Brown University is dealing with a major budget shortfall of $46 million, and it’s expected to grow to more than $90 million by next year. To handle this increasing money problem, the University has shared a plan to balance its budget and stay financially healthy over the next five to six years.
Steps to Fix the Budget
Brown University announced actions to address this budget shortfall. The University will slow down hiring new faculty and staff and admit fewer PhD students, focusing on ways to reduce costs and lower daily expenses. These steps are needed to stop the financial gap from getting worse.
Brown University has changed from a liberal arts college to a top research institution, but this shift has created a problem. The university’s academic goals no longer align with its financial system. Brown now depends heavily on tuition fees from undergraduate students. These fees haven’t increased enough to cover the rising costs of financial aid and faculty salaries. Provost Francis Doyle and Executive Vice President Sarah Latham explained the main reasons for the budget shortfall. The reasons are higher salary expenses, increased financial aid needs, and a stable number of undergraduate studies.
Long-Term Plans
As part of its plan to improve finances, Brown University will also work on increasing income from its master’s programs. By using these methods, Doyle and Latham hope to lower the deficit to $60 million or less by 2026. This does not include long-term spending on health systems connected to the University, according to The Brown Daily Herald.
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