STANFORD UNIVERSITY STANFORD UNIVERSITY BUDGET PLAN 2017/18

BUDGET PLAN 2017/18 Approved: This Budget Plan was approved by the Stanford University Board of Trustees June 14–15, 2017. This publication can be found at: http://www.stanford.edu/dept/pres-provost/budget/plans/plan18.html STANFORD UNIVERSITY BUDGET PLAN 2017/18

EXECUTIVE SUMMARY iii

EXECUTIVE SUMMARY

To The Board of Trustees:

It is a pleasure to submit my first Budget Plan as Stanford’s provost. This budget maintains our university’s pre-eminent academic and research programs. It calls for selective investments in high priority areas. It also strengthens our financial base, thereby providing the foundation for the strategic initiatives expected to emerge from the Long Range Planning process.

Our approach in developing the 2017/18 Budget Plan has been a cautious one. Slow growth in endowment payout and uncertainty around government sponsored research have created a planning context in which we have reduced the growth of new program investment compared to recent years. At the same time, we have increased our financial reserve position should external funding conditions deteriorate. We are confident this budget both furthers Stanford’s programmatic objectives and maintains a strong underlying financial condition.

This document presents Stanford’s 2017/18 Budget Plan for Trustee approval. The Budget Plan has two parts. The first is the Consolidated Budget for Operations, which includes all of Stanford’s anticipated operating revenue and expense for next year. The second is the Capital Budget, which is set in the context of a multi-year Capital Plan. The budgets for Stanford Health Care and Stanford Children’s Health, both separate corporations, are not included in this Budget Plan, although they are incorporated into the university’s annual audited financial report.

Highlights of the Budget Plan: n The Consolidated Budget for Operations projects a surplus of $165 million on $6.3 billion of revenues, $5.9 billion in expenditures, and $243 million in transfers. We anticipate revenue to increase 5.0% over the projected 2016/17 year-end results. This results from an 11.6% increase in health care services revenue and a 12.6% growth in investment income, offset by a 13.2% reduction in SLAC sponsored research activity, which is driven by a smaller construction program compared to 2016/17. Overall, we are budgeting a 4.1% increase in expenses, resulting from a 7.8% growth in compensation coupled with a small reduction in other operating expenses. n The Consolidated Budget includes $1.45 billion in general funds, of which $200 million flows to the Graduate School of Business, the School of Medicine, and Continuing Studies in accordance with previously agreed upon formulas. We anticipate a general funds surplus of $26 million, a figure higher than last year but comparable to most years following the recession. We have also budgeted a $20 million contingency against uncertainties in federal research, endowment payout shortfall, and initial costs of initiatives emerging from the Long Range Planning process. This surplus, coupled with the contingency, provides an appropriate cushion against revenue fluctuation and will allow us to address one-time needs throughout the year. n This Budget Plan presents the projected 2017/18 results in a format consistent with Generally Accepted Accounting Principles, as reported in the university’s annual financial report. The projected Statement of Activities shows a $115 million surplus. n The Capital Budget calls for $1.2 billion in expenditures in 2017/18. These expenditures are in support of a Capital Plan whose projects, when fully completed, will total approximately $4.3 billion. Principal expenditures in 2017/18 will be directed toward: iv EXECUTIVE SUMMARY

u $329 million for Stanford Redwood City Phase 1. This is part of a multi-year project to build an administrative campus in Redwood City at a total cost of $569 million. It is expected to open in 2018/19.

u $171 million toward the new Escondido Village Graduate Residences.

u $119 million towards the $257 million ChEM-H and Stanford Neurosciences Institute Research Complex.

u $104 million towards the Center for Academic Medicine 1 building.

u $104 million towards the BioMedical Innovations Building.

STRATEGIC CONTEXT

The context in which we have developed the 2017/18 Budget Plan has been shaped by several factors:

n Slow Growth in Endowment Payout—For the past two years endowment returns have underperformed our long term expectation. Consequently, even after incorporating our smoothing formula, growth in endowment payout has been below what is needed to maintain the purchasing power of our endowment funds.

n Sponsored Research Uncertainty—There is considerable uncertainty around government sponsored research. While Stanford has fared well during past periods of decline in research, we are concerned about the outlook and are working actively to advocate our position.

n Housing Costs—A robust local economy has helped tremendously to support the philanthropy from which Stanford has benefitted over the years. However, that strong economic growth continues to place severe pressure on the costs of housing and transportation. These are not new issues for Stanford, but they show no signs of slowing.

n Strategic Planning—The Long Range Planning process launched this spring will conclude in 2017/18 with a set of strategic directions for Stanford. This is an exciting time for the university as we look to create a shared vision for the future.

n Growth of Stanford Medicine—Stanford Medicine (the Medical School, Stanford Health Care, and Stanford Children’s Health) will continue on its growth trajectory of recent years with off-campus clinical expansion and with the new adult hospital scheduled to open in late 2018. Clinical revenue flowing to the Medical School is the fastest growing income source in the budget, and it is now the second largest source of revenue for Stanford. Changes in governmental health care policy and the transformation of biomedicine to precision health continue to shape this rapidly evolving enterprise at Stanford.

These factors have helped define our major priority areas for the 2017/18 budget:

n Strengthening and ‘Shoring Up’ the Base Budget—In anticipation of future strategic planning initiatives, a central priority in the 2017/18 budget process was on closing gaps or partial funding in the existing budget. We made selective base budget allocations in areas where one-time funding had been a continued means of support. In addition, in several schools we provided funding to address the shortfall between the 1.6% growth in endowment payout and the 3.5% average anticipated growth in expense of a typical endowment fund.

n Competitive Compensation—Providing a strong and highly competitive compensation program for faculty and staff is a major priority in the 2017/18 budget. We recognize the challenges many of our faculty and staff face in this very high cost area. Over the years, Stanford has made substantial EXECUTIVE SUMMARY v

efforts to enhance our housing programs, particularly for faculty. But the challenge remains. In partial response, we made supplemental salary allocations in this budget to address issues of market competitiveness, internal salary equity, and retention. n Building Financial Reserves—It has been our general practice since the 2010 recession to carry a $25 million general funds surplus to protect the budget against potential revenue shortfalls. In 2016/17, due to lower investment income, we reduced that budgeted surplus to $15 million. For 2017/18 we have restored the budgeted surplus back to $26 million and created the $20 million base budget contingency noted earlier. n Slowing the Pace of New Program Investment—In light of the uncertainties around research and the expectation of strategic initiatives emerging from the Long Range Planning process, we have reduced funding for new initiatives, compared to the budget proposals of recent years. n Housing—This budget continues our multi-year strategy to expand housing opportunities for students, faculty, and staff, as the cost of housing continues to be Stanford’s greatest challenge. We are addressing it with several aggressive initiatives:

u We have begun a 2400-bed graduate student housing complex in Escondido Village.

u The University Terrace Faculty Homes are opening, with the full 180-unit complex to be available by the end of calendar 2018.

u Stanford is buying homes and apartments in the local area under the $500 million Housing Acquisition Initiative approved by the Trustees.

u We are pursuing a proposal with the city of Menlo Park to build additional faculty and staff housing at 500 El Camino Real.

u Next year Stanford will provide approximately $23 million in subsidies for off-campus apartments for graduate students. While these initiatives will not address all of the housing needs of Stanford students, faculty, and staff, they are having a positive impact and will continue to improve the situation over time.

FINANCIAL RESERVES

Stanford has three principal categories of financial reserves: Expendable reserves—We project Stanford’s expendable reserves will stand at $4.5 billion at the end of 2017/18. Of that amount, $3.5 billion is a combination of restricted and unrestricted expendable funds, and unspent restricted endowment payout. The remaining amount is split among plant, student loan, and agency funds. These reserves consist of thousands of funds held across the university, largely controlled by individual faculty, departments, programs, and schools.

Tier I Buffer—We project the Tier I Buffer will stand at $1.46 billion by the end of 2017/18. The Tier I Buffer comprises the university’s unrestricted funds functioning as endowment, the payout from which supports the general funds component of the Consolidated Budget. The majority of the buffer’s funds are generated by the investment returns on a subset of our expendable reserves. The Tier I Buffer acts as a backstop to maintain the face value of those expendable funds, which are invested in the merged pool.

Tier II Buffer—The Tier II Buffer is estimated to be $1.06 billion by the end of 2017/18, which is close to its nominal value before the recession. Like the Tier I Buffer, this fund is generated from excess investment returns from expendable reserves, and is invested as funds functioning as endowment. The payout from the Tier II buffer, however, is used at the discretion of the president. vi EXECUTIVE SUMMARY

CONSOLIDATED BUDGET FOR OPERATIONS The table on the next page shows the main revenue and expense line items for 2017/18 and compares those numbers to our current projection of final results for 2016/17. Some highlights of both income and expense follow.

REVENUE Student Income—This figure is the sum of tuition and room and board income, and is expected to grow by 3.8%. Tuition income is projected to grow 3.7% over the projected 2016/17 actuals as the result of a 3.5% increase in the undergraduate and graduate tuition rates and a slight growth in the number of graduate students. Room and board income is projected to increase 4.3%, due to the 3.5% room and board rate increase, growth in meal plans, and the re-opening of the Schwab Residential Center.

University Sponsored Research—Sponsored research revenues (excluding SLAC) are expected to grow by 3.6%, while indirect cost recovery will increase by 4.2%. Direct research in the School of Medicine will continue its strong growth, increasing at 5.8%, while non-Medical grant funding will be flat. SLAC’s revenues are expected to decline by 13.2%, due to a lower construction budget than in 2016/17. When SLAC is included, total sponsored research revenue is expected to decrease by 2.7% over 2016/17 projected year-end results. There is considerable uncertainty around these numbers, given the precarious state of the federal budget. We will be monitoring the situation closely as the year unfolds.

Health Care Services—Revenue from health care services is projected to increase by 11.6% in 2017/18. This revenue consists principally of payments from the hospitals to the School of Medicine for faculty physician services. Health care services revenue has been the fastest growing element of the Consolidated Budget over the last decade, with a compound annual growth rate of 11%. The 2017/18 growth is driven by continued expansion of Stanford Medicine’s clinical activities throughout the region.

Expendable Gifts—Stanford has enjoyed very strong fundraising results in recent years. Consistent with the estimate from the Office of Development, we expect expendable gift revenue to be flat in 2017/18.

Investment Income—This category consists of endowment payout ($1,243.4 million) and other investment income ($275.8 million), principally from the Expendable Funds Pool (EFP). Endowment payout is projected to increase by 5.7%. The payout growth to a typical endowment fund is only 1.6% for 2017/18, but overall payout growth is higher due to additions to endowment principal and growth in real estate income in 2017/18. The Expendable Funds Pool payout is growing significantly in 2017/18. By Trustee policy, EFP payout is based on the total return of the pool in the prior year, up to 5.5%. In 2015/16 that return was just 2.5%, prompting a reduction in payout in 2016/17. We are expecting the full 5.5% return in 2016/17, which will produce the significant increase in the EFP payout for 2017/18.

EXPENSE Compensation—We anticipate total compensation to increase 7.8% over 2016/17 year-end results. The increase is the result of a strong salary program, a 3.6% overall increase in headcount, and the targeted salary enhancements mentioned earlier.

Financial Aid—The costs for need-based financial aid, athletic aid, and graduate student aid will increase by 4.3%. This increase allows Stanford to maintain its generous need-based aid program for undergraduates, particularly for those families with incomes below $125,000. It also reflects a 4.5% increase in aid for graduate students, reflecting more generous graduate support in selected disciplines and a slight increase in the number of graduate students. EXECUTIVE SUMMARY vii

CONSOLIDATED BUDGET FOR OPERATIONS, 2017/18 [IN MILLIONS OF DOLLARS]

2016/17 2016/17 2017/18 CHANGE FROM 2015/16 BUDGET PROJECTED CONSOLIDATED PROJECTED ACTUALS JUNE 2016 ACTUALS BUDGET ACTUALS Revenues 857 896 903 Student Income 937 3.8% 1,005 1,050 1,046 University Sponsored Research 1,085 3.8% 448 591 644 SLAC Sponsored Research 559 -13.2% 1,034 1,177 1,123 Health Care Services 1,253 11.6% 391 350 391 Gifts and Net Assets Released from Restrictions 391 0.0% 1,406 1,284 1,349 Investment Income 1,519 12.6% 540 534 508 Special Program Fees and Other Income 516 1.5% 5,680 5,881 5,965 Total Revenues 6,261 5.0%

Expenses 3,123 3,323 3,359 Compensation 3,622 7.8% 270 286 286 Financial Aid 298 4.3% 185 204 199 Debt Service 199 0.1% 1,541 1,781 1,781 Other Operating Expense 1,734 -2.6% 5,118 5,594 5,625 Total Expenses 5,853 4.1%

562 287 340 Operating Results 408 (346) (166) (187) Transfers (243) 216 121 152 Operating Results after Transfers 165

2,990 3,238 3,206 Beginning Fund Balances 3,358 3,206 3,359 3,358 Ending Fund Balances 3,524

Other Operating Expenses—This substantial expense item is the amalgam of graduate stipends, operations and maintenance, utilities, capital equipment, materials and supplies, travel, library materials, subcontracts, and professional services. These expenses are projected to decline by 2.6% in 2017/18, driven largely by SLAC’s reduced construction activity. Exclusive of SLAC, these expenses will grow by 3.3%.

SCHOOL INITIATIVES Stanford’s principal academic units, the seven schools, will advance their agendas in 2017/18. A few highlights of their plans are:

Graduate School of Business (GSB)—Under its new dean, Jon Levin, the Business School has launched a year-long strategic planning process focusing on the future of management education and the future of research. The GSB continues to expand its involvement globally; the Stanford Institute for Innovation in Developing Economies (Seed) will open a center in southern India—its third such international operation.

Earth, Energy & Environmental Sciences (SE3)—The school is pursuing a set of goals that emerged from a strategic planning effort last summer. The goals focus on engaging all Stanford students in gaining knowledge of our planet; expanding collaborations inside and outside the university; accelerating the impact of the school’s research; and advancing planning for a new facility. viii EXECUTIVE SUMMARY

Graduate School of Education (GSE)—The GSE has launched its centennial year advancing several strategic priorities. One such area focuses on ‘learners in peril,’ those students who are disadvantaged by either social or biological causes, or both. The school has recently completed the early phases of a new building planning process and will expand the effort in 2017/18. Also, the GSE will further develop its partnership with local school districts in the coming year.

Engineering—The school welcomed a new dean this spring, Jennifer Widom, who has served in several key leadership positions in the school. Engineering continues to pursue several strategic initiatives that emerged from the SOE Futures planning process completed two years ago. There is a strong focus on computational research, particularly in computer science.

Humanities and Sciences (H&S)—Recent growth in faculty and facilities have placed H&S in a position of great strength, but have tightened its financial situation. Future faculty growth will be targeted to enhance diversity and to fulfill initiatives in Neuroscience and ChEM-H. H&S continues its efforts to increase student interest in the humanities and social sciences through new feeder programs for high school students and placement programs for graduates.

Law—Stanford Law School is in the midst of a generational shift in its faculty, with 17 new members joining the faculty over the past several years. There is an increased focus on interdisciplinary research and teaching. Several new faculty have joint appointments with other schools at Stanford.

Medicine—Stanford Medicine continues to develop its strategy for leading the transformation of biomedicine to Precision Health. This approach leverages the art and science of medicine to predict and prevent disease before it occurs and cure it if it does. The Medical School’s research programs remain strong through recruitment of high potential and prolific investigators as well as investment in pilot grants to spur new research directions.

GENERAL FUNDS BUDGET A focal point of the budgeting process is the development of the general funds component of the Consolidated Budget. The $1.25 billion in general funds in the non-formula units can be used for any university purpose and sustain many of the core academic and support functions of the university.

As shown in the chart on the next page, base general funds additions will total $74.7 million in 2017/18. About 40% will cover increases in continuing costs for salaries, benefits, non-salary costs, and the operating costs of facilities. We set aside $20 million as a general contingency. As 2017/18 unfolds, this money may be used to respond to potential changes in federal research funding; to provide capacity to address initiatives emerging from the Long Range Planning process; and to address potential shortfalls in endowment payout. The remaining $22.6 million will be split among endowment mitigation, enhancing existing programs, converting certain one-time expenses to the continuing base budget, and a small amount for funding new programs. These purposes are further delineated below.

Endowment Mitigation ($4.0 million)—As noted earlier, we allocated funds to cover the shortfall between the increase in endowment payout of 1.6% and the growth in expense supported by a typical endowment fund of approximately 3.5%. These allocations, directed principally to those non-formula schools relying heavily on endowment payout, reduce the need for those schools to draw on reserves or to make budget reductions to address the shortfalls. EXECUTIVE SUMMARY ix

2017/18 BASE GENERAL FUNDS ADDITIONS: $74.7 MILLION [IN MILLIONS OF DOLLARS]

Administrative Support Contingency 5.9 20.0 Endowment Incremental Base Conversion Allocations Mitigation 6.8 4.0 18.6 Program Enhancement Other 1 Non-Salary 6.0 & Facilities 5.9 12.2 New Programs Salaries & 5.8 Market-based Benefits 19.9 Adjustments Academic/Faculty Support 32.1 6.8

1 Other incremental allocations as described below include Systems and Security, Student Support, and New Facilities Debt and Operations.

Faculty, Academic, and Research Support ($6.8 million)—We continued our investment in the Faculty Incentive Fund and the Faculty Development Initiative to encourage ongoing recruitment of under- represented minorities and women to the faculty. We allocated base general funds to replace one-time funding in Environmental Health & Safety and in the administrative offices of the Vice Provost for Teaching and Learning. Enhancements were also made to the faculty child care programs.

Administration ($5.9 million)—This category adds funding in a number of administrative areas, including: part-time readers in the undergraduate admissions office; a student services professional in Engineering; expanded capacity in Development; and increased staffing in University Communications.

Systems and Security ($2.5 million)—We are adding funding for the ADAPT system in Development, the Graduate Financial Planning System expansion, and for Stanford Web Services. This category also reflects the addition of a sworn deputy position in Public Safety and the expansion of security patrols in parts of the campus.

Student Support ($1.7 million)—Some of the key items funded in this category include: staffing and operational costs in the Office of Community Engagement and Diversity within Student Affairs; financial aid for master’s students in the Graduate School of Education; and supplemental funding for research assistant tuition allowance.

New Facilities Debt and Operations ($1.7 million)—This category reflects the costs of bringing new facilities online in the coming year. The most significant addition is the Bass Biology building, which is expected to open in late 2018. x EXECUTIVE SUMMARY

CAPITAL BUDGET AND PLAN The Capital Budget and three-year Capital Plan are based on a projection of the major capital projects that the university intends to pursue to further its academic mission. The three-year Capital Plan spans 2017/18 through 2019/20; the Capital Budget represents anticipated capital expenditures in the first year of the plan. The three-year plan includes projects that were initiated prior to 2017/18, as well as the full cost of projects starting within the rolling three-year period through 2019/20. The Capital Budget and Capital Plan are subject to change based on funding availability, budget affordability, and evolving university priorities.

The three-year Capital Plan includes $4.3 billion in construction and infrastructure projects and programs. The projects noted above, when fully completed over the multi-year period, comprise the bulk of the Plan. It also includes a number of smaller projects and several infrastructure programs anticipated over the length of the Plan.

ACKNOWLEDGEMENTS In this, my first Budget Plan, it is a great pleasure to acknowledge the help and support of many people. The Budget Plan is the product of a great deal of work on the part of managers and budget officers at every level of the university. I thank the budget officers and leadership in the schools and administrative units for their efforts in support of the budget process.

There are two hardworking advisory groups that assist me in formulating the general funds budget and capital plan. The University Budget Group consists of Margaret Brandeau, Harry Elam, Andrea Goldsmith, Judy Goldstein, Patti Gumport, Rosemary Knight, Randy Livingston, Kam Moler, Steve Olson, Serena Rao, Dana Shelley, George Triantis, and Tim Warner. This group met from late September through March, often twice a week, to review submissions and requests from the various budget units and to advise me on the final allocations of general funds. Support for the Budget Group, and for the creation of this document, is provided by the budget office staff, consisting of Kayte Bishop, Jacy Crapps, Neil Hamilton, Betsy Lewis, Mike Ling, Serena Rao, Davis Reek, Mark Rickey, and Dana Shelley, under the able leadership of Tim Warner.

The Capital Planning Group consists of Jack Cleary, Megan Davis, Stephanie Kalfayan, David Lenox, Bob Reidy, Craig Tanaka, Bob Tatum and Tim Warner. Craig guides the capital planning process with remarkable efficiency, with excellent support from Howard Leung.

Finally, a special personal thanks to both Tim Warner and John Etchemendy. Tim has been a patient teacher as I learn the complexities of the Stanford budget. John continued as a ‘Special Advisor’ and participated in the budget process after he stepped down from the provost position and helped at every step with the crafting of this budget. EXECUTIVE SUMMARY xi

REQUESTED APPROVAL AND ORGANIZATION OF THIS DOCUMENT The Budget Plan provides a university-level perspective on Stanford’s programmatic and financial plans for 2017/18. We seek approval of the planning directions, the principal assumptions, and the high-level supporting budgets contained herein. As the year unfolds, we will provide periodic variance reports on the progress of actual expenses against the budget. In addition, we will bring forward individual capital projects for approval under normal Board of Trustees guidelines.

This document begins with an overview of budgeting at Stanford, followed by four chapters and two appendices. Chapter 1 describes the financial elements of the plan, including details of the Consolidated Budget for Operations and the projected Statement of Activities for 2017/18. Chapter 2 addresses program directions in the academic areas of the university. Chapter 3 provides a similar view of the administrative and auxiliary units. Chapter 4 contains details on the Capital Budget for 2017/18 and the Capital Plan for 2017/18–2019/20. The appendices include budgets for the major academic units and supplementary financial information.

Persis S. Drell Provost June 2017 xii EXECUTIVE SUMMARY TABLE OF CONTENTS xiii

TABLE OF CONTENTS

EXECUTIVE SUMMARY...... iii

INTRODUCTION: BUDGETING AT STANFORD...... 1

CHAPTER 1: CONSOLIDATED BUDGET FOR OPERATIONS...... 3 Consolidated Budget for Operations...... 3 General Funds...... 17 Environmental Health and Safety (EH&S)...... 19 Projected Statement of Activities...... 20

CHAPTER 2: ACADEMIC UNITS...... 23 Overview of Academic Units...... 23 Graduate School of Business...... 24 School of Earth, Energy & Environmental Sciences ...... 26 Graduate School of Education ...... 28 School of Engineering ...... 30 School of Humanities & Sciences ...... 32 School of Law ...... 34 School of Medicine...... 36 Vice Provost and Dean of Research...... 38 Vice Provost for Undergraduate Education...... 40 Vice Provost for Graduate Education...... 42 Vice Provost for Teaching and Learning...... 44 Hoover Institution...... 46 Stanford University Libraries ...... 48 SLAC National Accelerator Laboratory ...... 50

CHAPTER 3: ADMINISTRATIVE & AUXILIARY UNITS...... 53 Administrative Units...... 54 Major Auxiliary Units...... 63

CHAPTER 4: CAPITAL PLAN AND CAPITAL BUDGET...... 67 Capital Planning Overview...... 68 Stanford’s Commitment to Housing...... 70 The Capital Plan, 2017/18–2019/20...... 71 The Capital Budget, 2017/18 ...... 78 Capital Budget Impact on 2017/18 Operations...... 80 Capital Plan Project Detail...... 80

APPENDIX A: CONSOLIDATED BUDGETS FOR SELECTED UNITS...... 85

APPENDIX B: SUPPLEMENTARY INFORMATION...... 103 xiv TABLE OF CONTENTS INTRODUCTION: BUDGETING AT STANFORD 1

INTRODUCTION: BUDGETING AT STANFORD

udgeting at Stanford is a continuous process that takes place throughout the year and occurs at nearly every level within the university. The cycle starts with planning that considers programmatic needs and Binitiatives, continues with the establishment of cost drivers such as the approved salary program and fringe benefits rates, and is tempered by available funding sources. Stanford’s budget is an amalgamation of thousands of smaller budgets, including everything from an individual faculty member’s budget for a sponsored grant from the National Institutes of Health, to the budget for the Department of Psychology, to the budget for the School of Engineering, to the total of the Consolidated Budget for Operations. These budgets are created and managed by the areas that are governed by them, with oversight by the provost, the chief budget officer of the university. There are general principles and guidelines to which the budgets must adhere, but schools and other units are allowed tremendous freedom in the development and execution of their budgets.

