Despite the promises made by the new Obama administration, the impact of America's collapsing economy continues to rattle the nation's higher education institutions. From the Ivy League universities to little-known colleges, falling revenues and the declining value of endowments have resulted in staff redundancies, cancellations of new building works and even cuts in enrolment numbers.

San Jose State University, one of 23 campuses in the California State University system, was forced to deny admission to more than 4,000 qualified applicants this year because of the state's budget crisis. The state system received $283 million less than officials said they needed and was the first time San Jose had turned away thousands of eligible students.

Meantime, the following accounts describe the effect of the crisis on other notable institutions:

Brown University in Providence, Rhode Island, is expecting lower revenues across the board because of the recession, according to a communiqué from its central administration. After its annual winter meeting in February, the governing Corporation of Brown University (composed of its Board of Fellows and Board of Trustees) decided to begin a series of budget cuts that anticipate a $90 million decrease in overall spending by 2014.

Administration and staff positions will be the first to be cut over the next several months and there will be pauses in staff salary increases and hiring to decrease spending. "The university's financial planners have done their work against a backdrop economic convulsions and market upheavals around the world," said Brown Chancellor Thomas J Tisch.

Students will also feel the strain as the corporation increased annual tuition fees by 3% to $38,048. But the university says this is the lowest tuition increase since the 1960s.

By keeping the increases to a minimum, Brown says it is trying to alleviate some financial pressure currently affecting most students. Money from tuition and other educational fees accounts for the largest portion of Brown's annual revenues.

Cornell University in New York State is to cut endowment spending by 15% from 1 July while raising up to US$500 million from selling bonds. The university faces a 10% budget shortfall, a deficit of more than $200 million, and has announced it will slash its budget by 5% on the main campus in Ithaca in upstate New York, and 8% at its New York City medical school because of reductions in state funding, donations and endowment income.

"In less challenging times, we might have avoided some of the difficult decisions that lie ahead," said Cornell President David J Skorton. "But a new reality is at hand for higher education, as well as for the rest of our economy."

In an effort to save money, the school is halting construction projects, increasing tuition fees and planning to recruit around 100 more students. It is also offering voluntary redundancy packages to non-faculty employees aged 55 or older who have worked for Cornell for at least 10 years.

The president remained bullish however: "Even while we're making fiscal adjustments to deal with the current economic situation, Cornell is the economic engine that supports our community as we continue to be a leading economic engine for the state," said Skorton.

"The actions we are taking now will sustain the university's financial strength over the long term." Cornell University is home to some 30,000 students, faculty and staff.

Dartmouth College in New Hampshire has released a budget-reconciliation plan that will cut its $700 million operating budget by $72 million between now and 2011, with revenues expected to fall because of the recession.

The college's board of trustees endorsed the plan in February. It outlines several reorganisation initiatives that will slash 150 administration positions and lay off 60 staff members. The college has guaranteed that no tenured or tenure-track faculty position will be eliminated but it has also placed several construction projects on hold.

"Approving these reductions, especially those affecting staff employees, has been one of the most difficult decisions of my presidency, but they are necessary to maintain Dartmouth's strength and advance our academic mission," said James Wright, President of Dartmouth.

"In making targeted reductions, we have been guided by our commitment to protect the excellence of the academic experience for undergraduate and graduate students, to provide support for faculty and student research and scholarship, and to continue to provide access for the best students regardless of their financial means."

The University of Pennsylvania announced the lowest tuition increase for undergraduate degrees for the last 41 years. The 3.75% hike reflects the university's attempt to increase access and affordability for lower and middle-income families, it argues.

Pennsylvania claims to be the only one of 50 private institutions in the US not to discriminate against academically qualified students because of their families' total income.

"It is our responsibility to educate future generations of leaders, regardless of economic background," Penn President Dr Amy Gutmann said. "The excellence of the education we offer on our campus depends in part on our attracting students with varied economic and cultural backgrounds and contrasting life experiences who live and learn together."

A university statement said cutting tuition fees was the responsibility of the university during a recession.

Harvard University in Massachusetts, the oldest and one of the richest in America, has not escaped the disastrous effects of the economic downturn. It announced last month that, among other cuts in spending, the travel budget for its admissions department would be slashed in half, all out-of-state travel programmes banned and individual visits would only take place to only local high schools.

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