CASH CRUNCH HITS GODDARD

The Associated Press

PLAINFIELD -- Financial troubles have become as much a part of life at Goddard college as books and classrooms, and now school officials have been hit by a cash crunch that could close the school.

College administrators said they hope negotiations with creditors and fund-raising efforts will keep the school running. College president Jack Lindquist said the crisis was brought on when a promised donation failed to materialize.

Goddard failed to meet its payroll two weeks ago, and prospects for meeting this week's are uncertain.

Should the school fail to meet its payroll, Lindquist said, layoffs will be made so employees will be eligible for unemployment benefits. He also said students may be sent home for the remainder of the term and continue their studies by mail.

The president said Goddard officials have been trying to win escrow funds brought in by the sale of Goddard property during the last few months. Those sales were part of a restructuring that came in the wake of a near-collapse last spring.

The school also is in negotiating a short-term loan, Lindquist said.