At their June meeting, the University Trustees approved a 6.5 percent increase in the operating budget for the 2001-02 academic year, bringing total spending for FY02 to $1.953 billion.

In his eighth budget message to the Trustees, President George Rupp emphasized the University's continuing ability to adapt to economic changes, including the rise in energy prices, construction and housing costs and health-care inflation, due to restrained spending and balanced budgets of past years.

"Since last year's Operating Plan," said Rupp, "a number of economic trends have required the University to tap some of our financial reserves in order to support basic services we could easily take for granted. Much of our ability to adapt to unforeseen changes in the economy results from both the reserves we have deliberately accumulated and the benefit of high rates of return on the investment of our endowment, along with exceptionally generous new gifts."

The momentum of fundraising successes and the support of record numbers of donors, said Rupp, is a testimony to the excellence of the University' academic programs, the energy of its academic leaders, the dedication of the development staff and the generosity of alumni and friends.

The undergraduate tuition rate will increase by 3.7 percent, the second lowest undergraduate tuition increase in 15 years. The composite tuition rate—the average of all the schools' tuition rates weighted by their share of total student enrollment—will rise by 4.2 percent, down from a 4.8 percent increase last year.

Revenues for the next school year are projected to reach $1.950 billion, a 4.9 percent increase ($91.8 million) above the current year. The increase in revenue is due to tuition and enrollment increases, gifts and endowment income, sponsored research and physicians' private practice income.

Capital Budget Columbia is in the second year of its current five-year capital plan, which runs from 1999-2000 to 2003-04. The total cost of the capital program has grown from $848 million, as originally projected, to $1.220 billion, with the largest increase occurring for faculty and graduate student housing renovation and expansion. External and internal loans provide the largest source of funds at $535.1 million (43.9 percent).

"Besides increasing the supply of standard University housing," said Rupp, "we have offered down-payment assistance for individuals who purchase residential property in nearby neighborhoods and financial incentives that may allow existing tenants to find more appropriate housing for their particular needs."

Spending for capital projects will total $321 million next year. Of this, 44.2 percent is for projects on the Morningside campus, 33.3 percent for projects associated with Institutional Real Estate properties and 22.4 percent for projects on the Health Sciences campus.

Major capital projects to be carried out include: Phase III of the Butler Library renovation plan; renovation projects for Avery Hall, Hamilton Hall and Chandler Laboratory building; construction of the third building in the Audubon Biomedical Science and Technology Park; construction of a faculty residence and K-8 School at 110th Street and Broadway; renovations at Jerome Greene Hall, and construction of a student residential hall for the Law School and a home for the School of Social Work on the shared site at Amsterdam Avenue between 121st and 122nd streets.

Endowment Income The University's restricted endowment income will increase in 2001-02, from $106.4 million in the current year to $126 million. In addition, unrestricted income from the general purpose endowment will increase from $33 million in the current year to $37 million next year. It is estimated that this spending will equal approximately 4.7 percent of the endowment's current-year beginning value.

Copies of the Operating Plan and Capital Project 2001-02 will be available in July. To receive a copy, contact the Office of Management and Budget at 212-854-3200.