Stanford Budgets 101
Undergraduate Town Hall Meeting Wednesday, May 27, 2009
Outline of presentation
Basic numbers Looking at the budget from two different angles Absolutely essential arcana Some questions and answers
2
Basic numbers
Budget -- $3.7 billion
• •
#572 on the Fortune 1000 22,000 funds, each with its own distinct restrictions
Endowment -- Current market value $14 billion
•
it was $20 billion a year ago
Space -- 13 million square feet
• •
replacement cost $7 billion $646 million in capital projects planned for next year
3
Looking at the budget: two perspectives
4
Consolidated Budget - by line item
2008-09 Projected
$610 1,027 529 325 173 462 225 1,057 933 124 358 Student Income Sponsored Research Direct Costs - University Direct Costs - SLAC Indirect Costs Health Care Services Expendable Gifts & Net Assets Released Investment Income Endowment Income Other Investment Income Other Income
2009-10 Budget Plan
$645 1,129 567 370 193 473 225 886 830 57 365
Percent Change
5.7% 9.9% 7.0% 13.9% 11.5% 2.4% 0.0% -16.2% -11.0% -54.2% 2.0%
5 Year Change
31% 16% 1% 56% 12% 68% 3% 68% 84% -26% 25%
$3,739
1,860 325 206 1,085
Total Revenues
Salaries and Benefits SLAC Financial Aid Other Operating Expenses
$3,723
1,903 370 218 1,100
-0.4%
2.3% 13.9% 6.2% 1.4%
34%
36% 56% 59% 27%
$3,476 $263
(180)
Total Expenses Revenues less Expenses
Total Transfers
$3,592 $131
(92)
3.3%
36%
$83
Revenues less Expenses after Transfers
$39
Dollars in millions5
Changing Funding Sources - Consolidated Budget
Other 10% Healthcare 12% R&B 3% Tuition 13% Gifts 6% Other 10% Healthcare 13% R&B 3% Sponsored Research 27% Tuition 14% Gifts 6% Sponsored Research 30%
Investment Income 28%
Investment Income 24%
2008/09 $3.74B
2009/10 $3.72B
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Consolidated Budget, 2009/10 - by organizational unit
Auxiliary! $220.6! 6%!
SLAC ! 13%! Medicine ! 42%! Academic! $2,859.4! 73%! Education ! 1%! H&S ! 13%!
Administrative! $813.7! 21%!
Engineering ! 10%! Earth"Sciences ! Dean"of"Research ! 1%! 6%! Law ! Other1 ! GSB ! 2%! 3%! Libraries !5%! 3%!
is Hoover, VP for Undergraduate Education, and VP for Graduate Education!
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1Other
Consolidated Budget, 2009/10 - by organizational unit
Information Technology ! 13%! President! Athletics ! and Provost ! 8%! 8%! Business! Affairs ! 7%!
!"#$%&'()*
Academic! $2,859.4! 73%!
Admin & Major Auxiliary Units! $1,034.3 ! 27%!
Admission"and! Financial"Aid ! 13%!
Other1 ! 6%!
Residential! and Dining ! 13%! Land & Buildings ! Student! Development! 21%! Affairs ! & Alumni ! 4%! 8%!
1Other
is Stanford Management Company, General Counsel, and Public Affairs!
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Undergraduate Financial Aid
$120M $100M $80M $60M $40M $20M $0M
$42.0 $35.9 $46.2 $70M $76M $69M $55.3 $58.4 $60.8 $66.4
Unrestricted Funds Endowment
$111.5 $102.3 $26M $75.2 $5M $42M
$52.1
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Projected Projected
Does not include athletic scholarships
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First Lessons
Stanford is highly dependent on research and investment income We are a people driven organization We have a strong financial aid commitment The Medical School is a major revenue and expense driver
10
Absolutely Essential Arcana
11
Consolidated Budget by fund type
2009/10 Revenue Budget: $3.7 billion
Grants & Contracts! $937 M! Auxiliaries! $291 M! Central Obligations1! $175 M!
25%!
8%! 23%!
Allocated nonGeneral Funds! formulaically $863 M! by the Provost! NonFormula! Unit Allocations! $528 M!
26%! 18%!
Restricted! $956M! Designated! $675 M!
Obligations include Debt Service, Capital Facilities Fund, Tuition Allowance, University Reserves, Utilities, Insurance and Fire Contract Allocations!
1Central
Formula ! Unit! Allocations! $160 M!
12
Changing funding sources - General Funds
2008/09! Total = $808 M! Indirect Cost Recovery! 11%! Other Income! 18%!
2009/10! Total = $725 M! Indirect Gifts & Cost Recovery! Endowment Income 12%! Other Income! 13%!
16%
Gifts & Endowment Income 21%
Tuition & Fees! 50%!
Tuition & Fees! 59%!
13
Endowment has different impacts across schools*
!"#$ -*#$
35% 53% 16% 24% .9:3/;<6$ (=-,$
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=!#$
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./012$&3456357$ (!8,$
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57%
11% *not including sponsored research
40%
@A&$ (!?=,$
B/C$ (-?,$ %5650/H$I:697$ %4J7$
,5943465$ (D)!,$ R1250$
.696/159$LH4643$
14
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