FUND ACCOUNTING BUDGET MANAGEMENT Stanford’s budgets are developed and managed according to At the end of fiscal year 2015/16, Stanford had roughly the principles of fund accounting. Revenue is segregated into 23,000 active expendable funds and more than 8,000 a variety of fund types, and the use of the revenue is governed endowment funds. So how does Stanford budget and by the restrictions of the fund. For example, each expendable manage all these funds? It goes without saying that gift is put into an individual fund, and the recipient must use the university uses a sophisticated financial account- the funds in accordance with the wishes of the donor. Gifts of ing system to set up the individual funds, to record each endowment are also put into separate funds, but the corpus financial transaction, and to track fund balances. But nearly itself is not usually spent. An annual payout on the endow- all of the decision-making for the use of Stanford’s funds ment fund is spent, and as with gift funds, only in accordance with the restrictions imposed by the donor. The segregation of each gift allows the university to ensure that the funds are 2017/18 CONSOLIDATED REVENUES BY FUND TYPE spent appropriately and to report to donors on the activities that their funds support. Monies received from government Auxiliaries & Service Centers 6% agencies, foundations, or other outside sponsors are also General Funds deposited in separate, individual funds to ensure strict adher- 23% ence to the terms of the grants and/or contracts that govern Grants & the use of the funds. Non-gift and non-sponsored research Contracts 22% revenue also reside in funds, but this type of revenue may be commingled in a single fund. Departments may choose to combine unrestricted monies into separate funds for a par- Designated 27% ticular program, for a capital project, or to create a reserve. Restricted 22% Stanford’s consolidated revenues by fund type are shown at the right. 2 INTRODUCTION: BUDGETING AT STANFORD

is made at the local level, consistent with the decentral- the next four years, this program will receive no revenue, will ized and entrepreneurial spirit of the university. Unlike a expend $1.0 million dollars, and will thus generate an annual corporation, Stanford is closer to a collection of disparate, deficit of $1.0 million while drawing down the fund balance autonomous businesses with widely varying cost struc- of the gift. tures and resources. As such, each principal investigator is The Consolidated Budget for Operations, the aggregate accountable for the responsible use of his/her grant funding, of all of Stanford’s smaller budgets, is therefore not centrally each gift recipient must ensure that the gift funds are used managed in the corporate sense. Nonetheless, a great deal in accordance with the donor’s wishes, and each school must of planning goes into the development of the individual unit fulfill the expectations for teaching and scholarship within budgets that aggregate into the Consolidated Budget of its available resources. Schedule 21 in Appendix B shows the university. expendable fund balances by academic unit and by level of control. DEVELOPMENT OF THE CONSOLIDATED BUDGET AND BUDGET CONTROL THE ROLE OF GENERAL FUNDS The primary control on local unit budgets at Stanford is Another key element in the development of the units’ budgets available funding. Except for general oversight and policies and the Consolidated Budget are university general funds, governing the appropriate and prudent use of university which are funds that can be used for any university purpose. funds, the central administration does not place additional General funds play a particularly important role in the overall limits on spending. For example, if a faculty member needs budget, because they cover many expenses for which it is to hire a postdoctoral fellow to help carry out a particular difficult to raise restricted funds, such as administration and research project, and if grant funding is secured to cover this campus maintenance. The main sources of general funds are expense, the university does not second-guess this decision. tuition income, indirect cost recovery, unrestricted endow- Conversely, two important budget matters are controlled ment income, and income from the expendable funds pool. centrally: faculty billets and space. Each school and administrative unit receives general funds Because the majority of Stanford’s funding is under the in support of both academic and administrative functions. direct control of a faculty member, a department, or a school, The process for allocating general funds is controlled by the these entities are able to support programs as long as they provost and aided by the Budget Group, which includes rep- maintain a positive fund balance. This, however, does not resentation from both faculty and administration. mean that the programs must operate with a surplus dur- ing any particular fiscal year. In fact, a “deficit” is usually The critical elements of the process are a forecast of available reflective of a planned use of prior year fund balances. A general funds, a thorough review of each unit’s programmatic simple example of this is when a department receives a plans and available local funding, and an assessment of cen- gift of $5.0 million to be spent over five years. If the funds tral university obligations such as building maintenance and are spent evenly over the time period, the program will debt service. Balancing the needs and the resources is the show a surplus of $4.0 million in the first year and will ultimate goal of the Budget Group. The general funds alloca- generate an ending fund balance of $4.0 million. In each of tion process is described in more depth in Chapter 1. CONSOLIDATED BUDGET FOR OPERATIONS 3

CHAPTER 1 CONSOLIDATED BUDGET FOR OPERATIONS

n this chapter we review the details of the 2017/18 Consolidated Budget for Operations, describe the general Ifunds allocation process and results, and present a forecasted Statement of Activities. CONSOLIDATED BUDGET FOR The 2017/18 Consolidated Budget for Operations shows total revenue of $6,261.4 million and expenses of $5,853.3 million, OPERATIONS resulting in a net operating surplus of $408.1 million. After The Consolidated Budget for Operations provides a man- projected transfers of $242.8 million, predominately to plant agement-oriented overview of all non-capital revenues and funds, the Consolidated Budget shows a surplus of $165.4 expenditures for Stanford University in the fiscal year. It is million. based on forecasts from the schools and administrative ar- Total revenues in 2017/18 are projected to increase $296.8 eas. These forecasts are then merged with the general funds million or 5.0% over revenues expected in 2016/17. As has budget forecast and adjusted by the University Budget Office been the case for several years, the total growth belies the for consistency. The Consolidated Budget includes only those variability among the component revenue sources. Health revenues and expenses available for current operations. It care services revenue is expected to continue at double-digit does not include plant funds, student loan funds, or endow- growth, as Stanford Medicine expands both on campus and ment principal funds, although it does reflect endowment in new faculty practice locations throughout the Bay Area. payout. It also does not include the budgets of Stanford Total investment income is also expected to increase sharply, Health Care or Stanford Children’s Health.

2017/18 CONSOLIDATED REVENUES: $6,261.4M 1 2017/18 CONSOLIDATED EXPENSES: $5,853.3M

Other Income Other 8% Student Income Investment Income 15% 5% Other Compensation Operating 62% Expenses University 30% Endowment Sponsored Income Research 20% 17%

Debt Service 3% Gifts & Net Assets SLAC Financial Aid Released from 5% Restrictions 9% 6% Health Care Services 20%

1 Net Revenues after Transfers: $6,018.7 Million 4 CONSOLIDATED BUDGET FOR OPERATIONS

29.4 165.4 298.2 199.3 408.1 369.2 373.7 194.5 275.8 559.4 278.0 806.8 937.4 516.2 391.2 TOTAL (162.0) (110.2) (242.8) 1,734.2 3,358.4 3,523.8 3,621.5 1,519.2 1,243.4 1,253.2 1,084.8 6,261.4 5,853.3

0.5 0.5 (1.8) 40.9 21.0 19.2 280.1 280.1 280.9 673.7 155.9 391.7 ACTIVITIES 277.6 115.1 194.5 194.5 AUXILIARY & AUXILIARY (281.9) SERVICE CENTER SERVICE

0.2 0.2 0.0 0.2 (7.6) (0.0) 49.3 20.1 20.1 17.4 (41.7) (49.4) 573.1 559.4 806.8 806.8 726.9 CONTRACTS GRANTS AND GRANTS 1,317.4 1,366.7

2.4 4.4 0.5 0.0 (2.3) 54.6 12.5 (26.7) 269.4 312.4 984.5 982.1 387.4 574.7 231.7 (228.9) 1,076.4 1,388.8 1,353.2 1,407.8

6.3 7.2 7.2 30.7 87.1 47.7 (90.2) (83.5) 287.6 230.1 153.2 153.2 339.6 RESTRICTED DESIGNATED 1,433.4 1,163.5 1,663.5 1,440.1 1,527.2 1,091.8

3.8 25.5 98.1 36.4 16.1 FUNDS 42.9 36.0 (61.9) (10.8) (72.7) (143.0) (257.8) 323.2 380.7 119.4 261.3 278.0 278.0 GENERAL 369.2 524.0 549.5 950.4 366.6 735.8 1,352.5 1,450.7 2017/18 Other Internal Transfers Transfers Other Internal Transfers from (to) Plant (to) from Transfers Other Operating Expenses Other Operating Compensation Compensation Principal Endowment (to) from Transfers Financial Aid Financial Debt Service Internal and Board Room Programs Graduate Programs Undergraduate Income Other Investment Income Endowment Costs Indirect Costs—University Direct Transfers Total Total Expenses Total Balances Beginning Fund Balances Ending Fund

and Transfers Results Operating Results Operating and Other Additions Revenues Expenses Transfers

Income Investment Services Health Care Research Sponsored University Student Income and Other Income Fees Special Program Revenues Total Restrictions from Gifts Released and Net Assets

30.6 (98.5) ACTUALS 152.5 339.6 286.0 199.1 360.1 186.5 903.4 356.7 508.4 172.2 391.2 Research Sponsored 644.2 SLAC 266.8 778.8 2016/17 PROJECTED (119.2) (187.1) 5,625.0 1,780.7 3,359.2 1,349.1 1,122.8 1,045.6 5,964.6 1,176.9 3,205.9 3,358.4 2016 30.3 BUDGET (36.9) 121.0 286.6 286.1 204.0 356.4 185.7 896.0 353.9 533.6 105.6 349.6 590.6 262.3 788.2 2016/17 JUNE (159.1) (165.7) 5,594.1 1,781.4 3,322.6 1,283.6 1,176.8 1,050.5 5,880.7 1,178.1 3,237.9 3,358.9 33.9 215.7 561.9 269.5 185.2 340.5 174.1 857.0 342.3 540.0 258.0 391.1 447.8 251.4 753.6 2015/16 (254.6) (125.6) (346.2) 5,118.5 1,541.0 3,122.8 1,405.6 1,033.9 1,005.0 1,147.5 2,990.3 3,205.9

ACTUALS

CONSOLIDATED BUDGET FOR OPERATIONS, BUDGET FOR CONSOLIDATED [IN MILLIONS OF DOLLARS]

5,680.4

CONSOLIDATED BUDGET FOR OPERATIONS 5

as normal investment returns in the current year drive the 2015/16 and both the budget and the year-end projection for return to full payout on the expendable funds pool in 2017/18. the current fiscal year, 2016/17. Definitions of key terms are Payout on the expendable funds pool was roughly half of provided below. the full amount in 2016/17. Sponsored research support is projected to decline by 2.7%, with SLAC totals decreasing THE CONSOLIDATED BUDGET BY 13.2% due to a significant decline in construction activity. PRINCIPAL REVENUE AND EXPENSE University sponsored research, exclusive of SLAC, is bud- CATEGORIES geted to increase by 3.8%. Student income is projected to Revenues grow slightly faster than the approved tuition rate increase. Excluding SLAC, total revenues in 2017/18 are projected to Student Income grow by 7.2%. Student income is expected to increase by 3.8% in 2017/18 to Total expenses in 2017/18 are forecast to grow by 4.1% over $937.4 million. Increases in student charges are approved by the projected year-end results for 2016/17, and by 6.3% the Board of Trustees and are guided by a number of consid- excluding SLAC. SLAC expenses are expected to decline by erations: programmatic needs, the effectiveness of the finan- 13.2% overall, driven by a $91.9 million, or 30%, decrease in cial aid program, the impact of the economy on the families construction activity compared to 2016/17. A very competi- of students, and Stanford’s pricing position relative to peers. tive salary program, targeted market-based salary increases Tuition and Fees—Stanford expects to generate $742.9 mil- for some faculty and staff, and continued headcount growth lion in tuition and fee revenue in 2017/18, a 3.6% increase combine to push total compensation expenses up by 8.2%, over 2016/17. Tuition and fees from undergraduate programs excluding SLAC. Growth in general operating expenses is are projected to be 3.5% higher than the current year, consis- expected to be comparable to that seen in past years. tent with the approved tuition rate. Graduate student tuition The table on the facing page shows the projected consoli- revenue will increase by 3.8%, a slightly higher pace than dated revenues and expenses for 2017/18. For comparison undergraduate tuition, due to continued modest growth in purposes, it also shows the actual revenues and expenses for total graduate student enrollment. While tuition and fees will

KEY TERMS General Funds: Unrestricted funds that can be used for any university Net Assets Released from Restrictions: Under GAAP, gifts and purpose. The largest sources are tuition, unrestricted endowment pledges that contain specific donor restrictions preventing their income, and indirect cost recovery. spending in the current fiscal year are classified as “temporarily Designated Funds: Funds that come to the university as unrestricted but restricted,” and are not included in the Consolidated Budget for are directed to particular schools and departments, or for specific Operations. When the restrictions are released, these funds become purposes by management agreement. available for use and are included as part of the Consolidated Budget Restricted Funds: Include expendable and endowment income funds on the line Net Assets Released from Restrictions. These funds that can only be spent in accordance with donor restrictions. include cash payments on prior year pledges and funds transferred Grants and Contracts: The direct component of sponsored research, from pending funds to gift funds. both federal and non-federal. Individual principal investigators Financial Aid: Includes expenses for undergraduate and graduate control these funds. student aid. Student salaries, stipends, and tuition allowances are Auxiliaries: Self-contained entities such as Residential & Dining not considered to be financial aid and are included in other lines in Enterprises and Athletics that generate income and charge the Consolidated Budget. directly for their services. These entities usually pay the university Formula Areas: Budget units whose allocations of general funds are for central services provided. predetermined by a formula agreed to by the provost and the unit. Service Centers: Entities that provide services primarily for internal Principal formula units include the Graduate School of Business, clients for which they charge rates to recover expenses. the School of Medicine, and Continuing Studies/Summer Session. 6 CONSOLIDATED BUDGET FOR OPERATIONS

contribute only 11.9% of Stanford’s total revenue in 2017/18, Sponsored Research and Indirect it will comprise 50.1% of general funds. As such, it is a vital Cost Recovery source of unrestricted revenue. In addition to supporting faculty and staff salaries, student services, financial aid, and University other direct academic program needs, tuition plays a crucial University sponsored research revenue, excluding SLAC, is role in funding infrastructure, support services, and other forecast to be $1,084.8 million in 2017/18, a 3.8% increase operational activities. from 2016/17. The amount includes direct research revenue from external grants and contracts ($806.8 million) as well as The general tuition rate increase for 2017/18, approved by reimbursement for indirect costs incurred by the university in the Board of Trustees in February, is 3.5%, which results in support of sponsored activities ($278.0 million). a rate of $48,987 for undergraduates and non-professional graduate students. The rate increase was set after care- SPONSORED RESEARCH REVENUE ful consideration of the current economic circumstances (Excluding SLAC) weighed against the budgetary needs. Stanford continues [IN MILLIONS OF DOLLARS] to be, along with its peers MIT, Harvard, Yale, and Princeton, PERCENT 2016/17 2017/18 CHANGE one of the lowest priced universities among the highly selec- tive private universities that comprise the Consortium on Federal Directs 538.2 548.2 1.9% Non-Federal Directs 240.6 258.6 7.5% Financing Higher Education (COFHE). The median tuition Total Directs 778.8 806.8 3.6% of the COFHE university cohort increased 3.9% for 2016/17, Total Indirects 266.8 278.0 4.2% leaving Stanford’s tuition rank unchanged at 15th out of 17. Total Research 1,045.6 1,084.8 3.8% The approved 3.5% tuition increase applies to the undergrad- uate tuition rate, the general graduate tuition rate, and the Currently 69% of university research funding is provided by graduate tuition rates for first year MBA students, the School the federal government, and that proportion has been shrink- of Engineering, the School of Law, and the School of Medicine. ing from 75% five years prior. Overall, federal direct research revenue is expected to reach $548.2 million in 2017/18, a Room and Board—Total room and board income is projected 1.9% increase over 2016/17. Behind this modest increase to be $194.5 million in 2017/18, increasing by 4.3% over are very contrasting growth trajectories between the School the current year. The re-opening of the Schwab Residential of Medicine (SoM) and other academic units. Over the last Center, which is currently under renovation, will push room five years, the SoM has had close to 5% annual growth in and board revenue in 2017/18 to rise somewhat faster than federal research funding, bolstered by new research activity the rate increase, as more graduate students are housed. brought by incremental faculty and stable growth of support In February, the Trustees approved a combined undergradu- from the National Institutes of Health (NIH). Although the ate room and board rate increase of 3.5% for 2017/18, bring- recent federal budget proposals may leave the university ing the undergraduate rate to $15,112. The undergraduate research activity open to risk, the SoM is confident that it will room rate will increase by 4.4%, and the 19-meal board plan continue to hold a strong position compared to peer institu- will increase by only 2.2%. The graduate housing room rate tions under the current research climate and projects a 5.0% will increase by 4.75%. Stanford’s combined room and board increase in the 2017/18 federal research budget. On the con- rate increases continue to be less than the COFHE university trary, federal research funding for other academic units has median, and, as a result, Stanford’s room and board ranking been languishing in the past five years, with a steady decline in 2016/17 dropped from 11th to 12th out of 17. The 2017/18 of about 2% a year. In 2016/17, non-medical schools have recommended rate increases will allow Residential and Dining seen less funding support across all federal sponsors except Enterprises (R&DE) to maintain Stanford’s high-quality resi- the NIH. The National Science Foundation, in particular, was dential and dining programs by supporting debt service on down by 7% as of the first six months of the year. Those units new and renovated facilities, inflationary impacts on operat- are concerned over uncertainties with the federal research ing costs (including the higher cost of attracting and retaining outlook, and many project a small decline or a relatively flat labor, elevated utility rates, and the increased security mea- volume compared to the prior year. The only exception is sures in technology), and planned escalation in asset renewal. CONSOLIDATED BUDGET FOR OPERATIONS 7

the School of Engineering, anticipating increased spending for the Department of Energy (DOE). The DOE funds over in the Bioengineering Department due to new faculty hires. 95% of SLAC’s budget. SLAC’s sponsored research budget of Overall, federal research support for schools other than SoM $559.4 million in 2017/18 has two components: SLAC facility is forecast to decrease by 2.5%. operations, including research & development activities, and DOE-funded construction projects. The facility operations On a brighter side, the university has benefited from solid and budget is anticipated to increase modestly, reaching over consistent growth in non-federal direct research, averaging $320 million. The 2017/18 construction budget is projected about 8.5% a year over the last five years, and the trend is to decline approximately $90 million from a high of $330 comparable between the SoM and other academic units. In million in 2016/17, due primarily to various sub-contract 2017/18, non-federal direct research will reach $258.6 mil- activities winding down. SLAC’s $1 billion upgrade to the lion, a 7.5% increase over the prior year. Non-federal research Linac Coherent Light Source (LCLS) is still on track with an activity will likely continue to be energized by the increased anticipated $190 million in funding again next year. SLAC investment from U.S. corporations, foundations, and other research and construction programs are discussed in more non-profit organizations. They together fund about 72% of detail in Chapter 2. the total non-federal research at Stanford, and their volumes escalated by 10% in the first six months of 2016/17. Among Health Care Services schools, the SoM forecasts an 8.9% increase, in line with the Strong growth is projected to continue into 2017/18 for health over 9% annual growth for the school in the past five years. care services income with a budget of $1,253.2 million, or an Despite an estimated 30% plunge in the funding from the 11.6% increase over the current year. Health care services California Institute for Regenerative Medicine (CIRM) in revenue is expected to continue to grow rapidly over the 2016/17, the SoM anticipates the funding from the state’s next few years, as the School of Medicine recruits clinically stem cell research agency to remain flat in 2017/18. In the active faculty and clinician educators in conjunction with the Dean of Research, funding for the Global Climate and Energy expansion of Stanford Health Care and Stanford Children’s Project, which signaled declines in both 2015/16 and 2016/17, Health. The School of Medicine and the hospitals have an in- will extend into 2017/18 and is anticipated to remain flat. tegrated clinical strategy that includes the growth essential to Within non-medical academic units, growth in the range maintaining preeminence in a highly competitive health care of 4% to 6% is anticipated. The only variation lies in the market and to providing the highly specialized care required Graduate School of Education, which estimates a 4% decline for training purposes by a leading academic medical center. in anticipation of multiple faculty retirements in 2017/18, following several years of robust growth in the school’s non- The School of Medicine generates more than 90% of the federal research areas. university’s total health care services revenue, the majority of which is paid by Stanford Health Care and Stanford Children’s Indirect cost recovery will total $278.0 million in 2017/18, Health through the professional services and funds flow increasing by 4.2%. The facilities & administration rates (or agreements. These agreements pass a portion of the hospi- indirect cost rate) will be the same as the rates in the prior tals’ clinical service revenues to the academic departments year, with the on-campus organized research rate at 57.0%. based on clinician productivity, with additional payments The growth in indirect cost recovery will slightly outpace made for department overhead costs, medical direction direct research volume for two reasons. First, fewer capital leadership, programmatic development, and for measures of equipment purchases are anticipated in 2017/18, a type of quality, safety, and value. Hospital payments cover compen- research activity exempt from indirect cost recovery. As a sation expenses for faculty, clinician educators, and staff who result, a higher portion of direct research funding in 2017/18 are directly involved in the clinical mission. In addition the will be assessed the indirect cost rate. Second, the SoM proj- funds flow agreements cover non-compensation expenses ects indirect costs recovered from the animal care facility to of the clinical mission and provide support of the academic be 8% higher in 2017/18. and research mission. Clinical revenues in 2017/18 are pro- SLAC jected to increase 12.9% to $1,011.8 million. An additional $133.6 million of hospital payments to the School of Medicine Stanford operates SLAC National Accelerator Laboratory cover the university’s formula assessment on the school’s (SLAC), a federally funded research and development center, 8 CONSOLIDATED BUDGET FOR OPERATIONS

clinical revenue, rent, use of the library, 3-D imaging, and expected to increase by 5.2% due to new gifts and pledges other non-clinical programs and services. to endowment principal during the remainder of the current year and throughout 2017/18, as well as transfers by schools The remaining $107.8 million in health care services revenue and departments of $119.2 million from expendable balances represents payments from the hospitals to other parts of the to endowments at the end of the current fiscal year. We are university: $28.7 million to Business Affairs, primarily for also expecting to reinvest $275 million to the Tier I Buffer at communications services; $25.4 million to Land, Buildings the end of the current fiscal year, resulting from expendable and Real Estate for operations and maintenance and utilities, funds pool returns in excess of the 2016/17 expendable funds the Marguerite shuttle service, and parking permits; $12.0 pool payout. Together these additions contribute roughly $35 million to the Office of Development for hospital fundraising million to endowment payout in 2017/18. support; $11.4 million to the Office of the General Counsel for legal services; and $23.5 million to the central administration The 2017/18 proposed spending rate (payout per share) for for parking structure debt service, Stanford Infrastructure the MP is derived from the application of the university’s Program fees, and general overhead. smoothing rule. The smoothing rule is used to dampen the impact on the budget of annual fluctuations in the market Gifts and Net Assets Released from value of the endowment, thereby providing stability to budget Restrictions planning. Stanford’s smoothing rule uses the approved target Revenue from expendable gifts and net assets released from payout rate of 5.5% to calculate a target payout per share in restrictions is budgeted to be $391.2 million in 2017/18, com- the current year, 2016/17. Taking a weighted average of the parable to the amounts in 2015/16 and 2016/17. Because target payout per share and the current year’s actual payout there is substantial volatility in the timing of gifts, in particular per share results in a smoothed payout per share. The payout the use of pending gifts, a zero growth assumption is prudent per share for 2017/18 is derived by increasing the smoothed for planning purposes. payout per share by the long-term growth factor of 3.5%. Finally, the 2017/18 proposed payout per share is expected to Expendable gifts are those immediately available for purposes provide an overall endowment payout rate that is within the specified by the donor and do not include gifts to endowment range of 4.0% to 6.0%. The spending rate was approved by principal, gifts for capital projects, gifts pending designation, the Trustees at the February 2017 meeting. or non-government grants. Net assets released from restric- tions include cash payments on gift pledges made in prior Of the total endowment income, $261.3 million or 21% is years, as well as pending gifts whose designation has been unrestricted and a source of general funds. The unrestricted determined. endowment income includes payout from unrestricted MP funds, income generated from Stanford endowed lands, and Investment Income a small amount of other specifically invested endowment In 2017/18, investment income is expected to increase by income. The unrestricted portion of endowment income $170.1 million to $1,519.2 million, a 12.6% increase over is expected to increase at a much faster pace (12.5%) in 2016/17. This total includes endowment payout to operations 2017/18 than the restricted portion (4.0%), driven by the as well as other investment income described below. reinvestment of $275 million of excess expendable funds pool payout in the Tier I Buffer, as well as continued strong growth Endowment Income—Endowment payout to operations in in real estate income. Unrestricted income from Stanford 2017/18 is expected to be $1,243.4 million, an increase of lands is projected to be $102.9 million in 2017/18, providing 5.7% over 2016/17. Endowment income includes payout nearly 40% of unrestricted endowment income. from individual funds invested in the merged pool (MP), as well as specifically invested endowments (e.g., oil and mineral Other Investment Income—Other investment income is rights), and net rental income from the Stanford Research expected to increase sharply from $172.2 million in 2016/17 Park and other endowed lands. to $275.8 million in 2017/18, a 60.1% jump. Other invest- ment income comprises two categories of revenue: payout The payout to an individual endowment fund invested in the to operations from the expendable funds pool (EFP) and merged pool in 2017/18 will increase by only 1.6%, following earnings from the endowment income funds pool (EIFP), and a year of no growth. Total merged pool payout, however, is CONSOLIDATED BUDGET FOR OPERATIONS 9 investment income from several smaller sources as described Special Program Fees and Other Income below. The first of these sources, payout from the EFP, can Special program fees and other income revenue is budgeted experience extreme volatility but has a buffering policy in at $516.2 million in 2017/18, an increase of 1.5% over the place, as described below. expected level in 2016/17. This category is a collection of The EFP is a collection of thousands of individual funds and revenue streams that includes executive education instruction is projected to have a 2017/18 year-end balance of $4.2 bil- fees; technology licensing income; academic corporate affili- lion. Approximately 80% of the funds in the EFP receive no ates income; ticket, admission, and broadcast fees for athletic payout directly. Rather, a variable payout of 0% to 5.5% on and other events; conference and symposium revenues; rental the balances of these so-called zero return accounts, based income from the Mid-Point Technology Park and the Welch on the actual EFP investment returns during the prior fis- Road and Stanford West Apartments; and participation fees cal year, is paid to general funds, both centrally and in the collected by the travel/study programs. The slower growth in formula schools. The EFP is invested mostly in the merged 2017/18 is due partially to the tail-off of a major patent that pool (MP), and thus the EFP return follows closely the return accounted for over 70% of university licensing income and on the MP. In the current year, the zero-return funds, which partially to diminishing rental income from the Mid-Point comprise 82.8% of the EFP, will receive a payout rate of 2.5%, Technology Park as the university embarks on the construc- which was the total investment return on the EFP in the previ- tion of an administrative campus in Redwood City. This ous year, 2015/16. EFP returns are expected to be well above income category also includes a wide range of other miscel- 5.5% in the current year, so the EFP payout on the zero-return laneous income streams throughout the university, ranging funds are budgeted at the full 5.5% allowed by policy. Both from retail revenues in Residential & Dining Enterprises to the expected increase in the EFP balance and the increase in fees for the use of various athletic facilities such as the golf the investment return contribute to the significant increase driving range and summer sports camps. in payout in 2017/18. The remaining funds invested in the Expenses EFP receive a payout equal to a money-market return, which is expected to remain minimal at 0.5% in 2017/18, yielding Total Compensation $3.6 million. The EIFP is expected to earn $1.8 million and to Total Compensation in the Consolidated Budget for have a fund balance of $355.0 million at the end of 2017/18. Operations includes faculty, staff, bargaining unit, and stu- The $3.5 billion of ending fund balances in the Consolidated dent assistantship salaries; fringe benefits; tuition benefits Budget for Operations shown on page 4 includes all of the for research and teaching assistants; and other non-salary EIFP but only $3.2 billion of the total $4.2 billion invested compensation such as bonuses and incentive pay. Total in the EFP. This consists of general operating funds, desig- compensation in 2017/18 is budgeted to be $3,621.5 million, nated funds, expendable gifts, and non-federal sponsored a 7.8% increase over the 2016/17 year-end projection of research funds. The portion of the EFP not included in the $3,359.2 million. The approved merit programs for faculty Consolidated Budget comprises roughly $770 million in plant and staff, targeted market-based increases, and anticipated and debt pool funds and $230 million in student loan, pend- headcount growth drive this increase. ing, and agency funds. Salaries—Total salary expense for faculty and staff, including The non-EFP portion of other investment income comprises SLAC, is expected to grow by 7.7% in 2017/18 to $2,380.6 $46.6 million in investment income distributed to support million. Overall, projected salary expense in 2017/18 is the the operations of the Stanford Management Company and result of the approved salary program, incremental funding to the real estate division of Land, Buildings and Real Estate; increase the competitiveness of faculty salaries for selected $19.3 million in interest income on the Stanford Housing disciplines and departments, and total combined headcount Assistance Center (SHAC) portfolio; and miscellaneous other growth of 3.6% for faculty and staff. The headcount growth investment income including rents from the Sand Hill Offices, assumption is based on observations of the 2016/17 actual security lending, and other interest income. The non-EFP headcount trend and analysis of historical average growth. portion of other investment income is projected to be $98 Within this aggregate, the university anticipates faculty million in 2017/18. growth to be 1.8% in 2017/18. In recent years, the number of 10 CONSOLIDATED BUDGET FOR OPERATIONS

