Stanford University News Service
425 Santa Teresa Street
Stanford, California 94306-2245
Tel: (650) 723-2558
Fax: 650) 725-0247
March 5, 2009
Kathleen J. Sullivan, News Service: (650) 724-5708, firstname.lastname@example.org
Stanford plans to trim close to $100 million from its $800 million general funds budget next year, approximately $30 million more than originally anticipated, due to the deepening national recession and global economic crisis and its continuing impact on university finances, Provost John Etchemendy announced on Thursday.
Stanford will also impose a university-wide salary freeze in fiscal year 2010, which begins Sept. 1, he told the Faculty Senate at its regularly scheduled meeting on Thursday.
"As with any salary freeze, it's not 100 percent," Etchemendy said, adding that the university will give raises to professors who are promoted during the year, including assistant professors who are granted tenure.
Originally, Stanford had planned to cut expenses by $100 million—or about 15 percent—over the next two fiscal years.
But as the national economic situation continued to worsen and the value of its endowment continued to fall, Stanford decided those cuts had to be accomplished in one year and that a salary freeze was needed to achieve that goal.
"As you know, the economic situation has deteriorated since November, [when the university's annual budget process began] and continues to look quite bleak," Etchemendy said.
He said the university's budget committee had concluded its work on Thursday and will soon be sending out letters advising units of their decisions about cutbacks. More layoffs are expected over the next several months, he said.
The moves are the latest in a series of steps Stanford has taken to reduce expenses in response to a steep decline in the university endowment, which has fallen 25 to 30 percent.
In recent months, Stanford announced plans to cancel or delay $1.3 billion in proposed construction projects, has laid off staff, instituted hiring freezes and reduced faculty searches. Top administrators, including Etchemendy, President John Hennessy, and the deans of all seven schools, have taken pay cuts of 5 to 10 percent.
Lisa Lapin, University Communications: (650) 725-8396, email@example.com
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