Operating Budget Plan

8/18/2019 Operating Budget Plan

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2012-2013

Operating & CapitalBUDGET PLANMAY 2012


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PUBLISHED BY

The Division of Planning and Budget

Cornell University

CONTACT

440 Day Hall

Ithaca, New York 14853

607-255-0155

dpb.cornell.edu

DESIGN

Zanzinato

PHOTOGRAPHY

Colleen Anderson, Robert Barker/CU,

Lindsay France/CU, Jason Koski/CU,

University Photography

May 2012

Copyright © 2012 Cornell University.

All rights reserved.

Additional copies of this document

are available at:

dpb.cornell.edu/FP_Current_Pubs.htm

Cornell University is an equal-opportunity,

affirmative-action employer and educator.

2012–13

OPERATING AND CAPITAL

BUDGET PLAN

2012–13


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Contents

FROM THE VICE PRESIDENT................................

OPERATING BUDGET – HIGHLIGHTS ....................

Composite Operating Budget ........................................

Operating Budget Details................................................

Ithaca Campus Summary ...............................................

Ithaca Campus Detail .......................................................

Ithaca Campus College Plans.........................................

Weill Cornell Medical College Plan Detail ....................

CORNELLNYC TECH CAMPUS ..............................

BALANCING THE BUDGET AND THE CHANGING

EDUCATIONAL COST AT CORNELL .....................

IMPLEMENTING ADMINISTRATIVE EFFICIENCIES

THE NEW BUDGET MODEL...................................

INSTITUTIONAL INTELLIGENCE...........................

CORNELL IN THE RANKINGS ................................

SPACE PLANNING –

GUIDANCE AND UTILIZATION STUDY.................

CAPITAL PLAN – 2012-13 ......................................

Approved Capital Activity ...............................................

Sources and Uses of Capital Expenditures .................

Summary of External Debt Financing...........................

Debt Service by Operating Unit .....................................

Current Lease Commitments

and Lease Extensions ......................................................

APPENDICES .............................................................

A Academic Year Tuitions............................................

B Student Fees and Other Tuition Rates...................

C Enrollment Assumptions..........................................

D Profile: Class of 2015.................................................

E Undergraduate Tuition and Fees, Room and

Board – Ivy League, Peer, and Common

Acceptance Institutions ...........................................

F Undergraduate Tuition and Fees – Selected

Public and Land-Grant Institutions.........................

Tuition and Fees – Selected Medical Colleges.....

G Average Nine-Month Faculty Salaries – Selected

Research Institutions ................................................

H Undergraduate Financial Aid ...................................

I New York State Appropriations...............................

J Facilities and Administrative Costs and Employee

Benefits Billing Rates ................................................

K Investment Assets, Returns, and Payouts ...........

L Endowment Market Value for Selected

Institutions ..................................................................

M Gifts/Contributions – Through March 31, 2012 ...

N Cornell Now Campaign – Through March 31, 2012

O Projected Maintenance Funding – Ithaca Campus

P Work Force - Ithaca Campus...................................

Q Room and Board Rates – Ithaca Campus..............

R Ithaca Campus Faculty Peers by College..............

S Capital Project Spending Guidelines......................

T Guidelines for Space Needs Studies......................

U Procedure for the Reallocation of Space ..............

V Space Management Principles................................

W Division Directory.......................................................

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Figure 1. FY 2012-13 Revenues

Figure 2. FY 2012-13 Expenditures


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From the Vice President

TO THE CORNELL UNIVERSITYBOARD OF TRUSTEES

The Cornell University 2012-13 operating and capital

budget plan contains detailed budgets for the two

operating divisions of the university and a summary

capital plan. For the first time, the 2012-13 operating

budget includes activity for the new CornellNYC Tech

campus, shown within the Ithaca campus. While the

new campus will take shape over a few decades, initial

plans for degree offerings are well underway.

Operating revenue is expected to increase by 3.2

percent for the Ithaca campus in 2012-13 and increase

by 7.9 percent for the Joan and Sanford I. Weill Medical

College and Graduate School of Medical Sciences

(including the Weill Cornell Medical College in Qatar).

Across the university, revenues are planned to increase

5.1 percent from the current-year forecast, to $3.4 billion,

and operating expenditures are expected to increase 3.3

percent, to $3.4 billion. This growth reflects activity

for the faculty renewal program, the Qatar Biomedical

Research Agreement, and new clinical offices in

Manhattan. Figures 1 and 2 on the facing page provide

a functional overview of revenues and expenses.

After several difficult years of staff and expense

reductions, the Ithaca campus structural budget will

be balanced by the end of 2012-13. We have collectively

identified predictable, recurring revenue to cover all

predictable, recurring expenses. In order to balance

the budget by year-end, the Ithaca campus is incor-

porating an additional $16.1 million of expenditure

reductions and reallocations in its fiscal 2012-13 budget.

Units will continue to use operating fund balances tobridge and initiate important academic and adminis-

trative priorities, including funding for capital projects.

This budget contains over $53 million in fund balance

transfers.

Along with a balanced structural budget, the devel-

opment of a coherent and transparent budget model,

accurate and well managed information, and sound

guidance documents are all critical for the long-term

health of the institution. To this end, important

initiatives are underway in each of these three areas.

The new budget model and its underlying principles

will bring transparency and greater mutual under-

standing to the Ithaca campus. This summer, the

Division of Planning & Budget will work with deans

and administrators across campus to recreate the

2012-13 budget under the new budget model. This mock

budget will serve as a foundation for comparisons,

discussion, and adjustments. Implementation of the

new model is planned for 2013-14.

In its mission to provide central, official, accurate,

and unbiased information and analysis, Institutional

Research and Planning (IRP) has revamped its website

to support planning, decision-making, and reporting

obligations for the entire Ithaca campus. Recent re-

ports and surveys include enrollment and graduation

rate reports and the 2012 senior survey. One report

highlighted on the new website “Profile: Class of

2015” is also included in Appendix D.

Managing space is instrumental to optimizing the use

of resources and advancing the priorities of the uni-

versity. With this understanding, three new space

guidance documents have been developed to define

principles of space management and provide guidance

on the reallocation of space. A campus-wide space

utilization study will document the current use of non-

residential space on campus to inform future decisions.

We are grateful for the commitment from our alumni,

trustees, advisors, friends, faculty, staff and studentsbecause their support keeps us on the cutting edge

and makes these plans possible.

Elmira Mangum, PhD

Vice President for Planning and Budget

OVERVIEW


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COMPOSITE OPERATING BUDGET

Cornell’s composite operating plan for 2012-13 is

based on the plans of its two main divisions: the

Ithaca campus and the Weill Medical College (with

campuses in New York City and Doha, Qatar). The

schedule on the facing page shows the overall univer-

sity plan, with summary and detail plans for each

campus immediately following.

Resources

Revenues are projected at $3.4 billion, an increase of

5.1 percent from the 2011-12 forecast.

• Tuition and fee revenues are planned to increase 4.9

percent, based on approved tuition rate increases.

• The net increase in investment/endowment distri-

bution is expected to be 4.8 percent, primarily due

to the planned 4.5 percent increase in the Long

Term Investment Pool (LTIP) payout, from $2.20

to $2.30 per share.

• The combination of unrestricted and restricted

gifts for general operations is expected to increase

from the 2011-12 forecast with the Ithaca campusplanning increases from the Cornell Now campaign

and faculty renewal which are partially offset by a

slight decline at Weill.

• Direct costs of grants and contracts for sponsored

programs are expected to decrease 6.2 percent

and recoveries of facilities and administrative

costs related to those programs are projected to

decrease 3.4 percent. Qatar sponsored revenues is

planned to increase by 36.9 percent, reflecting

program support of the Qatar Biomedical Research

Agreement. Sponsored direct and facilities and

administrative recovery is planned in total at

$582.1 million.

• State appropriations are planned at $133.8 million.

This projection is considered to be final based on

projections provided by the State University of

New York (SUNY) and the New York State Execu-

tive Budget (See Appendix I for additional details

on state appropriations).

• Revenues from the Physician Organization are

projected to increase $67 million over the 2011-12

forecast due to the opening of new clinical offices in

Manhattan and the expansion of network physicians.

• Enterprise sales and services are projected to

increase 5.5 percent, reflecting rate increases for

student housing and dining services.

Uses of ResourcesExpenditures are planned at $3.4 billion, an increase

of 3.3 percent from the forecast for 2011-12.

• Salaries, wages, and benefits are projected to

increase $83.8 million or 4.7 percent, due to

compensation increases and new hires under

the faculty renewal program.

• Undergraduate financial aid is expected to

increase by $9.3 million or 4.1 percent over the

2011-12 forecast.

