Ambitious forward motion is MIT's signature; we celebrate initiative, innovation, relentless improvement and creative change.
Yet with the decline of the world's financial markets last fall, the Institute must consider how to carry out its core mission more efficiently, using fewer financial resources, and without compromising the quality of our work. In December 2008, Provost Reif, Chancellor Clay and Executive Vice President and Treasurer Stone shared a plan for reducing MIT's expenses by $100-150 million over two to three years.
Together, MIT’s units and administration have achieved initial savings of $58.3 million in recurring annual operating expenses. These savings, effective in the fiscal year that began on July 1, 2009, were accomplished through a variety of ways:
- Senior faculty requested that MIT direct available salary funds to those members of our community with lower compensation, resulting in savings of $11.3 million.
- The combined pool of funds directed for renovation and renewal of campus building infrastructure was decreased by $10 million, and the software capital pool was reduced by $500,000.
- The elimination of funds available for new initiatives in FY’10 created $5 million in savings.
- MIT’s administrative and academic units across campus have achieved savings of $23.4 million, with administrative areas absorbing 7% reductions and academic areas 3% reductions in operating expenses on average.
- MIT saved $8.1 million through energy savings initiatives and price reductions in natural gas and electricity.
The additional $50 - $100 million budget reduction for Fiscal Year 2011 and beyond, will be achieved by a combination of unit-based expense reductions and the identification of new savings. Since February 2009, approximately 200 faculty, students, and staff on the Institute-wide Planning Task Force have creatively explored new ways of promoting our historic excellence in teaching and research, while preserving MIT’s financial stability.
- Read and comment on the Task Force’s Preliminary Report.
- Review the charge and membership of the Task Force.
- Visit a Frequently Asked Questions site and letters to the community on the budget planning process.
Be a part of the process by visiting the MIT Idea Bank: members of the community can read and
comment on the preliminary report of of the Institute-wide Planning Task Force.