academic staff has grown significantly across the university in n Graduate research and teaching assistants support of expanding academic programs in the schools and In addition, the university applies a fifth rate to eligible sala- independent labs and growth in clinical activities. In particu- ries to recover the costs of the Tuition Grant Program (TGP), lar, the School of Medicine expects to hire 70 additional clini- which provides undergraduate college tuition benefits for cian educators in 2017/18, a significant driver in the overall the dependents of eligible faculty and staff. The government increase in academic staff, which is expected to increase by does not allow these charges, so the TGP rate is applied only 6.0%. The headcount for non-academic staff is projected to to faculty and staff salaries that are not charged to govern- rise 3.5%, consistent with recent years’ growth. ment sponsored projects or academic service centers. The Similar to past years, the approved salary program takes TGP rate will drop for a second year in a row from 1.75% to into consideration the financial condition of the university 1.60% in 2017/18, and this cost comprises roughly $29.5 mil- as well as the current labor market status. The annual sal- lion of the university’s total fringe benefits expense. ary program was guided by the university’s compensation Ninety-five percent of all fringe benefits expense is incurred philosophy, which is to set faculty salaries at a level that will for regular benefits-eligible employees, and the proposed maintain Stanford’s competitive position both nationally and rate for this group in 2017/18 is expected to decrease 0.3 rate internationally for the very best faculty; and to set staff sala- points over the negotiated rate for 2016/17. The fringe ben- ries competitive within the local employment market in order efits rates for postdoctoral research affiliates and for casual/ to attract and retain top talent. Department level faculty temporary employees are expected to increase in 2017/18, salary data analysis shows that Stanford continues to enjoy a while the rate for graduate research and teaching assistants competitive faculty salary position in most areas, but targeted is projected to decrease somewhat. allocations above the standard faculty merit pool were made in selected cases. A review of salary survey data in several lo- FRINGE BENEFITS RATES cal markets indicates that staff salaries are in line with market NEGOTIATED PROPOSED median salaries as of September 2016. The salary program 2016/17 2017/18 for 2017/18 was established accordingly. Regular Benefits-Eligible Employees 30.7% 30.4% Postdoctoral Research Affiliates 22.6% 23.5% Every year a minimum salary is set for research and teaching Casual/Temporary Employees 8.4% 8.5% assistants, although departments and programs may choose Graduate RAs and TAs 5.4% 5.0% to pay more than the minimum. The goal is for graduate Average Blended Rate 28.3% 28.1% students’ income to provide sufficient financial support to meet the estimated non-tuition living expenses for a single graduate student living in university housing. In 2017/18 the The major cost components contributing to the regular minimum salary will be increased by 4.25%. benefits-eligible rate and major changes are noted below:

Fringe Benefits—Fringe benefits expense is projected to n The major factor driving the regular benefits-eligible rate increase 7.1% in 2017/18 to $733.6 million, growing at a down is the projected cost for retirement medical insur- slightly slower pace than salaries due to a drop in the main ance. The cost of this program is projected to decrease fringe benefits rate. from the budgeted 2016/17 amount of $19.0 million to only $10.1 million in 2017/18, causing the rate to drop by The university tracks the benefits costs separately for four 0.5 rate points. The retirement health plan benefit was distinct employee groups and charges a different rate for each changed in 2006. The old program provided to retirees group based on the types of benefits that each is eligible to the same health benefits as active employees. Under the receive. The federally negotiated rates are calculated as a new program, the university’s contribution to a retiree’s ratio of total benefits costs to total payroll for each group: health plan is a fixed dollar amount, based on years of

n Regular benefits-eligible employees service at the time of retirement, and the contribution increases at the pace of the university’s compensation n Postdoctoral research affiliates program rather than medical inflation. Many employees n Casual/temporary employees were grandfathered into the old plan, but each year a CONSOLIDATED BUDGET FOR OPERATIONS 11

higher proportion of new retirees fall under the new Designated and restricted funds ($238.0 million) and grants program. The significant decrease in the program costs and contracts ($17.4 million) will support the remainder. in 2017/18 results from fewer retirees choosing to enroll Total budgeted financial aid is 4.3% greater the projected in a health plan immediately upon retirement, as well as a total for 2016/17, as discussed below. greater number electing to waive coverage. Undergraduate Aid—In 2017/18 Stanford students will n Employee health plans comprise 32.2% of the fringe pool receive $154.4 million in undergraduate need-based scholar- for regular benefits-eligible employees and are expected ships, of which $148.9 million will be from Stanford resources. to add 0.2 rate points in 2017/18. The cost to the univer- In addition to Stanford resources, $5.5 million will come from sity for these plans is projected to be $210.6 million, an federal grants, mostly Pell and Supplemental Educational increase of 11.6% over the budgeted cost for the plans Opportunity Grant (SEOG) grants, an amount comparable to in 2016/17. The increase is driven by a combination of 2016/17 but slightly less than historical levels. Cal Grants, enrollment growth and medical cost inflation. The aver- which are not reflected in the Consolidated Budget for age cost of the health plans per employee is projected to Operations as they are awarded directly to the students, will increase by 7.0%. provide $3.0 million, a slight decrease from the current year. n Starting in 2017/18, transportation benefits will be Due to a major policy change for financial aid at the federal included in the fringe pool. The program costs include level, undergraduate need-based financial aid expense will Caltrain Go Pass, VTA Eco Pass, and other transportation increase 4.4% over the projection for 2016/17, a rate that benefits to regular benefits-eligible employees and sala- is almost one point higher than the growth in the student ried postdoctoral scholars. Inclusion of the $3.4 million budget. Applications for financial aid for 2017/18 will focus transportation program in the fringe pool adds 0.15 rate on data from the 2015 tax year, the so-called prior-prior year, points to the RBE rate. to calculate an expected family contribution. This change n A cash contribution to the closed Stanford Retirement greatly simplifies the application process, as students no lon- Annuity Plan will increase the rate by 0.2 rate points, but ger have to estimate and then later correct income from the will reduce the Pension Benefit Guaranty Corporation vari- most recent tax year. It also allows the application process to able premium. begin earlier in better alignment with Stanford’s early admis- n The under-recovery of fringe costs in previous years will sion program. It is expected that overall parent contributions be slightly lower in 2017/18, resulting in a further 0.1 rate will be lower, which is reflected in the growth in the financial point decrease. aid budget.

The 2017/18 postdoctoral research affiliates fringe rate will Stanford has long been committed to need-blind admissions increase 0.9 rate points from the 2016/17 negotiated rate, supported by a financial aid program that meets the demon- mainly due to the inclusion of the transportation program strated financial need of all admitted undergraduate students. in the benefits pool, medical inflation, and the impact of the Since 2008/09 one of the hallmarks of the need-based pro- carry forward from prior years. gram has been simple benchmarks that make it easy for pro- spective students, particularly from low-income backgrounds, The fringe rate for casual/temporary employees is projected to understand likely financial support from Stanford. These to increase by only 0.1 rate point. The rate for graduate re- benchmarks were updated for 2015/16 as follows: search and teaching assistants (RAs and TAs) is expected to decrease by 0.4 rate points due to the Cardinal Care health n For families with total annual income below $65,000 (for- insurance premium remaining flat and to the impact of the merly $60,000) and typical assets for this income range, carry forward from prior years. Stanford will not expect a parent contribution toward educational costs. Tuition, room and board, and other Financial Aid expenses will be covered with scholarship or grant funds. Stanford expects to spend a total of $298.2 million on student n For families with total annual income below $125,000 financial aid for undergraduate and graduate students in (formerly $100,000) and typical assets for this income 2017/18, $42.9 million of which will come from general funds. range, the expected parent contribution will be low enough 12 CONSOLIDATED BUDGET FOR OPERATIONS

to ensure that all tuition charges will be covered with Graduate Aid—Stanford provides several kinds of financial scholarship or grant funds. support to graduate students, the total of which is expected Stanford’s financial aid program continues to be one of the to reach $431.9 million in 2017/18. As the table on the facing most generous in the country, ensuring that a family’s eco- page indicates, this includes the tuition component of fel- nomic circumstances will not prevent admitted students from lowships in the amount of $117.4 million, which is reflected in enrolling. The overall number of aid recipients in 2017/18 will the Financial Aid line of the Consolidated Budget. Financial be reduced slightly due to minor differences between the size aid for graduate students is expected to increase by 4.5%, and composition of the current senior class and the expected consistent with the planned increases in tuition, more gener- incoming student body in 2017/18. ous graduate support in selected disciplines, and projected increase in the number of graduate students. The table also It is interesting to note the relative share of university fund- shows the budgets, not represented in the Financial Aid line ing sources supporting this critical program. Five years ago, of the budget, for stipends, tuition allowance, and RA and TA president’s funds support was 20%, and endowment income salaries of $314.9 million. Consistent with the presentation support at $75.0 million provided 59%. Since then, gener- of Stanford’s financial statements, tuition allowance (tuition ous donor support has allowed endowment income support benefits for RAs and TAs) and RA and TA salary expenses are to steadily increase to 71% of Stanford resources supporting in the Compensation line, and the stipend amount is in the need-based aid. Incremental gifts to endowment for need- Other Operating Expenses line of the Consolidated Budget based aid result in annual endowment payout that outpaces for Operations on page 4. The minimum rate for TA and standard incremental costs of the program. Absent major RA salaries and stipends will increase by 4.25% in 2017/18; changes in the program, the increases in endowment payout tuition allowance expense is expected to increase by 6.5%, allow for slower increases in support from general funds. higher than the tuition rate increase due to more RAs and The table below shows the detail of undergraduate TAs, particularly in the School of Engineering and the School need-based scholarship aid. Schedules 8 and 9 in Appendix of Medicine. B provide supplemental information on undergraduate Graduate student support is funded by all of Stanford’s vari- financial aid. ous fund types, with the exception of service center funds. In Athletic scholarships, which are not need-based, will be aggregate, unrestricted funds (general funds and designated awarded to undergraduate students in the amount of $26.0 funds) contribute roughly 35%, restricted funds (gifts and million in 2017/18, a 3.5% increase over the projection for endowment) support about 41%, and grants and contracts the current year.

UNDERGRADUATE NEED-BASED SCHOLARSHIP AID [IN MILLIONS OF DOLLARS] 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 SOURCE OF AID ACTUAL ACTUAL ACTUAL ACTUAL PROJECTED PLAN Department Funds and Expendable Gifts 3.0 3.2 3.6 4.2 3.9 3.6 Endowment Income 75.0 81.4 86.9 95.2 100.3 105.1 President’s Funds - The Tier II Buffer 9.3 President’s Funds - The Stanford Fund 16.6 18.3 18.5 18.5 17.7 17.6 General Funds 23.6 23.6 21.9 17.4 20.7 22.7 Subtotal Stanford Funded Scholarship Aid 127.4 126.5 130.9 135.2 142.6 148.9 Federal Grants 5.6 5.5 5.8 5.8 5.5 5.5 Total Undergraduate Scholarship Aid 133.0 132.0 136.6 141.0 148.1 154.4 General Funds as a Share of Stanford Funding 18% 19% 17% 13% 15% 15% President’s Funds as a Share of Stanford Funding 20% 14% 14% 14% 12% 12% Endowment funds as a Share of Stanford Funding 59% 64% 66% 70% 70% 71% Number of Students 3,417 3,278 3,254 3,196 3,195 3,185 CONSOLIDATED BUDGET FOR OPERATIONS 13

2017/18 FINANCIAL AID AND OTHER GRADUATE STUDENT SUPPORT FROM STANFORD RESOURCES [IN MILLIONS OF DOLLARS] PROJECTED DESIGNATED 2016/17 GENERAL AND GRANTS & YEAR-END FUNDS RESTRICTED CONTRACTS TOTAL Student Financial Aid 148.6 Undergraduate 22.7 126.2 6.0 154.9 1 25.1 UG Athletic 26.0 26.0 112.3 Graduate 20.2 85.8 11.4 117.4 286.0 Total 42.9 237.9 17.4 298.2 Other Graduate Support 84.3 Stipends & Health Insurance Surcharge 19.8 44.7 24.0 88.5 84.6 Tuition Allowance 37.6 34.1 18.4 90.1 130.0 RA/TA S&B 28.6 60.5 46.7 135.9 298.9 Total 86.0 139.3 89.2 314.5 138.5 Postdoc Support 5.6 40.9 99.6 146.1 723.5 Total Student Support 134.5 418.2 206.1 758.9 1 This number is $500,000 higher than the Stanford Funded Scholarship Aid figure above because it includes federal grants for non-need-based aid recipients.

supply the remaining 24%. However, the patterns of funding average rate of the debt issued to finance capital projects and vary substantially within the schools. Not surprisingly, grants includes bond issuance and administrative costs. The BIR is and contracts provide a significantly higher proportion of set at 4.25% for 2017/18, no change from the rate of the past graduate student funding in the research-intensive schools four years. like Medicine and Engineering. The professional schools rely Internal debt service in the Consolidated Budget is projected almost exclusively on restricted funds. to be $199.3 million in 2017/18, only $200,000 more than While not matriculated as graduate students, Stanford also in 2016/17. It includes debt service incurred on the internal provides support to postdoctoral research affiliates. More loans used to finance capital projects and bridge-finance the than sixty percent of these individuals work in the School receipt of gifts, but excludes $9.6 million of debt service for of Medicine, and 68.2% of support for all postdocs is pro- the Rosewood Sand Hill Hotel and the Sand Hill Road Office vided by sponsored research funding. Postdocs are charged Complex. a tuition fee of $125 per quarter, which is mostly covered by The reason for an essentially flat internal debt service ex- school funds as well as by general funds. Postdocs receive a pense is two-fold. In 2016/17, $3.6 million of remaining debt salary or a stipend and health benefits in exchange for their was written off for existing two-story buildings in Escondido work. The total expense for postdocs is expected to be $146.1 Village (EV) after they were demolished for the construction million in 2017/18, an increase of 5.5% over 2016/17. of the new EV Graduate Residences. This one-time write-off, Schedule 5 in Appendix B details graduate student and post- which inflated the debt service amount in 2016/17, will no doc support by source of funds. longer exist in the 2017/18 budget. Nonetheless, incremen- tal debt service from additional housing projects will offset Internal Debt Service this decrease in 2017/18. The most significant increment is Stanford issues debt securities in the capital market to fi- the $2.6 million for the Colonnade, an apartment complex nance capital projects and to provide bridge financing for acquired by the university in 2016/17 as part of the Housing the receipt of gifts for capital projects. Internal loans are Acquisition Initiative. $1.7 million of debt service is also antici- advanced to projects and amortized over the useful life of as- pated for the University Terrace Faculty Homes project before sets in equal installments. These internal loans are assessed the housing units are fully occupied in 2018/19. the Budgeted Interest Rate (BIR), which is the weighted 14 CONSOLIDATED BUDGET FOR OPERATIONS

Other Operating Expenses totaling $281.0 million in 2017/18. Fifty percent of these Other operating expenses include all non-salary expenditures expenses are for the purchase of materials and supplies in in the Consolidated Budget except financial aid and internal laboratories and research settings. After the sale of the Blood debt service, which are detailed separately above. This cate- Center to Stanford Health Care, the expenditure level of lab gory, which accounts for nearly 30% of university consolidat- materials leveled off in 2015/16. Nonetheless, normal growth ed expenses, will total $1,734.2 million in 2017/18, decreasing of 3.5% is anticipated for both 2016/17 and 2017/18. by 2.6% from the projected 2016/17 level. The decrease is Expenses for professional services are the third largest com- entirely attributable to SLAC’s construction program, whose ponent. Largely comprising legal, accounting, and consulting costs are expensed rather than capitalized as the facilities services, this expense category is projected to be $230.7 are owned and depreciated by the federal government. After million in 2017/18, a 6.5% increase. Although fluctuating accelerated construction in 2016/17, the spending for one year over year, it has shown robust growth ranging from 6% of SLAC’s major capital projects—the upgrade of the Linac to 9% a year, propelled by individual units’ operational needs Coherent Light Source (LCLS-II)—is scheduled to slow down, in a very decentralized business environment. lowering SLAC’s non-salary expenditure to $297.7 million, a reduction of nearly 24%. Also included in other operating expenses are stipends for graduate students and postdoctoral scholars and other non- Exclusive of SLAC construction costs, the growth rate of other tuition aid, rising to $148.8 million in 2017/18. Close to sixty operating expenses will be 3.3%. A few expenditure compo- percent of expenses in this category are for graduate student nents have seen increases ranging from 5% to 10% in recent stipends. They will increase 5.0%, in anticipation of average years, due partially to the inflation in the local economy and stipend payment growth and graduate student enrollment partially to increasing business needs across the university. growth. Expenses related to general and administrative ser- However, in light of the tepid growth of endowment payout vices will increase modestly to $144.5 million. They represent in 2016/17 and 2017/18, many units have implemented cost a diverse range of external payments for non-professional control strategies to moderate the growth of non-salary services, including insurance, permits, royalties, marketing, expenditures. Several units have even strategically applied and advertising services. This expense category experienced budget cuts to a portion of their non-salary budgets. This only 2.5% of growth as of the first six months of 2016/17, and trend will continue into 2017/18. As a result, other operating that trend is expected to continue as many units have delib- expenses are expected to increase at a much slower pace erately constrained their general non-salary budgets in the than in prior years. face of slower endowment payout growth in the near future.

OTHER OPERATING EXPENSES Besides the SLAC non-salary expense, capital equipment and [IN MILLIONS OF DOLLARS] library materials is the only category expected to decline, PERCENT reducing by 8.4% to $95.1 million. In 2016/17, the university MAJOR COMPONENTS 2016/17 2017/18 CHANGE purchased a set of advanced microscopic instruments for SLAC Non-Salary 389.9 297.7 -23.7% the fields of biology and biomedical sciences, which cost ap- Materials and Supplies 271.5 281.0 3.5% proximately $14 million. Professional Services 216.6 230.7 6.5% Stipends and Other Aid 141.8 148.8 5.0% The remaining types of expenses comprise external pay- General Services 141.0 144.5 2.5% ments for repairs and maintenance of buildings, equipment, Repairs and Maintenance 107.6 113.0 5.0% and vehicles ($113.0 million); payments for rental and leases Capital Equipment and ($77.1 million), which have grown 15% on a compounded an- Library Materials 103.8 95.1 -8.4% nual basis due to the expansion of off-campus facilities and Telecommunications and Utilities 52.0 54.9 5.5% housing units; external payments for telecommunications Other 356.4 368.5 3.4% and utilities commodities in university buildings ($54.9 mil- Total 1,780.7 1,734.2 -2.6% lion); and services purchased from Stanford Health Care and Stanford Children’s Health ($48.5 million). Expenses related Following the SLAC non-salary expenditure, the largest com- to repairs and maintenance and utilities will be addressed ponent of other operating expenses is materials and supplies, in more detail in the following sections. The remainder, CONSOLIDATED BUDGET FOR OPERATIONS 15

$242.9 million, includes a variety of expenditures, ranging Munger, Escondido Village, and off-campus housing units; from travel expenses, to the cost of food associated with and $1.0 million by the Office of the President and Provost residential and dining services, to other property related for utilities in the common areas and vacant housing units of expenses. Stanford West, Welch Road, and Colonnade properties.

Utilities—In the past few years, Stanford’s energy utilities, Operations & Maintenance—Operations & Maintenance including electricity, steam/hot water, and chilled water, have (O&M) includes grounds maintenance, custodial, trash, been undergoing major changes. The university completed recycling, elevator repair, gutter maintenance, re-lamping, the Stanford Energy System Innovations (SESI) project in and other services along with preventive and reactive main- 2015. The Stanford Solar Generation Station, a 68-megawatt tenance on buildings, infrastructure, equipment, and vehicles. peak solar plant, also came online at the end of 2016. This The total O&M budget for the university is projected to be solar plant, along with 5 megawatts of rooftop solar systems $189.1 million in 2017/18, rising 4.0% from 2016/17. being implemented on campus, provides 53% of Stanford’s The largest component in the O&M budget is the external total electricity use. The remaining 47% of the power comes payment for repairs and maintenance, which is a subset of from the general California grid, which is currently at least other operating expenses discussed above. It will increase 27% renewable and will grow to 50% renewable by 2030 5.0% to $113.0 million in 2017/18, due to a combination of per state law. inflationary cost rise and incremental O&M needs for new After two consecutive years of decreases, the utilities budget academic, administrative, and athletic facilities. They in- will stay essentially flat at $103.4 million in 2017/18. Prior clude the newly renovated Kingscote office space, the Bass year utility budgets included $30 million to write-off the Biology Building, the Athletic Academic Advising and Rowing utility assets associated with the old energy system, includ- Building, and additional outdoor lighting, pathways and water ing $2 million in 2016/17, which is the final write-off. As ways maintenance. the write-off costs scaled down, the utilities budgets have The total O&M budget also encompasses significant expens- shown steady declines over the past two years. Offsetting es that are found in other lines of the Consolidated Budget: this downward trend are increases in electricity prices and water consumption in 2017/18. In 2017/18, the purchase price 1) $39.1 million of internal O&M services performed by the of electricity is expected to increase 2% due, in large part, to service centers in LBRE, including most of the grounds ser- the full-year implementation of more expensive renewable vices for the campus, approximately 50% of the building energy. Water consumption is also anticipated to rise as the maintenance, and 100% of the infrastructure maintenance drought eases and new facilities come online. (e.g., storm drains and roads). These service center ex- penses are reflected in the other internal transfers line of the The delivery of utilities to the campus involves three signifi- Consolidated Budget. cant components: 1) externally purchased utilities (36%), 2) debt amortization on capital expenditures (40%), and 3) 2) $20.2 million of labor costs for O&M staff hired by indi- operations and maintenance in support of utility delivery vidual units. A significant portion, $14.8 million, resides in (24%). Land, Buildings and Real Estate (LBRE) provides two auxiliary units, Residential & Dining Enterprises (R&DE) the majority of campus utilities ($90.4 million in 2017/18) and DAPER. They employ bargaining unit staff to perform through charge-out rates that are a function of the total costs custodial and maintenance services in housing and athletic of the three components noted above and units’ consumption facilities. The labor costs are captured in compensation ex- of the respective utilities. Units purchase an additional $12.9 penses of the Consolidated Budget. million of utilities from external providers, including the City 3) $10.5 million of other non-salary expenses directly associ- of Palo Alto, Pacific Gas & Electric, Constellation Energy, and ated with the provision of O&M services. They principally the hospitals. Some examples are $6.2 million paid by the include costs for temporary services, contract administra- School of Medicine for utilities at the Stanford Research Park tion, and equipment rentals for performing O&M. They are and Medical Center buildings; $3.7 million paid by Residential dispersed across a variety of other operating expense items & Dining Enterprises primarily to cover the utility needs at in the Consolidated Budget. 16 CONSOLIDATED BUDGET FOR OPERATIONS

4) $6.3 million of services charged by Stanford Health Care, year-end process when their operating results are known mostly incurred by the School of Medicine (SoM). and may not include these actions in their budget plans.

