Ivy League Universities Issue Statements Concerning Their Responses to the Economic Downturn

Though the severity of the economic downturn has become apparent to the broader economy, its impact on the Ivy League remains far less obvious. Though all the universities have issued statements warning about the effects of the financial crisis, some have been more forthcoming than others.

At Harvard, the Faculty of Arts and Sciences announced a hiring pause on all vacant positions yesterday. While no further changes have been announced, University spokesman John D. Longbrake wrote in an e-mailed statement that “the Harvard community needs to be prepared to absorb unprecedented endowment losses and to plan for a period of greater financial constraint.”

BROWN UNIVERSITY
Brown has instituted a hiring pause through January of all administrative and staff positions as a result of voluntary turnover.

Several committees have been formed to judge the need for further measures, and the capital budget is being reviewed to determine which construction plans can be deferred.

Brown’s financial aid office has been active, implementing measures such as waiving a balance requirement for spring semester pre-registration and increasing the number of counselors available to discuss financial aid options.

COLUMBIA UNIVERSITY
Columbia has not yet announced any specific measures, although school officials have constituted several review committees to review vacant and new staff positions and capital plans.

CORNELL UNIVERSITY
Cornell suspended all construction projects for 90 days, starting Nov. 3, and instituted a hiring pause through March 31 of next year. Finally, Cornell has begun a six-week review of operational effectiveness, financial policies and procedures.

DARTMOUTH COLLEGE
Dartmouth’s provost has released statements outlining spending reductions of 10 percent, or $40 million, over the next two fiscal years, in addition to a hiring freeze. For this fiscal year, Dartmouth is seeking to reduce spending by 5 percent. Some construction has been delayed or deferred, and all new capital plans are being reviewed.

PRINCETON UNIVERSITY
Princeton recently scaled back its decade-long, $3.9 billion capital spending plan, slashing the total outlay by $300 million. The $300 million cut will mostly affect construction projects. At the same time, Princeton’s financial aid office plans an additional $3 to $4 million in spending to meet increased student needs.

UNIVERSITY OF PENNSYLVANIA and YALE UNIVERSITY
The University of Pennsylvania and Yale University have been optimistic about their ability to maintain their operations in spite of the financial crisis. Both schools have cited prudent spending strategies that have buffered their operating budgets from short-term downturns, while saying that they will remain flexible and react to market conditions as they develop.