• Graduate and professional financial aid is pro-

jected to decrease by $6.1 million or 3.9 percent

from the 2011-12 forecast. This decrease is largely

the result of the decline in sponsored awards.

• General expenses are projected to decrease $11.6million or 1.4 percent from the forecast for 2011-12.

• Qatar expenses in support of the academic pro-

gram and research are expected to increase $29.0

million due to academic programs in Qatar and

the Biomedical Research Agreement.

• Other expenses, including capitalized equipment

and books, are projected to decrease $6.7 million

or 13.8 percent.

• Internal debt service is projected to increase $9.4

million due to interest payments for the Belfer

Research Building.

Transfers To/From Fund BalancesNet transfers from operating funds are planned to

total $62.5 million, with $4.3 million transferred in

from funds functioning as endowment to support

operations, $120 million transferred to plant funds to

support non-debt financed capital project expendi-

tures and equipment renewal and replacement, and

$53.2 million transferred in from unit reserves to

support one-time expenditures.

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Operating Budget - Highlights


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Table 1: Composite Operating Budget(dollars in thousands)

Resources1. Tuition & Fees 786,781 821,047 836,453 877,316 40,863 4.9%

2. Investment/Endowment Distribution 288,707 282,712 287,437 301,130 13,693 4.8%

3. Unrestricted Gifts 60,422 52,732 52,565 69,348 16,783 31.9%

4. Restricted Gifts 126,634 103,784 104,831 117,892 13,061 12.5%

5. Sponsored Programs (Direct) 466,522 435,188 431,961 405,070 (26,891) -6.2%

6. Sponsored Programs (F&A) 144,855 136,622 136,789 132,095 (4,694) -3.4%

7. Sponsored Programs (Qatar) 25,379 54,247 32,779 44,889 12,110 36.9%

8. Institutional Allowances 33,432 36,330 34,063 37,389 3,326 9.8%

9. State Appropriations 145,999 132,652 132,652 133,774 1,122 0.8%

10. Federal Appropriations 18,014 19,367 19,367 19,409 42 0.2%

11. Physician Organization (PO) 577,512 648,007 663,909 730,865 66,956 10.1%

12. NYPH (Purchased Services) 99,267 98,391 99,615 100,359 744 0.7%

13. Enterprise Sales & Services 169,836 159,013 175,307 184,941 9,634 5.5%

14. Qatar Foundation 70,496 83,622 68,285 85,018 16,733 24.5%

15. Educational Activities and Other Sources 225,152 173,789 183,946 185,854 1,909 1.0%

16. Subtotal In-Year Revenues 3,239,008 3,237,503 3,259,959 3,425,349 165,390 5.1%

Uses of Resources17. Salaries & Wages (Including Benefits) 1,727,012 1,767,493 1,792,368 1,876,158 83,789 4.7%

18. Undergraduate Financial Aid 206,576 2 24,502 2 24,502 2 33,755 9,253 4.1%

19. Graduate Financial Aid 154,519 153,636 154,147 148,088 (6,059) -3.9%

20. General Expense 773,236 783,488 809,163 797,560 (11,603) -1.4%

21. Qatar 94,777 137,069 100,164 129,207 29,043 29.0%

22. Other Expenses 51,009 48,468 48,468 41,784 (6,684) -13.8%

23. University Cost Redistributions 0 0 0 0 0

24. Subtotal Expenditures 3,007,129 3,114,656 3,128,812 3,226,551 97,739 3.1%

25. Internal Expense on Taxable Debt 25,927 24,651 26,000 24,500 (1,500) -5.8%

26. Debt Service 110,200 98,540 99,022 109,966 10,944 11.1%

27. Subtotal Debt Repayment 136,127 123,191 1 25,022 1 34,466 9,444 7.6%

28. Net Before Transfers 95,752 (344) 6,125 64,332 58,208

Transfers (to)/from Fund Balances29. Endowment (11,830) 6,868 15,775 4,291 (11,484)

30. Plant/Project Support (56,915) (68,753) (66,153) (119,997) (53,844)

31. Reserves 0 64,145 64,145 53,216 (10,929)

32. Subtotal Transfers (68,745) 2,260 13,767 (62,491) (76,258)

33. Net from Operations 27,007 1,916 19,892 1,841 (18,051)

10-11Actual

11-12Budget

11-12Forecast

12-13Plan Dollars Percent

Change fromForecast to Plan


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“We are grateful for the commitment fromour alumni, trustees, advisors, friends,

faculty, staff and students because theirsupport keeps us on the cutting edge and

makes these plans possible.”


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ITHACA CAMPUS

ResourcesRevenues are planned at $2.0 billion, an increase of

3.2 percent from the 2011-12 forecast.

• Tuition and fee revenues are planned to increase

$40.4 million, or 5.0 percent, from the 2011-12

forecast based on increases in tuition rates for the

Ithaca campus (see Appendix A).

• Investment resources are projected to increase

$11.1 million from the 2011-12 forecast. Distributions

from the Long Term Investment Pool payout will

increase by 4.5 percent (to $2.30 per unit share in2012-13). Other planned investment activity in-

cludes a continued withdrawal of $35 million for

undergraduate financial aid and the retirement

of taxable debt.

• Unrestricted and restricted gifts to current

operations are anticipated to increase over 2011-12

projections, totaling $135.2 million, due to the

Cornell Now Campaign and continuation of the

faculty renewal program and other campus

initiatives.

• Sponsored program direct and facilities andadministrative costs are projected to total $366.6

million in 2012-13, a decrease of 7.0 percent from

the 2011-12 forecast. This decrease is attributable

in large part to a reduction in sponsored activity

in Arts & Sciences, Human Ecology, Veterinary

Medicine, and the Research Centers.

• State appropriations, including special purpose

appropriations are planned at $133.7 million, re-

flecting a net increase of 0.8 percent from the

2011-12 forecast. This estimate includes some

additional funds for Veterinary Medicine and

Cooperative Extension and is considered to be

final based on the projections provided by the

State University of New York (SUNY) and the

New York State Department of Budget (see

Appendix I ).

Use of ResourcesExpenditures are planned at $2.0 billion, a decrease of

0.4 percent from the forecast for 2011-12.

• Salaries, wages, and benefits are projected to

increase $35.2 million or 3.3 percent. This increase

is attributable to a planned three percent salary

improvement program, a one percent increase in

the endowed fringe benefit rate, and new hiring

under the faculty renewal program.

• Undergraduate financial aid is planned to increase

by $9.3 million or 4.1 percent over the 2011-12 fore-

cast due to the growth in tuition and its corollary

effect on financial aid.

• Graduate and professional financial aid is projected

to decline by $6.1 million or 4.5 percent from the

2011-12 forecast mainly due to the decline in spon-

sored support of graduate financial aid.

• General expenses are planned at $379.4 million,

showing a decrease of $35.1 million or 8.5 percent

from the 2011-12 forecast . Significant components

of the total plan include $93 million for sponsored

research activities; $103.7 million for utilities, rent,

and taxes; and $59.0 million for planned repair

and maintenance costs.• Other expenses are projected to decrease by $6.7

million from 2011-12. This category includes capi-

talized equipment and books.

• Internal debt service is planned to remain compa-

rable to the 2011-12 forecast. Internal expense on

taxable debt is planned at $24.5 million in accor-

dance with the planned repayment schedule for

$500 million of taxable debt secured in 2008-09.

Transfers To/From Fund Balances• Net transfers from operating funds are planned to

total $61.0 million, with $4.3 million transferred in

from funds functioning as endowment to support

operations, $118.5 million transferred to plant funds

to support non-debt financed capital project ex-

penditures and capitalized equipment, and $53.2

million transferred in from unit reserves to support

one-time expenditures. Major project activities

include Gates Hall, the Humanities building, and

various maintenance and infrastructure projects.

