ASSU Grad Student Town Hall 7/21/09

Graduate Education: Stanford’s Commitment to Excellence John Etchemendy, Provost Patricia J. Gumport, VPGE Greg Boardman, VPSA Tim Warner, VP Budget ASSU Graduate Town Hall July 21, 2009 Outline of Presentations • Introduction - Provost Etchemendy • Overview of Graduate Education - VP Gumport - University Priorities & Highlights of Initiatives (VPGE) - A Decade of Graduate Student Financial Support • Stanford’s Investment in Graduate Student Life - VP Boardman • 2009/10 University Budget Plan - VP Warner • Impact of Cuts on Graduate Students - Provost Etchemendy 2 Organization Supporting Graduate Education Provost 7 Schools Graduate Education (VPGE) Undergrad Education (VPUE) VP Budget & Aux. Student Affairs Admissions & Financial Aid 65 Degree Programs CTL Housing (R&DE) Vaden Graduate LIfe Graduate Office (GLO) Financial Aid Life Office Community Centers & Bechtel Career (CDC) Registrar 3 Stanford Enrollment 1985-2008 4 Stanford’s 8,328 Graduate Students 55% of Stanford University’s enrollment 35% women 9% under-represented domestic minority 33% international; from 100 countries Time at Stanford - 1-2 yrs master’s - 3-4 yrs JD/MD - 5-7 yrs doctoral 5      Photos: Chris
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Service Stanford’s Graduate Degrees  Enrollment by degree level - 51% doctoral students 37% master’s 12% professional (MD, JD)  15 different graduate degrees - Master’s (MA, MS, MBA, MFA, MLA, MLS, MPP, Eng.) Doctoral (PhD, DMA, JSD, LLM, JSM) Professional (JD, MD)  ~3,000 graduate degrees awarded - 10th most PhDs in US vpge.stanford.edu 6 Office of the Vice Provost for Graduate Education Graduate Enrollment by School 2008: 65 departments/programs in 7 schools 11% 7% 7% 3% 4% 39% 11% Earth Sciences Education Engineering GSB H&S Natural Science Social Science Law Medicine 7% 11% 7 Commission on Graduate Education  Build on strengths - Academic excellence Innovation & collaboration Interdisciplinarity Leadership roles Diversity  Imagine new practices -  Create VPGE (2007) Office of the Vice Provost for Graduate Education vpge.stanford.edu 8 Office of the VPGE Our mission is to work collaboratively across all seven schools to ensure that Stanford remains at the forefront of graduate education, providing the highest quality educational experiences for students. Office of the Vice Provost for Graduate Education vpge.stanford.edu 9 Graduate Education Priorities   Advance diversity Foster cross-school learning   Interdisciplinary opportunities Leadership & professional development    Support degree programs & student progress Administer university-wide graduate fellowship programs Coordinate & interpret university-wide graduate academic policy Assist in problem solving on graduate academic issues  Office of the Vice Provost for Graduate Education vpge.stanford.edu 10 Graduate Diversity Selected Programs    Recruitment, adding to schools’ efforts - Campus visits to departments & university-wide preview events (GRAD Day) Retention - Funds for student organizations - Dissertation research funds - WISE support groups - Childbirth Accommodation Policy Preparation for academic careers - DARE Doctoral Fellowship program - Distinguished Alumni Scholars program 11 Cross-School Learning Selected Programs  Stanford Graduate Summer Institute (SGSI) courses Summer Institute for Entrepreneurship Leadership series Communications & Management workshops Mentors in Teaching (CTL)   Writing Center tutoring Dissertation Bootcamps Summer writing workshops SPICE Innovation Funds Academic Chats Future Faculty Seminar vpge.stanford.edu 12         Office of the Vice Provost for Graduate Education VPGE-Administered Graduate Fellowship Programs    Stanford Graduate Fellowships in Science & Engineering (SGF) Stanford Interdisciplinary Graduate Fellowships (SIGF) Diversifying Academic Recruiting Excellence (DARE) Doctoral Fellowship Program Comparative Studies in Race & Ethnicity Graduate Fellowships (CSRE)  Increases in Fellowship Support (2005-10) 2005-06 # of students Financial Support 06-07 435 $14.2 M 07-08 472 $19.5 M 08-09 534 $23.5 M 09-10 574 $30.0 M 13 378 $12.0 M Stanford Graduate Student Financial Support A Decade of Growth: FY98 - FY08  Graduate student financial support increased 77%    $143 M → $253 M ~45% stipends, ~55% tuition & fees in FY08 ~30% from external grants, ~70% from university in FY08 $3,712 /qtr → $6,575 /qtr ($14,848 → $26,300 per yr) An increase of $1,597/qtr ($6,386/yr) above inflation 50% subsidy for ≥ 25% RA/TA or comparable fellowship $400/qtr subsidy (premium is $800/qtr) in FY10 Assists with a financial emergency (e.g., medical, dental, legal) 14  Minimum RA/TA stipend level increased 77%    Cardinal Care premium subsidized since FY03    Emergency Grant-In-Aid Fund (Financial Aid Office)  Outline of Presentations • Introduction - Provost Etchemendy • Overview of Graduate Education - VP Gumport - University Priorities & Highlights of Initiatives (VPGE) - A Decade of Graduate Student Financial Support • Stanford’s Investment in Graduate Student Life - VP Boardman • 2009/10 University Budget Plan - VP Warner • Impact of Cuts on Graduate Students - Provost Etchemendy 15 Division of Student Affairs (VPSA) VPSA is responsible for the oversight of all issues and resources related to student life.  