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Fiscal 2010 Budget

Every budget is a balance of resources and needs, guided by obligations and priorities. With this document, the budget for New York University's Washington Square Campus, we are sharing with you the key elements of our budget for fiscal 2010, and the needs, priorities, and external economic forces that shaped it.

The operating budget for fiscal 2010 (which covers the period September 1, 2009 to August 31, 2010) totals $2.064 billion. This budget includes all of NYU's schools and programs other than the School of Medicine and the NYU Langone Medical Center. Here are some highlights of the budget, including charts illustrating operating revenues and expenses and the capital budget.

Major Categories of Revenue

  • Tuition and fees net of financial aid account for 59% of total revenue. The budget for financial aid is 19.7% of gross tuition and fees, excluding non-credit tuition.
  • Student Housing and dining contribute 11% of total operating revenue, while all other auxiliary operations account for 2% of the total.
  • Expendable philanthropic contributions account for 5% of total revenue for operations. Gifts to endowment and gifts for construction (i.e., not expendable operations) are in addition to this total.
  • The endowment generates an ongoing source of annual operating revenue from a distribution that is based on a rolling twelve quarter average of the endowment's market value. For fiscal 2010, the distribution is capped at the fiscal 2009 level. Endowment distributions, combined with earnings on short-term investments of operating cash balances, provide 4% of the Washington Square Campus budget. (The market value of NYU's total endowment at August 31, 2009 was approximately $2.2 billion - $1.5 billion of which was for the Washington Square campus, and $700 million was for the School of Medicine.)
  • Income from commercial real estate represents 2% of the total revenue budget. 
  • Sponsored research accounts for 5% of total revenue, while sponsored educational programs accounts for 4% of the total.
  • Clinical income from dental patient care provides 2% of all operating revenue.
  • All other sources of revenue total 6%. This category includes many relatively small items such as service payments from the School of Medicine, an annual appropriation from the State of New York, and transfers from non-operating funds.

 

Major Categories of Expense

  • Expenditures for salaries and employee fringe benefits comprise 52% of all expenses. 
  • Expenditures for operation and maintenance of the physical plant (e.g., debt service, rent, energy, cleaning, building maintenance contracts, etc.) account for 20% of the budget.
  • General operating expenses account for 15% of the budget.
  • Professional services and fees make up 6% of the expense budget. 
  • Five percent of the budget is transferred to non-operating funds, primarily the capital fund for construction and IT projects. 
  • Two percent of the budget is designated for contingency and academic investments. 

 

Expenditures by Purpose

  • Expenditures by schools and institutes comprise 63% of all expenditures. 
  • Facilities management and campus safety account for 11% of the total. 
  • The direct costs of auxiliary operations account for 9% of the total budget and include the costs of student housing, dining and residential education, which comprise 7% of the University's total budget. When the fully allocated costs of facilities management and administrative operations are added, the expenses of auxiliary operations more closely match the revenue from auxiliary operations.
  • Information technology services and student affairs each account for 3% of the total. 
  • Provostial operations, including such units as the Offices of Admissions and Financial Aid, represent 3% of total expenditures.
  • Administrative units comprise 8% of the total, and include services such as development, finance and legal. 

 

 

Photo: Henry Kaufman Management Center

NYU's Leonard N. Stern School of Business' Henry Kaufman Management Center



Endowment Leverage: The Per Student Endowment Comparison

In a national study of 522 private institutions' endowments at June 30, 2008, NYU's total endowment (including the School of Medicine) was the 21st largest in total size, but 184th in endowment per student (or $70,398 per student).

Endowment Performance: Negative Return, but Beating the Broad Indexes

For fiscal 2009 (9/1/08 - 8/31/09), the return on the University's endowment was
-11.3%. This return was generated during an extremely difficult period, in which financial markets experienced stunning declines and major universities reported deep losses and liquidity concerns. Losses in the broad market indices were greater than NYU's - for example, the S&P 500 Index declined by 18.3% during this period. Over time, the University's endowment has been invested in a relatively conservative manner; the relative success in minimizing NYU's recent endowment losses can be attributed in significant part to the foresight of the investment committee of the Board of Trustees, which early on sensed the contours of the global financial crises and directed the University's assets be reallocated to reduce risk.

Employment at Washington Square

In the fall 2009 semester, the University employs 6,658 individuals in academic positions as full-time and part-time faculty members and researchers, and 5,206 individuals as full-time and part-time technical, clerical, service, and administrative employees. Between Fall 2008 and Fall 2009, the number of academic personnel increased by 5.0%, and technical, clerical, service, and administrative personnel declined by 4.7%. Slightly more than ½ of the decrease in technical, clerical, service and administrative headcount resulted from the transfer of positions from University employment to employment with a firm that provides building cleaning and maintenance services under contract to the University. In addition, throughout the fiscal year, the University will employ approximately 8,000 part-time graduate and undergraduate students.

 

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