Warner House memo | Yale to curb spending
The boom years are over.
As reports of plunging endowments and vanishing student loans sweep across the world of higher education, Yale is well-positioned to weather the economic crisis, administrators responsible for the University’s budget said. But they, too, are feeling the strain of the recession on the University’s sources of income.
The challenges of the economic crisis are already emerging, and though it is too soon to tell exactly how the University will deal with them, administrators say they are planning for any contingency.
“We’re in a pause mode,”...
A depression could be good for Yale for two reasons:
1) As other universities enact budget freezes or worse, Yale could hire away their star faculty. The day that Harvard or Yale even consider a spending cut is the day that Cornell, Columbia, UPenn, Michigan, NYU and Berkeley have going out of business sales.
2) The cost of new construction could significantly decrease if China collapses, enabling Yale to undergo an expansion that makes the current building boom look like nothing.
How are the boom years "over"? Who's to say that 2010 or 2015 or 2020 won't see Yale's unprecedented prosperity reach a new level?