Princeton University administrators have proposed a $170-million budget reduction over the next two years in order to address a $4.89-billion decline in the university's endowment that is expected by the end of June, The Times of Trenton reported on Thursday. The decline represents a 30-percent drop in the university's $16.3-billion endowment. Princeton will also freeze raises on all salaries over $75,000, postpone the filling of open faculty and staff positions and may lay off employees in order to reduce spending, according to The Times of Trenton. Princeton's 10-year construction plan will also be reevaluated, and funding will be restricted to only essential projects. The $1.3-billion budget for the upcoming fiscal year will be reduced by $88 million, according to a letter from university President Shirley Tilghman to the Princeton community.
Wellesley College will reduce the size of its staff by about 80 people by the end of this fiscal year in order to respond to the economic crisis, The Boston Globe reported on Thursday. About 44 people will be laid off, while 36 positions that will become vacant because of retirements will not be filled. Additionally, 50 employees have opted to participate in a voluntary retirement incentive program, and Wellesley has capped all salaries, according to The Globe.
