Brown University is facing a significant structural deficit of $46 million, with projections suggesting this could rise to over $90 million by next year. To address this growing financial concern, the University has announced a series of measures aimed at stabilising its budget and ensuring financial health over the next five to six years.
Steps Toward Financial Stability
Recently, Brown unveiled plans to tackle the deficit. The University will restrict faculty and staff growth and reduce the number of PhD admissions, focusing on cost-cutting strategies that will lower operating expenses. These changes are necessary to prevent the deficit from escalating further.
The Root of the Deficit
Brown’s shift from a liberal arts college to a leading research institution has led to a mismatch between its academic focus and financial model. The University has become increasingly reliant on undergraduate tuition, which has not kept pace with the rising costs of providing financial aid and paying faculty salaries. According to The Brown Daily Herald, Provost Francis Doyle and Executive Vice President Sarah Latham, in a joint statement shared on Today@Brown, highlighted that the growing costs of salaries, financial aid, and the steady undergraduate student body are key drivers behind the deficit.
Long-term Solutions
As part of its financial recovery plan, Brown will also focus on growing revenue from its master’s programs. By implementing these strategies, Doyle and Latham aim to reduce the deficit to no more than $60 million by 2026, excluding long-term investments in health systems associated with the University, as reported by The Brown Daily Herald.
