Series VI: Finances, 1966-1975 (Boxes 45-50)

The finances series measures 28 linear inches and is arranged alphabetically by subject. It consists of material related to auditing, banking, budgets, financial reporting, investments, and related financial matters.

There are 6 boxes relating to finances. Box 1 consists of general financial information. The file on banking (folder 1) contains a letter from the bank asking NYU to reduce its outstanding debt as well as correspondence about the voting of proxies over dealings with South Africa. The folders on the budget contain general information except for the folder on the five-year plan, which was formulated to put the University on a sound financial footing. This folder also contains the State approval of the plan. The original inventories contains references to folders on expenses. These expenses were not considered of importance to the collection as a whole and have been disposed of.

Of primary interest in this collection is the information on financial crises both at NYU and in higher education in general. Box 45 contains clippings regarding the financial crisis at NYU. Box 46 contains information about a Task Force established by President Hester to review NYU's financial condition and make recommendations that would alleviate the crisis. Hester also requested suggestions from the faculty and these suggestions are contained in the file entitled "Faculty Responses to Hester Memo of 1/28/71." Among other things, the University realized that many professors would have to be denied tenure and there was an attempt by the University to establish a faculty placement service. The information on these attempts and on the crisis at institutions of higher learning in general is also in Box 46.

Box 47 contains considerable correspondence regarding the recommendation that NYU save money by closing the Graduate School of Social Work. Initially the University viewed this as a necessary solution unless sufficient funds were raised to guarantee support for the school. The first folders on this controversy are a response to the recommendation to close. As it became obvious that sufficient funds would be raised, the correspondence changed to congratulations on having found a solution.

Box 47 also contains the Hurd Commission Report. Hurd was appointed chairman of a State Task Force on the Financing of Higher Education in New York State in November 1971. The file consists of his report, findings and recommendations circulated by Commissioner Nyquist, and comments by Professor Arnold Goren. Also in this file is information on NYU's investments including statements from banks and other managers of the endowment funds, and suggestions from within and outside of the University on how to improve income.

Box 48 contains information on the decision to sell the Heights campus and the response from alumni and students. Initially the University tried to seek an alternative to the sale through appeals legislators and a variety of alternative proposals. When it became obvious that the sale would take place, the material changes to agreements and contracts including a merger agreement between NYU's Engineering and Polytechnic Institute of Brooklyn. These plans were vigorously opposed by the students and alumni and there is considerable correspondence about the decision to close the Heights campus in Box 49. Box 49 also contains information and correspondence about the decision to merge the school of engineering with the Brooklyn Polytechnic Institute, a plan that was also strongly opposed by alumni and students.

Box 50 consists of University memos regarding finances. These memos provide a quick understanding in chronological form of what the administration was trying to do about the financial crisis.