A news release did not specify which graduate schools would be involved in the project. However, University spokesperson Joe Wrinn indicated last week that the Kennedy School of Government (KSG) and the School of Public Health (SPH) are likely candidates.

The institute's annual budget is over $34 million. Private foundations, various aid agencies, regional development banks, United Nations organizations and host governments support HIID work, the institute Web site says.

The University has guaranteed HIID staff no loss of income through June 30. HIID has 159 employees overseas and at the University. Twenty-five additional personnel hold joint appointments within Harvard.

According to at least one HIID fellow, institute employees have been hearing rumors about their employer's demise for months and were not surprised by Friday's announcement.

Still, according to Fellow Joseph J. Stern, the general mood around the institute was one of disappointment.

At a meeting Friday, HIID's human resources department encouraged members of the staff to stick around as long as possible to finish current projects.

Some staff members will also continue to work on HIID functions within the parameters of the graduate schools once the integration is complete. Still, this admonition to finish up quickly may be a sign that large cuts are on the way.