Student Affairs is devoted to serving all students – undergraduate and graduate – and making sure that the learning and living environment on campus is conducive to attaining their academic goals. Stanford’s Investment in Graduate Student Life  Graduate Life Office (GLO)  Programming funded by Provost  New Graduate Student Orientation (NGSO)  Graduate Student Programming Board (GSPB)   Graduate Community Center (GCC) Staffing  Community Associates (CA) program 17 Increased Support for Student Health & Well Being  Student Mental Health and Well-Being Task Force Report (2008) - 4 working groups with student representation  CAPS enhancements - $1 M budget increase 5 additional staff 18 Housing Enhancements for Graduate Students  Approx. 53% live on campus (Fall 2008) - 4,273 graduate students in campus housing, plus 140 Universitysubsidized off-campus units 1,000 spouses, partners, and children Highest percentage housed in Pac10; 2nd highest in Ivy schools Capacity increasing to 4700 with Munger for Fall 09 -  Investment in capital construction, renovation and off-campus housing subsidies - $440 million in past decade Three new buildings: Lyman, EV Studios, Munger; 1658 new beds EV landscaping Increased 69% in past decade (EV 2BR: $5,939/yr → $10,025/yr) On-campus rates ~15-20% below local market (incl. amenities) 19  Campus housing rates - Outline of Presentations • Introduction - Provost Etchemendy • Overview of Graduate Education - VP Gumport - University Priorities & Highlights of Initiatives (VPGE) - A Decade of Graduate Student Financial Support • Stanford’s Investment in Graduate Student Life - VP Boardman • 2009/10 University Budget Plan - VP Warner • Impact of Cuts on Graduate Students - Provost Etchemendy 20 University Budget Plan -- Topics • Some budget basics • Highlights of next year’s budget • Endowment Issues • General Funds Budget - the problem and the responses 21 Consolidated Budget by Category, 2009/10 Other 10% Healthcare 13% R&B 3% Tuition 14% Gifts 6% Sponsored Research 30% Salaries 53% SLAC 10% Financial Aid 6% Investment Income 24% Other Expenses 31% Revenue $3.7B Expenses $3.7B 22 Consolidated Budget by Fund Type, 2009/10 Grants & Contracts Auxiliaries 25% 8% Central Obligations $175M Restricted 26% Designated 18% General Funds 23% $863M NonFormula Units $528M Formula Units $160M $3.7B Central Obligations include debt service, utilities, insurance, capital facilities fund, university reserve, etc. 23 Budget Plan Highlights, 2009/10 • Consolidated Budget • Investment income to drop by $171M (16.2%) • Research projected to increase $102M (9.9%); mostly Medicine and SLAC • General Funds Budget • General funds unit cuts total $79.4M, with most units cutting 13-15% • Total reduction of $139M by 2011/12 • Anticipate 400-450 staff layoffs; 50+ faculty positions frozen • Capital Budget/Capital Plan • Capital Budget of $646M in 2009/10; three-year Capital Plan of $1.8B • Delayed or cancelled $1.1B in capital projects 24 Historical Investment Returns for Stanford’s Endowment 40% 30% 20% 10% 0% -10% -20% -30% Lowest previous return 1974: -8% Estimated return in 2009: -30% 65 70 75 80 85 90 95 00 05 20 19 19 19 19 19 19 19 20 20 09 25 Investment Income $1,200M $1,000M $800M Other Investment Income Endowment Payout $1,018 $1,057 124M $886 57M $727 $629 ? $600M $436 $420 $446 $508 $477 $529 933M 830M 706M $400M $200M $0M 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Projected 2010 Projected 2011 Planned 26 Net Incremental General Funds Forecast (June 2008) Incremental GF Revenue Incremental GF Expenses $60M Available for New Programs Projected Deficit $0M -$60M -$120M 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 27 Net Incremental General Funds Forecast (December 2008) Incremental GF Revenue Incremental GF Expenses $60M Available for New Programs Projected Deficit $0M -$60M -$120M 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 28 Budget Planning Strategy Principles: - preserve core academic and research programs - maintain enhanced financial aid program - recognize a new lower operating baseline - take a multi-year approach but return to stable