Operating Budget - Details


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Table 3: Ithaca Campus - Summary(dollars in thousands)

Resources1. Tuition & Fees 757,915 792,182 808,000 848,422 40,422 5.0%


3. Unrestricted Gifts 56,908 50,422 50,422 67,198 16,776 33.3%

4. Restricted Gifts 67,492 54,378 54,452 67,995 13,543 24.9%



8. State Appropriations 145,788 132,529 132,529 133,650 1,121 0.8%

9. Federal Appropriations 18,014 19,367 19,367 19,409 42 0.2%

10. Enterprise Sales & Services 132,656 135,738 135,738 144,472 8,734 6.4%

11. Educational Activities and Other Sources 175,147 129,687 129,687 129,493 (194) -0.1%


Uses of Resources13. Salaries & Wages (Including Benefits) 1,022,788 1,053,428 1,053,428 1,088,650 35,221 3.3%

14. Undergraduate Financial Aid 206,576 2 24,502 2 24,502 2 33,755 9,253 4.1%

15. Graduate Financial Aid 134,120 134,853 134,853 128,745 (6,108) -4.5%

16. General Expense 409,451 397,314 414,575 379,449 (35,126) -8.5%

17. Other Expenses 51,009 48,468 48,468 41,784 (6,684) -13.8%

18. University Cost Redistributions (1,841) (1,896) (1,896) (2,016) (120) 6.3%

19. Subtotal Expenditures 1,822,103 1,856,669 1,873,930 1,870,366 (3,564) -0.2%

20. Internal Expense on Taxable Debt 25,927 24,651 26,000 24,500 (1,500) -5.8%

21. Debt Service 91,389 78,868 78,868 76,524 (2,344) -3.0%

22. Subtotal Debt Repayment 117,316 103,519 104,868 101,024 (3,844) -3.7%

23. Net before Transfers 82,564 (10,409) (9,927) 61,235 71,161

Transfers (to)/from Fund Balances24. Endowment (11,830) 4,892 15,775 4,291 (11,484)

25. Plant/Project Support (56,711) (66,153) (66,153) (118,497) (52,344)

26. Reserves 0 64,145 64,145 53,216 (10,929)

27. Subtotal Transfers (68,541) 2,884 13,767 (60,991) (74,758)

28. Net from Operations 14,023 (7,525) 3,840 244 (3,597)

10-11Actual

11-12Budget

11-12Forecast




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Table 4: Ithaca Campus - Details(dollars in thousands)

Resources1. Tuition & Fees 414,491 137,985 6,043 285 24,628 44,446 55,518 35,645

2. Investment/Endowment Distribution 89,203 14,106 2,905 19,194 22,951 4,861 2,987 2,475

3. Unrestricted Gifts 14,006 8,955 690 5,846 3,208 1,865 1,181 1,7514. Restricted Gifts 0 4,787 235 33,982 3,472 2,780 577 959

5. Sponsored Programs (Direct) 0 79,844 26 23,235 44,790 0 13,800 5,067

6. Sponsored Programs (F&A) 49,497 21,078 0 177 136 0 4,549 1,296

7. State Appropriations 14,658 47,021 0 0 0 100 6,065 8,129

8. Federal Appropriations 0 11,628 0 0 0 0 3,659 0

9. Enterprise Sales & Services 0 0 0 0 0 0 0 0

10. Educational Activit ies & Other Sources 4,604 17,311 1,455 1,783 697 18,429 1,644 9,129

11. Inter-Unit Transfers 36,371 (4,492) 710 (6,660) 359 (5,770) (2,106) (2,302)

12. General Purpose Allocations (821,802) 8,849 14,255 137,555 51,059 10 126 17

13. Total Resources (198,972) 347,072 26,320 215,396 151,300 66,720 88,000 62,166

Uses of Resources14. Salaries & Wages 0 152,021 13,379 111,533 74,324 26,667 39,286 28,965

15. Employee Benefits 0 11,838 3,892 33,168 20,964 8,918 2,911 1,512

16. Undergraduate Financial Aid 0 2,168 412 2,809 4,794 2,305 629 348

17. Graduate Financial Aid 0 13,873 2,742 20,024 18,112 264 9,629 2,831

18. General Expense 0 65,392 4,562 18,460 21,569 9,449 9,094 8,517

19. Purchased Services 0 1,535 1,072 1,401 833 1,832 1,845 2,186

20. Utilities, Rent & Taxes 0 3,949 263 45 57 1,239 543 128

21. Repairs & Maintenance 0 10,272 846 822 547 270 363 27

22. Capital Expense 0 4,367 0 2,504 3,137 1,192 204 493

23. Subtotal Expenditures 0 265,416 27,167 190,765 144,337 52,136 64,504 45,007

24. Accessory Instruction 1,416 3,566 0 0 0 (1,900) 1,469 712

25. Administrative & Support (CAM) (124,795) 49,668 0 0 0 8,253 12,331 9,595

26. Financial Aid (63,652) 36,949 0 0 0 6,143 12,202 8,307

27. Subtotal Cost Redistribution (187,031) 90,183 0 0 0 12,496 26,002 18,614

28. Internal Expense on Taxable Debt 24,500 0 0 0 0 0 0 0

29. Debt Service 0 451 809 0 0 2,063 317 202

30. Subtotal Debt Repayment 24,500 451 809 0 0 2,063 317 202

31. Net Expenditures (162,531) 356,049 27,976 190,765 144,337 66,695 90,823 63,824

32. Net Before Transfers (36,440) (8,977) (1,657) 24,632 6,964 25 (2,823) (1,657)

Transfers (to)/from Non-operating Support33. Endowment 0 (259) 0 310 77 0 0 0

34. Plant/Project Support 0 (32) (2,908) (33,000) (23,596) (3,000) 0 1,657

35. Reserves 0 9,268 4,565 8,058 16,556 2,975 2,823 0

36. Subtotal Transfers 0 8,977 1,657 (24,632) (6,964) (25) 2,823 1,657

37. Net from Operations (36,440) 0 0 0 0 0 0 0

0

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GeneralPurposeBudget

Agriculture& Life

Sciences

ArchitectureArt &

PlanningArts &

Sciences Engineering Hotel AdminHumanEcology

Industrial& LaborRelations


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55,300 37,397 17,070 0 19,215 0 0 0 0 400 0 848,422

5,481 5,005 7,268 1,867 14,648 52,584 1,662 5,748 2,427 0 0 255,372

3,932 2,080 2,500 5 4,100 0 581 0 0 7,000 9,500 67,1982,862 487 2,577 1,085 8,351 1,500 1,704 622 2,016 0 0 67,995

0 166 23,999 74,185 11,189 4,000 0 80 0 0 0 280,381

0 4 9,503 21 (47) 0 18 0 0 0 0 86,233

120 60 25,558 0 4,220 0 0 351 27,368 0 0 133,650

0 0 390 0 3,712 0 0 20 0 0 0 19,409

0 0 0 0 334 0 108,852 26,715 8,570 0 0 144,472

1,427 796 26,151 4,674 20,781 0 9,437 3,713 5,938 24 1,500 129,493

(6,407) (5,654) (4,405) 1,132 (25,912) (2,032) (13,730) 24,145 16,414 340 0 0

122 81 3,008 21,893 99,021 196,931 24,929 141,017 122,929 0 0 0

62,836 40,420 113,620 104,862 159,612 252,982 133,452 202,411 185,663 7,764 11,000 2,032,625

28,476 17,356 65,412 42,687 75,497 0 44,553 107,843 52,398 2,979 (6,800) 876,575

8,968 5,983 3,807 14,071 21,185 0 15,042 45,352 16,479 434 (2,448) 212,075

0 0 0 0 94 219,745 421 30 0 0 0 233,755

7,249 6,272 5,208 577 7,811 33,237 108 779 0 30 0 128,745

13,213 4,677 19,515 36,212 22,907 0 23,197 30,877 (93,187) 1,858 (16,436) 179,876

1,992 732 1,357 303 11,579 0 4,365 1,800 3,490 500 0 36,823

2,351 682 1,175 1,254 771 0 9,822 4,767 76,684 0 0 103,729

316 461 1,601 1,167 1,683 0 7,952 5,575 26,620 500 0 59,022

250 10 1,431 12,276 14,579 0 8 93 1,240 0 0 41,784

62,815 36,172 99,504 108,547 156,106 252,982 105,469 197,114 83,724 6,301 (25,684) 1,872,382

(4,806) (456) 0 0 0 0 0 0 0 0 0 0

6,470 4,826 14,401 0 47 0 7,284 2,653 7,251 0 0 (2,016)

0 0 50 0 0 0 0 0 0 0 0 0

1,664 4,370 14,451 0 47 0 7,284 2,653 7,251 0 0 (2,016)

0 0 0 0 0 0 0 0 0 0 0 24,500

612 0 1,629 0 935 0 18,485 1,289 49,733 0 0 76,524

612 0 1,629 0 935 0 18,485 1,289 49,733 0 0 101,024

65,091 40,542 115,584 108,547 157,088 252,982 131,237 201,056 140,709 6,301 (25,684) 1,971,390

(2,255) (121) (1,964) (3,686) 2,524 0 2,214 1,355 44,955 1,463 36,684 61,235

3,102 0 422 0 (510) 0 1,150 0 0 0 0 4,291

(1,000) (13) (565) (294) (2,729) 0 (3,584) (511) (47,799) (1,123) 0 (118,497)

153 134 2,108 3,980 715 0 220 (844) 2,844 (340) 0 53,216

2,255 121 1,964 3,686 (2,524) 0 (2,214) (1,355) (44,955) (1,463) 0 (60,991)

0 0 0 0 0 0 0 0 0 0 36,684 244

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ResearchCenters

OtherAcademicPrograms

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Financial AidStudentServices

Admin &Support

PhysicalPlant

CornellNYCTech

IthacaAll Other

TotalIthaca

Campus

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7.