In addition to LBRE, several other units oversee O&M for n Transfers to Plant—The transfers in this category are large areas of the campus. R&DE provides the operations and primarily for capital projects. Total transfers to plant of maintenance for approximately 33% of the campus; SoM for $162.0 million are planned for 2017/18. Roughly $124 mil- about 11%; and DAPER for approximately 6%. The Graduate lion of this total are transfers made from central university School of Business (GSB) is fiscally responsible for operations funds and include just over $100 million from the Capital and maintenance of the Knight Management Center and the Facilities Fund (CFF) and the Facilities Reserve to support new Highland Hall. plant projects (see more on the CFF in Chapter 4), $10 million for faculty home purchases, and $15 million for Transfers Stanford Infrastructure Program projects funded from The transfers section of the Consolidated Budget for the hospitals. The School of Medicine plans to transfer Operations accounts for the transfers of funds between units, $28 million to plant to support the Center for Academic between fund types, and out of the Consolidated Budget Medicine 1, the Stanford Oak Garden Children’s Center, altogether, and yields the change in fund balances expected and phases 2 and 3 of the renovation of the Li Ka Shing in each fund type and in the Consolidated Budget as a whole. Center. Land, Buildings and Real Estate will transfer $7 In 2017/18, transfers result in a net reduction from operating million from the Planned Maintenance Program for capital results of $242.8 million. renewal projects. The remainder is made up of smaller amounts transferred to capital projects out of other units. The schools, administrative departments, and central admin- n Other Internal Transfers—Additional financial activity af- istration authorize movements of funds out of operations to fects the net results of the Consolidated Budget, including create other types of assets. These assets include student internal revenue and internal expense, which are gener- loan funds, funds functioning as endowment (FFE), capital ated from those charges that are made between depart- plant projects or reserves, and funds held in trust for indepen- ments within the university for services provided through dent agencies such as the Howard Hughes Medical Institute, charge-out mechanisms. Communication services the Carnegie Institution, and the Associated Students of provided by Business Affairs IT to university departments Stanford University. These transfers to and from assets are one type of internal revenue and expense. Another is vary widely from year to year, and a single transaction can the charge that the Department of Project Management greatly affect these numbers and the resulting bottom line (the group that manages construction projects on cam- of the Consolidated Budget. Using information provided by pus) allocates to capital projects that use their services. budget units, and combining that information with central These charges contribute to the revenue and expense of administration commitments, the Consolidated Budget for individual departments and fund types but, ultimately, Operations adds or subtracts these transfers from the operat- are netted against each other in the presentation of the ing results (revenues less expenses). Consolidated Budget to avoid double counting. There is, n Transfers to Endowment Principal—This line represents however, a net $29.4 million of internal revenue flowing transfers of expendable funds to endowment principal, into the Consolidated Budget, primarily from capital plant which create FFE, or withdrawals of FFE to support opera- funds, which are outside the Consolidated Budget, into tions. In 2017/18 Stanford is projecting that a net $110.2 service centers and other funds within the Consolidated million will be transferred to FFE from current operating Budget. Additionally, this amount includes transfers of funds. This figure is informed by the units’ individual bud- current funds to student loan funds, such as the loan get plans but has been increased by the University Budget forgiveness programs in Graduate School of Education and Office to reach a level comparable to the actual results in Law. It also includes any transfers from living trusts and each of the past five years. Most often schools and de- pending funds. partments identify excess funds to invest in FFE during the CONSOLIDATED BUDGET FOR OPERATIONS 17

advisory body composed of senior faculty and administra- GENERAL FUNDS tors to, 1) review the programmatic goals and priorities of The general funds budget is an essential element of the the organization; 2) report on financial status and progress Consolidated Budget, because general funds can be used of current programs; 3) discuss faculty and student growth for any university purpose, and they support the necessary and funding plans; and, 4) submit requests for incremental administration and infrastructure for all core activities at general funds. At the end of the process, the provost makes the university. The main sources of these funds are student allocation decisions based on the units’ presentations, consul- tuition, indirect cost recovery from sponsored activity, unre- tation with the Budget Group, and a final forecast of available stricted endowment income, and income from the expend- general funds. able funds pool (EFP). Each school receives an allocation of The Budget Group took a cautious approach in allocating general funds, which supports both academic and adminis- general funds this year, guided by three main areas of focus. trative functions. Administrative units are supported almost First, the group stressed the need to strengthen faculty and entirely by general funds. staff compensation programs, in an effort to address regional General funds revenue in 2017/18 is projected to be $1,450.7 affordability issues. Second, the group was mindful of slower million, an increase of 10.2%, or $133.8 million over the ex- growth in endowment payout in the recent fiscal years and its pected level for 2016/17. Nearly 50% of this increase is due impact on schools whose budgets are heavily dependent on to a $64.0 million payout on zero-return funds in the EFP. In endowment income. Third, the provost intended to maintain 2016/17, income from EFP to general funds was about half of a reasonable general funds surplus to have the capacity to the historical average, because the EFP investment return in 1) respond to important initiatives arising from the univer- the prior year was only 2.5%, significantly below the univer- sity long-range planning, a process spanning from spring sity 5.5% stipulated payout. In 2017/18, general funds will 2017 to winter 2018; and 2) prepare for potential shortfalls receive the full payout in anticipation of an investment return in research funding given uncertainties with federal above 5.5% in 2016/17. EFP payout is discussed in detail in research support. the earlier section on investment income. Supplementing In light of those areas of concerns, $19.9 million was allo- the higher EFP payout to general funds are a $26.1 million cated to fund compensation programs and associated fringe increase in student income, largely reflecting increased tuition benefits, including a very competitive salary program for rates, and a $29.1 million increase in endowment income, both faculty and staff in 2017/18. $4 million of endowment propelled by payout growth in unrestricted endowments and mitigation funds were provided to selected schools to bridge strong rental income from Stanford endowed lands. Other the gap between endowment payout growth and expense small increases, totaling $14.6 million, come from growth in growth. Lastly, $20 million of contingency funds were set indirect cost recovery, health care income, and other external aside against research uncertainties and outcomes from the income. long-range planning process. 2017/18 NON-FORMULA In addition, $18.6 million of incremental general funds were GENERAL FUNDS allocated to units in support of specific programs. Within that, $6.8 million is distributed to existing programs presently Per negotiated formula arrangements, $200.5 million of on one-time general funds or reserve funds, and $6.0 million general funds will flow to the School of Medicine, the is for the enhancement of current programs. The remaining Graduate School of Business, and other formula units. In $6.8 million will fuel the start-up of new programs and fund addition, $146.3 million is set aside for the Capital Facilities new positions. Funds, the Academic Facilities Reserve, the Housing Reserve, and other smaller items. The remaining $1,103.9 million of The incremental allocations are reflected in the pie chart general funds are allocated by the provost to non-formula on the following page. They are distributed among aca- units. demic/faculty, administrative, and other programs in rela- tively even proportions: $6.9 million will support faculty and During the annual general funds budgeting process, each core academic programs; $5.9 million will bolster various budget unit meets with the Budget Group, the provost’s 18 CONSOLIDATED BUDGET FOR OPERATIONS

2017/18 BASE GENERAL FUNDS ADDITIONS: $74.7 MILLION [IN MILLIONS OF DOLLARS]

Administrative Support Contingency 5.9 20.0 Endowment Incremental Base Conversion Allocations Mitigation 6.8 4.0 18.6 Program Enhancement Other Non-Salary 6.0 & Facilities 5.9 12.2 New Programs Salaries & 5.8 Market-based Benefits 19.9 Adjustments Academic/Faculty Support 32.1 6.8

administrative functional areas; and $5.9 million will be the expanded alumni interview program. An equal amount spent on a variety of other programs, including new facilities, of funds is provided to the Office of Development to maintain student service programs, and those that improve business and add development and stewardship officers, given the systems and campus security. rising number of gift prospects and school-specific fundraising needs. The goal to increase campus affordability again plays an in- strumental role in making incremental allocations. Of these Incremental allocations made to student areas also highlight allocations, $2.0 million is aimed at resolving faculty salary the university’s continuing efforts to enrich the student expe- equity and retention issues, and $777,000 of base support rience and financial support. Significant increments include is allotted to the faculty childcare assistance program, in- $900,000 to fund additional tuition allowance for research cluding increasing the gross income thresholds for program assistants and close to $550,000 to convert the Community eligibility and annual childcare award amounts. Among other Engagement and Diversity unit including the Diversity faculty and academic programs, the Faculty Incentive Funds and First-Gen Office within Student Affairs from one-time to (FIF) and Faculty Development Initiative (FDI) received $1.8 base support. million towards new billets; and the Environmental Health & Furthermore, approximately $1.7 million will support incre- Safety department received over $700,000 to permanently mental O&M and utilities needs for new buildings and facili- fund lab safety positions and communication programming ties, including, but not limited to, the Bass Biology Building as a strategic move to raise the research safety profile of the and the newly-renovated Kingscote Garden. Additional university (see detailed discussion on the facing page). resources, totaling $2.5 million, will help boost campus In the administrative areas, incremental general funds are security and business applications. The latter includes the geared towards relieving workloads in academic support rollout of the ADAPT (Alumni and Development Application areas, driven by expanded business needs and increasing Transformation) system, the maintenance of an expanded operational complexity. For instance, $700,000 is appropri- university network, the management of the newly-imple- ated to the Admission and Financial Aid Office to handle mented course evaluation platform, and the expansion of the the growing number of application reviews and to manage Graduate Financial Planning application. CONSOLIDATED BUDGET FOR OPERATIONS 19

ENVIRONMENTAL HEALTH AND SAFETY

In a follow-up to the 2014 faculty-led task force on n Business Processes and Data Management—As a Advancing Safety Culture in the university laboratory, and result of compliance needs, EH&S has made substan- with the encouragement of the University Budget Group, tial investments in technology and data management. Environmental Health and Safety (EH&S) developed a By focusing on the user experience, EH&S can signifi- multi-year strategic plan to address the findings and cantly impact the utility of safety-related systems and recommendations from the Task Force report. The over- services. arching focus of EH&S’s current efforts is on advancing n Outreach and Communications—Effective communi- and implementing an effective and responsive culture of cation and outreach programs are essential to the suc- safety across the University. The five key priorities are: cess of safety and health initiatives. A comprehensive broad-based communication strategy will facilitate n Research and Academic Support—EH&S can help behavioral and attitudinal changes within our campus prevent mistakes and better anticipate risk in our cam- community. pus community by coordinating and integrating more fully with research, teaching, and learning activities To achieve these strategic goals, EH&S has identified a that are integral to Stanford’s mission. Furthermore, combination of resources and guiding principles. EH&S by integrating safety (i.e., building it into the way will receive $700,000 of base general funds in 2017/18 researchers and faculty think and work), EH&S can and will invest it into initial efforts focusing on: reduce administrative burden and positively impact 1) ensuring appropriate technical resources are avail- the next generation of thought leaders. able to support myriad and ever changing research n Institutional Emergency Management and Con- programs, including newly emerging technologies, as tinuity Planning—No unit or area of the university well as providing the expertise necessary to address is isolated from the impact of an emergency, and the occupational safety challenges across the broader need to prepare and plan is universal. The focus is to campus; build on existing efforts to ensure life safety by helping 2) improving systems and processes to make it easier for campus partners increase resiliency and limit disrup- all faculty, staff, and students to act and perform their tion to critical functions through pre-planning, training, work safely; and and exercises. 3) enhancing training, outreach, and communities of n Injury Prevention and Loss Protection—Preventing practice that enable safety knowledge to be more and reducing workplace injuries is essential to advanc- efficiently disseminated. ing employee wellness and campus-wide operational efficiency. Integration of safety programs with the Through on-going engagement, EH&S will advance a delivery of medical services through the on-campus culture that integrates safety and health seamlessly with Occupational Health Center (OHC) is instrumental to the work of laboratories and classrooms, bringing safety the long-term strategy. into the curriculum and the on-boarding processes of all new employees and researchers to be passed along to future generations when students, faculty, and staff go out into the world. 20 CONSOLIDATED BUDGET FOR OPERATIONS

as a long-term investment. In both these instances, these PROJECTED STATEMENT funds are no longer available to support operations, so they OF ACTIVITIES decrease the Consolidated Budget for Operations operating Stanford University, as a not-for-profit institution and a results. These transfers, however, have no impact on the recipient of restricted donations, uses a fund accounting Statement of Activities operating results, as the net assets of approach to manage itself internally. Stanford also pres- the university have not changed (one form of asset has been ents a Statement of Activities, prepared in accordance with converted into another type of asset). accounting principles generally recognized in the United States (GAAP). The Statement of Activities summarizes all Converting the Consolidated Budget changes in net assets during the year (both operating and into the Statement of Activities non-operating). To convert the Consolidated Budget to the Statement of Activities under GAAP, certain revenue and expense reclas- The table on the next page compares the Consolidated sifications, transfers, and adjustments are necessary. Budget for Operations with the projected operating results section of the Statement of Activities. Cash resources are The following adjustments are made to the Consolidated classified into fund groups, which are subject to different legal Budget to align it with the GAAP basis Statement of and management constraints. Activities:

There are four different categories of funds: a) Eliminate Fund Transfers. The Consolidated Budget includes transfers of $276.3 million of current funds to other 1) Current Funds, which include revenue to be used for fund groups, including plant, student loans, and funds func- operating activities—e.g., tuition revenue, sponsored re- tioning as endowment. The transfers out are added back for search support, endowment payout, and other investment the Statement of Activities. income; b) Remove Capital Equipment purchases. The Consolidated 2) Endowment Principal Funds, which include all of Stanford’s Budget includes the projected current year’s purchases of endowment funds, both those restricted by the donor, capital equipment as expense. For GAAP purposes, the cost and those designated as endowment funds by university of capital equipment is recorded as an asset on the Statement management; of Financial Position. As a result, $95.1 million is eliminated 3) Plant Funds, which include all funds to be used for capital from Consolidated Budget expenses. projects, such as construction of new facilities or debt service; and c) Record Depreciation expense for the current year’s asset use. The Statement of Activities includes the current year’s 4) Student Loan Funds, which include those funds to be lent depreciation expense related to capital assets. Depreciation to students. expense includes the depreciation of capital equipment and The Consolidated Budget for Operations includes only current other capital assets, such as buildings and land improve- funds, and reflects the sources and uses of those funds on a ments. This adjustment adds $365.4 million of expense to modified cash basis that more closely matches the way the the Statement of Activities. university is managed internally. Within these current funds, specific funds are further classified by their purpose and level d) Adjust Fringe Benefit expenses. The Consolidated of restriction. The Consolidated Budget for Operations also Budget reports the fringe benefits cost based on the fringe reflects the transfer of current funds for investment in other benefits rates charged on salaries; the rates may include fund groups: funds functioning as endowment, student loan over- or under-recovery of actual costs from prior years. The funds, and plant funds. For example, a school may choose to Statement of Activities reflects only current year expenses transfer operating revenue to fund a future capital project. for fringe benefits, so the over- or under-recovery amount Similarly, a department may decide to move unspent cur- has to be removed from Salaries and Benefits. The Statement rent funds to the endowment, either to build capital for a of Activities also includes accruals for certain benefits, such particular purpose, or to maximize the return on those funds as pension and post-retirement benefits that are required by CONSOLIDATED BUDGET FOR OPERATIONS 21

COMPARISON OF CONSOLIDATED BUDGET AND STATEMENT OF ACTIVITIES, 2017/18 Unrestricted Net Assets [IN MILLIONS OF DOLLARS]

STATEMENT OF ACTIVITIES FISCAL YEAR 2017/18

2016/17 2016/17 PROJECTED PROJECTED 2015/16 JUNE 2016 PROJECTED CONSOLIDATED STATEMENT OF ACTUALS BUDGET YEAR-END BUDGET ADJUSTMENTS ACTIVITIES

Revenues and Other Additions Student Income: 342.3 353.9 356.7 Undergraduate Programs 369.2 369.2 340.5 356.4 360.1 Graduate Programs 373.7 373.7 174.1 185.7 186.5 Room and Board 194.5 194.5 (269.6) (286.1) (286.0) Student Financial Aide (298.2) (298.2) 587.3 609.9 617.3 Total Student Income 937.4 (298.2) 639.2 Sponsored Research Support: 753.6 788.2 778.8 Direct Costs—University 806.8 806.8 251.4 262.3 266.8 Indirect Costs 278.0 278.0 1,005.0 1,050.5 1,045.6 Total University Research Support 1,084.8 1,084.8 447.8 590.6 644.2 SLAC 559.4 559.4 906.5 1,057.5 1,035.5 Health Care Services f,k 1,253.2 (93.9) 1,159.3 426.2 349.6 391.2 Gifts & Net Assets Released from Restrictions 391.2 391.2 Investment Income: 1,132.1 1,178.3 1,177.1 Endowment Income j 1,243.4 0.2 1,243.6 189.6 59.3 126.9 Other Investment Income g 275.8 (47.7) 228.0 1,321.7 1,237.6 1,304.0 Total Investment Income 1,519.2 (47.5) 1,471.6 523.5 538.8 513.8 Special Program Fees and Other Income j 516.2 5.4 521.6 5,218.1 5,434.5 5,551.6 Total Revenues 6,261.4 (434.3) 5,827.2

Expenses 3,091.7 3,365.2 3,361.7 Salaries and Benefits d,g,j 3,621.5 3.6 3,625.1 Financial Aide 298.2 (298.2) 92.9 103.8 115.1 Debt Service h 199.3 (65.7) 133.6 Capital Equipment Expense b 95.1 (95.1) 346.0 350.6 355.2 Depreciation c 365.4 365.4 1,384.0 1,606.3 1,630.9 Other Operating Expenses f,g,j,l 1,639.1 (50.8) 1,588.3 4,914.6 5,425.8 5,462.9 Total Expenses 5,853.3 (140.8) 5,712.5

303.4 8.6 88.7 Revenues less Expenses 408.1 (293.5) 114.7

Transfers Additions to Endowment Principal a (110.2) 110.2 Other Transfers to Assets a (166.1) 166.1 Net Internal Revenue/Expense i 33.5 (33.5) 0.0 0.0 0.0 Total Transfers (242.8) 242.8 0.0

Excess of Revenues Over Expenses 303.4 8.6 88.7 After Transfers 165.4 (50.7) 114.7 22 CONSOLIDATED BUDGET FOR OPERATIONS

GAAP to be shown as expense in the period the employee Hotel and Sand Hill Road Offices interest, and adjusted to earns the benefit. For 2017/18, GAAP expenses are expected account for the difference between internal and external to be higher than budgeted expenses by $30.9 million. interest payments. These combined adjustments reduce internal debt service expense by $65.7 million. e) Reclassify Financial Aid. GAAP requires that the tuition portion of student financial aid be shown as a reduction of i) Eliminate Net Internal Revenue/Expense. The Statement student revenue. In the Consolidated Budget, financial aid of Activities includes the activity of all fund types, while the is reported as an operating expense. Accordingly, $298.2 Consolidated Budget does not include plant funds. Therefore, million of student financial aid expense is reclassified as a the net inflow of $33.5 million from plant funds into the reduction of student revenues in the Statement of Activities, Consolidated Budget for purchases of internal services is resulting in no change in results. eliminated.

f) Adjust for Health Care Services. For GAAP purposes, j) Include Stanford Sierra Camp. The Statement of health care services revenues received from the hospitals Activities includes the revenues and expenses of the Sierra are reported net of expenses that the hospitals charge the Camp that the Alumni Association runs as a separate lim- university. The Consolidated Budget presents these revenues ited liability corporation. $5.6 million in revenues and $5.5 and expenses on a gross basis. This adjustment results in a million in expenses is added ($2.8 million in Salaries and reduction of $52.8 million in both Other Operating Expenses Benefits and $2.7 million in Other Operating Expenses) to the and health care services revenues, with no net change to the Consolidated Budget for Operations. bottom line. k) Eliminate Hospital Equity Transfers. Payments received g) Adjust for Internal Investment Management Expenses. from the hospitals for which no services are required to Included in the Consolidated Budget revenues and expenses be provided by the university are considered transfers of are $47.7 million of expenses of the Stanford Management equity between the university and the Hospitals and are not Company and the real estate operations within Land, included in operating revenue in the Statement of Activities. Buildings & Real Estate. For GAAP purposes, these expenses, These include contributions by Hospital construction proj- incurred as part of the generation of investment returns, are ects to the Stanford Infrastructure Program and performance netted against investment earnings. This adjustment reduces bonuses related to Physician Service Agreements. In the Other Investment Income, as well as reducing $30.1 million Consolidated Budget, they show as health care services from compensation and $17.6 million from non-compensation income. This adjustment removes $41.1 million of revenue. expenses, with no net change in the bottom line. l) Include Stanford University Power LLC. To more ef- h) Adjust for Debt Service. The Consolidated Budget in- fectively manage Stanford’s Direct Access electricity pro- cludes all internal debt service. It reflects the use of funds to curement program, the university conducts all electricity amortize principal and interest. On a GAAP basis, interest procurement transactions through this LLC, which is not in- expense is reported in the Statement of Activities and repay- cluded in the Consolidated Budget. Including these electric- ment of debt principal is reported as reductions in Notes and ity purchases in the Statement of Activities increases Other Bonds Payable in the Statement of Financial Position. GAAP Operating Expenses by $17 million. amounts also include interest payments for the Rosewood In summary, the impact of these adjustments decreases the Hotel and Sand Hill Road Offices, which are not included in Consolidated Budget’s projected $165.4 million surplus by the Consolidated Budget for Operations. Therefore, Internal $50.7 million, resulting in a projected surplus of $114.7 million Debt Service expense must be reduced by the amount of in the Statement of Activities. internal principal amortization, increased for the Rosewood ACADEMIC UNITS 23

CHAPTER 2 ACADEMIC UNITS

OVERVIEW OF ACADEMIC UNITS

his chapter summarizes programmatic and financial activity for each academic unit. The revenue expectation in 2017/18 for these academic units comprises nearly 75% of the university total revenue. TOverall, the academic units project an operating surplus of $158.1 million. After transfers to facilities and endowment, the unit budgets overall will achieve a $104.2 million surplus.

