The term 'cost shifting,' as I use it, refers to those items in a university's budget that used to be reimbursed by the federal government but are no longer paid for by them.

Nonetheless, the research budgets of the Department of Defense are under enormous stress-and they are extremely important because they support more than 40 percent of all federal funding for engineering schools across the country. So the threat was and is real.

The term 'cost shifting,' as I use it, refers to those items in a university's budget that used to be reimbursed by the federal government but are no longer paid for by them.

We are trying to make up these other elements by gaining cost efficiencies through our reengineering process and through overt fund-raising activities to better support graduate education.

The thing that we at MIT must understand is the amount of real damage that is being done to us in the fine structure of how research funds are expended.

On the other hand, it is not fair to say that changes in federal policy have caused our tuition to rise faster. Every economic argument imaginable would indicate that we should raise tuition at a faster rate than we do.

We will work with industrial or Dept. Of Defence sponsorship as long as we keep our principals of openness firm we're proud to work with the military, and they respect that in turn.