budgets as quickly as possible - provide units with latitude; use Budget Group as advisory body Major Actions: - reduced endowment payout by 10% in 2009/10; and 15% in 2010/11 - eliminated salary program for 2009/10, but increased graduate stipends - cut 15% over two years in General Funded areas - delayed and suspended capital projects, saving future operating 29 Results Moving rapidly to a new financial equilibrium, though not there yet General funds budget substantially balanced through 2011/12: - Actions taken net $139M base reduction by 2011/12 on projected base of $939M - Most units taking 13-15% budget cuts - 400-450 staff layoffs anticipated; at least 50 faculty positions frozen Additional cuts required for academic units with reliance on endowment Cuts eliminated most discretionary expenses; reduction in staff will impact administrative support, some academic program, and outreach Capital plan reduced by $1.1 billion, saving incremental utilities & maintenance 30 Net Incremental General Funds Forecast (June 2009) Incremental GF Revenue Incremental GF Expenses $60M Available for New Programs Projected Deficit $0M -$60M -$120M 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 31 Concluding observations • Everyone at Stanford had to contribute to solving this problem, with very difficult consequences for some • We continue to spend hundreds of millions of our endowment • Bringing the endowment back to 2008 levels does not define recovery • Must accept new revenue baseline • What will recovery look like? budget reductions behind us continuing revenue streams keep up with inflation fund raising for new initiatives When can this happen? Over the course of the next two or three years. 32 Outline of Presentations • Introduction - Provost Etchemendy • Overview of Graduate Education - VP Gumport - University Priorities & Highlights of Initiatives (VPGE) - A Decade of Graduate Student Financial Support • Stanford’s Investment in Graduate Student Life - VP Boardman • 2009/10 University Budget Plan - VP Warner • Impact of Cuts on Graduate Students - Provost Etchemendy 33 Impact on Graduate Students • Regular Tuition, Room & Board increased by 3.5% ‣ Tied (with last year) for lowest TR&B increase in over 30 years • TGR tuition frozen ‣ Fee has been frozen for three years in row • TA/RA/Fellowship stipends increased 3.2% ‣ Grad students and postdocs are only group whose pay was not frozen • Student Health Fee: $167 per quarter 34 Rationale for Health Fee • Vaden services are one area we can’t afford to cut ‣ Services include both clinical services and outreach, health and wellbeing efforts in student community • Existing method of funding Vaden services unfair ‣ Supported partly from tuition, partly from Cardinal Care ‣ Students paid once, twice or not at all ‣ Students paid whether local or at, e.g., overseas campus ‣ Most universities charge separate fee, to avoid similar inequities • Separate fee allows us to charge single amount to all and only students located at main campus, i.e., those who benefit from Vaden services 35 Is the Health Fee unfair to graduate students? Improving graduate student well-being (financial and otherwise) has been one of my highest priorities while provost. The Health Fee is clearly a step backwards. But how far back? 36 Is the Health Fee unfair to graduate students? • Since 1999, stipends have been increased approximately $7,000 per year above inflation ‣ Had stipends gone up only by inflation for last 10 years, next year’s minimum stipends would have been $21,700 rather than $28,700, a difference over 10 times greater than $668 annual health fee • Since 2007, stipends have increased approximately $2,800 per year above inflation ‣ Had stipends gone up only by inflation for last 3 years, next year’s minimum stipends would have been $25,900 rather than $28,700, still a difference that is 4 times greater than $668 annual health fee 37 Is the Health Fee unfair to graduate students? • Since 2003, 50% subsidy of Cardinal Care has been provided for TA/RA/ Fellowship recipients ‣ Next year, Cardinal Care subsidy will equal $1,600 per year, 2 1/2 times greater than the annual health fee • In 2009-10, graduate stipends will be increased by 3.2% ‣ Had graduate student pay been frozen, like other salaries on campus, next year’s stipends would have been $890 lower; this alone will cover the $668 annual health fee 38 Is the Health Fee unfair to graduate students? Graduate students, and especially PhD students, have been the greatest beneficiaries of the endowment growth during the past decade. The Health Fee takes a very small portion of this benefit back, but no more than the burden shouldered by every other member of the Stanford community. 39 End 40