In the continued economic downturn, the University and peer institutions are working hard to maintain endowments and avoid student-life-related budget cuts.
Penn’s budget increased by 3.6 percent compared to Fiscal Year 2010, according to Vice President for Budget and Management Analysis Bonnie Gibson. No cuts have been made in the student-life budget this year, and there is “no plan or expectation to cut it,” Penn President Amy Gutmann said.
The increase in budget was driven by Penn’s success in research, which saw a budget increase of 10.6 percent this year, Gibson said.
“That has everything to do with the University’s terrific success in getting research stimulus funding,” she added.
Both Gibson and Gutmann attributed Penn’s healthy budget to “prudent” spending by departments.
“They all slowed hiring down and spent less on normal operating expenses,” Gibson explained.
The only area of the University that has experienced significant cuts is the School of Veterinary Medicine. According to Gibson, the Vet School’s problems arose in part because the Commonwealth of Pennsylvania reduced its appropriations “substantially.” Also, during the economic recession, people did not bring their animals to the veterinary hospital in the same numbers they used to. Both of these issues led to staff reduction.
“I’m very pleased we haven’t had to cut and we don’t plan on cutting,” Gutmann said about student-life expenditures.
Other Ivy League schools have experienced mixed success.
After declining by 27 percent the previous year, Harvard’s endowment jumped by 11 percent in the fiscal year ending on June 30, 2010.
Columbia University topped Harvard’s impressive feat, with a 17-percent return this fiscal year.
Yale University, on the other hand, made several cutbacks. The University reduced the amount of total money given to children of staff members for educational purposes.
Yale Dining simplified their salad bars and scheduled a later brunch time — both suspected results of budget cuts, according to the Yale Daily News.
