Operating Budget

Major Categories of Revenue

  • Tuition and fees net of financial aid for undergraduate and graduate students account for 55% of total operating revenue.
  • Student housing and dining contribute 10% of operating revenue, while all other auxiliary operations account for 1% 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 for operations) are in addition to this total.
  • Endowment distributions, combined with earnings on short-term investments of operating cash balances, provide 4% of the revenue budget. (The market value of NYU's total endowment at August 31, 2016 was approximately $3.614 billion, of which, $857 million was for the NYU Langone Medical Center.) In an effort to preserve the spending power of the endowment over the long term, the University has been decreasing the effective endowment spending rate over time from 5.0% of the endowment’s three-year average market value. Consistent with that policy, the dollar amount of distributions from endowment to support operations in fiscal 2017 is equal to the same amount as in the prior year, unless there are new additions to endowment principal.
  • Income from faculty housing and commercial real estate represents 3% of the revenue budget.
  • Sponsored research accounts for 8% of total revenue, and sponsored educational programs account for 9% of the total.
  • Clinical income from dental patient care provides 2% of operating revenue.
  • All other sources of revenue total 3%. This category includes many relatively small items such as service payments from the School of Medicine, and annual appropriations from the State of New York.

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Major Categories of Expense

  • Expenditures for salaries and employee fringe benefits comprise 56% of all expenses.
  • Operation and maintenance of the physical plant accounts for 18% of the expense budget, divided as follows: 2% for energy, 5% for rent, 6% for debt service, and 5% for cleaning, building maintenance contracts, and all other expenses.
  • General operating expenses account for 17% of the budget.
  • Three percent of the budget is transferred to non-operating funds, primarily the capital fund for construction and information technology projects.
  • Professional services and fees make up 5% of the expense budget.
  • General contingency and a reserve for academic investments designated by the Provost account for 1% of the budget

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Expenditures by Purpose

Another way to view the expense budget is by purpose of expenditures.
  • Expenditures by schools and institutes comprise 59% of the total budget.
  • Facilities management and campus safety account for 12% of total expenditures, divided as follows: 4% for student housing, 1% for faculty housing, and 7% for academic buildings and general infrastructure.
  • The direct cost of auxiliary operations, including student housing, dining, and residential education, account for 5% of the 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.
  • Administrative units comprise 7% of the total expense budget and include budgets for services such as development and alumni relations, human resources, finance, legal, and contingencies.
  • Sponsored Research direct expenses make up 7% of the budget. The indirect costs of sponsored research are allocated to the administration and facilities segments of the budget.
  • Provostial operations, including such units as the offices of the Provost, Admissions and Financial Aid, Institutional Research, Registrar, and Executive Vice President for Health, represent 3% of total expenditures. This expense category also includes budgetary reserves for academic initiatives.
  • University information technology services account for 4% of the total, and student affairs accounts for 3%.

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