8.

9.

10.

11.

12.

13.

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15.

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ITHACA CAMPUS COLLEGE PLANS

College of Agriculture and Life SciencesThe College of Agriculture and Life Sciences (CALS)

exists as an international leader in diverse fields due

to the excellent research, extension, and educationwork being done by our faculty, staff, and students.

Thanks to their combined efforts we are able to:

• Advance knowledge of the unity and diversity

of life;

• Impart to our students a world-class education

and passion for life-long learning and discovery;

• Promote wise stewardship of the environment

and natural resources and create economical,

sustainable energy strategies;

• Develop agricultural systems to establish and

maintain safe, nutritious food supplies for current

and future generations, and;

• Foster economic vitality and individual and

community health and well-being.

CALS initiatives strive to establish sustainable soci-

eties in order to meet the demands presented by a

changing climate and rapidly shifting social landscape.

Leveraging the expertise available in CALS we are

able to provide technological, political, economic,

and social insights into creative solutions for the

challenges facing current and future generations the

world over.

These aims are supported with our broad curriculum

and research opportunities, opportunities that are in-

formed by the college’s commitment to advancing the

land grant mission. The synergistic integration of social

and life sciences, combined with fundamental and

applied disciplines, has created in CALS an institution

able to effect real change in the global community.

CALS unique curriculum and opportunities for applied

learning foster in our students a sense of global, civic

responsibility and teach valuable leadership skills.

Through CALS extension and outreach programsour

students directly engage with the public at a local and

global scale, allowing them to directly experience the

benefits of the research to which they contribute.

Through this commitment to creating the leaders of

the future, CALS continues to promote our core val-

ues in a way that ensures they will be cherished and

upheld by future generations of scholars.

CALS continues to invest in the future through largescale building projects, like the Food Science Stocking

Hall renovation, and by providing relevant courses of

study. The newly christened Charles H. Dyson School

of Applied Economics and Management, as well as

the Marine Biology concentration and Viticulture

and Enology program, demonstrate the emphasis

being made by the college to offer exciting and

unique opportunities for faculty and students alike.

Programs like the CALS Faculty Renewal Initiative

demonstrate our commitment to maintaining a

proper strategic alignment between our extension,

instruction, and research priorities, and to upholding

the progressive mission of the college. As we continue

to engage stakeholders about how best to continue our

mission of providing excellent education, research,

and extension services we do so while looking to the

future while engaging with the present and honoring

the past.

Architecture, Art and PlanningThe faculty of the College of Architecture, Art, and

Planning (AAP) teach and practice architecture, fine

arts, and city and regional planning as creative and

powerful forces in a rapidly urbanized world. Students

are prepared to address the complex problems of the

twenty-first century through the application of the

art and science of design. The college is focused on

building synergies among departments and courting

partnerships with cognate units to advance a more

coherent, design-centric identity.

In FY12, the college welcomed three outstanding new

faculty, including the first Richard Meier assistant

professor. Five ongoing searches will bring additional

talent to AAP in FY13. Current searches include the

newly endowed Tafel Professor.

FY12 marks the first year of operation of Milstein

Hall. The college is energized, and the effect is trans-

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formative. The college is now focused on expansion

of its analog and digital fabrication facilities and on

the refurbishment of the Fine Arts Library.

Arts & SciencesThe College of Arts and Sciences (CAS) remains

dedicated to providing an undergraduate education

characterized by breadth and depth of study with the

latitude to shape an individualized curriculum. We

also strive to prepare future leaders in intellectual

disciplines through high quality graduate education.

Among faculty and students alike, we promote re-

search and artistic endeavors that advance our un-

derstanding of the natural, physical, social and

cultural worlds. We offer 42 majors to 4,100 under-

graduate students, and we mentor 1,500 students

pursuing graduate degrees.

Faculty renewal will continue as our highest priority,

and the FY13 budget continues to focus new resources,

anticipating generous donor commitments totaling

between $2 and $3 million, to assist in hiring new fac-

ulty. In FY13, the college’s goal is to hire up to 35 new

faculty members, 28 of which reflect normal CAS

annual hiring goals, with plans to recruit another five

to seven in advance of future vacancies. Increased

faculty hiring brings added pressures on our facilities,

and we are pleased that design work is progressing for

the new Humanities building – a much needed facility

for our humanities departments funded completely

with philanthropic funds. The estimated $61 million

have all been pledged and construction is slated to

begin during the summer of 2013.

EngineeringThe College of Engineering, ranked among the top ten

for decades, has the aspiration to be widely recog-

nized as one of the top five engineering colleges by

impacting major challenges facing the world, and

through producing leaders who will take the world

in new directions, solve problems, and create new

opportunities. Currently, a college-wide strategic

planning process is examining all aspects of the

research and education missions of the college. Thegoal is to bring together department and college plans

so that faculty hiring aligns with the college-wide

goals. Additionally, the plan will take into account

the CornellNYC Tech campus.

The College enrolls almost 3,000 undergraduate and

1,600 graduate students. Enrollment in the Masters

of Engineering (M.Eng) program has significantly


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increased in the past three years, offsetting budget

reductions in areas such as university support and

investment income. M.Eng enrollment in 2012-13 will

be comparable to 2011-12 levels.

In 2012-13, Engineering plans to conduct approximately14 searches for tenure-track faculty simply to maintain

the current faculty size. Faculty renewal is one of the

critical challenges/opportunities facing the college

due to the stiff, and growing competition from other

institutions that are increasingly recovering from

the economic downturn. Furthermore, competitive

startup packages continue to grow, putting pressure on

budgets; the Faculty Renewal Fund has been essential

for allowing us to hire aggressively at this time. On

the other hand, hiring enables us to renew the faculty

while shifting the focus of the college towards strategic

areas in which Cornell brings unique capabilities to

impact the world.

The CornellNYC Tech campus is a game changer for

the college, university, and for the New York City

economy. Well in advance of the competition, Engi-

neering identified increasing commercialization of

Cornell technology as a strategic goal for the college.

The Tech campus will dramatically increase the

scale and scope of these activities. Faculty hired to

staff the CornellNYC Tech campus, with their added

focus on commercialization, will add to the prestige

of the college and the university.

In order to continue to provide critical services, the

college continues development of existing service

centers and the completion of the IT Service Group.

Engineering continues to partner with the Faculty of

Computing and Information Science (CIS) to properly

scale the delivery of efficient and excellent services

while meeting budget targets. In addition, the collegehas invested in staff support for the strategically

important areas of research administration and

communication.

Due to the construction pause, the college’s compre-

hensive master plan is on hold until resources are in

hand to complete the needed facility expansion. A

college-wide space study was completed to identify

less costly renovation options to make more effective

use of current space. Based on this plan we are be-

ginning significant renovations aligned with strategic

priorities. Planned college surplus and existing re-

serves have been earmarked for significant facilities

project renovations based on results of the spacestudy and new faculty startup needs.

Hotel AdministrationOver the past four years, the School of Hotel

Administration (SHA) has experienced dramatically

increased giving from alumni and industry partners.

SHA continues to serve as the preeminent program

in hospitality education. The school has continued to

expand the knowledge base of hospitality research

and our graduates continue to take on positions of

senior leadership around the globe. The school has

continued to hire research faculty from top business

schools and attract the best and brightest students

from around the globe who are passionate about

hospitality leadership.

To broaden the academic disciplines available to our

students, the school continues to strengthen its ties

to other schools and colleges on the Ithaca campus.

Beginning July 1, 2012, Cornell’s Program in Real Es-

tate will be lead by the Deans of the School of Hotel

Administration and the College of Architecture Art

and Planning. Combining the academic expertise in

City and Regional Planning with SHA’s faculty in

Real Estate and Finance will provide greater support

for this already outstanding program. The school’s

minor in Real Estate continues to grow and has over

170 students enrolled from all seven undergraduate

colleges. Our partnership with the School of Industrial

and Labor Relations (ILR) continues to deepen as we

now have a joint professorship in Hospitality Human

Resources thanks to a gift from John and MelissaCeriale. The schools are working together to develop

a new institute in hospitality labor law. Our partner-

ship with the Sloan Program, focusing on Senior

Living, continues to thrive.

Adapting to the changes in library science and the

ever increasing use of portable technologies, the

school will complete the renovation of its original

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library and student lounge. Funded, in part, by a $3

million gift from the Marriott Foundation, the school

will create the new Marriott Student Learning Center.

