South SFV Today

Provost Jenny Martinez presented Stanford University’s 2024-25 budget plan to the Faculty Senate on Thursday, highlighting strategic investments in research, teaching, and clinical care while addressing affordability and infrastructure challenges.

“The budget group worked hard this year to say yes to some things that we thought were really important for the university but also to say no to other things to leave room for the things that we know and anticipate we may need to pay for in the future,” Martinez said.

In separate remarks, President Richard Saller updated the senate on an investigation into a protest that occurred on Monday. Disciplinary proceedings have begun, and students whose actions threaten community safety will be immediately suspended and barred from Commencement. “The peaceful expression of viewpoints, which we value, can and should occur within a university’s time, place, and manner provisions, without vandalism, and without jeopardizing the safety of our community members,” Saller stated.

The 2024-25 budget plan includes a $9.7 billion Consolidated Budget for Operations encompassing all operating revenues and expenses; a $2.1 billion General Funds Budget for core academic functions; and a $687 million Capital Budget within a $3.6 billion three-year Capital Plan.

Key factors influencing this year's budget include moderating inflation, a modest endowment payout increase for 2024-25, continued operational shortfalls for auxiliary units such as Residential and Dining Enterprises (R&DE), and significant systems and capital infrastructure needs.

Total revenues are projected at $9.7 billion with expenditures at $9.5 billion. Revenue highlights include a 9% increase in health care services payments from hospitals for faculty physician services, now constituting 41% of the Consolidated Budget compared to less than one-third ten years ago.

A 6% increase in sponsored research reflects strong growth due to increased investments in research missions. “It’s a sign that our faculty are doing fantastic work supported by the university,” Martinez noted.

Overall student income growth is projected at 3%, attributed to declining enrollment following the graduation of fifth-year students who deferred their start dates due to COVID-19.

Compensation expenses are expected to rise by 9%, reflecting market-based competitive salary programs and benefits costs. Financial aid is projected to grow by 6%, with total student support increasing by 5.6%. Thirty percent ($79 million) of undergraduate need-based scholarships funding will come from general funds.

The collapse of the Pac-12 Conference has implications as Stanford joins the Atlantic Coast Conference (ACC). Membership requires contributing media revenue shares to ACC over ten years, creating a projected budget shortfall addressed by allocating $40 million from the Office of the President’s discretionary fund toward athletics for fiscal stability.

General fund allocations will support facilities like Hopkins Marine Station and new Data Science Complexes; bolster research; enhance teaching programs including Capstone requirements; improve student services such as Accessible Education offices; computer science affairs; and athlete dining enhancements.

“We know that we have some big expenses that we’re going to need to invest in as a university,” Martinez emphasized regarding competing priorities like research support and infrastructure needs. A general funds study group comprising trustees, faculty, and staff has been tasked with identifying funds for these needs while considering revenue enhancements, cost reductions, and internal funding transfers.

The $687 million Capital Budget supports major projects including Graduate School of Education renovations; Data Science Complex development; Electric Reliability Improvement – Phase 1 among others planned between 2024-27.

Several senators expressed concerns about long-term athletics funding amidst shifting priorities. Condoleezza Rice stressed commitment towards maintaining an intercollegiate model emphasizing both academic excellence alongside athletic prowess: “We owe it...to continue emphasizing what we've tried building here.”

Martinez underscored involving faculty alongside students/alumni/trustees in decision-making processes concerning athletics amid evolving college sports landscapes: “These decisions must involve everyone caring deeply about Stanford's mission.”

Ongoing negotiations with graduate student unions were acknowledged as critical considerations amidst several uncertainties affecting budgets moving forward including trends over past decades indicating substantial growth across various sectors notably Medicine/Healthcare/Housing/Research expansions underlined through interdisciplinary initiatives like Doerr School Sustainability/HAI etc.,

The Board Trustees will review this budget plan pending approval upon which formal documentation becomes accessible online soon thereafter,

Additionally announced was forming search committee seeking next dean Graduate School Business replacing Jonathan Levin transitioning into presidency later fall,

Committee co-chaired Provost Martinez Professor Law alongside Neil Malhotra Edith M Cornell Business Prof Political Science courtesy among other notable members spanning diverse academic/professional backgrounds ensuring comprehensive selection process,