What are the overall savings we have made in the budget since we began planning for reductions in 2008?
At the end of 2007, before the sharp fall in the capital markets, we projected operating expenses in 2010/11 of about $110.2 million in compensation; $46.4 million in non-compensation expense; and $11.8 million in equipment purchases and plant renewal projects around the campus. This budget projection would have required a $57.7 million draw on our financial assets, which represented 5.8% of their expected value. The budget we are proposing now for 2010/11 has $96.1 million in compensation; $43.5 million in non-compensation expense; and $6.8 million equipment purchases and plant renewal. This budget anticipates support of $45 million drawn from our financial assets. This level of endowment support is still well above a sustainable spending rate. We estimate that it will fall in the range of 6-6.5% of market value on June 30, 2010.