This renovation, which will be completed in the

summer of 2012, will see the school’s book collection

relocated to the Catherwood Library as part of ourthree school library consolidation, with the ILR and

Johnson schools. The reclaimed space will provide a

number of new group meeting spaces, as well as

quiet study space. The library staff that will remain

in the learning center will focus on assisting students

and faculty with access to digital resources.

Tremendous support from SHA alumni and industry

partners has made it possible for the school to con-

tinue to grow and evolve during these difficult f inan-

cial times. The 2012 fiscal year will mark a new

milestone in our fundraising efforts with alumni and

corporate giving exceeding $17 million.

Donor support and continued cost controls in both

the school and the Statler Hotel will be needed as we

continue to work through the development of the

university’s new budget model. We are hopeful that

through greater collaboration and transparency both

the school and the university will benefit from these

new financial models.

College of Human EcologyThe College of Human Ecology (CHE) continues to

invest in faculty renewal and strategic programming.

Academic year 2012 saw the arrival of a number of new

faculty hires in f ields of economics, sociology, psy-

chology, nutrition, and fiber science. These faculty

will fill vacancies created through retirement and at-

trition and renew our threefold academic mission of

education, research and outreach. The opening of the

new Human Ecology Building, the inauguration of the Bronfenbrenner Translational Research Center,

and the establishment of the Institute for Health Eco-

nomics, Health Behaviors and Disparities Institute

are all examples of historic program investments and

achievements of the college over the last year.

In the coming year the college will continue faculty

renewal efforts in design, policy and nutritional

sciences. The college will also continue with the

planned phases of the comprehensive renovation of

the MVR ’33 building which will include the con-

struction and commissioning of an MRI research fa-

cility in support of college neuroscience programming

and broader university imaging needs. Additionally,the college is planning to engage in programming for

the CornellNYC Tech campus with our expertise in

the built environment, healthy living, and integration

of CHE NYC extension office programs with the

broader university presence in the city.

In this environment of investment and renewal, the

college will continue to prioritize program needs and

carefully review the impact of the proposed budget

models.

Industrial & Labor RelationsOver the past several years, the ILR School has par-

ticipated actively in cross-college initiatives. Specifi-

cally, ILR is helping to lead the convergence of the

University Economics Department, it is hosting the

Institute for Social Sciences within Ives Hall, and it

is hosting the three-school library consolidation that

includes Johnson, Hotel, and ILR. Furthermore, it has

led the consolidation of the Financial Transaction

Centers, and it was the first school to share an HR

Director with another school.

The School’s future financial strength is based on

continuing to grow executive education, sponsored

research, fundraising, and the successful launch of

the executive Master of Professional Studies (MPS)

degree, which will be based on a blended learning

platform in conjunction with eCornell.

Law School

Cornell Law School is one of the top law schools in thecountry, combining inspiring theoretical, doctrinal,

and experiential teaching with cutting-edge scholar-

ship in a supportive, intellectually rich community.

The Law School’s graduates achieve excellence in all

facets of the legal profession.

Cornell Law School is consistently recognized for the

quality of its faculty, both in scholarly productivity


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and influence. Faculty renewal and growth continue

to be a priority. In 2011-12, the Law School welcomed

three new faculty members and currently employs 52

full time professorial positions.

Cornell Law School is intentionally among the small-

est of the elite law schools, and this remains a defin-

ing feature. In 2011-12, the school maintained an

enrollment of 593 professional degree students and

86 graduate students, as well as 25 exchange students.

In 2012-13, enrollment is expected to remain consistent

with recent years.

The Law School continues to build on its core

strength in International and Comparative Law. In

2011-12, the school welcomed an endowed chair in

Chinese Law and the ten year anniversary of the

Clarke Program in East Asian Law and Culture,which also launched Meridian 180 – an innovative

think tank for Trans-Pacific relations. Cornell Law

established relationships with prominent law schools

in Chile, China, India, and Norway, expanding ex-

change opportunities to 22 schools worldwide. The

Law School anticipates further expansion of interna-

tional exchange opportunities and plans to add more

foreign law visitors, as well as international and

comparative law scholars to the permanent faculty.

The Law School is expanding its business law offer-

ings through the Clarke Business Law Institute (BLI),

as well as the dual J.D./M.B.A. program with the

Johnson School. The Law School recently appointed

the first endowed professorship of the BLI and

continues plans for growth.

Cornell’s Legal Information Institute (LII), the

preeminent conveyor of web-based legal information

in the world, and consistently the most visited site

within all of Cornell University’s Web properties,

will celebrate its twentieth anniversary in 2012. In

October, the Law School will host the Law Via the

Internet Conference, an international conference

being held for the first time in the U.S. that is expected

to attract more than 500 registrants from other LIIs

around the globe.

Under the direction of Professor John Blume, the

Law School is expanding clinical, advocacy, and skills

programs, and welcomed the new LGBT Clinic in

2012. The Law School expects to see continued en-

hancement and coordination of clinics and other

skills initiatives.

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Cornell Law School will break ground in the summer

of 2012 on Phase 1 of a three-phased, multi-year

building and renovation project. This initial phase

will add more classrooms, refocus the use of the

Purcell Courtyard, and add an accessible entrance to

the College Avenue side of Myron Taylor Hall. Thenew wing will be built under the lawn panel between

Anabel Taylor Hall and Myron Taylor Hall off the

east side of Purcell Courtyard. It will house a lobby

and three state-of-the-art classrooms. The new en-

trance on College Avenue will serve as a clearly rec-

ognizable main entry point to Myron Taylor Hall and

also “reach out” to the rest of the university.

Samuel Curtis Johnson Graduate Schoolof Management

The Samuel Curtis Johnson Graduate School of

Management’s mission is to develop business leaders

who create, transform and sustain successful organiza-

tions around the world, generate research and scholar-

ship that shape the future practice of management, and

train the next generation of business scholars.

Beginning July 1, 2012, Soumitra Dutta will begin

leadership of the Johnson School. Professor Dutta

was the Roland Berger Chaired Professor in Business

and Technology and founder and faculty director of a

new media and technology innovation lab at INSEAD

in Fontainebleau, France. He will be the School’s

eleventh dean.

In FY13, the Johnson School will continue to make

critical investments in faculty and programs to

further globalize the school, strengthen our centers

and institutes, deepen our connections to business,

and recruit the faculty of the future.

We also expect to make additional investments innew strategic initiatives, including the launching of

the Accelerated (one-year) MBA program on the

CornellNYC Tech campus and growing the executive

education business.

Veterinary MedicineThe College of Veterinary Medicine remains the top

ranked veterinary school in the nation. This ranking

reflects the college’s outstanding faculty, outstanding

research base, and innovative “hands on” teaching

programs.

The college has begun a class expansion initiative to

increase enrollment and to gain some financial sta-bility. The entering class size was modestly expanded

to 102 students beginning in the fall of 2011. The long-

term enrollment target is an entering class size of 120.

A facility design effort is beginning later this spring

to accommodate this growth.

Significant progress has been made in the develop-

ment of a genomic center based on whole genome

association mapping. This is an important collabora-

tion between the Veterinary College and the Cornell

Center for Comparative and Population Genomics.

Collaborative efforts between College and Weill Cor-

nell Medical College faculty are being pursued in

cancer biology, vascular biology, and infectious dis-

ease/immunology, including plans for joint scientific

retreats and training grants.

The College is expanding its impact globally. The

Cornell China Dairy Institute is a successful 4 week

collaborative program between the college and a pri-

vate dairy near Beijing. Revenue from this program

supports an Ithaca based Summer Dairy Institute, a

food animal medical externship, and a feedlot health

rotation for DVM students. The College is continu-

ing its collaboration with the City University of Hong

Kong to assist in the establishment of a proposed

School of Veterinary Medicine at City University.

Construction of a new teaching dairy will be com-

pleted in the summer of 2012. This facility will replace

facilities demolished during the construction of thenew NYS Veterinary Diagnostic Laboratory.

A for-profit clinical operation (CUVS) was opened in

Stamford, Connecticut in 2011. The first year of oper-

ation has been very encouraging as the operation is

nearing a stable break-even status. The college is op-

timistic that this operation will generate unrestricted

revenue for the college in the future.


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WEILL CORNELL MEDICAL COLLEGE

ResourcesResources for the Weill Cornell Medical College and

Weill Cornell Graduate School of Medical Sciences

for 2012-13 are projected to reach $1,392.7 million, anincrease of 7.9 percent or $101.6 million over the

forecast for 2011-12.

• Tuition and fees are budgeted at $28.9 million, an

increase of $0.4 million, or 1.5 percent, from the

forecast. Tuition at the Medical School will in-

crease by 2.5 percent to $47,150. Graduate School

tuition will increase by 3 percent to $30,160.

