Financing in a Period of Retrenchment: A Primer for Small Colleges.

Perspectives concerning the effective use of a small college's resources and assets in a time of declining government support and decreasing enrollments are presented. Attention is directed to improving cash flow, staff reduction and early retirement, external sources of long-term financing, college financial student aid, and managing real estate assets. Specific topics concerning cash flow include: renegotiation of debt payments to the federal government, enrollment decline and debt refinancing, application of reserve accounts and substitution of collateral, reorganization under Chapter 11 of the Bankruptcy Code, cooperation and cost effectiveness, reducing health insurance costs, and income from intangible assets. Additional topics include: financial exigency and termination of tenured faculty, early retirement incentives, midcareer transition programs, phased or gradual retirement programs, financing energy conservation measures, state agency financing and industrial revenue bonds, industrial revenue bonds, tuition pricing and student financial aid, cash-flow sacrifice and student aid, external sources for student loan financing, income producing options for surplus facilities, alternate use of federally-financed facilities, and unrelated business income and tax-exempt status. (SW)