Princeton University has an $82 million budget-cutting plan set for the new fiscal year, Princeton administrators told members of the community during a town hall meeting on Wednesday afternoon.
Princeton currently has an operating budget of $1.3 billion, 48 percent of which comes from investment income while 29 percent came from student fees, 16 percent from sponsored research and 9 percent from gifts, Vice President for Finance Caroline Ainslie said.
“Princeton is especially dependent on investment returns compared to other public institutions,” Ms. Ainslie said. Princeton averages a 15 percent return on the endowment. Last year, however, returns were only 5.6 percent and they are expected to fall 20 percent for the 2009 fiscal year, Ms. Ainslie added.
“This gives you a sense of why we’re not in the same good old days and why the times are not normal,” Ms. Ainslie said. The new budget will cut the amount that comes from endowment returns by 8 percent or $74 million, Provost Chris Eisgruber said. Princeton also borrowed $1 billion for operations in order to prevent increased endowment spending, Ms. Ainslie said.
Mr. Eisgruber said that these measures are only the beginning.
Read entire article in the Princeton Packet here.