• Restricted gifts are expected to total $49.9 million,

a decrease of 1.0 percent or $0.5 million from the

2011-12 year forecast. The plan includes anticipated

gifts to be received to support strategic plan

operating programs.

• Direct costs of sponsored programs are planned

to decrease 1.4 percent, or $1.8 million from the

2011-12 forecast, to $124.7 million. The plan includes a

2.0 percent growth in current NIH support offset by

the completion of funding from the American Re-

covery and Reinvestment Act of 2009. Recoveries

for facilities and administrative costs (F&A) from

sponsored programs are also expected to decline

in conjunction with the direct costs. The federal

indirect cost recovery rate will stay at 69 percent.

• Sponsored programs (Qatar) will increase $12.1

million or 36.9 percent, reflecting program support

of the Qatar Biomedical Research Agreement.

• Revenues from the Physician Organization (PO)

are planned at $730.9 million, a $67.0 million or

10.1 percent increase from the 2011-12 forecast. This

plan includes the opening of clinical offices in the

Upper West Side of Manhattan and the planned

expansion of the college’s network physicians.

• Revenues for services purchased by the New YorkPresbyterian Hospital (NYPH) are expected to

total $100.4 million, $0.7 million greater than the

forecast. These services include professional

costs related to hospital services and supervision

and training of NYPH residents.

• Funding from the Qatar Foundation reflects support

of $85.0 million to operate the academic program

in the Weill Medical School in Qatar.

Use of ResourcesFor the fiscal 2012-13 plan, expenditures are expected

to total $1,389.6 million, an increase of 9.0 percent, or

$114.6 million over the 2011-12 forecast. Highlights

include: (a) $65.7 million increase in clinical programs

covering the Physician Organization and servicesprovided to New York Presbyterian, (b) decline of

$1.6 million in research expenditures due to the

completion of ARRA funding, and (c) $29.0 million

increase in funding for the Qatar Academic and

Research Programs.

• Plan expenditures for salaries and wages including

benefits are expected to grow 6.6 percent or $48.6

million from the forecast. The majority of the

growth is due to increases in compensation pay-

ments to faculty resulting from clinical activities.

The plan also includes a 3 percent increase in the

merit award program for faculty and staff.

• Graduate financial aid costs totaling $19.3 million

include financial aid support for the Medical

School, Tri-Institutional MD/PhD, and Graduate

School programs.

• General expenses totaling $418.1 million are pro-

jected to increase $23.5 million, or 6.0 percent from

2011-12. These costs include rent, facility costs,

insurance, and laboratory supplies as well as

routine operating supplies.

• Qatar expenses include two components: expenses

related to the academic program in Qatar and the

research expenses of the Biomedical Research

Agreement. The plan is expected to increase 29

percent or $29.0 million to $129.2 million.

• Annual debt service payments totaling $33.4 mil-

lion are budgeted to increase by $13.3 million as a

result of interest payments on the bond issuance

for the Belfer Research Building.

Transfers To/From Fund BalancesTransfers to plant funds totaling $1.5 million are pro-

jected for capital acquisitions and renovations by the

Physician Organization.

Net from OperationsThe fiscal 2012-13 budget for the Medical College will

result in a net from operations of $1.6 million.


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Table 5: Medical College(dollars in thousands)

Resources1. Tuition & Fees 28,866 28,865 28,453 28,894 441 1.5%


3. Unrestricted Gifts 3,514 2,310 2,143 2,150 7 0.3%

4. Restricted Gifts 59,142 49,406 50,380 49,897 (483) -1.0%



7. Sponsored Programs (Qatar) 25,379 54,247 32,779 44,889 12,110 36.9%

8. Institutional Allowances 33,432 36,330 34,063 37,389 3,326 9.8%

9. State Appropriations 211 123 123 124 1 0.8%

10. Physician Organization (PO) 577,512 648,007 663,909 730,865 66,956 10.1%

11. NYPH (Purchased Services) 99,267 98,391 99,615 100,359 744 0.7%

12. Enterprise Sales & Services 37,180 23,275 39,569 40,469 900 2.3%

13. Qatar Foundation 70,496 83,622 68,285 85,018 16,733 24.5%

14. Educational Activit ies and Other Sources 50,005 44,102 54,259 56,362 2,103 3.9%


Uses of Resources16. Salaries & Wages (Including Benefits) 704,224 714,065 738,940 787,508 48,568 6.6%

17. Graduate Financial Aid 20,399 18,783 19,294 19,343 49 0.3%

18. General Expense 363,785 386,174 394,588 418,111 23,523 6.0%

19. Qatar 94,777 137,069 100,164 129,207 29,043 29.0%

20. University Cost Redistributions 1,841 1,896 1,896 2,016 120 6.3%

21. Subtotal Expenditures 1,185,026 1,257,987 1,254,882 1,356,185 101,303 8.1%

22. Debt Repayment 18,811 19,672 20,154 33,442 13,288 65.9%

23. Net Before Transfers 13,188 10,065 16,052 3,098 (12,954) -80.7%

Transfers (to)/from Fund Balances24. Endowment 0 1,976 0 0 0

25. Plant/Project Support (204) (2,600) 0 (1,500) (1,500)

26. Subtotal Transfers (204) (624) 0 (1,500) (1,500)

27. Net from Operations 12,984 9,441 16,052 1,598 (14,454)

10-11Actual

11-12Budget

11-12Forecast




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In December 2011, Cornell won an intensely fought

competition to build an applied sciences and engi-

neering campus in New York City. As winners of the

competition, Cornell will receive over 10 acres of

land on Roosevelt Island in Manhattan as well as

$100 million in financial support to create a world-

class campus in the heart of New York City. In addi-

tion to support from the city, Cornell received its

largest single gift ever - $350 million - from The At-

lantic Philanthropies and its founding chairman,

Chuck Feeney '56. This extraordinary support will

fund the initial phase of campus development andwill support the f irst several years of programming.

CornellNYC Tech, which pairs Cornell with its

partner, Technion-Israel Institute of Technology, will

have an economic development and entrepreneurship-

oriented curriculum aimed at turning the best ideas

of faculty and graduate students into new technologies

and commercial applications. Combining two of the

world's top institutions in science, engineering, and

technology, CornellNYC Tech will increase New

York City's capacity for applied sciences and help

transform the city's economy.

CAMPUS PLANNING

While the Roosevelt Island campus is being designed

and built, program activities will take place in tem-

porary space. This space will be home to teaching

and research activities from 2012-2017. The faculty,staff, and student populations will grow over time, so

by the time the Roosevelt Island campus opens in 2017,

there will be several hundred students, faculty, and

staff involved with the campus. Those populations

will grow to several thousand by 2043.

CornellNYC Tech Campus


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The physical campus will be built out over a period

of approximately 25 years. Phase 1, which includes a

150,000 square foot academic building and a partner

research and development building of the same size,

will open in 2017. A residence unit and academic con-

ference center/hotel are also slated for constructionbetween 2017 and 2024. When construction is complete

in 2037, there will be approximately 2 million square

feet built out on the campus.

The plan specifies that Cornell will develop the aca-

demic buildings, but that third-party developers will

build the remaining structures on campus. Cornell is

demonstrating its commitment to sustainability by

pledging that the overall campus will achieve a mini-

mum LEED silver rating and is additionally striving to

make the iconic Phase 1 academic building “net-zero.”

ACADEMIC PROGRAMS

Students will learn and companies will grow in an

environment that breaks with the traditional structure

of academic departments and schools. Organized

around multi-disciplinary research “hubs,” CornellNYC

Tech will bring together technologists, designers, social

scientists, and humanists, and encourage collabora-

tion among academics and leading creators and users

of technology in the commercial, educational, and

cultural realms. The three initial hubs will focus on

Connective Media, Healthier Life, and the Built Envi-

ronment – areas that are particularly well suited to

tie in with departments in Ithaca and with the tech

sector in New York City.

The faculty at CornellNYC Tech will be a mix of

professorial faculty, primarily in technical disci-

plines, and non-professorial faculty who have distin-

guished themselves in the development and use of

technology in the commercial sector or for the bet-terment of society. Tenure-track Cornell faculty at

the campus will be hired through searches conducted

with the departments on the Ithaca or Weill Cornell

Medical College campuses, and each faculty member’s

tenure will rest with that home department.

CornellNYC Tech will offer graduate degrees in

technology and related business programs, broadened

by requirements for students to take courses outside

of their disciplines to complement and contextualize

the core material. Each student will have an industry

mentor (in addition to a faculty advisor) who will

provide advice on the student's project work.

