Updated May 28. Executive Vice President Ed Forst, who joined Harvard last fall and helped shape the University’s financial strategy, is returning to New York.
The Faculty of Arts and Sciences gave some details of initial efficiency measures—one-third of the savings it must effect.
At a “town hall” meeting for Faculty of Arts and Sciences professors, staff members, and students, Dean Michael Smith outlined daunting financial challenges, even after modest budget savings already effected and larger ones planned for the next academic year.
The University’s financial gap measures in the hundreds of millions of dollars.
In affirming Harvard’s credit rating, Moody’s detailed recent and current financial challenges; Princeton, in the meantime, adopted a more pessimistic outlook on its finances and reined in its budgets further.
Distributions from the endowment will be reduced 8 percent in each of the next two fiscal years; that action sets the stage for significant budget cuts.
Updated. Citing the deepening economic and financial crises, Stanford has decided to make deeper expense cuts in the next fiscal year; Yale recently imposed deeper cuts, too.
Harvard assesses the feasibility of completing capital projects now under way, and the timing of other parts of its institutional master plan.
Harvard and its schools are preparing for broad and potentially deep cost reductions.
An update on the University’s financial contribution
Yale has announced a second, deep set of austerity measures; its reasons for doing so may cast light on the financial choices confronting Harvard.
Harvard will continue construction through 2009 while examining its options, which include pausing construction entirely.
The University unveiled incentives for staff members to retire early, and the president and Faculty of Arts and Sciences dean discussed other pending financial measures.
In the wake of sharp declines in the endowment, Harvard Management Company’s new leadership is reducing staffing.
Princeton has detailed a prospective 25 percent decline in its endowment and resulting restraint in its operating and capital budgets—in line with the steps taken by Yale, and indicative of the actions Harvard administrators may formulate.