CONSOLIDATED BUDGET FOR OPERATIONS, 2017/18: ACADEMIC UNITS [IN MILLIONS OF DOLLARS] TOTAL RESULT OF TRANSFERS CHANGE IN REVENUES AND TOTAL CURRENT (TO)/FROM EXPENDABLE TRANSFERS EXPENSES OPERATIONS ASSETS FUND BALANCE Academic Units Graduate School of Business 256.5 264.1 (7.6) 0.6 (7.0) School of Earth, Energy & Environmental Sciences 65.4 71.7 (6.3) 1.8 (4.5) Graduate School of Education 76.4 75.2 1.2 (1.2) 0.1 School of Engineering 399.4 398.2 1.2 1.7 2.9 School of Humanities and Sciences 529.8 518.4 11.4 (9.5) 1.9 School of Law 96.9 90.1 6.8 (6.7) 0.1 School of Medicine 2,464.4 2,327.8 136.6 (43.8) 92.8 Vice Provost and Dean of Research 246.6 234.0 12.6 3.3 15.9 Vice Provost for Undergraduate Education 57.2 49.1 8.1 0.1 8.3 Vice Provost for Graduate Education 10.5 12.6 (2.1) (0.3) (2.4) Vice Provost for Teaching and Learning 40.1 39.9 0.2 0.0 0.2 Hoover Institution 68.6 72.1 (3.4) 0.0 (3.4) Stanford University Libraries 89.5 89.1 0.4 0.0 0.4 SLAC 563.6 564.6 (1.0) 0.0 (1.0) Total Academic Units 4,964.9 4,806.8 158.1 (53.9) 104.2

2017/18 Consolidated Expenses by Academic Unit

Auxiliary $403.4 Million H&S 11% SLAC 12% Engineering 8%

Administrative GSB 5% $1,195.8 Million Dean of Research 5% Academic Units Other1 4% $4,806.8 Million Medicine Libraries 2% 48% Law 2% Education 2% SE3 1%

1 Other is Hoover, VP for Undergraduate Education, VP for Graduate Education, and VP for Teaching and Learning. 24 ACADEMIC UNITS

GRADUATE SCHOOL OF BUSINESS

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 $256.5 Million ACTUALS PROJECTION PLAN Total Revenues 233.8 250.3 256.5 Other 5% Schwab 4% Expenses General Funds Salaries and Benefits 138.6 147.2 154.8 Executive 26% Non-Salary 92.6 101.4 109.3 Education 21% Total Expenses 231.2 248.6 264.1 Operating Results 2.7 1.7 (7.6)

Gifts Transfers From (to) Endowment & Other Assets (10.8) (0.3) 0.6 Endowment 12% Payout Transfers From (to) Plant 0.1 23.1 0.0 32% Surplus / (Deficit) (8.0) 24.5 (7.0) Beginning Fund Balances 76.1 68.1 92.6 Ending Fund Balances 68.1 92.6 85.7

PROGRAMMATIC DIRECTIONS support for faculty research through its Centers and Initiatives for Research, Curriculum & Learning Experiences (CIRCLE). The Graduate School of Business (GSB) has a mission to CIRCLE facilitates connections to industry leaders, provides create ideas that deepen and advance the understanding of highly technical support for data-driven research, provides management and, with those ideas, to develop innovative, research assistance, and manages events that disseminate principled, and insightful leaders who change the world. The learnings. GSB remains focused on pairing faculty research and teaching with the practical application of that research to address the The Student Experience business and management challenges that exist in the world The breadth of the elective curriculum remains one of the today. The GSB offers the two-year full-time MBA, PhDs in strengths of the GSB. Last year the school offered 173 elec- seven distinct fields of study, and the Master of Science in tives that provided students with opportunities to take cours- Management. In addition, the GSB runs a host of custom, es matching their passions and priorities. Beyond the campus, open, online, and international executive education programs. the MBA program organized 22 Global Study Trips and 3 Academic year 2016/17 was one of leadership transition for Global Seminars that took nearly 600 students to 23 different the GSB, with the arrival of the new dean and the appoint- countries for 8-10 days. The Global Management Immersion ment of two new faculty senior associate deans. The GSB Experience program sent 90 first- and second-year students created two committees to explore and develop a vision for to 32 countries to hone their international management skills research and management education at the school over the by working in corporate, government, and nonprofit organiza- next 10-15 years. The process is designed to complement the tions for a minimum of four weeks. university’s long-range planning process. The GSB continues to attract the highest-quality students into Faculty Research and Teaching all of its degree programs. The student body is more diverse than ever, and selectivity and yield continue to increase, a The GSB plans to maintain roughly 125 tenure-line faculty. In trend that parallels that of the university’s undergraduate pro- addition, roughly 150 lecturers bring in expertise from organi- gram. Nearly 41% of the MBA class of 2018 are women. The zations across the world. The school continues to emphasize ACADEMIC UNITS 25

GSB has a number of pilot initiatives in support of increasing to end the cycle of poverty in developing economies through diversity. One successful pilot has been the research fellows in-country educational programs, student internships, and re- program. This is a postbaccalaureate program for eight high- search. After running its educational programs free of charge potential individuals to gain valuable experience as research for four years, Seed began charging a small fee based on feed- assistants, take doctoral-level courses, and participate in the back that participants should have a stake in the programs. intellectual community. The program targets students from underrepresented groups and covers the cost of their tuition CONSOLIDATED BUDGET OVERVIEW and living expenses. Its goal is to broaden the pipeline of The school projects a 2017/18 consolidated budget with total prospective PhD students, with an emphasis on attracting revenue and transfers of $256.5 million, expenses of $264.1 women and minorities. million, and a net deficit of $7.0 million after $600,000 in The GSB’s newest residence, Highland Hall, opened in the fall transfers from endowment and other assets. This net deficit of 2016, increasing the number of beds available for business compares to a $500,000 deficit in 2016/17, excluding a one- students from 280 to 480. The GSB can now provide hous- time transfer into the GSB of $25 million from a bequeathed ing to all of its single, first-year MBA students. Immediately gift. The GSB expects $85.7 million in fund balances at year- following completion of Highland Hall, the GSB began end. renovation of the Schwab Residential Center, which will be The GSB projects that revenues and transfers for 2017/18 completed in 2017/18. will increase by $6.2 million, or 2.5%. Endowment income is expected to increase by $2.3 million due to investment gains Global Impact and newly endowed gifts. This increase is offset by $1.9 mil- The GSB continues to reach into international markets to lion due to a conservative estimate of investment income. bring a range of insights to students, provide research oppor- Gift revenue is planned to grow primarily in Seed restricted tunities for faculty, and stay connected to dynamic trends in funds. Other revenue growth is planned from Executive global business. The primary global programs are the Global Education through the online LEAD program and new face- Innovation Programs, the Stanford Institute for Innovation in to-face programs. Seed also plans to add revenue through its Developing Economies (Seed), and the Executive Education new educational program fees. Finally, the completion of the Online LEAD Certificate in Corporate Innovation. Each year, Schwab Residential Center Renovations in early 2017/18 will the Global Innovation Programs deliver leadership, innova- result in higher revenue from GSB residences. tion, and entrepreneurship programs in person and through distance education technology to 900 young professionals, Overall, the Business School projects a $15.5 million, or 6%, aspiring innovators, government leaders, and prospective increase in expenses in 2017/18. Compensation is projected students all around the world. More than 170 students from to increase primarily due to merit increases as well as staff around the globe enroll in the two online LEAD Certificate growth in Seed. Non-compensation expenses are projected program cohorts annually. This intellectually rigorous, to increase above inflationary growth. The largest areas of yearlong, multidisciplinary, high-touch program is delivered expense growth within the GSB are Seed, due to its new re- entirely online with both synchronous and asynchronous ele- gional center; Executive Education; research support; and fel- ments. It also involves extensive cohort-based learning and lowship support. Increased expenses for Seed and Executive networking experiences, sometimes using a virtual reality Education are offset by their increased revenue. platform. The eight-course, one-year program has become The 7.5% decrease in fund balances is projected to reduce a model for integrating education technology to improve unrestricted funds by $3.5 million and restricted funds by program curricula. Seed, with regional centers in West and $3.5 million in 2017/18. East Africa, will be opening its third international center in southern India at the beginning of 2017/18. Seed’s mission is 26 ACADEMIC UNITS

SCHOOL OF EARTH, ENERGY & ENVIRONMENTAL SCIENCES

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 $65.9 Million ACTUALS PROJECTION PLAN Total Revenues 66.5 64.3 65.9 Other 8% General Funds Expenses Affiliates 20% 11% Salaries and Benefits 49.7 51.9 53.9 Non-Salary 19.5 17.3 17.8 Gifts Total Expenses 69.2 69.2 71.7 4% Operating Results (2.7) (4.8) (5.8) Transfers From (to) Endowment & Sponsored Other Assets 1.1 1.1 1.2 Research 17% Endowment Transfers From (to) Plant 0.0 (1.9) 0.6 Payout Surplus / (Deficit) (1.7) (5.7) (4.0) 40% Beginning Fund Balances 60.2 58.6 52.9 Ending Fund Balances 58.6 52.9 48.9

PROGRAMMATIC DIRECTIONS n Enhance organizational culture, work environment, and diversity. The School of Earth, Energy & Environmental Sciences (Stanford Earth, SE3) is dedicated to creating knowledge to n Fund, design, and build a new building for Stanford Earth. understand Earth and sustain its inhabitants. In the summer The school’s top strategic priority is increasing Stanford of 2016, Stanford Earth launched a new strategic planning undergraduate engagement and deepening its impact on effort. This is an exciting process and an important one to undergraduate education. The school believes there is a need ensure the health and vibrancy of the school. The planning for new, flexible degree programs and new ways to touch process confirmed the priority of four challenge areas that the lives of all students. The following are a few examples of constitute the school’s research focus on the environment activities already under way: and sustainability (the energy future, climate solutions, re- ducing disaster risk, and food and water security) and began n A new minor in Earth systems sustainability and a new to identify new research challenges. More importantly, a master’s in sustainability science and practice in response number of critical goals will guide activities and investment in to demand for a sustainability curriculum. 2017/18 and beyond. Implementation of these goals is already n One-unit courses, such as Know Your Planet, make it easy under way. The goals are: for all students to engage, regardless of time commit- ments to majors. n Engage all Stanford students in gaining knowledge about Earth and increasing their awareness of its resource and n A suite of “Big Earth” courses, seminars, and intern- environmental challenges. ships allows students to combine a love of computation and data science with their application to Earth and n Enhance the life and career success of graduate students sustainability challenges. and postdoctoral scholars. The second goal is to enrich the academic experiences of n Support, foster, and strengthen collaborations both across graduate students and postdoctoral scholars and prepare departments and with others in and outside the university. them for careers. A range of activities, including modifying n Accelerate the impact of SE3’s research. ACADEMIC UNITS 27 the graduate admissions process, improving mentoring, CONSOLIDATED BUDGET OVERVIEW and creating more professional development offerings, is SE3 projects $65.9 million in total revenues and operating in development. transfers in 2017/18 and $71.7 million in total expenses, with The third and fourth goals focus on improving opportunities a resulting shortfall of $4.0 million after $1.8 million of asset for interdisciplinary collaborations within and outside of transfers. Slow revenue growth reflects modest endowment SE3, along with accelerating the impact of Stanford Earth’s payout growth and flat gifts, designated affiliate program -in research through new partnerships with decision makers come, and sponsored revenue. At this time the future of these in government and nongovernmental organizations, as well income streams remains uncertain and is subject to change as new professional education offerings. Achieving these depending on fundraising success, oil and gas industry per- goals will take investment from seed money for innovative formance, and federal research funding availability. Asset collaborations to foster broader interactions among gradu- transfers account for another $1.8 million; these comprise a ate students and postdocs, to the development of specific $1.2 million transfer from endowment principal to income, as executive education curricula. While resources are limited, is mandated by two venture funds, and a $600,000 repay- the school plans to experiment on a small scale to assess ment of bridge funding for the Huffington Barn project, as the long-term impact. pledge is paid. There are no planned capital projects requiring local funding in 2017/18 and consequently no transfers out The final two goals—enhancing organizational culture and to plant. diversity, and securing funding for a new building for Stanford Earth to replace the well-worn Mitchell Building—will con- Of the total $71.7 million in projected expenses, compensa- tinue to evolve over the next several years. tion accounts for $53.9 million and non-compensation for $17.8 million. Two to three faculty hires are anticipated in In addition, 2017/18 will be a year of significant transition 2017/18, largely into existing billets vacated due to retire- for Stanford Earth. Dean Pamela Matson will step down ments. Any incremental spending will be limited and care- December 31, 2017, after leading the school for 15 years. The fully considered in the context of strategic plan goals and growth and evolution of the school over this time has been re- constrained resources. markable. Stanford Earth has significantly expanded its areas of research and teaching and increased its number of faculty The budgetary shortfall is expected to lead to reserve draw- (and disciplines covered) by 40% and its graduate student downs in all non-sponsored fund types, including reserves population by over 50% while only growing its footprint by held by the school, departments, and programs, as well as 8%. The strategic plan developed in 2016/17 will provide an affiliate program reserves and individual start-up funds, which excellent launching pad for a new dean and allow progress to are controlled by faculty. continue despite the leadership change. CAPITAL PLAN Financially, 2016/17 has been a cautious year. As anticipated, because of zero endowment payout growth and lagging sup- SE3’s capital plan for 2017/18 continues efforts from port from federal agencies and the energy industry, SE3 will prior years. Most significantly, the new Earth, Energy and end this fiscal year dipping significantly into reserves for a Environmental Sciences building will seek concept and site third consecutive year. Projections for 2017/18 are looking approval from the Board of Trustees in calendar 2017. The somewhat better, thanks in part to modest, as opposed to project has been scaled back due to limited total funding, flat, endowment income growth, but more significantly to from $115 million to $100 million. Detailed programming the allocation of additional base general funds to address the and design development will be the focus for 2017/18. lack of endowment growth against cost rise. Federal funding, Construction is slated to begin in 2019 with completion particularly in the areas of climate change and sustainability, planned for 2021. will likely continue to drop in the next several years, limiting In fall 2017, Stanford Earth plans to dedicate the Huffington SE3’s ability to invest in new activities and increasing reliance Barn at the O’Donohue Family Stanford Educational Farm. A on reserves to weather the financial storm. generous gift is allowing the school to build a 1,600-square- foot structure that will provide critical teaching and working space for the ever-growing activities at the farm. 28 ACADEMIC UNITS

GRADUATE SCHOOL OF EDUCATION

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 $76.4 Million ACTUALS PROJECTION PLAN

Other 10% Total Revenues 91.9 77.1 76.4 General Funds Expenses 26% Salaries and Benefits 46.0 50.4 51.5 Sponsored Research Non-Salary 26.5 24.4 23.6 33% Total Expenses 72.5 74.7 75.2 Operating Results 19.4 2.4 1.2 Gifts Transfers From (to) Endowment & 14% Other Assets (10.8) (1.3) (1.2) Transfers From (to) Plant 0.0 0.0 0.0 Endowment Payout 17% Surplus / (Deficit) 8.6 1.1 0.1 Beginning Fund Balances 45.0 53.6 54.7 Ending Fund Balances 53.6 54.7 54.7

PROGRAMMATIC DIRECTIONS shape, the GSE will also continue to support areas of tra- ditional strength, ranging from humanistic disciplines and Long-Range Planning and New Initiatives pedagogical research to learning technologies and cognitive As the Graduate School of Education (GSE) begins its centen- science. nial year, it is focusing on several strategic priorities that will guide programmatic and financial planning. While education The GSE’s budget priorities for 2017/18 include the support is necessarily a multidisciplinary field, the GSE is concentrat- of these new initiatives, as well as of activities undertaken ing on areas in which its unique balance of research and train- in the past two years to strengthen collaboration within the ing for practice can have the greatest impact. One such area school and to help increase and sustain its commitments to addresses “learners in peril”: students who are disadvantaged diversity and inclusion. by social and/or biological causes. These are the populations Achievements and Program Continuation/ who depend on an extraordinary education the most, but are Enhancements at the greatest risk for not receiving one and the least able to advocate for themselves. Imminent discoveries and emerging Students: research methods create new possibilities of affecting the n The GSE has expanded the doctoral funding package to lives of countless students, together with their families and include two quarters of student summer funding. The pri- communities. mary goals are to provide packages to attract top doctoral talent and to reduce the financial burdens on the doctoral New programs have emerged as a result of this focus. The student population. GSE has launched a doctoral specialization in race, inequal- ity, and language in education, which will begin admitting n The dean funded fellowships for master’s students to students in 2018/19. The dean has also convened an interdis- enhance diversity within the cohort in 2016/17 and has ciplinary committee to consider establishing a new program expanded these fellowships for 2017/18.

in special education, leveraging Stanford’s strengths in the n The GSE is piloting a needs-considerate financial aid pro- neurosciences, adaptive technologies, and public policy to gram for master’s students as a way of attracting a more complement the GSE’s leadership in learning science and diverse applicant pool and partially compensating for the teacher training. As these new initiatives emerge and take reduction of federal loan programs. ACADEMIC UNITS 29

n A faculty committee focused on improving the PhD ex- The GSE projects total sponsored research activity to be flat perience will report findings and recommended actions in 2016/17 and decrease 2.5% in 2017/18. As in recent years, in 2017/18. funding from federal sponsors is trending downward, and for Faculty: the first time in over seven years, the GSE is also projecting n The faculty have modified the GSE’s processes for hiring a decrease in non-federal funding. The conservative 4% and promotion to encourage greater efficiency and trans- decrease in non-federal funding is due to retirements of GSE parency. faculty who have traditionally brought in large volumes of research grants. However, in spite of the decline, sponsored n The GSE has launched a new junior faculty mentoring research remains the largest funding source for GSE, making program to help integrate new scholars into the com- up 33% of the revenues in the budget. munity and increase their chances of success through the reappointment and tenure processes. The GSE is closely monitoring the impact of the slow growth in endowment payouts for 2016/17 and 2017/18 on its op- GSE-Wide Community Initiatives: erations. The primary areas of impact are the student aid n The GSE has established and filled a new position of chief and faculty salary budgets. For 2017/18 the GSE anticipates inclusion officer (CIO). In 2017/18, the CIO will work with a shortfall in operating budget support from endowments of faculty, staff, and students to foster a greater sense of roughly $200,000 that will need to be covered with other community and inclusion across the school. GSE funds. Accumulated balances will provide sustained n The school has completed the programming and early funding in the short term. However, the GSE will need to seek feasibility phases of a new building planning process. In sources of additional funding to support the status quo and 2017/18, the GSE will start the next phase of the building to make growth and new initiatives possible. planning and begin short-term facilities renovations to im- prove the quality and efficiency of current school spaces. CAPITAL PLAN n A unique research/practice partnership with San Francisco The GSE has substantial and long-standing facilities needs Unified School District continues, engaging nearly half of that are increasingly constraining programmatic development the GSE’s faculty in helping to resolve the most pressing and growth. The GSE School of Education Building opened in issues facing the district leadership. The GSE will focus on 1938. There have been no significant renovations since the the expansion of its partnerships with local area schools original construction. Although this building serves as a core and districts in 2017/18. facility for the GSE, the school controls only one-third of its n The GSE has launched a regular SiriusXM radio show usable square footage. Consequently, GSE faculty, staff, and discussing research-based approaches to common topics students are located in multiple buildings, on and off campus, in education. in configurations of varying size and adequacy. The lack of sufficient contiguous space has adverse effects on cohesion CONSOLIDATED BUDGET OVERVIEW and community. The GSE projects a 2017/18 consolidated budget with total As a long-term solution, the GSE continues the new building revenue and transfers of $76.4 million and expenses of $75.2 planning process, completing the programming and early million, resulting in an operating surplus of $1.2 million. After feasibility phases in 2016/17. The schematic design phase net asset transfers of $1.2 million, the school projects a very will begin in 2017/18. In the short term, the GSE will create modest consolidated surplus of $50,000. Compared with the more efficient and modern spaces in the existing facilities 2016/17 year-end projection, 2017/18 revenues and transfers and bring more of the community to the core GSE buildings. will decrease by $741,000 (1.0%), while expenses are pro- In 2017/18, the GSE will use a combination of central funding jected to increase by $420,000 (0.6%). and school reserves (up to $4 million) to renovate the School The major driver of expense growth is compensation. Total of Education building basement, including relocating the compensation expense will grow by $1.2 million; this in- café and creating new office and meeting spaces for students crease will largely be offset by a $700,000 reduction in other and staff. external expenses, due mostly to the expiration of an off-campus lease. 30 ACADEMIC UNITS

SCHOOL OF ENGINEERING

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 $400.2 Million ACTUALS PROJECTION PLAN Total Revenues 400.8 384.5 400.2 Other 10% Auxiliary Income 1% General Funds Expenses Affiliates 4% 25% Salaries and Benefits 216.3 230.5 248.8 Non-Salary 153.8 150.7 149.4 Total Expenses 370.0 381.2 398.2

Gifts Operating Results 30.8 3.3 2.0 8% Transfers From (to) Endowment & Sponsored Endowment Other Assets (6.7) (9.1) 1.7 Research Payout Transfers From (to) Plant (4.7) (2.0) 0.0 36% 16% Surplus / (Deficit) 19.4 (7.7) 3.7 Beginning Fund Balances 256.1 275.6 267.8 Ending Fund Balances 275.6 267.8 271.6

PROGRAMMATIC DIRECTIONS not solve these problems. This need to bring multidisciplinary researchers together is the driving force behind the Catalyst. In February 2017 the School of Engineering (SoE) welcomed a In the long run, the Catalyst aspires to become an interna- new dean, Jennifer Widom, a professor of computer science tionally recognized model of a purposeful, high-impact, and and electrical engineering. Dean Widom was previously chair interdisciplinary research ecosystem. of the Computer Science Department, served as the senior associate dean for faculty and academic affairs, and was a key The school is facing a very competitive landscape for fac- leader in the SoE Future strategic planning process. ulty pursuing computational research, particularly in the Computer Science Department. Rapid expansion in the field The school has implemented several of the operational rec- of computer science and applied computation has created ommendations from SoE Future and is on track to launch a tremendous market-based pressure on faculty compensa- pilot of the Catalyst for Collaborative Solutions beginning in tion. Given Stanford’s location and symbiotic relationship the fall of 2017/18. The Catalyst pilot will bring together dedi- with Silicon Valley, there has long been some loss of faculty cated cross-functional teams including third-, fourth-, and to industry, but the benefits of moving to industry have been fifth-year graduate students, postdocs, industry experts, and balanced by those of pursuing an academic research and faculty from across Stanford to address the grand challenges teaching agenda at a world-class institution like Stanford. outlined in SoE Future. The $12 million pilot will support four However, the landscape at peer and nonpeer institutions teams for three-year terms (two teams beginning in 2017/18 and in industry is changing, and the school’s salary structure and two teams beginning in 2018/19); it will be funded for this cohort places it at a competitive disadvantage in hir- through a combination of fundraising and a presidential ing and retention in this competitive area. An incremental commitment. The Catalyst will provide project funding and increase in general funds will provide targeted help to attract strategic workshops in support of interdisciplinary research and retain key faculty in this area. across SoE, the university, and beyond, to achieve impactful and lasting solutions to the world’s most pressing problems. A continuing need in SoE for several years has been fund- These grand challenge problems have an engineering com- ing for teaching assistants (TAs) to provide support for ponent as part of their core solution, but engineers alone will faculty in teaching. The university has increased the school’s ACADEMIC UNITS 31

TA funding substantially in recent years. Recent data show a balances and 90% ($93 million) of expendable gift balances, slowing in the growth rate of undergraduate enrollment, and most of which are earmarked for research. The majority of consequently, the school’s allocation for TA tuition and salary reserves controlled by the school are restricted to faculty and will only grow by cost rise. student support, which leaves the dean without much finan- cial flexibility. To address the endowment growth problem and CONSOLIDATED BUDGET OVERVIEW the lack of flexible operating funds, SoE made the strategic SoE projects a 2017/18 consolidated budget with total rev- decision to transfer $10 million from school-controlled funds enue and transfers of $400.2 million and expenses of $398.2 to funds functioning as endowment in 2016/17 to support million, resulting in a net surplus of $3.7 million after $1.7 mil- general operations. lion of transfers from endowment principal. Compared with 2016/17 year-end projections, 2017/18 revenues will increase CAPITAL PLAN by 5.4% and expenses by 4.4%. The SoE is focusing on renovations and planning for the future. The school began operations in two new shared Sponsored research remains the largest single component of fabrication facilities in the Allen Building in 2016/17. The SoE finances at approximately 36% of revenue. Federal grants Experimental Fabrication Facility and the Systems Prototyping are projected to grow 5% in 2017/18, due to increased spend- Facility were designed to meet the needs of researchers and ing in the Bioengineering Department. Non-federal sponsored students today, while helping inform the school about future research will see small growth from 2016/17 levels but has directions in fabrication as it explores alternatives for the ag- increased by 32% since 2015 due to ongoing, large research ing clean room in Allen. Research activity in both facilities is grants from industry. ramping up in line with projections. Other revenue sources are projected to increase by $6.5 mil- Renovations to both the Durand Building and the Gates lion. Expendable gifts and endowment income are expected Building began in 2016/17. The Durand Renovation – Phase 4, to increase by $3.8 million combined, and a $1.1 million the final phase, began in April 2017. The Durand renovation increase in base general funds support from the university will allow for growth in the Aeronautics and Astronautics and will help SoE address faculty salary concerns and provide the Materials Science and Engineering departments by mak- additional support staff. ing use of space vacated by Mechanical Engineering and the The majority of endowment payout schoolwide supports Stanford Center for Professional Development. Renovations to faculty salaries and students through endowed chairs and the third floor of the Gates Building will improve office space fellowships. Minimal growth in endowment payout, combined and increase student, faculty, and staff density to support with faculty merit and market retention increases, may cause growth in Computer Science. The Gates loading dock is be- the school to use reserve balances to meet faculty payroll in ing relocated to accommodate the construction of the Bass the short term. Departments are managing graduate student Biology Building. The school will invest $4 million to renovate admissions to ensure enrollments are aligned with available labs for new faculty in the Durand, Shriram, and Mechanical fellowship income. Although there is no schoolwide plan to Engineering buildings. reduce expenses due to endowment payout concerns, there The school is doing long-range planning to address the grow- may be some targeted cutbacks, and programmatic growth ing intersections of computation with almost every other field and innovation that would have been funded via endowment of inquiry at the university. The school envisions a new facility payout growth will be curtailed. sited and designed in a way that cultivates and nurtures these The overall school reserve position is strong, but the funds are intersections, and it intends to begin formal programming for asymmetrically distributed among faculty, departments, and a new building in 2017/18. the school. Of the total reserves, individual faculty and labora- tory groups control 91% ($107.8 million) of designated fund 32 ACADEMIC UNITS

SCHOOL OF HUMANITIES & SCIENCES

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 $540.3 Million ACTUALS PROJECTION PLAN

Other 9% Total Revenues 519.1 520.1 540.3 Auxiliary Income General Funds Expenses 1% 38% Salaries and Benefits 317.3 327.9 342.6 Sponsored Non-Salary 164.2 171.5 175.8 Research 17% Total Expenses 481.5 499.4 518.4 Operating Results 37.6 20.7 21.9 Transfers From (to) Endowment & Other Assets (13.9) (4.5) (4.5) Endowment Gifts Transfers From (to) Plant 4.7 (18.6) (5.0) Payout 4% 31% Surplus / (Deficit) 28.4 (2.4) 12.4 Beginning Fund Balances 266.9 295.4 293.0 Ending Fund Balances 295.4 293.0 305.4