Initial plans for degree offerings are focused on one-

year professional masters programs, including an

MEng in Computer Science, MEng in Electrical and

Computer Engineering, MPS in Information Science,

and MEng in Operations Research and Information

Engineering. An accelerated MBA for students with

technical backgrounds will be offered partly in Ithaca

and partly at CornellNYC Tech. All of these degree

programs will be offered by current graduate fields,

schools, and departments. The overall degree re-

quirements for these initial degree programs are

generally the same as for the existing programs in

Ithaca, although there will be some constraints on

electives, and the masters projects will be required

to have industry relevance.

A new two-year masters program offering a dual

degree with the Technion is also planned. This pro-

gram will combine technical depth with breadth in

one of the interdisciplinary hubs, including a sub-

stantive project that allows the students to apply their

technical knowledge to a domain-specific problem.

This novel curriculum and approach will address a key

limitation of current masters programs in technology

fields, where graduates are well trained in the tech-

nology itself but lack the ability to apply it in a

particular domain.


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Like many peer universities across the country that

are encountering challenges resulting from the eco-

nomic crisis, Cornell engaged in a multi-year strat-

egy to eliminate its deficit. Academic and

administrative units tapped nonrecurring sources to

bridge operations and smooth the impacts during

this period. The planning that followed has resulted

in a renewed focus on administrative cost reductions

and a change in service models. Figures 3 and 4

highlight the leadership decisions that were taken

during this period and how these decisions were im-

plemented across the three major organizational

strata (colleges, academic support units, and admin-

istration). The prime objectives were to protect

instruction and the research mission and enhance

global public engagement while delivering quality

services. These decisions reflect the forces shaping

the decade ahead – technology and communications,

inclusion and diversity, and the funding/budget model.

With the actions planned for FY2012-13, the struc-

tural budget will be balanced by June 30, 2013. That

is, we have identified predictable, recurring revenue

to cover all predictable, recurring expenses. Overall,

the annual operating budget at Ithaca is relatively flat

compared to four years ago. The budget plan was $1.9

billion in 2008-09 before the economic recession and

current plans indicate an operating budget of $2.0

billion in 2012-13. The $172.5 million sweep of fund

balances and the $201.2 million reduction in existing

operations ($45.8 million by New York State) have re-

sulted in a leaner administrative organization. Equally

important have been the increases in revenue gained

through alumni support in the annual giving program,

the recovery of the endowment, and increases to

tuition and fees each year.

The consolidated operating budget is realigned to

ensure that resources are being directed to address

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Balancing the Budgetand the Changing

Educational Cost at Cornell

Figure 3. Non-Recurring Reductions to Unit Fund Balances(dollars in millions)

2009 $15.4 $5.9 $53.7

2010 23.5 23.0 51.0

Total $38.9 $28.9 $104.7 $172.5

CollegesAcademic

Support Units Administration Total


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Figure 4. Total Recurring Reductions by Year(dollars in millions)

2009 $10.7 - $1.0 $11.7

2010 31.3 13.7 15.1 60.1

2011 25.1 10.6 47.0 82.7

2012 16.1 3.3 11.2 30.6

2013 7.9 5.5 2.7 16.1

Total $91.1 $33.1 $77.0 $201.2

CollegesAcademic

Support Units TotalAdministration Reductions by Yearand Organization Strata

the strategic priorities. Several strategic initiatives to

manage behavior through policy development and

implementation also contributed to this outcome.

The strategies included a staff retirement incentive

program, layoffs, hiring freezes, a reduction in unit

reserves to pay off long-term debt, a moratorium on

new debt, reduced central commitments, and discre-

tionary base budget reductions that include ongoing

assessments to enterprise units.


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The current budget reflects major changes to the

financial aid program, continued investment in re-

search compliance, administrative system upgrades,

debt restructuring, organizational restructuring,

early retirement incentive programs, a reduction in

major construction activity, and changes to federaland state funding.

During this period of budget realignment, the issues

of access and quality remained a concern. Cornell

took aggressive actions to continue to increase access

to higher education and to maintain its need-blind

admissions. Student needs increased greatly and were

met with expanded grant and aid programs, including

reduced loans. Decisions to change service models,

downsize staff, initiate an aggressive faculty renewal

program and increase tuition were influenced by sev-

eral major forces: 1) little or no growth in state and

federal aid programs; 2) increased demand in need-

based aid; 3) volatile market conditions; 4) increased

compliance requirements; and 5) the desire to expand

programs internationally.

The operating principles of no new debt, and noincreased cost without increased revenue helped to

stabilize the consolidated operating budget while we

continue to engage the community in efforts to redesign

the budget and funding models. Table 6 below provides

a brief look at annual changes in major indicators.

Other major cost drivers include fluctuations in

energy prices, increases in security, and changes in

information technology. Health care on campus has

also become more complex and expensive as we try

to meet student needs.

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Table 6. Select Major Drivers of the Ithaca Campus Operating Budget(dollars in thousands)

RevenuesTuition and Fees 672,247 36.6% 715,038 757,915 808,000 848,422 41.7%

Endowment Payout 231,931 12.6% 257,669 247,120 244,322 255,372 12.6%

Unrestricted Annual Gifts 45,685 2.5% 56,759 56,908 50,422 67,198 3.3%Sponsored Programs 397,990 21.7% 458,352 420,943 394,355 366,614 18.0%

State Appropriations 163,171 8.9% 158,297 145,788 132,529 133,650 6.6%

Enterprise Sales and Services 124,520 6.8% 128,041 132,656 135,738 144,472 7.1%

ExpensesSalaries, Wages & Benefits 1,099,381 58.2% 1,017,191 1,022,788 1,053,428 1,088,650 55.2%

Financial Aid - Undergraduate 152,025 8.0% 183,702 206,576 224,502 233,755 11.9%

Financial Aid - Graduate 115,437 6.1% 130,122 134,120 134,853 128,745 6.5%

General Expenses 401,077 21.2% 377,836 405,642 400,351 360,194 18.3%

Repairs & Maintenance 64,999 3.4% 50,972 52,977 60,796 59,022 3.0%

Debt Repayment 56,147 3.0% 128,896 117,316 104,868 101,024 5.1%

Note:• 2012-13 data are based on the FY13 Budget. 2011-12 data are based on the March 2012 forecast. All other years are actuals.

Dollars Percent2009-10Dollars

2010-2011Dollars

2011-2012Dollars Dollars Percent

2008-09 2012-13


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An essential component of balancing the budget has been the on-going pursuit of

efficiency improvements within major administrative support functions. The objective is the

realization of significant on-going cost reductions while ensuring that these support activi-

ties work effectively with fewer resources. Funds captured from these support activities

through fiscal year 2013 total $59.2 million as shown in the chart below.

During fiscal year 2012, Finance and University

Communications initiatives completed their imple-

mentation efforts. The service restructuring portion of

Facilities is complete and the team is continuing their

focus on energy conservation efforts. Spans & Layerswill be complete in fiscal year 2013. Procurement,

Information Technology, Human Resources, Student

& Academic Services, the Provost, and Centers and

Institutes are actively engaged in on-going imple-

mentation endeavors which will further add to the

efficiencies and cost-effectiveness attained to date.

The Administrative Streamlining Program office, under

the direction of the Division of Planning & Budget,

serves as the lead in coordinating and tracking the

execution of each initiative’s plans. The ASP office is

working in conjunction with each initiative team tocreate a dashboard of accountability metrics that

monitor cost reductions and operating efficiencies in

order to attain full savings expectations while assuring

appropriate operating standards for service quality.

Efforts to reach the target by the end of fiscal year 2015

will continue. Notable among the continued efforts

include realization of savings in procurement, energy

conservation, and information technology.

Implementing Administrative Efficiencies

Figure 5. Administrative Streamlining Program Initiative

Impact on Budget(in millions)


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Replacing the three existing Ithaca campus budgetmodels with a single, coherent model remains a high

priority. The new model will be strongly rooted in

transparency and will encourage healthy engagement

across campus about resource allocations. The new

budget model is based on a series of underlying

principles:

• Distribute revenues consistently

• Expose costs

• Distribute costs with revenues

• Eliminate the “General Purpose” budget and

associated deficit

• Create two taxes to fund central expenses

and costs

This summer, the Division of Planning & Budget will

work with business officers across campus to recreate

the 2012-13 budget using the new budget model and

the draft decision points below. This mock budget

will enable comparisons with the existing budget,

stimulating campus-wide discussion and adjustments

as needed.

REVENUES

Undergraduate Tuition – All academic year under-

graduate tuition revenue will be centrally pooled.

