News

Stanford cuts $100 million, freezes salaries

University reacts to crash in endowment funds; earlier halted $1.3 billion in construction

Stanford University will cut its budget by close to $100 million next fiscal year, $30 million more than originally anticipated, and will impose a university-wide salary freeze for the 2010 fiscal year, which begins Sept. 1, Provost John Etchemendy told the Faculty Senate Thursday.

Etchemendy said the worsening global economic crisis and national recession prompted the decisions. The university's endowment, which had been more than $17 billion, has fallen 25 to 30 percent in recent months.

"As you know, the economic situation has deteriorated since November and continues to look quite bleak," Etchemendy told the faculty. "As with any salary freeze, it's not 100 percent."

He said the university will give raises to professors who are promoted during the year, including assistant professors who are granted tenure.

Stanford departments had been told to prepare budgets with proposed cuts ranging from 5 to 10 percent. The university has already cancelled or delayed $1.3 billion in construction projects, and top administrators, including Etchemendy and President John Hennessy, have already taken voluntary pay cuts of 5 to 10 percent.

The Graduate School of Business laid off 49 staff, or 12 percent of its employees, in January and the Stanford Athletic Department announced last week that it was eliminating 21 positions, or 13 percent of its staff.

-- Don Kazak

Comments

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Posted by GSB
a resident of Mountain View
on Mar 6, 2009 at 10:28 am

Why are professors exempt? That doesn't seem fair to the rest of the staff.


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Posted by LH
a resident of Midtown
on Mar 6, 2009 at 11:23 am

I don't think it says professors are exempt - it only says that professors WHO ARE PROMOTED will get raises.


Like this comment
Posted by Anonymous
a resident of Community Center
on Mar 6, 2009 at 11:41 am

I wonder how much Condoleezza is going to cost them??


Like this comment
Posted by GSB
a resident of Mountain View
on Mar 6, 2009 at 11:47 am

LH:

But is a staff person gets promoted, do they get their raise? I'm thinking the answer is no.


Like this comment
Posted by neighbor
a resident of Greenmeadow
on Mar 6, 2009 at 12:47 pm

When Assistant Professors are promoted with tenure it represents 5-7 years of hard work. The promotion only comes if those years are exceptionally productive and requires extensive review at the department, college, and university level. This is not to say staff who are promoted should not receive raises (remember, they said some raises would be granted, including promoted assistant professors -- which does not necessarily exclude others, including promoted staff). Just thought I'd toss in the info that the review process of tenure is quite arduous.


Like this comment
Posted by Prudent
a resident of Duveneck/St. Francis
on Mar 6, 2009 at 1:54 pm

Prudent.

What about the city? When will it list its cuts, cancellations, freezes and layoffs? Only after we go under water?


Like this comment
Posted by Hiring
a resident of Crescent Park
on Mar 6, 2009 at 4:42 pm

I'm willing to hire 1-2 Stanford faculty to teach my 2-year-old son Chinese, but you may also have to do some light house-cleaning chores.


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Posted by Donna
a resident of Los Altos Hills
on Mar 6, 2009 at 8:33 pm

I stumbled on a site called , I think, POST. A lecture series that included Ed Begley. Can't find it again.

As for freezing salaries, We all have to do our part.
I work for Foothill College.


Like this comment
Posted by reader
a resident of Menlo Park
on Mar 9, 2009 at 2:29 pm

We all have to do our part. We did our the first part of our part by overlooking years of neglect and worse by appointed and elected officials, sitting by while an insurance company acted like a hedge fund and still was rescued, and while bank robbery took on a whole new meaning... so ready to do our part.

Doing our part will consist of watching calmly while we those of us with money cough it up so those of us without it don't just starve to death. That's what we've come to.


Like this comment
Posted by anon
a resident of Leland Manor/Garland Drive
on Mar 17, 2009 at 9:26 pm

Condaleeza Rice is at the Hoover Institute which has its own endowment, which will as its all endowment, will probably have been hit really hard by the stock market downturn. Couldnt happen to a nicer bunch of war criminals@


Sorry, but further commenting on this topic has been closed.

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