PROGRAMMATIC DIRECTIONS this same vein, several initiatives in the social sciences focus on data science, the analysis of massive data sets, and how The School of Humanities & Sciences (H&S) remains in a behavioral research informs the work of engineers and others position of strength despite tightening budget constraints. in applied fields. Several years of investments in faculty and facilities have reinforced the school’s strong academic and programmatic Doctoral student enrollments increased 9% between 2007 standing, but also greatly reduced unrestricted reserves. and 2014 but have been flat during the past two years. Selectivity of the graduate student body continues to in- During 2010-13, H&S grew its faculty by 10%, replacing crease, but some competing institutions are beginning to of- losses that occurred after the 2008 recession. Faculty size is fer an additional year of guaranteed funding, raising concerns now sufficient to meet academic needs but is also straining about longer-term competitiveness. The availability of fewer financial and space capacities. H&S returned to a replace- academic jobs has impacted time to degree as some students ment rate of hiring three years ago, but large faculty start-up delay graduation to gain additional experience and become costs from the hiring surge will continue to impact its budget more competitive in the job market. While enrollment is for several more years. For the foreseeable future, additional projected to remain stable, the ChEM-H and neurosciences faculty growth will target gender and racial diversity and the initiatives and the Knight-Hennessy Scholars program should neurosciences and Chemistry, Engineering and Medicine for enhance the school’s ability to attract and support top doc- Human Health (ChEM-H) initiatives. toral students. With the goal of increasing undergraduate student interest in the humanities and social sciences, H&S has launched CONSOLIDATED BUDGET OVERVIEW several new programs and curricular enhancements, includ- For 2017/18, H&S projects revenues and operating transfers ing feeder programs for promising high school students and of $540.3 million and expenses of $518.4 million, resulting placement programs for graduates. These initiatives have in an operating surplus of $21.9 million. After $9.5 million contributed to small increases in humanities undergraduate of net transfers to assets, the school projects an increase course and degree enrollments across the past four years. In ACADEMIC UNITS 33

in consolidated fund balances of $12.4 million, with an After several years of volatility, grant and contract volume ending balance of $305.4 million. Fund balance growth is increased sharply in 2015/16, a result of several senior faculty projected primarily in restricted gift and faculty-controlled hires and large grant renewals. Federal grant and contract research funds. volume is projected to be flat during 2016/17 and decrease slightly in real terms during 2017/18. A small increase in non- Dean’s Office unrestricted reserves have declined from a federal grant and contract volume is projected for 2016/17, high of $74 million in 2010/11 to a projected $17 million at with volumes flattening in 2017/18. H&S has not yet seen the end of 2017/18. $50 million of reserves has been used to the major volume declines experienced by other schools, but fund significant portions of new arts and sciences facilities projections indicate slow or no growth during the upcoming – notably the Bass Biology, ChEM-H, and McMurtry Art and years. Art History buildings. Reserves are also being used to fund a portion of the faculty hire start-up packages associated with Consolidated budget numbers include programs (Cantor the post-recession hiring surge. This net use will continue into Center for Visual Arts, Stanford Arts Institute, Stanford Live, 2017/18 and for several more years, gradually diminishing as Bing Concert Hall, Anderson Collection, and Institute for the impact of replacement-rate hiring takes effect. Diversity in the Arts) that will move out of H&S and to the vice president for the arts in the upcoming year. This move Lagging endowment payout during 2016/17 and 2017/18 is will reduce the school’s annual expenditures by $20 million placing additional stress on the school’s finances. H&S is and accumulated fund balances by approximately $25 million. highly dependent on endowment payout for funding core operations and also incremental activities that may range CAPITAL PLAN from new academic programming to essential staffing. The $3.7 million funding gap between cost rise and minimal H&S continues to manage the largest capital plan in its his- endowment payout increases was managed in 2016/17 by tory. During the upcoming two years, the school will focus reducing graduate aid allocation to departments, eliminat- on development of the new science quad and evaluation of ing nonessential expenditures, and using department and humanities and arts performance spaces. The Bass Biology program reserves. The 2017/18 funding gap is projected to be Building will be completed in summer 2018, triggering faculty $3.1 million. A significant portion of the gap will be mitigated moves from the Mudd Chemistry Building and its subsequent by additional general funding, while the remainder will be demolition. During summer 2017, the Physics Learning Center accommodated through a second year of budget reductions will move into newly renovated space in Building 60 on the and uses of reserves. The effects of these funding reductions main quad, and students will begin taking courses there in on operations and accumulated fund balances will not be fall 2017. The Sapp Center for Teaching and Learning opened fully known until fiscal year-end for both of these years. The recently, providing innovative teaching and study spaces for Dean’s Office will closely monitor these impacts and work undergraduate students. The Roble Gym now houses the with departments and programs to ensure the sustainability Department of Theater & Performance Studies along with a of operations. “black box” theater, dance studios, and an arts gym. 34 ACADEMIC UNITS

SCHOOL OF LAW

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 $96.9 Million ACTUALS PROJECTION PLAN Total Revenues 92.3 94.0 96.9 Executive Education 4% General Sponsored Research Funds Expenses 2% 37% Salaries and Benefits 57.8 61.7 64.6 Non-Salary 22.2 24.1 25.5 Total Expenses 80.0 85.8 90.1 Operating Results 12.3 8.2 6.8 Endowment Payout Transfers From (to) Endowment & 44% Other Assets (1.8) (15.1) (5.0) Transfers From (to) Plant 0.0 (4.0) (1.7) Gifts 13% Surplus / (Deficit) 10.5 (10.9) 0.1 Beginning Fund Balances 24.2 34.7 23.7 Ending Fund Balances 34.7 23.7 23.8

PROGRAMMATIC DIRECTIONS areas of the law. To underscore the importance placed on this initiative, SLS has created a new position of associate dean for Stanford Law School (SLS) graduates excel in a wide variety global programs that focuses on building a high-quality cur- of professional settings, and the school is enhancing its de- riculum exposing students to the world of global legal prac- gree programs by focusing on two primary areas: curricular tice. The third initiative addresses how technological changes innovation and faculty recruitment. The Law School continues are transforming the delivery of legal services. These changes to innovate in its curriculum to better prepare its graduates both threaten current models for delivering legal services and for their professional futures, and it has prioritized the hiring hold the promise of expanding access to legal services for of new, diverse faculty members to facilitate changes to the people who are currently underserved. Creating a curriculum curriculum as well as to support the interdisciplinary interests to address these issues is challenging, but SLS is well placed of SLS students. to lead in this critical field and is actively exploring how the SLS recognizes that future lawyers should understand the le- curriculum should evolve to reflect these developments. vers of policy making and implementation, that globalization The practical legal training students receive through work of the economy requires lawyers to have a global perspective, in the Mills Legal Clinic, where they represent actual clients and that technological advances are transforming the delivery under the close supervision of clinical faculty, will leverage of legal services. To address these issues, the Law School is the tools and knowledge they gain through the new innova- pursuing a set of new curricular initiatives. tive curricular offerings. Through university support and con- The first of these initiatives, the Law and Policy Lab, provides tinued fundraising, the school now offers 11 clinics covering opportunities for students to tackle real-life policy challenges areas such as intellectual property, education law and policy, for actual clients. Across 60 practicums over the past three criminal defense, environmental law, and international human years, students and faculty have worked with and advised rights. In response to the current changes in immigration clients on issues such as international security, patent trolls, policy, SLS is expanding its Immigrants’ Rights Clinic, through wildlife trafficking, and copyright policy. The second initiative which faculty have provided advice, information, and counsel exposes students to transnational issues across substantive to members of the Stanford community who are directly ACADEMIC UNITS 35 affected by these policy changes. The intensive training SLS CONSOLIDATED BUDGET OVERVIEW students receive in the clinics serves them well as they begin The 2017/18 consolidated budget comprises total revenues their professional lives after graduation, and can spark or and operating transfers of $96.9 million, expenses of $90.1 reinforce their dedication to pursuing public interest careers. million, and transfers to assets of $6.7 million. SLS projects an The SLS student population is small, and admission is ex- increase in expendable fund balances of $100,000. The trans- tremely selective. In order to continue to attract an extraordi- fers to assets include $3.5 million to student loan to cover SLS nary, diverse student body with varied professional interests, Loan Repayment Assistance Program obligations; $1.7 million the school’s financial aid program seeks to make a law school transferred to plant for continuation of the Crown Quadrangle education affordable to all. A relatively flat endowment pay- renovation; and $1.5 million of unused restricted endowment out in recent years has created some pressure on the financial income reinvested into funds functioning as endowment. aid program, but admission decisions are need-blind, and Consolidated revenue, exclusive of operating transfers, is the school continues to meet all identified financial need of anticipated to increase 2% to $62.8 million. Designated admitted students. SLS has made fundraising for financial aid income ($5.2 million), expendable gifts ($12.6 million), a high priority, and the school will continue its strong commit- and endowment income ($43.0 million) will each grow by ment to a need-based financial aid program. In addition, the 2%. Sponsored research remains steady and will gener- school makes sure that graduates can pursue legal careers in ate $2.2 million, of which $1.5 million will be spent on the public service and public interest law through a generous loan U.S. Department of State multiyear grant to support the forgiveness program. Afghanistan Legal Education Project. Finally, general funds The faculty is small and exceptional, and the school continues will increase by 6% to $35.3 million. to expand its ranks to support the exciting developments tak- Total consolidated expenses are projected to rise by 5% to ing place in the study and practice of law. Like many schools, $90.1 million. With operating expenses targeted to grow SLS is in the midst of a generational shift in its faculty. In faster than income in 2017/18, the Law School is shifting anticipation of future retirements, 17 individuals have joined resources from long-term programming and capital projects the faculty over the past few years. These additions to the to current operations. Additional staff and salary increases faculty recognize the desire of SLS students to explore stud- mean that compensation is expected to grow by 5% to $64.6 ies in a variety of disciplines by reflecting a continued com- million, and non-compensation will grow by 6% to $25.5 mil- mitment to interdisciplinary research and teaching. Three of lion. Graduate student financial aid is increasing to $9.3 mil- the new faculty members have joint appointments (two with lion, while non–financial aid expenses are remaining constant the School of Medicine and one with the Freeman Spogli at $16.2 million. Institute), and many of the tenured and tenure-track faculty have a PhD as well as a JD. The recruitment and retention of SLS consolidated expendable fund balances will increase by faculty remains a high priority for the school and an area of $100,000 to $23.8 million. Of this balance, $13.6 million is focused effort and activity. classified as noncash investments in housing loans and not available for use. The remaining $10.2 million is available and consists of $6.4 million for restricted purposes, such as academic programs and centers and financial aid, and $3.8 million for unrestricted purposes. 36 ACADEMIC UNITS

SCHOOL OF MEDICINE

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 $2,459.8 Million ACTUALS PROJECTION PLAN

Other 10% General Funds 5% Total Revenues 2,158.2 2,252.0 2,459.8 Gifts 5% Auxiliary Income 2% Expenses Endowment Patent Income 1% Payout Salaries and Benefits 1,202.1 1,325.6 1,466.6 7% Non-Salary 742.8 803.9 861.2 Total Expenses 1,944.9 2,129.5 2,327.8 Designated Operating Results 213.4 122.6 132.0 Clinic 41% Sponsored Transfers From (to) Endowment & Research Other Assets (48.5) (2.2) (15.6) 29% Transfers From (to) Plant (44.9) (20.4) (28.2) Surplus / (Deficit) 120.0 99.9 88.2 Beginning Fund Balances 999.4 1,119.3 1,219.3 Ending Fund Balances 1,119.3 1,219.3 1,307.5

PROGRAMMATIC DIRECTIONS facilitating the translation of new technologies into clinical diagnostics. The School of Medicine is an academic medical center. Combined, the medical center, Stanford Health Care (SHC), Through the Integrated Clinical Strategy Committee, the and Stanford Children’s Health (SCH) are known as Stanford school and hospital leaders have established three strategic Medicine. Stanford Medicine’s mission is to promote funda- priorities for the clinical enterprise: (1) reaching pre-eminence mental, clinical, and translational discovery; to train the bio- in key precision health service lines through measured growth medical leaders of tomorrow; and to transform patient care. in depth and breadth of clinical services and biomedical in- Stanford Medicine recently initiated an integrated strategic novation; (2) expanding off-campus and outpatient services planning process. The full strategic plan is expected to launch to provide care through low-capital networks and partner- by December 2017. ships while concentrating complex care on campus; and (3) maintaining strong financial performance by improving cost Stanford Medicine’s vision is to lead the biomedical revolution structure, developing capabilities to manage populations, and in precision health: to precisely predict, prevent, and cure. differentiating through consumer-facing technology. Precision health is a fundamental shift to proactive and per- sonalized health care that empowers people to lead healthy To recognize and enhance teaching and mentoring through- lives. Stanford Medicine is driving this transformation by out Stanford Medicine, the school has launched a Teaching leveraging the art and science of medicine to predict and pre- and Mentoring Academy with a competitive grant program vent disease before it strikes and cure it decisively if it does. and a faculty training bootcamp. It has also launched the Digital Medical Education International Collaborative (Digital Over the past year, a precision health committee, which MEdIC), which leverages its expertise in pedagogy and on- included many individuals across Stanford Medicine and the line education. With the goal of increasing global access to university, engaged in a thoughtful and collaborative process high-quality medical education, Stanford Medicine to develop a strategic plan for the vision. The committee iden- has begun conversations with potential partners in India, tified numerous interconnected and overlapping priorities, developing a strategic plan, and selecting a platform for including developing the science of behavior change, building disseminating content. a data system that learns from every patient engagement, and ACADEMIC UNITS 37

Nationally, effective levels of National Institutes of Health n With the merged pool projected return improvement funding have decreased over the last decade. Despite this, in 2016/17, endowment income, including new gifts, is the school has successfully maintained and grown its re- projected to increase 3.3%, and the EFP is projected to search funding. This in part is due to the recruitment of high- achieve the full payout. potential and highly prolific investigators and to the provision Expenses are projected to increase 9.3%, or $198.3 million, to of $5.2 million in seed grant funding to faculty from 2013 to $2,327.8 million in 2017/18. Major increases will result from 2016 to help ensure that the most innovative studies continue the following: to get supported. In the first two years of the program, the school distributed $3.7 million in seed grants; this investment n Net recruitment of 32 faculty is projected, 20 in the medi- has returned $20.0 million in new grant funding. Also boost- cal center line and 12 in the university tenure line. In addi- ing research efforts, Stanford Medicine was recently selected tion, 70 clinician educators are projected to join Stanford to be a founding member of two significant philanthropic Medicine in 2017/18. partnerships in biomedicine, the Chan Zuckerberg Biohub and n Annual total compensation for faculty, clinicians, and staff the Parker Institute for Cancer Immunotherapy. is anticipated to increase 10.6%. The main drivers are increases in clinical activity, incremental recruitment, and Despite the current challenging research funding environment the annual merit program. and political proposals that could create even greater uncer- tainty about future research funding, the school recognizes n Projected growth in sponsored research and health care the risks, and the current projections do not reflect an impact services revenue will drive related non-compensation ex- from these possibilities. penses higher. Rent expenses are also expected to rise as rent abatement for one leased facility ends in 2016/17 and CONSOLIDATED BUDGET OVERVIEW the full-year impact of another lease begins in 2017/18. The school projects total revenues and transfers of $2,459.8 Transfers of $28.2 million to plant include projects for Center million in 2017/18 and expenses of $2,327.8 million, yield- for Academic Medicine I (CAM 1), the Stanford Oak Garden ing an operating surplus of $132.0 million. After transfers to Children’s Center, and Li Ka Shing Center Renovation Phases plant and funds functioning as endowment (FFE) of $43.8 2 and 3; entitlement payments to the City of Palo Alto; and re- million, the net change in current funds is $88.2 million. The turn of bridged funds on the Lorry I. Lokey Stem Cell Research major growth areas are health care services and sponsored Building and the lease on 1520 Page Mill Road. Transfers to research, and investment income as payout to the expend- assets include investments by departments to FFE. able funds pool (EFP) in 2017/18 is projected to improve from the prior year. Offsetting this growth is the expected CAPITAL PLAN decline in patent revenues from the expiration of a key patent The school’s two new buildings, BioMedical Innovations in 2015/16. Building 1 (BMI 1) on Pasteur Drive and CAM 1 on Quarry Road, are on schedule to complete by 2020. The CAM 1 Total revenues and transfers are projected to increase 9.2%, project will begin preconstruction activities during summer or $207.8 million, to $2,459.8 million in 2017/18. Key drivers 2017 and will add 170,000 square feet of offices, conference include the following: spaces, and other amenities. The project also includes the n The school renewed a five-year funds flow agreement with construction of an underground parking garage with over 800 SHC in 2015/16 and renewed its agreement with SCH parking spaces along with the adjacent 10,000-square-foot in 2016/17. The funds flow changes will spur growth of Stanford Oak Garden Children’s Center. The total project cost 12.7%, or $128.8 million, in health care services revenues, is estimated at $230.4 million, jointly funded by the school, which will reach $1,145.4 million in 2017/18. This growth SHC, and SCH. BMI 1 preconstruction activities commenced is driven by a continued increase in clinical program activi- during winter 2016, with full construction to begin in spring ties and by incremental faculty and clinicians. 2017. The project will add 215,500 square feet of research n Continued faculty recruitment leads to a projected 6.1% space at an estimated cost of $210 million. increase in combined federal and non-federal sponsored research, 5.1% in federal and 9.0% in non-federal. 38 ACADEMIC UNITS

VICE PROVOST AND DEAN OF RESEARCH

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 $237.2 Million ACTUALS PROJECTION PLAN Other 6% Total Revenues 228.7 269.8 237.2 Auxiliary Income 2% General Funds 27% Expenses Affiliates 2% Salaries and Benefits 122.7 126.2 132.4 Non-Salary 102.9 115.2 101.5 Total Expenses 225.7 241.4 234.0

Sponsored Operating Results 3.0 28.4 3.2 Research Gifts Transfers From (to) Endowment & 34% 13% Other Assets 7.5 4.8 4.8 Transfers From (to) Plant 0.0 (8.7) (1.5) Endowment Payout 16% Surplus / (Deficit) 10.5 24.4 6.5 Beginning Fund Balances 183.7 194.2 218.6 Ending Fund Balances 194.2 218.6 225.1

The Office of the Vice Provost and Dean of Research (DoR) n Providing state-of-the-art shared facilities; is responsible for facilitation of faculty research and scholar- n Minimizing compliance and administration burdens for ship across all of the schools and departments and serves faculty and staff; and as cognizant dean for the 18 university-wide independent n Mitigating research-related safety risks. laboratories, institutes, and centers. These “institutes” pro- vide intellectual and physical environments for research that Stanford and SLAC are establishing a new Cryo-Electron invite scientific and scholarly dialogue, facilitate interdisci- Microscopy (cryo-EM) Center to be located at SLAC. plinary collaborations, support policy-relevant research, and Advances in the design of cryo-EM instruments during the increase the success of faculty in obtaining research funding. past few years have created remarkable new opportunities The office has oversight for the implementation of research to study cellular structures and their constituent proteins policies and manages the compliance and administrative of- and other molecular interactions at a level of precision not fices that support research. DoR also oversees major shared previously possible. The impact of this development is trans- facilities that support a broad range of research and scholarly formative for biology and biomedical sciences. Stanford and activities. SLAC are exceptionally well positioned to exploit this recent breakthrough and create a world-leading center for cryo-EM.

PROGRAMMATIC DIRECTIONS The independent institutes are launching several new in- Through all of its activities, DoR seeks to support faculty com- terdisciplinary initiatives. Bits & Watts is a new Precourt petitiveness in research and scholarship. This is particularly Institute for Energy initiative focused on innovations for the important as obtaining extramural funding becomes increas- 21st-century electric grid. A new grid paradigm is needed ingly challenging. It will pursue this goal through the following to incorporate large amounts of clean power and a growing four program objectives in 2017/18: number of distributed energy resources, while simultaneously enabling grid reliability, resilience, security, and affordability. n Creating opportunities for interdisciplinary research The Stanford Institute for Economic Policy Research (SIEPR) through the independent laboratories, institutes, and launched a predoctoral research fellows program for recent centers; ACADEMIC UNITS 39

graduates who are considering a PhD to work closely with equipment expense and transfers to DoR. Equipment pur- one or more faculty and take one Stanford course per quarter chases and transfers to DoR are therefore expected to be before applying to graduate school. The Woods Institute for significantly lower in 2017/18. As a result, total expenses the Environment is hosting a Young Environmental Scholars in 2017/18 are expected to decrease overall by $7.5 million, Conference that will allow graduate students and postdoctor- or 3%. al scholars to present their research in a novel interdisciplin- ary context that brings together graduate-level researchers CAPITAL PLAN from all seven schools. The SNI and the Chemistry, Engineering and Medicine for Human Health Institute (ChEM-H) will reside in a new CONSOLIDATED BUDGET OVERVIEW 235,000-square-foot facility. This facility will be home to The 2017/18 consolidated budget for DoR shows total rev- more than 40 laboratories, core research facilities, and enues and transfers of $237.2 million and expenses of $234.0 meeting spaces. It is strategically located proximate to engi- million, resulting in a net operating surplus of $3.2 million. neering, medicine, and the basic sciences. Strong connecting After estimated transfers of $3.3 million from assets, DoR pathways among the Neuro/ChEM-H Research Complex, the projects a planned surplus of $6.5 million. Science and Engineering Quad, the Bass Biology Building, and Bio-X are integral to the design. Stanford Neurosciences Institute (SNI) received an unplanned endowment gift of $54 million and an expendable gift of $29 The research center will comprise two main buildings. Each million for program support in 2016/17. If the one-time gift building will have four floors, one below grade and three of $29 million to SNI is removed as an outlier from 2016/17 above, with laboratory, meeting, and communal spaces revenues, the total revenue in 2017/18 is projected to increase throughout the building. The labs are designed to be highly by $5.5 million, or 3%, from 2016/17. This is primarily due flexible, accommodating a wide variety of research approach- to increases in endowment payout ($2.3 million) generated es, including cell and molecular biology, electrophysiology from the new endowment in SNI, gift revenue ($1.1 million), and behavior, imaging and microscopy, human neuroscience and non-federal research ($1.5 million), driven by the exten- and engineering, and theoretical and computational neuro- sion of the Global Climate and Energy Project activity through science. Each neighborhood of three to five labs will share a 2018/19 and an increase in sponsored funding for new senior common space adjacent to lab support rooms for specialized fellows in SIEPR. Federal sponsored research is expected to equipment and procedures. The project cost is $257 mil- remain at the same level ($47.1 million), based on historical lion and is being funded by gifts and institutional support. trends over the past five years. Construction of the buildings began in winter 2017 and is scheduled for completion in spring 2019. The Titan Krios G2 equipment purchases totaling $15 mil- lion in 2016/17, $10 million of which was unplanned, inflated 40 ACADEMIC UNITS

VICE PROVOST FOR UNDERGRADUATE EDUCATION

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 $64.3 Million ACTUALS PROJECTION PLAN Other 3% Total Revenues 63.2 63.8 64.3 Auxiliary Income General Funds 6% 38% Expenses Salaries and Benefits 36.7 37.7 39.7 Non-Salary 25.4 26.8 25.8 Total Expenses 62.2 64.5 65.5 Operating Results 1.0 (0.8) (1.2) Endowment Transfers From (to) Endowment & Payout Other Assets 0.2 0.0 0.1 49% Gifts Transfers From (to) Plant 0.0 0.0 0.0 4% Surplus / (Deficit) 1.2 (0.8) (1.1) Beginning Fund Balances 20.3 21.5 20.7 Ending Fund Balances 21.5 20.7 19.6

Revenues and expenses in this chart and table include $16.4 million of activity that is accounted for as operating transfers in Appendix A.

PROGRAMMATIC DIRECTIONS produce profound and yet-unknown changes in undergradu- ate education, along with a concomitant call for additional The Office of the Vice Provost for Undergraduate Education financial resources to implement these changes. Rethinking (VPUE) functions as the heart and conscience of undergradu- liberal education will require a willingness to shed some ate education at Stanford, advocating for undergraduates previously held assumptions about both what is taught and and partnering with faculty, staff, and students to educate how it is taught. It will involve a commitment to develop new knowledgeable, engaged citizens and creative, confident lead- pedagogies that more actively capitalize on social and racial ers. VPUE resources are aimed at connecting students with differences, and that integrate attention to student well-being opportunities at Stanford, involving faculty with undergradu- and creative confidence into academic progress from the out- ate education, and realizing fully the vision of a broad liberal set rather than as a concern “outside” the classroom. education. VPUE’s strategic planning process has coalesced around three critical themes under the broad umbrella of re- In an initiative that is new this year and salient to efforts thinking liberal education: transforming the pivotal first-year/ to reaffirm the residential experience, VPUE has led the sophomore experience, expanding experiential education, and Residential Cabinet through its residential programs faculty reaffirming residential education. director, James Campbell. The Residential Cabinet, composed of five vice provosts, brings together university leaders oper- Notably, VPUE’s mission and strategic initiatives have been ating in the residential arena to ensure broad, coherent stra- significantly impacted by a rapidly evolving cultural and tegic vision, consistent oversight, and a more robust faculty academic environment from which the major challenges fac- presence. The cabinet presented its consolidated vision to ing undergraduate education at Stanford emerge. Stanford the Budget Group this past winter, demonstrating synchron- undergraduates, gifted and capable as they are, are decidedly icity by reallocating resources across organizational lines to different from incoming classes of 5 to 10 years ago in terms achieve priorities. In 2017/18, next steps will include forming of their intellectual interests, scholarly preparation, socioeco- a faculty advisory board to oversee processes for creating, nomic backgrounds, and engagement with technology. sustaining, and, where necessary, sunsetting residential Given these realities, the university’s comprehensive and sys- programs. In addition, a residential learning environments tematic process of long-range planning has the potential to ACADEMIC UNITS 41

working group will be created to ensure effective collabora- lenges in attracting students and faculty in residence as well tion in designing and allocating residential spaces. Finally, as difficulties with academic programming, the BOSP faculty VPUE will begin preparing for a second integrated learning director decided to suspend the Beijing program for 2017/18. environment—a living/learning program for first-year stu- VPUE remains committed to overseas study programs in Asia dents—focused on issues of social justice and diversity. and will support BOSP’s exploration of new programming for next year. BOSP will reexamine Beijing and will also consider VPUE’s newest pilot in experiential learning, the Stanford in potential alternate locations such as Shanghai. New York program, launched a quarter focused on media and finance this past winter. Through an intensive academic CONSOLIDATED BUDGET OVERVIEW quarter of study, reflective practice, and experiential learning, students hone their intellectual skills and capacities, develop The 2017/18 consolidated budget shows total revenues and their abilities as adaptive learners, and increase their creative operating transfers of $64.3 million and expenses of $65.5 confidence. New York also provides unparalleled opportuni- million, yielding an operating deficit of $1.2 million. Revenues ties for students to engage in internships in dynamic organi- and transfers are expected to increase by $0.5 million from zations, including educational, arts, and cultural institutions; 2016/17, due mainly to slight improvements in endowment government and public agencies; social service organizations; payout, increases in base and one-time general funds, and and corporations. In 2017/18, Stanford in New York will ex- the first approved increase to New Student Orientation fees pand to three quarters. The new spring quarter will focus on in nine years. Expendable gifts are expected to decrease by New York as a global city and will feature internships in and $230,000 from 2016/17 as Innovation Fund and other high- around issues of global development, including at the United dollar pledges tail off. Nations. Student response and other program evaluation Expenses are expected to grow by $1.0 million, due primar- measures continue to be very positive. ily to operational costs related to adding a third quarter to The class of 2017 will be the first class to graduate fulfill- the Stanford in New York program and increases to support ing the Ways of Thinking/Ways of Doing (Ways) breadth undergraduate research. This year, VPUE applied results of requirements. The Ways concept shifted the undergraduate a three-year expense category analysis to control non-com- program from a disciplinary breadth model to a focus on es- pensation cost growth of continuing programs. Vice Provost sential capacities, which may be attained outside or within Office expenses were reduced 1.6%. VPUE’s other units the major. The Ways requirements aim to integrate general contained their cost rise to less than 3%. Working with the education more comprehensively with student experiences, Office of the Treasurer, VPUE and BOSP financial leadership to provide a persuasive rationale for academic exploration, took advantage of the strong dollar to lock a currency hedge and to give students the flexibility to pursue topics of inter- early for 2017/18, resulting in $831,000 of anticipated savings est across a broad array of course options. VPUE financially in BOSP operating expenses. supports academic departments expanding Ways offerings, VPUE’s financial strategy is to sustain base programs, to pilot particularly in areas with capacity concerns such as Creative new initiatives, and to assess their educational outcomes. Expression and Ethical Reasoning. VPUE has partnered with VPUE has funded pilot programs with one-time university Institutional Research & Decision Support to understand funds and expendable gifts and sustained core programs better how students fulfill their Ways requirements and the through endowment payout and general funds. Each year, implications of these choices. VPUE assesses several of its pilot programs, looking at their In 2016/17, the Bing Overseas Studies Program (BOSP), achievement of educational aims and their cost-effectiveness. VPUE’s flagship program in experiential learning, underwent This process has led VPUE to alter, strengthen, expand, and two significant programming changes with budgetary impli- even sunset programs. cations. With the assistance of the provost, BOSP offered VPUE’s fund balance is expected to be $20.7 million begin- summer financial aid to undergraduates attending summer- ning in 2017/18, with approximately half of that unrestricted. quarter programs in Santiago and Cape Town. Summer enroll- Fund balances will absorb the deficit for 2017/18. ments subsequently doubled. Also in 2016/17, due to chal- 42 ACADEMIC UNITS

VICE PROVOST FOR GRADUATE EDUCATION

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 $43.7 Million ACTUALS PROJECTION PLAN Total Revenues 39.7 40.8 43.7 General Funds 20% Expenses Endowment Salaries and Benefits 3.6 4.4 4.9 Payout for Graduate Student Support 35.5 36.3 38.3 Graduate Fellowship Non-Salary 1.9 2.5 2.6 80% Total Expenses 41.0 43.2 45.9 Operating Results (1.3) (2.4) (2.1) Transfers From (to) Endowment & Other Assets (0.3) (0.3) (0.3) Transfers From (to) Plant 0.0 0.0 0.0 Surplus / (Deficit) (1.6) (2.6) (2.4) Beginning Fund Balances 56.2 54.6 52.0 Ending Fund Balances 54.6 52.0 49.6

Revenues and expenses in this chart and table include $33.2 million of activity that is accounted for as operating transfers in Appendix A.

