PLAINFIELD -- Goddard College is facing a financial shortfall that has made it impossible to pay 172 employees since May 11 and prompted another round of layoffs, the school's acting president said Friday as the college graduated its class of 1990.

"It is a very difficult situation, no doubt about it. There is no way you can put a happy face on this," Beth Warrell, acting president, said.

She said the small alternative college -- which faced turbulent financial times that nearly closed it in the late 1970s -- has enough money to meet daily expenses.

But it does not have enough money to meet the $79,000 payroll that was to be issued May15, and it has a projected shortfall of $142,000 for the end of June.

"We have a very low cash flow and have just not been taking in enough income to meet the payroll. We have enough for day-to-day expenses," Warrell said, adding that the college has about $15,000 in the bank.

The financial problems stem from lower-than-projected enrollments and fund-raising last year, and unexpected high utility costs, Warrell said.

Aggressive fund-raising efforts, summer rental revenues and summer and fall tuitions will help alleviate the financial strain, Warrell said. She said she was optimistic the college would remain open.

Warren said the college's board of trustees recently received pledges of $130,000 in an emergency fund-raising effort. That money will be used to pay faculty and staff, she said, as well as the school's bills. She said the payroll checks were expected to be issued June 8.

Thursday, the trustees approved a $3,328,397 budget for next year, which is nearly level-funded and will require a 10 percent increase in the $14,000 tuition and fees for on-campus students.

The budget, which Warrell described as "frugal," includes the elimination of eight jobs that will affect both staff and faculty. Employees will be notified of the cuts next week. Their current contracts expire June 30.

"It's very painful to do this. But, on the positive side, this gives us an opportunity to make some changes that many faculty and students have felt were needed for some time," Warrell said.

She added that the school would not directly cut any programs, and said the board was trying to obtain $170,000 more.

Board members in the past have lent the college money to get over the financial humps but this year trustees and alumni are being asked for donations.