Dean of the Faculty William C. Kirby’s second annual letter to the Faculty, which was posted online yesterday, outlines plans for the future of undergraduate education and reiterates last year’s concerns about Faculty budget deficits.

The lengthy report, which will be officially released today, appeared on Kirby’s website yesterday afternoon but was not linked from his homepage or the Faculty of Arts and Sciences (FAS) website.

The letter will be sent to the Faculty later this week for discussion at next week’s Faculty meeting.

Kirby’s letter includes initiatives to improve student recreational athletic space and plans for University land in Allston.

For the first time, it explicitly states an expectation to establish undergraduate housing and resources across the river.

Professor of the History of Science Everett R. Mendelsohn said the letter, though longer than most of the dean of the Faculty’s previous annual reports, skirted some of the more controversial matters facing the Faculty.

“Dean Kirby has written a very thoughful report,” Mendelsohn said. “I think it’s outlined a range of things going on. He has not focused on areas where there are issues of tension.”

The letter suggests that fiscal belt-tightening might be necessary to facilitate FAS pushes for growth in facilities and faculty.

In 2002-2003, the FAS budget increased by nine percent, to $804.1 million, but the budget surplus was nearly eliminated—decreasing from $22.6 million to $2.4 million.

“Our current financial health is sound, but we must restrain our spending and seek to enhance our most flexible revenues,” Kirby said in the letter, citing the rising costs of employee benefits and the forthcoming construction projects in Cambridge and Allston.

“Discussion about Allston is very upbeat and optimistic, and yet we’re being told that our budget is constrained in FAS,” Mendelsohn said. “There was some real discussion of the tension between Allston growth and FAS feeling constrained.”

Despite Kirby’s desire to cut costs, the letter said renovations to the Malkin Athletic Center (MAC) will start this summer and that a partnership between FAS and the Law School will bring improvements to the Hemenway Gymnaisum by 2006.

Thomas A. Dingman ’67, associate dean of the College, said more space might be opened for cardiovascular equipment and that the north side of the gym, above the pool, might be opened.

“I knew that there was a lot of discussion abou tthe possibility of interim fixes at the MAC,” Dingman said. “I’m thrilled to hear that now there’s a commitment to look further at possibilities across the board.”

A full renovation of the gym is expected to cost over $30 million, according to College administrators.