Private Colleges Face Economic Challenges - Perry Groten, KELO TV

The University of Sioux Falls is not alone among private schools coping with a rough economy. However, administrators at Augustana College do not foresee job layoffs, or wage reductions, as part of their efforts to deal with a tight budget. Like USF, Augustana College has seen a shortfall in its endowment fund. But the college expects to make it through the school year and beyond with gains in other areas, like enrollment and donations. Augustana's economic lifeblood flows through its endowment fund, plus other alumni gifts as well as tuition payments and research grants. But the school's endowment took a hit in the financial markets last year, prompting the college to urge belt-tightening among the faculty and staff.