3
CELEBRATING FACULTY & STAFF Duke Appreciation returns with events in May, including a band, ice cream and employee artwork during “Music on the Quad.”
4
RECIPE FOR FINANCIAL SUCCESS From May 23-27, Duke will bring financial experts to campus locations for free workshops and information booths.
7
SUSTAINABLE DUKE Duke’s graduating students will be dressed in black caps and gowns this month, but they’ll be greener than ever.
NEWS YOU CAN USE :: Volume 6, Issue 4 :: May 2011
UNIVERSITY CLOSES $100 MILLION BUDGET GAP BUT FINANCIAL DILIGENCE IS VITAL IN YEARS AHEAD ability to take on new strategic opportunities will be limited without uring the record drought four years ago, the Duke community outside funding or rearranging the money we already have to spend worked together to cut water consumption by 50 percent. When the on other priorities.” drought ended, the good habits continued. Last year, water use was Living within the constraints of a smaller budget may prove still nearly 200 million gallons less than the year before the drought began. challenging based on the latest Duke officials are encouraging spending trends. During fiscal year faculty and staff to take a similar University Spending Trends 2009-10, university departments approach to spending as the collectively reduced spending by university emerges from the worst $150M more than $44 million compared economy since the Great 2008 (pre-DART) ($ Millions) to the previous fiscal year. But the Depression. 2009 trend has been going in the After nearly three years of $130M 2010 opposite direction for the last three austere measures and better than quarters compared to the same anticipated growth in investments, $110M periods in the previous year: Duke has closed the $100 million budget gap created by investment $90M • From April to June 2010, losses in the endowment in 2008. spending increased 9 percent, or With spending trends beginning to about $11.1 million. $70M inch back up, the question remains: • From July to September will the university be able to live 2010, spending jumped 14 percent, within its means going forward? $50M or $8.5 million. Jan-Mar Apr-June July-Sept Oct-Dec Executive Vice President Tallman Trask III said Duke has • From October to December Schools and departments have reduced spending by millions between 2008 and 2009, but the trend now returned to a more sustainable began 2010, spending increased 18 percent, to climb again during most of 2010 with three consecutive quarters of increases compared to budget through a combination of the same periods the previous year. or $10.2 million. expense reductions from the past “You can only go so long without buying certain things critical to several years and investment returns on the university’s endowment, supporting our ongoing operations,” said Tim Walsh, vice president for which increased 15.6 percent during calendar year 2010. Philanthropic Finance and chair of the analysis group for the Duke Administrative contributions also increased 15 percent to $346 million during the last Reform Team (DART). “While our spending is still 12 percent below fiscal year after dropping $85 million the previous year. what it was before the recession, we can’t take our foot off the brake Despite these improvements, Trask said financial diligence is vital completely yet.” going forward, especially since traditional methods used to generate Walsh said that further efficiencies and savings opportunities still capital through investments will not be available for the next two to exist in places such as computer purchasing. three years. “The new reality is we are operating with a budget that is about $60 >> See NEW NORMAL , PAGE 5 to $70 million less than what it was before the recession,” he said. “We have a lot of things we want to do, and those things cost money. Our
D
2009, 2008, 2007 Gold Medal, Internal Periodical Staff Writing 2009, 2007 Bronze Medal, Print Internal Audience Tabloids/Newsletters
This paper consists of 30% recycled post-consumer fiber. Please recycle after reading.