Here at a glance are the major elements of the plan to bring MIT's operating budget into balance while retaining and enhancing the Institute's excellence. This outline was drawn from presentations President Vest has made this fall to the Academic Council, the Administrative Council, the Faculty Council and the Faculty Meeting.
Decisions will be made through a combination of the usual decision-making processes and special working groups that will draw on many people throughout the Institute.
The plan is being developed within the context of the following institutional priorities:
Maintain and enhance MIT's position as the leading academic institution focused largely on science and technology.
Provide flexibility to develop new educational and research opportunities.
Maintain merit-based, need-blind admissions.
Moderate the rate of growth of tuition and self-help levels.
Compensate faculty and staff consistent with their high quality.
Increase the use of MIT resources (rather than research funding) to support faculty salaries.
Build a more diverse faculty, staff and student body.
Improve the efficiency and value of the services we provide.
GOALS OF THE PLAN
Reduce the operating gap by $40 million ($25 million net of indirect cost recovery).
Operate more effectively with a smaller work force.
PLANNED AND POSSIBLE ACTIONS
Continue budget reductions of 2 percent per year for FY95 and FY96.
Reduce faculty by 50 over 10 years, through attrition.
Place an indirect cost charge on all fund accounts.
Reduce amount of unrestricted funds used for undergraduate financial aid; seek other funds for this purpose.
Reduce the number of academic visitors. Support activities:
Reduce administrative, support and service staff by 400 (in both the academic and support operations.)
Restructure, reduce or renew activities and services. Examples: energy cogeneration, publications production, student services, health care, mail services, pension administration, fundraising.
Select certain operations for cost-effective out-sourcing.
Attenuate average salary growth during the next three years.Establish programs for career counselling, retraining and out-placement for employees directly affected by downsizing.
Institute a parking charge.
A version of this article appeared in the November 22, 1993 issue of MIT Tech Talk (Volume 38, Number 15).