Yale to Cut Spending Annually Until 2014

Despite the fact that it is the second-wealthiest school in the United States and one of the most prestigious universities in the entire world, Yale University has not been spared by the recession. In order to help soften the impact of a shrinking endowment, the university has planned to cut back annual spending by $150 million until 2014.

In all, staff and non-salary spending will be cut back by 12.5 percent, according to President Richard Levin and Provost Peter Salovey in a recently released statement. Yale’s endowment shrunk 30 percent to around $16 billion in June, $1 billion less than the university expected and planned around being able to spend.

According to Yale’s statement, its public investments were not the problem; rather, its real estate and private investments have mostly contributed to Yale’s 25 percent loss in investment value. Because of this, Yale’s investments have not recovered significantly with the recovery of the stock market, its private investments instead remaining relatively weak.

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