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Letter from the President

February 23, 2008

Dear Members of the Brown Community,

The Corporation of Brown University has just completed its February meetings, which included a full-day retreat focusing on the review of the Plan for Academic Enrichment. During the course of the meetings, the Corporation reaffirmed the principles and direction of the original Plan for Academic Enrichment (PAE), endorsed the recommendations that emerged from the review of the Plan, and approved a budget for Fiscal Year 2009 that calls for continued support for academic excellence while keeping the cost of education affordable for students from all income levels. In particular, I am pleased to report that the Corporation approved a plan to address loan burdens of Brown students. I write to share highlights from the meetings.

ACTIONS OF THE CORPORATION

FY09 BUDGET

The Corporation approved the University’s consolidated budget, which assumes an overall increase in expenses of 6.7 percent next year to nearly $753 million. The FY09 budget funds targeted areas to continue the momentum achieved through the Plan for Academic Enrichment, supports priorities identified through the review of the Plan, and ensures both modest increases in tuition and fees and more competitive financial aid policies. Overall budget increases will be supported through some already planned reallocations, an increase in the endowment payout, and the continued generosity and support of alumni, parents and friends of the University.

Financial Aid, Tuition and Fees

The Brown community is committed to ensuring that all qualified undergraduates are able to attend Brown University regardless of their financial needs. The University has made significant progress in recent years by implementing a policy of need blind admission, eliminating loans for the neediest students through the Sidney E. Frank ’42 Scholars Program, and increasing aid for transfer, RUE, and international students. In fact, over the last five years, Brown has increased its commitment to financial aid by $22.5 million to $56.9 million — a 61-percent increase.

The Corporation acknowledged that despite this growth, additional resources are necessary to ensure that Brown continues to compete for the brightest minds in the nation and the world, and that the excellent education offered at Brown remains affordable for admitted students regardless of family resources. With these goals in mind, the Corporation approved a special increase of $7.4 million in the financial aid budget for FY09. This increase will allow Brown to eliminate loans for students whose family income is less than $100,000, to eliminate family contributions from most students whose families earn less than $60,000, and to reduce loans in all other income categories. For more information about the impact of the policy on loan amount by class year, please see the news release at http://www.brown.edu/news/2007-08/07-105.html

In addition, notification will be sent to parents this week. To view the letter to parents, please go to http://www.brown.edu/Administration/President/letters/2007-2008/feb08_parentsletter.html

In total, the budget assumes a 20-percent increase in financial aid over FY 2008. The Corporation also approved a 3.9-percent increase in undergraduate tuition and fees, bringing the cost of tuition, room, board and fees to $47,740 for 2008-09. For more information on the budget and its impact on tuition and fees, please see the news release at http://www.brown.edu/news/2007-08/07-106.html

Supporting the Plan for Academic Enrichment

The budget continues to support the priorities outlined in the Plan for Academic Enrichment, allowing for continuing growth of the faculty by 16-20 positions, increasing support for the graduate school and undergraduate education, and advancing Brown’s internationalization initiative. For additional information about these expenditures, please see the University Resources Committee (URC) Report at http://www.brown.edu/Administration/Provost/committees/urc/URC08.pdf

Sources of Revenue

The important measures enabled by the FY09 budget will require reallocations, deferral of some initiatives and additional revenue sources beyond tuition. The Corporation approved the URC’s recommendation to increase the endowment payout 24 percent in FY09, generating a total of $130 million of endowment income for operations. The endowment has performed well in recent years, with the market value growing from $1.48 billion in 2002 to $2.67 billion in 2007 as a result of gifts from alumni and friends of the University and exceptional investment performance. Of course, income from these assets is restricted to the purpose for which it was given, and the increase will benefit specific endowed programs. Given the economic context nationally and internationally, the higher education climate generally and the importance of advancing the Plan for Academic Enrichment, the Corporation identified increasing the payout as a responsible course of action at this juncture.

The budget acknowledges the success of the Campaign for Academic Enrichment and calls for annual giving of $41.7 million in FY09, an increase of 4 percent over current year goals. Finally, the budget also anticipates 5-percent growth in indirect cost recovery, which is essential for supporting research activity. More information about the budget is available at http://www.brown.edu/news/2007-08/07-106.html

CAPITAL PLAN UPDATE

Since the Plan for Academic Enrichment began in 2002, approximately $350 million has been invested in facilities renewal, expansion and acquisitions. There have been improvements in research and lab space, academic and classroom facilities, and upgrades in libraries, athletics and residential facilities. We plan to invest an additional $500 million within the next three to five years on a range of projects. During the course of its meeting, the Corporation reviewed the following project activity expected to take place over the course of the next year:

  • Opening of the Cogut Humanities and Pembroke Centers in the renovated Pembroke Hall;
  • Transformation of J. Walter Wilson to a student services center with 11 seminar rooms;
  • Significant renovations to classrooms and residence halls;
  • Renovation of Rhode Island Hall to house the Joukowsky Institute for Archaeology and the Ancient World;
  • Beginning construction of the Nelson Fitness Center;
  • Planning for the renovation of Faunce House to incorporate the Stephen Robert ’62 Campus Center;
  • Planning for a Creative Arts Center and a new Mind Brain Behavior building;
  • Planning for a new Medical Education Building;
  • Continued renewal of laboratories and faculty space;
  • Investing in conservation to reduce carbon emissions;
  • Upgrading essential infrastructure.

TASK FORCE ON UNDERGRADUATE EDUCATION

Dean of the College Katherine Bergeron discussed the findings of the Task Force on Undergraduate Education and announced her intention to take immediate action on the recommendations put forth in the report. The recommendations include a review of Brown’s concentrations, improved advising, and support of collaborative teaching. She also advocated the funding of a new science resource center to enhance instruction across the science, technology, engineering and math disciplines. The Report of the Task Force is available for your review at http://brown.edu/college/tue/parent_downloads/draftReport.pdf

ACCEPTANCE OF GIFTS

During the Saturday business meeting the Corporation accepted a number of gifts totaling nearly $21 million that will support financial aid, academic enrichment, facilities, student life and internationalization. For a complete report on these approved actions, go to http://www.brown.edu/news/2007-08/07-104.html

REVIEW OF THE PLAN

The full-day retreat provided an opportunity for the Corporation to discuss and debate the findings and recommendations stemming from the review of the Plan for Academic Enrichment. On Saturday morning, the Corporation reaffirmed its commitment to the original Plan for Academic Enrichment and endorsed the goals and objectives recommended in the Phase II report, directing the administration to work with the appropriate faculty and other committees to bring forward more detailed plans to achieve the proposed objectives. The recommendations in the Report of the Review of the Plan for Academic Enrichment: Phase II can be found at http://www.brown.edu/web/pae/documents/PAEReviewPhaseIIEntireFinalDoc_001.pdf

The success of the recent Corporation meetings is due in large part to the broad involvement of the campus community in the University’s policy development and decision making. We are grateful for the time and commitment exhibited in the review of the Plan for Academic Enrichment by alumni, faculty, students, staff, parents and friends. We also acknowledge the care and consideration that the URC devoted to crafting a budget that is sensitive to economic conditions, while making the investments necessary to ensure that Brown remains a preeminent research university, fulfilling its mission at the highest level.

Your involvement in the process and your ongoing contributions to the University have made a difference.

Sincerely,

Ruth J. Simmons