Straws in the Wind - Part 34

From the Mercury News: Stanford University, home to a $37.6 billion endowment, announced $140 million in cuts..., citing “significant budget consequences from federal policy changes.” The move could result in layoffs and program reductions across several of its schools, the university said in an announcement. The cuts, which exclude the School of Medicine, are still being finalized. University leaders said schools and departments will have discretion in how to implement reductions, with guidance to prioritize research and education, preserve need-based financial aid and five-year Ph.D. student funding, simplify administrative processes, and “strengthen long-term financial resilience.” Stanford, one of the premier research and higher education institutions on the West Coast, has the third-largest endowment in the U.S., trailing only Harvard’s $50.7 billion and Yale’s $40.7 billion. It is also Silicon Valley’s largest landowner, with more than 8,000 acres across Santa Clara and San Mateo counties...

Stanford officials said each department will handle the cuts differently, since general funds are flexible and used for a wide range of operations. “The most difficult part of these decisions is that they will require some reduction in staff positions, not all of which can be accomplished by eliminating open positions,” university leaders said in the letter. The university confirmed that its staff hiring freeze, announced earlier this year, remains in effect, although faculty hiring will continue at a slower pace. “Moderate” salary increases to offset the rising costs of living will continue as planned...

About 5% of the endowment is spent annually... The endowment is largely invested in real estate, stocks and bonds. More than 75% of its payout is restricted by donors for specific purposes, such as supporting first-generation college students or particular academic fields... Alongside funding cuts, higher education is facing growing federal scrutiny over admissions and diversity. Earlier this year, the U.S. Department of Justice launched an investigation into whether Stanford and three other California universities are complying with the U.S. Supreme Court’s ban on race-based admissions...

Full story at https://www.mercurynews.com/2025/06/27/stanford-budget-cuts-layoffs-june-2025/.