Financial Context
Guidelines For Cost Savings
The University has outlined specific guidelines for cost savings that are designed to protect the integrity of teaching and research at Princeton. These guidelines include the following:
- Identify ways to conduct all aspects of the University’s operations more efficiently without adversely affecting core priorities such as teaching, research, financial aid and the overall student experience.
- Cut administrative non-personnel budgets in FY10 by 5% from their FY09 levels, and by the same amount in FY11.
- Work with departments with end-user managed restricted fund accounts (“Fund 20 accounts”) to plan for the payout from the endowment to those accounts to decline by 8% in FY10 from their FY09 levels, and by an additional 8% in FY11.
- Redeploy (to the extent consistent with applicable gift restrictions) the proceeds from Fund 20 accounts to support the University’s highest priorities rather than more discretionary programs.
- Carefully control the University’s hiring; all positions posted through the Office of Human Resources and non-faculty positions hired through the Office of the Dean of the Faculty must be approved in advance by a central Vacancy Management Review Committee, and no visiting faculty members may be hired unless the Dean of the Faculty first determines that doing so is essential to staff a mission critical course.