Operating Budget

Major Categories of Revenue

Tuition and fees net of financial aid for undergraduate and graduate students account for 57%
of total operating revenue.

Student housing and dining contribute 10% of operating revenue, while all other auxiliary
operations account for 2% of the total.

Expendable philanthropic contributions account for 4% 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, 2015 was approximately $3.5 billion, of which, $828 million was for the NYU Langone Medical Center.)

The budget assumes a total return on endowment investments of 6%. Distributions
from endowment to support operations are calculated using the fiscal 2015 distribution
amount plus 0.3%, which was the increase in the New York Metro Area CPI for the
twelve months ending December 31, 2014. This results in a per-unit appropriation amount of 4.8% of the 12 quarter average market value, and 4.5% of its value at December 31, 2014.

Income from commercial real estate represents 2% of the revenue budget.

Sponsored research accounts for 5% of total revenue, and sponsored educational programs
account for 11% 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, annual appropriations from the State of New
York, and transfers from non-operating funds.

Major Categories of Expense

  • Expenditures for salaries and employee fringe benefits comprise 54% of all expenses.
  • Operation and maintenance of the physical plant accounts for 17% 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 16% 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.
  • Sponsored Research expenses account for 4% of the expense budget.
  • General contingency and a reserve for academic investments designated by the Provost account for 1% of the budget.
     

Expenditures by Purpose

Another way to view the expense budget is by purpose of expenditures.

  • Expenditures by schools and institutes comprise 62% of the total budget.
  • Facilities management and campus safety account for 14% of total expenditures, divided as follows: 5% for student housing, 1% for faculty housing, and 8% for academic buildings and general infrastructure.
  • The direct cost of auxiliary operations, including student housing, dining, and residential education, account for 4% 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 expenses make up 4% of the budget.
  • Provostial operations, including such units as the offices of the Provost, Admissions and Financial Aid, Institutional Research, Registrar, Executive Vice President for Health and Senior Vice Provost for Research, represent 3% of total expenditures. This expense category also includes budgetary reserves for academic initiatives.
  • Information technology services accounts for 4% of the total, and student affairs accounts for 2%.