Handling UW budget cuts??

barrons
Sun, 30 Nov 2008 15:12:45 +0000

It appears nearly certain the UW will be cut around 10-20% in the next budget cycle or about $50 million to $100 million per year. How do they deal with that? I think a tuition increase to the Big 10 state schools average would be very reasonable. That’s about $3000 each for undergrads per year for both in and OOS students. That would raise around $80,000,000 per year. The rest would depend on the exact size of the cuts. Right now it’s very nice to have a potential large cushion in the low current tuition. Of course that’s a one-time deal. Tough times ahead with the endowment off around 35%, fundraising slowing, and research money declining. A perfect storm. Biddy has a tough job.