Facing endowment losses more severe than anticipated, Princeton University will freeze salaries for tenured faculty members and staff members who earn more than $75,000 and slash its budget for the 2011 fiscal year by $80-million, the university’s president, Shirley M. Tilghman, announced this week.
The university had planned for a 25-percent drop in its endowment’s value by June 30, but that figure is now projected to be 30 percent, Ms. Tilghman wrote in a letter to the Princeton campus. The new measures are on top of an $88-million cut in the university’s budget for the 2010 fiscal year.
“There is no question that this overall two-year target of $170-million in savings will be difficult to achieve, as the first round of cuts eliminated the majority of things that were relatively easy to forgo,” Ms. Tilghman wrote. “The steady growth in both faculty and staff that we have enjoyed over the last 10 years will end, and the university will have to contract in size.”
Staff members making less than $75,000 and the majority of untenured faculty members will continue to receive raises, Ms. Tilghman wrote. The salary freeze for those earning more is expected to save the university $4-million.