Office of the President, Lee C. Bollinger
Columbia and the Economic Outlook
November 11, 2008
Dear fellow member of the Columbia community:
I write to provide an update on what the current economic situation may mean for
the University and how we are planning to respond. In a landscape largely
defined by uncertainty, no one can predict what lies ahead, but we know that we
are facing difficult times.
Columbia will be moving into this challenging environment from a position of
strength after a period of impressive institutional development and improved
management across our many schools, campuses, and administration. Thanks to
the generous support of our alumni and friends, our fundraising campaign, which
is one of the most ambitious in the country, continues to track ahead of
schedule, with gifts and pledges totaling close to $3 billion of our $4 billion
goal.
But we are obviously not immune to the problems of the national economy. We
anticipate pressure on endowment support for operations since our endowment --
like those of our peers -- has suffered from the downturn in the markets. We
can also anticipate greater demands on financial aid and the possibility of
other losses in tuition revenue. The grant environment, which has already
contracted in recent years, may well deteriorate further. And we have no way
of knowing whether we will be able to maintain our currently robust
fund-raising successes.
These economic realities call on us to look more closely at every aspect of our
operations, to focus on improving efficiencies wherever we can, and to make
some difficult choices about how we allocate our resources. Our unquestioned
priority for the University as a whole is maintaining the excellence of our
academic programs and meeting the financial needs of our students. Under our
financial system, each college and school operates with its own budget, and
every school will face its own particular challenges. Provost Alan Brinkley
and CFO Anne Sullivan are in the process of meeting with each dean to review
their budgets and provide help and guidance.
Within the central administration there are steps we are already taking to
reduce our expenses in the months ahead: a careful review of all expenses is
already underway and will intensify as we begin considering next year's
budget. We have instituted a hiring review committee that will look carefully
at every new or vacant position in the central administration before allowing
it to be filled. We are also reviewing capital projects. Projects that are
already underway such as the new interdisciplinary science building and the
expansion of Arts and Sciences into Knox Hall will continue on schedule. We
will also continue our planning for capital projects that are funded by
generous donors, including the Jerome L. Greene Science Center that will house
our Mind, Brain and Behavior initiative, and certain projects at the Mailman
School of Public Health. We are committed to continuing progress in improving
and expanding our physical space as quickly as our finances permit.
Let me also make clear that we will not permit the economic downturn to affect
Columbia's long-standing commitment to need-blind admissions and the meeting of
full financial need in student aid for undergraduates in the College and the
School of Engineering and Applied Sciences. We will also work to sustain, and
when possible enhance, current levels of financial aid in other schools and
programs.
One week ago, we elected an extraordinary new American President, the first
Columbia graduate to hold the office, and we all feel enormous hope in what he
and we can accomplish in the face of great challenges. We do not yet know how
difficult our own task may be. What I can and will do is to speak directly and
candidly with our community about how our circumstances may change and how we
will work together to preserve the academic greatness of this institution.
Columbia University has weathered many ups and downs in its more than 250
years. I have no doubt that we will be able to continue the momentum we have
built as a dynamic engine of education, research, public service, and economic
growth for our community, our city, our nation, and our world.
Sincerely,
Lee C. Bollinger
President
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