PROGRAMMATIC DIRECTIONS to create realistic physical models of rocks that are difficult to access in person. The Stanford Interdisciplinary Graduate The Vice Provost for Graduate Education (VPGE) plays a key Fellowships (SIGFs) have also gained momentum with 170 leadership role, working collaboratively across the university’s fellowships awarded. These graduate students are advancing seven schools, in enhancing the quality of graduate educa- knowledge in unanticipated ways, even defining new lines of tion for 9,300 students pursuing degrees in more than 200 inquiry. SIGF alumni are now teaching or conducting research graduate degree programs and departments. VPGE addresses at institutions such as Princeton, Yale, Harvard, Duke, MIT, several critical university priorities. VPGE administers seven and Berkeley, in addition to working in industry, government, university-wide fellowships; fosters innovation by providing and the nonprofit sector. VPGE programs and staff support opportunities for students’ professional development; and the fellows’ pursuit of pioneering research interests that span serves as a catalyst for supporting innovative initiatives within disciplines and help them prepare for uncharted interdisci- graduate programs, advancing diversity, and facilitating inter- plinary career trajectories. disciplinarity. VPGE’s programs and fellowships reach roughly 4,500 graduate students (over 800 on fellowships) annually. VPGE fellowship funding will increase 8% from 2016/17 to 2017/18, despite minimal growth in endowment payout. The The largest university-wide fellowship program is the number of SGFs will remain constant. The SIGF program, on Stanford Graduate Fellowships (SGF) Program in Science and the other hand, will be growing as pledge payments are re- Engineering, used to attract the best students in the world to ceived. The number of SIGFs will increase until the program doctoral study in these fields at Stanford. More than 1,500 goal of awarding 33 new fellows per year is reached. After SGFs have earned doctoral degrees so far. These prestigious the next few years, the number of fellowships awarded may three-year fellowships have encouraged creative approaches require adjustment if endowment income does not bounce to global problems—approaches such as building highly back. Fellowship stipend and tuition amounts will increase efficient solar-powered batteries; developing a chemical by 3.5% next year. Fund balances will cover this expected catalyst to make biodegradable plastics from organic, renew- increase in graduate student support. able materials; and combining 3-D imaging and 3-D printing ACADEMIC UNITS 43

A top priority for VPGE is to provide innovative programs in CONSOLIDATED BUDGET OVERVIEW collaboration with Stanford’s seven schools to recruit stu- VPGE projects a 2017/18 consolidated budget with total dents from diverse backgrounds and enhance their education- revenue and transfers of $43.7 million and expenses of $45.9 al experiences while at Stanford. The Diversifying Academia, million, resulting in an operating deficit of $2.1 million. After Recruiting Excellence (DARE) Doctoral Fellowship Program asset transfers of $0.3 million, an overall deficit of $2.4 mil- for advanced PhD students has become nationally known, lion is expected. with 166 fellows. Seventy-five percent of DARE alumni work in the academic sector; recently two have won prestigious early- Revenues and transfers comprise mostly endowment pay- career awards, and two have already become tenured faculty. out and general funds. For these two majority components, In addition, VPGE has scaled up the Enhancing Diversity in endowment payout is expected to be $35.1 million, and $8.4 Graduate Education (EDGE) Doctoral Fellowship Program, million is expected from general funds. After transfers of which supports incoming PhD students in five of Stanford’s $400,000 to departments for SCORE (Strengthening the seven schools. EDGE provides mentoring and professional Core) and SPICE (Stanford Program on International and development resources to support the academic success of Cross-Cultural Education) funding, revenues and transfers doctoral students in their first two years, with ongoing ac- total $43.7 million. cess to research funds. A new initiative awards Diversity and Consolidated expenses comprise 86% direct graduate Inclusion Innovation Funds on a competitive basis to graduate student support, 10% compensation and benefits, and 4% students and postdocs across the university. This fund was a programmatic non-compensation expenses. VPGE will prototype for the university-wide fund just launched by the provide $38.3 million in direct graduate student funding for Diversity Cabinet. several fellowship programs in 2017/18, an increase of ap- This year VPGE continued to focus on developing new re- proximately 6% from $36.3 million in 2016/17. Tuition and sources open to all graduate students under the banner of salary/stipend rate increases and student growth in fellow- Graduate Professional Development (GPD). These resources ships and programs drive this increase. Compensation and include expanded initiatives in leadership development and non-compensation expenses are expected to increase slightly preparation for faculty careers. The GPD framework itself to $4.9 million and $2.6 million, respectively. has become a more sophisticated interactive tool, and more Most of VPGE’s graduate student funding is identified as graduate students are using it to assess their skill levels, de- transfers from its endowment accounts to school/department termine priorities for gaining proficiency, and locate resources operating budgets. The budget plan is to spend down the at Stanford—many of which are provided by VPGE. The major consolidated fund balance, using reserves to cover additional domains are specialized content knowledge and skills, teach- expenses for graduate student funding and programs as well ing, communication, leadership and management, career as anticipated declines in endowment income for multiyear development, and personal development. Where possible, fellowships. This will reduce the consolidated fund balance to programs are recorded for a video archive, to be available for $49.6 million at year-end. asynchronous use. VPGE’s funding to graduate students and operational expens- VPGE is in a strong financial position, leveraging and extend- es will continue to increase as both ongoing programs and ing its reach with innovative programs and graduate student new pilot programs are selectively extended to reach more funding across the university. January 2017 marked the 10th graduate students in new ways. Over the next three years, anniversary of VPGE’s founding. As VPGE takes stock and forecast models indicate consolidated deficits of $2.5 million plans for the future, it will seek input widely from across the annually. Fund balances will be used to cover the deficits, university community to learn what is most valued and what ultimately bringing the consolidated fund balance to $40.7 more can be done to enhance graduate education and gradu- million by 2019/20. Funding commitments will continue to ate students’ experiences over the next decade. be determined based on how they can best meet university priorities. The use of reserves will be monitored as decisions are made about program offerings in light of feedback from long-range planning. 44 ACADEMIC UNITS

VICE PROVOST FOR TEACHING AND LEARNING

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 $39.5 Million ACTUALS PROJECTION PLAN Total Revenues 38.4 42.7 39.5 Executive General Funds Expenses Education/ 38% Salaries and Benefits 24.0 24.1 25.0 Other 62% Non-Salary 21.0 17.9 15.0 Total Expenses 45.0 42.0 39.9 Operating Results (6.6) 0.7 (0.5) Transfers From (to) Endowment & Other Assets 0.6 0.0 0.0 Transfers From (to) Plant 0.0 0.0 0.0 Surplus / (Deficit) (6.0) 0.7 (0.5) Beginning Fund Balances 15.4 9.3 10.0 Ending Fund Balances 9.3 10.0 9.5

The Office of the Vice Provost for Teaching and Learning PROGRAMMATIC DIRECTIONS (VPTL) broadly supports teaching and student learning Like much of the rest of the university, in 2017/18 VPTL across all of Stanford’s programs. VPTL’s mission in support will be engaged in Stanford’s long-range planning effort. of faculty-led programs and initiatives is to help Stanford Additionally, VPTL will evolve its infrastructure to support invent the future research university by supporting teaching emerging programs and seek to understand the needs of and learning innovation for undergraduate, graduate, profes- future learners. sional, and lifelong learning. VPTL’s activities and services draw on core competencies in pedagogy, technology, learning Evolving VPTL’s Infrastructure to Support environments, academic business development, and coopera- Emerging Programs tive action. Combining several organizations since 2015, VPTL is focused In 2016/17, VPTL joined forces with the Stanford Center for on supporting effective pedagogy in all programs and exam- Professional Development (SCPD), formerly housed within ining ways to evolve its infrastructure to gain operational the School of Engineering. This move positioned every school efficiencies. Specifically, VPTL staff are increasing campus in the university to embark on bigger and broader educa- services around communications; evolving digital strategies, tional initiatives that require a rich mix of capabilities. The including course delivery, platforms, and modes; and vision- year 2016/17 also marked the completion of the learning ing for the redesign of Stanford’s centrally held classrooms. management system transition from CourseWork to Canvas, In 2017/18, VPTL will embark on an infrastructure project consolidation of VPTL’s student services into the newly cre- that will enable schools to manage a catalog of offerings for ated Lathrop Learning Hub, and experimentation with a new lifelong learners that can be displayed both at online.stanford. coordinated public engagement model initially focused on the edu and at school sites. This effort will create a front door for presidential elections. external learners, allow Stanford’s knowledge and expertise to be disseminated more broadly, engage learners around the globe, and drive website traffic to programs within schools and departments. ACADEMIC UNITS 45

VPTL also has the opportunity to optimize the university’s Guided by a faculty advisory board, VPTL will codefine and approach to course delivery using a range of media, from facilitate a range of collaborative initiatives and programs recorded lectures to studio- and on location–produced around the topic of future learners. VPTL will partner with courses created collaboratively by faculty and VPTL’s in- appropriate schools and academic support units to involve structional designers. In doing so, VPTL proactively leverages students, faculty, and staff in purposeful engagement around faculty time by ensuring that their online course content issues impacting Stanford and higher education more broadly. reaches as many audiences as effectively as possible. VPTL Programming will be designed to promote scholarly inquiry, will identify the most efficient combination of digital plat- meaningful dialogue, and thoughtful listening. It will take forms to enable course delivery to the full range of online and several forms: panel discussions, learning symposia, student- on-campus learners. centered special projects, field trips, and more. Aspects of programming will engage the broader U.S. and international In the future, VPTL expects that lecture classes will increas- higher education community. ingly be complemented by classes that use other, more active and participatory learning modalities and have high levels of CONSOLIDATED BUDGET OVERVIEW instructor/student and peer interaction. The classrooms that support these models require more space and more flexibility The 2017/18 consolidated budget for VPTL projects total than the majority of Stanford’s traditional classrooms provide. revenues of $39.5 million and expenses of $39.9 million, re- As experts in design of conventional and innovative learning sulting in a planned net operating deficit of $500,000. VPTL spaces, VPTL staff will participate in new classroom design will be in the final year of transition from presidential start-up and renovation with the schools and Land, Buildings and Real funds to general funds at $1 million per year. Estate (LBRE) to ensure new learning modalities are consid- Total revenues in 2017/18 are projected to decrease by $3.2 ered in these projects. VPTL will also work with the schools million, or 7.6%, from 2016/17. This decrease is primarily due and LBRE to develop a roadmap for the thoughtful redesign of to the sunsetting of two large professional certificate pro- strategically selected centrally managed classrooms. grams within SCPD in 2016/17. It also reflects the $1 million in one-time presidential support provided in 2016/17 for the Understanding Future Learners 408 Panama Mall studio fit-up. VPTL recognizes that each generation of learners is different. Students today are increasingly invested in personal meaning Total expenses in 2017/18 are projected to decrease by $2.1 and public service. This is reflected in the Stanford 2025 slo- million, or 4.9%, from 2016/17. Compensation expenses gan “Find a mission, not a major.” Millennials will change jobs are projected to increase by $877,000, or 3.6%, but VPTL six times between ages 22 and 32. They grew up with 9/11, anticipates slightly fewer fixed-term and contingent posi- the great recession, internet connectivity, and social media. In tions in 2017/18. Non-compensation expenses are projected an environment of rapid change and plentiful digital informa- to decrease by $2.9 million, or 16.4%, due primarily to the tion, today’s learners need critical thinking skills, the ability completion of the studio fit-up at 408 Panama Mall and the to reason from evidence, skill in navigating noisy sources of reduction of external partner payments related to the ending sometimes unreliable information, the ability to collaborate of two large programs at SCPD. effectively with others, and interdisciplinary problem-solving VPTL expects to have a $9.5 million fund balance. VPTL skills. In 2017/18, VPTL will investigate with its campus plans to utilize this balance to support the planned deficit, partners what kinds of educational tools, pedagogically program development for residential and online students, innovative techniques, and learning assessment Stanford and a technology reserve to refresh its technology-rich spaces should offer its students to best equip them to develop their throughout campus. full potential, lead fulfilling lives, and be productive citizens in tomorrow’s society. 46 ACADEMIC UNITS

HOOVER INSTITUTION

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] $68.6 Million 2015/16 2016/17 2017/18 ACTUALS PROJECTION PLAN Other 4% Sponsored Research General Funds 1% Total Revenues 60.4 63.2 68.6 2% Expenses Salaries and Benefits 41.3 43.0 47.2 Non-Salary 22.3 23.7 24.9 Endowment Gifts Payout 52% Total Expenses 63.6 66.8 72.1 41% Operating Results (3.2) (3.6) (3.4) Transfers From (to) Endowment & Other Assets 2.4 0.0 0.0 Transfers From (to) Plant (20.0) 0.0 0.0 Surplus / (Deficit) (20.8) (3.6) (3.4) Beginning Fund Balances 66.8 45.9 42.3 Ending Fund Balances 45.9 42.3 38.9

PROGRAMMATIC DIRECTIONS ority. Hoover will focus on recruiting the people necessary to advance its mission and to advance scholarship in related so- The Hoover Institution seeks to generate ideas from its fel- cial science and humanities disciplines, while de-emphasizing lowship, collect knowledge in its library and archives, and research in areas outside the institution’s core focus. To this communicate such knowledge and ideas to a broad audi- end, Hoover will develop a more rigorous recruiting process ence, particularly undergraduate students at Stanford and within the next year, with the goal of adding one net new full- elsewhere. A strategic planning process is currently under time senior fellow per year. For 2017/18, the budget includes way to provide direction for the institution as it enters its one new fellow specializing in China. second century. Operational plans are being developed to achieve pre-eminence for the institution as a public policy Hoover continues to view the convening of scholars to tackle research center; a collector of materials on social, political, changes in public policy as an essential function. The primary and economic change in the 20th and 21st centuries; and an mechanisms for gathering these teams are conferences and educator on policy issues—broadly speaking, to focus on its seminars. The institution will expand on existing efforts in core mission of research and education. The broad outlines this area, not only on the Stanford campus but in Hoover’s of this strategic plan inform the program and budget plans Washington, D.C., offices as well. It will place renewed em- for 2017/18. In the next fiscal year, the institution will see phasis on producing output intended to reach and impact additions to the fellowship and research program, growth audiences beyond those able to attend these meetings. in the collection of archival materials, improvements in ac- Program activities for scholar groups studying labor produc- cess for the library and archives, and further expansion of a tivity, immigration reform, climate change, and structural broad education program. Development and consolidation of macroeconomic modeling are in the plans for 2017/18. administrative services and fundraising activities will scale Hoover plans to grow specific collecting areas in support of relative to the needs of the expanded Hoover program. the mission, building on core strengths and expanding into The strength of Hoover’s research program lies in the excep- new areas of strategic interest to scholars and policy mak- tional ability of its scholars; thus, identifying and attracting ers. For 2017/18, Hoover will expand its collecting efforts leading academics to refresh the fellowship will be a key pri- ACADEMIC UNITS 47

in the Middle East and North Africa and in Japan’s modern the development function. Expendable gifts are expected to diaspora. Technology enhancements will expand access to grow significantly, increasing by $4.0 million over 2016/17. Hoover’s collections. Hoover plans to leverage its recently Expense growth is expected to track with revenue growth, implemented content management system to deliver col- increasing by $5.3 million, or 7.9%. Real growth of expenses lections to a broad online public. As a complement to this is concentrated in areas where large restricted balances have new infrastructure, Hoover is proceeding with digitization on accumulated due to past fundraising successes. Fundraising two fronts: (1) digitizing its most important and endangered has preceded expenditures in these areas, with significant sound, video, and paper collections in house; and (2) work- prepayment of long-range pledges building restricted re- ing in partnership with international and U.S. institutions and serves. The deficit between current revenues and expenses with private-sector companies on larger-scale projects. The will result in drawdowns of these accumulated balances. project currently under way to digitize 5,000 rare newspaper titles held by Hoover and Stanford University Libraries is a Expense growth will be limited to available revenue and is relevant example of these partnerships. expected to occur primarily in the following areas:

As education is an essential function for Hoover, the institu- n One new fellow appointment is budgeted, with the ad- tion continues to look for opportunities to disseminate its ditional support staff and research funds required. In work more broadly. The Educating Americans in Public Policy conjunction with this appointment and other recent fellow initiative is intended to translate the research of Hoover’s fel- additions, research activity will increase. lows into accessible, shareable content. In 2017/18, Hoover n Increased expenses for professional services, scholar will leverage the recently launched PolicyEd.org website to ex- payments, and general program costs for the Educating pand its offerings of short videos, edited and augmented seg- Americans in Public Policy initiative will continue in ments of online courses, and digital communities to inform 2017/18. the public on matters of public policy. Locally, the David and n The new David and Joan Traitel building will incur costs Joan Traitel Building opening later this year will provide op- for operations and preventive and deferred maintenance. portunities to engage with the broader Stanford community, Rental income is expected to partially offset new costs. especially undergraduates. This summer, Hoover will use this new facility to host an inaugural Summer Policy Bootcamp for n New staff is anticipated in the administrative and develop- undergraduates, a one-week intensive program led by Hoover ment functions to support growth in other areas. scholars. Continuation of this bootcamp is in the budget for 2017/18. Finally, Hoover plans to expand upon its current CAPITAL PLAN educational programs (Cyber Bootcamp, Congressional Based on findings from a Master Plan study, Hoover deter- Fellowships, Leadership Forum, Media Fellowships, and mined a need to make improvements to fellow office spaces Media Roundtables) to reach new audiences. and Library and Archives facilities and storage; to create a single secure point of entry for visitors; and to better con- CONSOLIDATED BUDGET OVERVIEW nect existing buildings. The current plan calls for renovating major interior portions of the Herbert Hoover Memorial and For 2017/18, Hoover projects revenues of $68.6 million and Lou Henry Hoover buildings, as well as select areas of Hoover expenses of $72.1 million, for an operating deficit of $3.4 Tower. The project is estimated at $93.2 million and will be million. Net of these results, end-of-year fund balances are funded locally by Hoover. Due to recent planning discussions, expected to be $38.9 million, with reductions occurring pri- the option of demolishing existing buildings and replacing marily in restricted reserves. them with new facilities is being considered, with a final Revenues are projected to increase by $5.4 million, or 8.6%, determination expected later this year. A significant issue as- over 2016/17. While endowment income is expected to grow sociated with the project will be the identification of alternate by only 2.3%, Hoover is optimistic about accelerated expend- storage facilities for Hoover’s library and archive materials. able giving growth as an offset due to recent investments in 48 ACADEMIC UNITS

STANFORD UNIVERSITY LIBRARIES

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 $89.5 Million ACTUALS PROJECTION PLAN

Other 9% Total Revenues 84.8 89.8 89.5 University Press Expenses 8% General Salaries and Benefits 43.5 50.1 51.7 Sponsored Funds Research 62% Non-Salary 37.7 39.4 37.4 2% Total Expenses 81.2 89.5 89.1 Endowment Operating Results 3.6 0.3 0.4 Payout 18% Transfers From (to) Endowment & Gifts Other Assets (0.1) 0.0 0.0 1% Transfers From (to) Plant 0.0 0.0 0.0 Surplus / (Deficit) 3.4 0.3 0.4 Beginning Fund Balances 8.7 12.1 12.4 Ending Fund Balances 12.1 12.4 12.9

PROGRAMMATIC DIRECTIONS More locally, the libraries are partnering directly with faculty to support new pedagogical approaches. One excellent ex- The Stanford Libraries support students, faculty, and staff ample is the Massively Multiplayer Humanities project, which through an extensive set of research support services and allows larger classes than ever before to work hands-on with instructional programs, as well as the continued curation of original materials from the Stanford Archives and Special a world-class set of information resources. While collections Collections. Where in the past, history students might not in all their forms will always be a core focus of the libraries, have accessed these primary sources until their senior year, the service suite that they offer is expanding to include more this program is allowing large freshman classes to have the direct faculty engagement and interaction with the research experience. process. In addition, the libraries are actively engaged with peer institutions to extend the breadth and impact of that Facilities are central to the libraries service portfolio, as users service suite. look to library spaces both for access to collections and as places for private study and team collaboration. The newly As a founding member of the International Image opened Robin Li & Melissa Ma Library in the Sapp Center is a Interoperability Framework (IIIF) consortium, the libraries wonderful example of both. The library brings together collec- have brought together a global suite of institutions to sup- tions from biology, chemistry, math, and statistics in a single port and enable resource sharing in a way that supports facility and offers a spectrum of study spaces and classrooms all our programs. IIIF helps ensure that the Stanford Digital for students and faculty. Repository, which continues to expand in terms of both col- lections housed and use of materials, is leveraged to its fullest Returning to collections, this year the libraries have worked capacity and serves the global good. Similarly, the libraries extensively with the university’s Budget Office to review are partnering with colleague institutions to support the de- trends in pricing for library materials. For many years, prices velopment of linked data services that have the potential to for information resources have increased at a rate signifi- dramatically improve access to research. ACADEMIC UNITS 49 cantly exceeding the rate of inflation. This has in large part CONSOLIDATED BUDGET OVERVIEW been driven by dramatic increases in prices among for-profit Consolidated revenues and transfers are expected to total journal publishers; however, significant pressure has also $89.5 million. They consist of $55.2 million in general funds, arisen from the need to acquire more extensive data sets $10.5 million in auxiliary revenue and transfers, and $23.9 and from challenges around academic use of ebooks. In the million in restricted funds. Consolidated expenses are pro- future, the libraries hope this improved understanding of cost jected to total $89.1 million, resulting in an operating surplus drivers in the industry will allow more careful assessment of of approximately $400,000. Compensation expenses are appropriate budget levels. budgeted at $51.7 million, operating expenses at $13.7 million, Finally, the libraries continue to face challenges in recruiting and library materials acquisitions at $23.7 million. The base and retaining academic staff. This has been an ongoing con- budget for library material acquisition is projected to grow cern for some years, and the libraries continue to seek new about 4% from the 2016/17 level. approaches to attract the talented and qualified staff that are Fund balances at the end of 2017/18 are expected to be needed to continue to provide the innovative services that $12.9 million. The libraries project balances of approximately are the hallmark of the Stanford Libraries. As the university, $400,000 in the operating budget, $1.3 million in designated under its new president and provost, moves into a strategic funds, $1.6 million in restricted expendable funds, $5.3 million planning phase, recruitment and retention will be a key focus. in restricted endowed funds, $2.2 million in LOCKSS auxiliary reserves, and $2.1 million in LOCKSS auxiliary operations. The $400,000 in the operating budget will cover ongoing special projects that will conclude in 2018/19. 50 ACADEMIC UNITS

SLAC NATIONAL ACCELERATOR LABORATORY

2017/18 Consolidated Revenues [IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 $563.6 Million ACTUALS PROJECTION PLAN

University Funds Total Revenues 456.1 648.7 563.6 DOE 1% Expenses Construction Salaries and Benefits 191.7 190.1 193.4 Funds 42% Non-Salary 96.6 126.4 129.9 SLAC Construction 161.5 328.7 236.8 SLAC Fee Paid to Stanford 4.7 4.6 4.6 Total Expenses 454.5 649.7 564.6 DOE Research Funds Operating Results 1.6 (1.0) (1.0) 57% Transfers From (to) Endowment & Other Assets 0.0 0.0 0.0 Transfers From (to) Plant 0.0 0.0 0.0 Surplus / (Deficit) 1.6 (1.0) (1.0) Beginning Fund Balances 6.0 7.6 6.6 Ending Fund Balances 7.6 6.6 5.6

PROGRAMMATIC DIRECTIONS Scientific User Facilities Stanford University operates SLAC for the Department of SLAC’s user facilities draw more than 2,700 researchers from Energy (DOE) through a management and operating contract. around the world annually, with Stanford users representing SLAC has two primary, integrated strategic goals: innovat- more than 10%. The laboratory operates two X-ray scien- ing and operating premier accelerator-based facilities and tific user facilities: Linac Coherent Light Source (LCLS) and leveraging those facilities to develop new scientific pursuits. Stanford Synchrotron Radiation Light Source (SSRL). LCLS is the world’s first hard X-ray free electron laser (FEL). This facil- Stanford developed a new model contract for the manage- ity has transformed the field of X-ray science and positioned ment and operation of SLAC with the DOE in calendar year SLAC as a world-leading center for FEL science. In order to 2016. This new model, which is currently in the first year maintain pre-eminence, SLAC and DOE are constructing an of a three-year pilot at SLAC, tailors DOE requirements to upgrade to the facility (LCLS-II) that will expand the accelera- the circumstances and risk profile at SLAC. It also enables tor’s range of X-ray energies, significantly enhancing SLAC’s SLAC to take greater advantage of existing Stanford policies scientific capability and capacity. and systems. For example, the model allows SLAC to rely on Stanford’s cyber security policies and systems. The model is SSRL provides X-ray beams and advanced instrumentation expected to improve SLAC’s systems and flexibility and thus for research ranging from energy storage to drug discovery. A contribute to SLAC’s mission, and if the pilot is successful, large number of faculty groups from four of Stanford’s schools the model could be expanded to other national laboratories. pursue research enabled by SSRL. Stanford is contributing Separately, and independent of the development of this funding towards a new Macromolecular Crystallography new model, the Secretary of the Department of Energy has beamline, to be completed in 2017, which will enable struc- approved a contract extension for SLAC, to be effective tural biology research in areas of biomedical, biological, and October 1, 2017. bioenergy sciences. SSRL is also building an energy materials ACADEMIC UNITS 51

beamline that will further leverage materials research pro- forefront capability in integrated structural biology and grams at Stanford. imaging.