This pool will include a payment from the New York

State allocation to cover the tuition differential be-

tween contract college resident and non-resident

students. A tax on tuition will pay for central

academic priorities. The remaining tuition funds

will then be returned to the colleges in proportion to

their student enrollment and instruction provided.Graduate Tuition – All graduate tuition will flow to

the colleges and schools. Tuition for research degrees

will not be subject to a tax, whereas tuition for

professional masters degrees will be subject to the

tuition tax.

New York State Allocation – The NYS allocation will

be used to cover the difference between contract col-

lege resident and non-resident tuition. Any remaining

NYS allocation funds will be distributed to the four

contract colleges based primarily on historic alloca-tions. In future years, the annual percentage change

of the allocation plus net undergraduate tuition will

be applied equally across the four colleges. A cap will

ensure that growth in state funding for any individual

college does not exceed the growth in state funding

to the university.

Facilities & Administrative (F&A) Revenues – F&A

on contracts and grants will be primarily distributed

to the college or school expending the research dollars.

EXPENSESCentral Administrative Costs – Central costs will be

distributed to all units based on several key cost

drivers:

• Number of students, faculty, and staff

• Research expenditures

• New gifts and commitments

• Assigned square footage and actual utility billings

Central Academic Priorities – A discretionary pool

will be made available for various academic and

administrative initiatives by taxing undergraduate

and professional masters degree tuition.

Undergraduate Financial Aid – The financial aid

office will continue to package student aid based on

the need-blind methodology and using centrally held

endowments and grants to reduce the amount billed

to the colleges. The remaining unmet need will be

pooled and distributed across all colleges based on

their proportionate share of the undergraduate

student workload used to distribute tuition. Colleges

will pay their bills using their endowment payout forgrant aid and all other available resources.

Facilities and Utilities – Operations and maintenance

expenses will be distributed to all units that have

assigned space. Unique spaces including barns and

residential spaces will be charged different rates, and

public facilities costs (e.g. Bailey Hall) will be

distributed to all units. Utilities costs will be paid

directly by the units based on usage.

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The New Budget Model


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Similar to many other world-class organizations,

understanding how to transform our data into infor-

mation and, ultimately, into university knowledge is

critical to Cornell’s success. Many effective organiza-

tions have adopted business intelligence strategies to

ensure that their data and information assets are

accurate, secure, and constructive in providing support

for decisions made at every level of the organization,

and Cornell has launched its own solution for deci-

sion-support, Institutional Intelligence, or I2. This

initiative aims to support the on-going analytical

needs of the colleges and administrative units by

providing a central resource for accurate data, infor-

mation management, and reporting analysis. I2can be

understood as a functional support program for the

institution’s key decision makers.

Planning processes and decision-making have become

increasingly dependent on timely, accurate and relevant

cross-functional information. It is imperative that

colleges and units across campus operate in a cam-

pus-wide environment that functions with consistent

data management practices and governance. I2

will

help to facilitate this environment, fulfilling the

needs of the end user while working to eliminate an-

tiquated, individually-administered shadow data

management systems. Ultimately, the I2vision promotes

one structure, one process, and one platform for strategic

metric-driven analysis across the university community.

The goal of I2is to continually assess the university’s

analytical needs and then to work collaboratively

with the colleges and units across campus to help

plan, develop, and implement strategies to effectively

convert data into valuable information and knowledge

so that every key stakeholder can make the right de-

cision, at the right time, in the right delivery media.

On a broader scale, we are confident that the I2solution

will support better-informed, timelier decisions that

will lead to increased productivity and lower costs

across campus.

Currently, the I2

team is evaluating needs across

campus so that, in collaboration with senior leaders,

an information management system comprised of

updated tools, clear governance, and informative re-

porting will facilitate a consistent, cross-functional

information culture for the Cornell community. The

team will be actively involved with current university

IT applications and will help bridge any potential

gaps between the IT developers and the functional

end users.

These are the first steps toward what I2

expects to

accomplish in its quest for a university-wide and

centrally administered data and information manage-

ment platform.

Institutional Intelligence (I 2 )

Technology, Data, and Decisions: Implementing I

2

at Cornell


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There are a large number of rankings enterprises

that seek to identify top institutions by determining

what metrics should be counted and to what extent.

Some rankings emphasize the impact of faculty re-

search, tallying publications, citations, and prestigious

prizes. Others seek to quantify elements of the under-

graduate experience but do not consider faculty qual-

ity. Across rankings enterprises, Cornell is typically

among the top-twenty, a true testament to the diver-

sity of our strengths.

US News & World Report is probably the most well-

known ranking effort. Their “Best Colleges” issue is

released each fall, and US News has ranked Cornell

15th in each of the last three editions. Although Cor-

nell provides US News with over 600 different data

elements in responding to their annual survey, only

fifteen of these are accounted for in the final calcula-

tion of rankings. Here are the results from the most

recent publication:

Peer Assessment (22.5%) Cornell ranked 6th

1. Based on the results of an annual survey sent to college and university presidents, provosts, and the heads of admissions, aswell as to high school counselors

Faculty Resources (20%) Cornell ranked 19th2. Average faculty pay, plus benefits, adjusted for regional differences in cost of living (7%)

3. Percentage of faculty with highest degrees in their fields (3%)

4. Percentage of faculty who are full time (1%)

5. Student-faculty ratio (1%)

6. Proportion of classes with fewer than 20 students (6%)

7. Proportion of classes with 50 or more students (2%)

Retention (20%) Cornell ranked 16th8. Six-year graduation rate (16%)

9. Freshman-to-sophomore retention rate (4%)

Student Selectivity (15%) Cornell ranked 15th10. Acceptance rate (1.5%)

11. Proportion of the entering class ranking among the top 10% of their high school class (6%)

12. 25th – 75th percentile SAT scores (7.5%)

Financial Resources (10%) Cornell ranked 17th13. Average spending per student on instruction, research, student services, and related costs

Alumni Giving (5%) Cornell ranked 18th14. The percentage of alumni who give to their school

Graduation Rate Performance (7.5%) Cornell “over-performs”15. The difference between the actual six-year graduation rate and the predicted graduation rate generated by USN&WR

Cornell in the Rankings

What does it mean to be considered a “top-ten research university”?The answer is not straightforward.


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These fifteen measures are reasonable gauges of in-

stitutional health, and it is valuable to consider them

on an annual basis. At the same time, this particular

handful of measures falls short of capturing the

priorities and goals of Cornell University.

This year, US News has asked colleges and universi-

ties for new information, including differential

graduation rates based on income and race, data

about the affordability of college, and information

about how we are using technology to connect with

students. We do not know whether these new metrics

will eventually be used in their overall ranking

formula, but they touch on issues we care about

and monitor.

We also made a change in how we responded to the

US News questionnaire this year. In past years, we

counted only assistant, associate, and full professors

as “faculty members.” This year, we have included

lecturers and instructors in our counts. Because of

this change in our reporting practice, Cornell will

move from a student-faculty ratio of 11:1 to one of 9:1

in a single year. (The 9:1 ratio should appear in the

printed publication issued early this fall.) This does

not imply that Cornell should advance in the overall

rankings; two other measures associated with fac-ulty—percent full time and percent with the highest

degree in their field—decline when this larger pool

of faculty is considered. It does, however, bring us

into closer alignment with both how we report fac-

ulty counts elsewhere and the reporting practices

among many of our peers.

Rankings and the particular metrics from which they

are composed are informative and can help us con-

sider areas where we would like to improve. At the

same time, to prioritize US News metrics over other

indicators of institutional health—including those

related to faculty quality—would detract from achieving

the important work articulated in Cornell’s Strategic

Plan.

Figure 6: Fifteen Data Elements Used by Us News in the FinalRankings Calculation


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A goal of the university is to manage space in a

systematic, purposeful manner to optimize the use of

resources and to advance the mission and strategic

priorities of the university. Instrumental to this goal

is the creation of new space guidance documents and

a space utilization study for the Ithaca campus.

NEW GUIDANCE DOCUMENTS

Three new documents define basic principles of

space management for the institution and provide

procedural guidance related to reallocation of space

and the conduct of space needs studies.

Guidelines for Space Needs StudiesIn September, the Capital Funding and Priorities

Committee (CF&PC) approved the Guidelines for

Space Needs Studies (Appendix T) to provide a stan-

dard process for assessing existing space utilization

and analyzing space needs. The process is recom-

mended in cases where a unit perceives a shortfall

of space or a unit projects a shortfall of space and

believes that new space (whether constructed or

annexed) is necessary to meet the shortfall. Space

needs studies are intended to create consistent and

clear expectations for units, project managers, con-

sultants, and those in review and approval roles.

Studies will be led by cross-functional working groups

that will include the Director of Space Planning

and a representative o

Operating Budget Plan

Documents

Transcript of Operating Budget Plan