Yale endowment down 25% (estimated)

bclintonk
Tue, 16 Dec 2008 17:09:35 +0000

I a letter released on December 16, 2008, Yale President Richard C. Levin reported that Yale’s endowment has shrunk by an estimated 25%.

[Budget Letter](http://opa.yale.edu/president/message.aspx?id=84)

Levin noted that since endowment income represents 44% of Yale’s $2.7 billion operating budget, some cuts would be necessary, but he pledged to maintain Yale’s current financial aid policies and commitments. But because the endowment payout is calculated based on a 3-year moving average of endowment assets, the full impact won’t be felt until the 2013-14 budget year, when this year’s $100 million shortfall is expected to grow to $300 million unless market conditions improve markedly… Immediate budget control measures include:


controls on new faculty hires
caps on faculty salary increases
reductions in non-faculty staff, primarily through attrition
deferral of building renovations and new construction projects until market conditions improve.


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