. At the Stated Meeting, the Trustees will vote on several resolutions including the promotion of Budget Director Stephen Golding to vice president for finance, the elimination of the American Civilization and Regional Science departments and HUP's amended budget.