Another SLAC user facility, Facility for Advanced Accelerator n Computer science division at SLAC—Seed funding from Experimental Tests (FACET), completed its planned run SLAC, SoE, and the Dean of Research will fund faculty from in 2016/17 and has been successful with breakthrough Stanford’s Computer Science Department to support the science, especially in the area of plasma wakefield accel- extreme data management needs at SLAC. eration of electrons and positrons. FACET II, an upgrade n System prototyping facility—SLAC and SoE capabilities to FACET, received DOE approval in December 2015. will be joined to support electronic subsystem design for While the project is adversely affected by the 2016/17 con- cutting-edge research across campus. tinuing resolution, the lab has a mitigation strategy to keep it moving forward. CONSOLIDATED BUDGET OVERVIEW The 2017/18 SLAC consolidated budget projects expenses Science Programs of $564.6 million, which includes $322.6 million for direct SLAC recognizes that providing world-class research facilities research, $236.8 million for major capital projects, and $5.2 is not enough. To ensure that SLAC carries out the best sci- million for Stanford-related activities. ence, the laboratory must continually take a leadership role in identifying and pursuing new science opportunities. SLAC’s Consolidated expenses are expected to decrease 13.1% in core scientific competencies recognized by the DOE include 2017/18 from the $649.7 million projected for 2016/17 due accelerator science and technology, advanced instrumenta- to the construction spend profile of LCLS-II, which begins to tion, chemical and molecular science, condensed matter taper down in 2017/18. The direct research programs, how- physics and materials science, high energy density science, ever, reflect growth over the 2016/17 planned level consistent and particle physics. SLAC’s science directorate pursues with SLAC’s strategy of 2% growth by adding new sponsors part of its research through joint Stanford-SLAC institutes, to the traditional funding sources. including the Photon Ultrafast Laser Science and Engineering Included in the DOE contract is a $4.6 million performance Center (PULSE), the Stanford Institute for Materials and fee paid to the university for operations. In return, the uni- Energy Sciences (SIMES), and the SUNCAT Center for versity makes available to SLAC $1.9 million of general funds Sustainable Energy through Catalysis. The PULSE Ultrafast and $1.0 million of director discretionary funds. Electron Diffraction “electron camera” captures some of nature’s speediest processes, revealing trillionth-of-a-second CAPITAL PLAN motions of electrons and atomic nuclei. SIMES is develop- SLAC’s long-range development plan supports future scien- ing next-generation battery technologies, and SUNCAT is tific program direction by consolidating research activities, expanding carbon dioxide fuel research with a five-year, upgrading infrastructure, renovating facilities, and demolish- $7.5 million grant from the DOE’s Joint Center for Artificial ing substandard structures. This plan serves as a working Photosynthesis. The chemical sciences division is developing document and resource guide beyond the immediate future new programs in core-level X-ray spectroscopy, enabled by of planned capital projects. the capabilities of LCLS-II. SLAC also partners with Stanford to develop the following capabilities: SLAC has two major federally funded construction projects ongoing. The $1,045 million LCLS-II project builds on the n Macromolecular Structure Knowledge Center—Seed success of LCLS to ensure that the United States maintains a funding from Chemistry, Engineering and Medicine for world-leading capability for advanced research in energy, ma- Human Health and the School of Engineering (SoE) will terials, biology, and chemistry. The $168 million, 3.2-gigapixel enable SLAC to provide scientific expertise and state-of- Large Synoptic Survey Telescope (LSST) camera is the largest the-art equipment for the production, purification, and digital camera ever built for astronomy. It is currently under characterization of biological macromolecules. construction in Chile. The LSST will survey the entire visible n Cryo-electron microscopy—Stanford and SLAC are hir- southern sky every few days for a decade, providing a public ing a joint faculty member to build what will become a archive of data that will dramatically advance our knowledge 52 ACADEMIC UNITS

of dark energy and dark matter, as well as galaxy formation and potentially hazardous asteroids.

Additionally, SLAC is undertaking federally funded construc- tion to improve its infrastructure. The university-funded Photon Sciences Laboratory Building shell was completed by Stanford in December 2016, making way for the $57 million DOE-funded outfitting of the first two floors to commence in February 2017, with tentative occupancy in 2018. This high- performance, environmentally sustainable facility will include wet labs, dry labs, a characterization suite, and cleanroom spaces, as well as office and collaboration areas to support SLAC’s photon science mission. The DOE is also providing funding for improvements in SLAC’s utilities infrastructure to support the new major scientific facilities.

As part of the university’s major Residential & Dining Enterprises renovation plan over the next three years, ex- pansion of the Stanford Guest House, located at SLAC, is anticipated. SLAC’s desire is to have the expansion project completed by the time that LCLS-II transitions into operation in 2020. ADMINISTRATIVE & AUXILIARY UNITS 53

CHAPTER 3 ADMINISTRATIVE & AUXILIARY UNITS

his chapter focuses on initiatives and priorities in the administrative and auxiliary units of Tthe university. CONSOLIDATED BUDGET FOR OPERATIONS, 2017/18: ADMINISTRATIVE & MAJOR AUXILIARY UNITS [IN MILLIONS OF DOLLARS] TOTAL RESULT OF TRANSFERS CHANGE IN REVENUES AND TOTAL CURRENT (TO)/FROM EXPENDABLE TRANSFERS EXPENSES OPERATIONS ASSETS FUND BALANCE Administrative Units Business Affairs 235.9 236.7 (0.9) (0.3) (1.2) Office of Development 91.6 92.2 (0.7) (0.0) (0.7) General Counsel and Public Safety 42.2 42.4 (0.2) 0.0 (0.2) Land, Buildings and Real Estate 327.6 322.1 5.5 (6.2) (0.7) Offices of the President and Provost 119.7 114.5 5.2 0.6 5.9 Office of Public Affairs 4.3 4.3 0.0 0.0 0.0 Stanford Alumni Association 49.3 49.6 (0.3) 0.0 (0.3) Student Affairs 76.0 77.3 (1.2) 0.0 (1.2) University Communications 8.3 8.3 (0.0) 0.0 (0.0) University Human Resources 14.8 15.3 (0.5) 0.0 (0.5) Stanford Management Company 42.0 42.4 (0.4) 0.0 (0.4) Undergraduate Admission and Financial Aid 189.7 190.6 (0.9) 0.0 (0.9) Major Auxiliary Units Athletics 135.9 134.4 1.5 0.0 1.5 Residential & Dining Enterprises 267.2 269.1 (1.8) 0.0 (1.8) Total Administrative & Auxiliary Units 1,604.4 1,599.2 5.2 (5.9) (0.7)

2017/18 Consolidated Expenses by Administrative & Auxiliary Units

President & Provost 7% Business Affairs Athletics 15% 8% Admission & Other1 Administrative & Financial Aid 7% 12% Major Auxiliary Units Development & Academic $1,599.2 million Alumni 9% $4,806.8 million Residential & Dining 17% Student Affairs 5% Land, Buildings & Real Estate 20%

1 Other is Stanford Management Company, General Counsel & Public Safety, Public Affairs, University Communications, and University Human Resources. 54 ADMINISTRATIVE & AUXILIARY UNITS

BUSINESS AFFAIRS n Information Security—Provide security solutions such that Stanford has no incidents attributable to a lack of The Business Affairs organization provides administrative best practices. This is a multiyear initiative with two major infrastructure, systems, services, and support for the ben- initiatives focused on protecting high-risk data in 2017/18: efit of the university community. Business Affairs’ vision (1) implementing minimum security standards for all is, “Together we will make administration seamless and university-managed servers and applications handling efficient to enable and support teaching, learning and re- high-risk data, and (2) strengthening initial authentica- search.” Business Affairs units include Financial Management tion to third-party services, such as payroll and benefit Services (Controller’s Office, Treasurer’s Office, Purchasing partners. & Payments); University IT (IT Services, Administrative n Talent Development—In support of growing Business Systems, Information Security Office, UIT Shared Services); Affairs internal talent, continue a multiyear program for Office of Research Administration; Audit, Compliance, Risk staff development that includes exposure, experience, and Privacy; and Business Development. and education. Business Affairs is implementing a pilot The 2017/18 consolidated budget for Business Affairs shows program in which three employees will participate in revenues and operating transfers of $235.9 million and ex- yearlong rotational assignments. penses of $236.7 million. After an additional $300,000 in n Integrated Identity and Access Management Program— transfers to assets, total fund balances are projected to be Implement a modern, scalable identity and access man- approximately $34 million at the end of 2017/18, a use of agement solution that will be replicated in the cloud and $1.2 million. Reserves will fund one-time strategic priorities will replace the existing system. in operations and enterprise IT systems projects. n Evolve and Consolidate Financial Planning and Total expenses are projected to be 3% higher than in 2016/17. Reporting—Consolidate and update tools for financial Business Affairs is projecting FTE growth of 18 (2%) and management reporting, moving financial reporting content is absorbing $1.0 million of gift-processing activity previ- to OBIEE (analysis and Business Intelligence Publisher). ously handled by the Office of Development and Stanford This multiyear program is nearing completion and is ad- Management Company. Increased annual network and dressing campus hunger for comprehensive and reliable academic systems support costs are also projected. These financial reporting capability. increases are offset by decreases of $1.1 million in service n Communication/Collaboration—Partner with other center and IT systems project expenses due to completion units and the Chief Information Officer Council to evolve of one-time projects. Stanford’s integrated collaboration/communication solu- Revenues and transfers will increase by $7.0 million. The tion to include voice, video, and instant messaging in addi- increase is primarily from general funds and revenue growth tion to email and calendar, and to support robust solutions of 1%, offset by transfers to other units. Of the general funds among the main campus, Redwood City, and other remote increase, $4.8 million is growth in base, while $1.8 million sites.

relates to a modification of sources from internal revenue and n Purchase to Pay—Conduct a multiyear, multifocused transfers to general funds. The remainder is from increasing effort to improve in the spend management and purchas- networking and IT systems expenses. ing marketplace areas. Expanding from a pilot to regular Each year Business Affairs focuses on a specific group of operations, the office is focusing on establishing a collab- principal initiatives, many of which span multiple years, with orative approach to produce higher and more sustainable annual milestones and deliverables. These initiatives are levels of adoption. It has established a university-wide focused on continuous improvement in delivering excellent spend advisory board, which for the first time includes client service, making administrative processes and systems representation from SLAC and the hospitals. Procurement more efficient, and mitigating enterprise risk. is also introducing Amazon as the university’s purchasing marketplace, with built-in compliance that is simple and The top principal Business Affairs initiatives include the easy to use and requires little training. following: ADMINISTRATIVE & AUXILIARY UNITS 55

OFFICE OF DEVELOPMENT staff are retained and nurtured during the many phases of their careers. The Office of Development (OOD) projects revenues and n Support the university’s long-range planning process— transfers of $91.6 million and total expenses of $92.2 mil- With all units focused on the future, development staff are lion in 2017/18, resulting in the planned use of $712,000 being thoughtful about how best to organize and ready in reserves. OOD fund balances are anticipated to decline OOD for what comes after the process is complete. due to increased short-term investments in Earth, Energy & Environmental Sciences; Engineering; and other development n Engage volunteer leaders—OOD has launched a pilot programs. OOD’s main funding sources remain general funds called LEAD (Lifelong Engagement and Advocacy for and support from the School of Medicine and Stanford Health Development), a program aimed at identifying and inspir- Care for Medical Center development costs. ing future leadership volunteers, and will continue to focus on creatively involving volunteers in university life. Total expenses for 2017/18 are 9.1% higher than the 2016/17 n Develop systems and business processes that maximize year-end projection. Much of this growth results from a com- Stanford’s ability to engage donors and prospects in prehensive replacement of OOD’s IT infrastructure. timely, meaningful, and personalized ways—OOD is Both the 2016/17 year-end projection and the 2017/18 budget actively engaged with the Stanford Alumni Association have increased over previously reported figures because of to retire shared 20-year-old IT infrastructure and move to the transition of a department—the Office of Special Events Salesforce and other technologies. The ADAPT (Alumni and Protocol—from the Office of Public Affairs to the Office and Development Application Transformation) project of Development. launched in July 2015 and will take place over five years. It covers all aspects of OOD’s system needs, including In 2015/16, philanthropic support for Stanford University constituent management, communications, events, mar- reached $951.2 million, a figure that includes both of the keting automation, gift processing, reporting and business university’s affiliated hospitals. A decline from the prior intelligence, and stewardship. year was due in large part to receipt of significant gifts of art in 2014/15. Over half of all gifts made in 2015/16 were of $100 or less, which is a testament to the dedication of our GENERAL COUNSEL AND alumni and friends to the breadth of disciplines and activities PUBLIC SAFETY at Stanford. Office of General Counsel Looking ahead to 2017/18, OOD will remain actively engaged The Office of General Counsel (OGC) projects a balanced with existing and prospective donors to support key university budget of $18.9 million in 2017/18. Of this, $11.4 million is a and hospital priorities, including programs in the neurosci- direct pass-through for health care legal services, $2.6 million ences and Chemistry, Engineering and Medicine for Human is from university units that reimburse OGC for legal services Health; the Accelerator for Collaborative Engineering; ongo- on an annual basis, and approximately $5 million is general ing postcampaign priorities in Stanford Medicine; and the funds, including a carryforward of $300,000 from 2016/17. Stanford Institute for Innovation in Developing Economies Not included in these numbers is about $9 million for out- (Seed). OOD will invest general funds and reserves in critical side counsel fees that will be reimbursed by other university areas consistent with its strategic goals: schools and departments, for a total of about $28 million in n Create an environment that attracts top candidates legal spending. The 2017/18 budget reflects a 3% increase and provides employees with opportunities for growth from the 2016/17 year-end projections. and development—OOD’s talent manager has created a Client demand for legal services has increased and continues pipeline of internal and external candidates for fundraising to increase the volume of work that is required. Based on roles, and he will continue efforts to grow that pipeline. client demand, OGC added a new FTE (real estate attorney) OOD will also remain focused on creating opportunities in 2016/17, and it expects to hire an additional attorney in for advancement within the organization and across the 2017/18 to meet the growing demand for legal services in university for all employees. OOD must ensure that top other areas. OGC is also reviewing salary levels for lawyers, as they appear to be below market. 56 ADMINISTRATIVE & AUXILIARY UNITS

OGC will continue to focus on its main strategic priorities: (1) 320 academic buildings and 6 parking structures totaling over proactively trying to constrain costs by increasing efficiency; 10 million square feet (sf). (2) identifying risk to minimize it; (3) conducting preventative During 2017/18, LBRE estimates revenues and transfers of counseling and more comprehensive client training; and (4) $327.6 million and expenses of $322.1 million. After account- resolving disputes early. OGC will continue its effort to main- ing for net transfers to plant of $6.2 million for capital renewal tain an optimal balance between inside and outside counsel projects, LBRE forecasts a $718,000 deficit, which will be to provide cost-effective, high-quality service. covered by beginning reserve balances.

Public Safety Total expenses in 2017/18 are expected to increase by $5.9 The Department of Public Safety (DPS) budget projects a million, or 1.9%, over 2016/17 as a result of:

surplus of $78,000 for 2017/18, assuming anticipated salary n An increase of $2.9 million in external energy and water savings from vacant positions and projected revenue from utility expenses, offset by a decrease of $911,000 in debt event security operations. Consolidated revenues and trans- service; fers of $23.5 million are offset by budgeted expenses of $23.4 n Incremental O&M costs of $1.6 million for new campus million. The fire and emergency communication services con- structures (Bass Biology, the Kingscote Renovation, tract constitutes approximately 32% of the total DPS budget Education Farm, Athletic Academic Advising and Rowing, at $7.5 million for 2017/18. and Environmental Health & Safety Expansion); and The contract with the City of Palo Alto for fire prevention n General increases in compensation and materials. services expired in October 2015. Stanford and the city have In addition to the responsibilities listed above, LBRE leads agreed to a short-term extension that allows the Palo Alto numerous initiatives that typically span years from concept Fire Department to continue to serve Stanford while the par- to completion. These initiatives are described in detail in ties continue working towards finalizing a new agreement for Chapter 4, Capital Plan and Capital Budget, and include: fire services. The fire contract budget projection for 2017/18

of $7.5 million is based on the fixed-fee model described in n Stanford Redwood City the current extension to the contract. The actual 2017/18 n Escondido Village Graduate Residences expenses to Stanford could change based on the outcome of n General Use Permit (GUP) current labor negotiations. n Growth and transportation Programmatic changes for DPS in 2017/18 include increasing the numbers of sworn and nonsworn personnel to support n Parking and circulation evolving security needs on campus; implementing a new Additionally, LBRE is currently implementing the following fire services contract; improving the functionality of the uni- operational initiatives: Facilities 2020, the Integrated Controls versity’s AlertSU emergency communications system; and and Analytic Program (iCAP), and the Electricity Purchase implementing a county-mandated radio system to enhance Strategy. interagency communication. Moving forward with the design phase of the new Public Safety facility will also be an area of Facilities 2020 focus for 2017/18. Facilities 2020, an initiative that moves facilities operations from a “central shops” organization to a hybrid “district” or- LAND, BUILDINGS AND REAL ESTATE ganization, will return 55,000 GUP sf from LBRE to academic (or other) use as determined by the university. Additionally, Land, Buildings and Real Estate (LBRE) is responsible for it will save significant travel hours for maintenance techni- the university’s Capital Plan; commercial real estate on cians and, as a result, will reduce both the workforce and endowed lands; campus utilities, grounds, and parking and dependence on vehicles. Four district work centers (DWCs) transportation; and stewardship for 8,180 acres of campus will be constructed in strategic locations on campus to al- and contiguous land, as well as construction and operational low the technicians to be closer to the buildings they serve, management of the Stanford Redwood City campus. LBRE therefore enhancing customer service. Three DWCs will be also manages operations and maintenance (O&M) for over located on or near Memorial Way, the Roth Garage, and the ADMINISTRATIVE & AUXILIARY UNITS 57

Hansen Experimental Physics Lab; the fourth will utilize part To more effectively manage Stanford’s Direct Access elec- of the existing bookstore. A renovated Bonair hub will house tricity procurement program, the university established the functions that cannot be decentralized. Occupancy of the wholly owned subsidiary Stanford University Power LLC. All DWCs is planned for October 2018. Once fully implemented, electricity procurement transactions have been or will soon Facilities 2020 is projected to return $1.6 million annually to be transferred to the LLC. general funds ($2.2 million savings net of $611,000 in debt service for construction of the DWCs). OFFICES OF THE PRESIDENT AND Integrated Controls and Analytic Program PROVOST iCAP will modernize the control systems that regulate basic The budget of the Offices of the President & Provost (PPO) processes in buildings: heating and cooling, ventilation, light- for 2017/18 will consist of revenues and operating transfers of ing, and more. Modern computer-based controls offer the $119.7 million; expenses of $114.5 million; and transfers from potential to integrate all of these processes under one system. assets of $650,000, resulting in a net change in fund bal- ances of $5.9 million. These figures represent changes over A master building controls upgrade plan targets the largest the 2016/17 year-end projections of 5.5% in revenues and 105 buildings on campus over a 10-year period, aligning the operating transfers, 5.4% in expenses, and 20.5% in transfers work with existing facilities renewal, energy efficiency, and from assets (to support the housing loan programs within the maintenance programs, thereby avoiding the need for incre- Faculty/Staff Housing Office). Most of the increase in fund mental funding. balances results from unspent endowment payout supporting iCAP costs include the purchase of building controls and the new Knight-Hennessy Scholars program. analytic software. The total program is estimated to cost $50 Beginning in fall 2018, the Knight-Hennessy Scholars pro- million over 10 years. Energy and O&M savings are projected gram, a new graduate-level scholarship, will select up to 100 to be $8 million per year (once all phases are implemented), high-achieving students with demonstrated leadership and resulting in a simple payback of 6.25 years. civic commitment who will receive full funding to pursue Electricity Purchase Strategy a graduate education at Stanford. In addition to their core Stanford degree programs, these scholars will have additional In 2015, Stanford executed long-term power purchase agree- opportunities for leadership training, mentorship, and cohort- ments for new on- and off-site solar electricity generation based experiential learning across multiple disciplines. equivalent to 56% of total campus electricity use (53% off- site and 3% on-site). Off-site solar generation commenced The PPO comprises a collection of administrative units. The December 22, 2016, with on-campus generation following on unit has changed in size and composition as groups have March 31, 2017. Power generated from the rooftop facilities been moved administratively around the university. In ad- is consumed directly by university buildings. However, in dition to the operations of the President’s Office and the accordance with state electrical grid operating procedures, Provost’s Office, the PPO includes the University Budget power from the off-campus solar facility is sold into the grid Office, the Academic Secretary’s Office, the Ombuds Office, at the point of generation in Southern California, and energy Continuing Studies, the Office for Religious Life, the Office of is purchased at the point it is taken off the grid in Northern Institutional Equity and Access, and several other small units California. that support university-wide services.

Since August 2016, the university has purchased 100% of its In 2016/17, five offices were brought together under the um- electricity from the day-ahead market. However, it continu- brella of the Office of Institutional Equity and Access: Title ously reviews other options, which may include fixed-price IX, Sexual Assault & Relationship Abuse Education, Sexual block agreements, additional generation from renewable Harassment Policy Office, Diversity & Access, and the Office sources, and/or a combination of all of the above. Purchase of the University Ombuds. The senior associate vice provost option considerations include cost, price stabilization, is continuing to assess programmatic needs and anticipates sustainability goals, and regulatory compliance. there may be some reorganization of office responsibilities to best serve the Stanford community in achieving the collective 58 ADMINISTRATIVE & AUXILIARY UNITS

mission of preventing discrimination, harassment, and sexual OFFICE OF PUBLIC AFFAIRS violence, and responding to and redressing allegations of misconduct. Several new educational programs have been The Office of Public Affairs (OPA) projects total revenues developed specific to the needs of undergraduate and gradu- and transfers of $4.3 million and expenses of $4.3 million, ate students. resulting in a balanced budget. Total revenues and transfers are budgeted to decrease 9% from $4.7 million in 2016/17, Some PPO units, the Office of Religious Life in particular, are and total expenses are expected to decrease 12% from $4.9 working to develop plans for programs and staffing levels in million. Incremental base general funds allocated to OPA the context of slower growth in endowment income. include funding to support its mission. OPA forecasts an end- The vice provost for faculty development and diversity is ing balance of $634,000, of which approximately $460,000, planning several initiatives that will be funded with reserves. or 73%, represents a very modest unrestricted reserve to Programs such as Writer’s Retreat and workshops on man- support internal and external strategic programs. agement and mentoring have been well received. A national, In consultation with university leadership, OPA’s Government two-day intensive leadership program and mentoring work- and Community Relations Office (GCR) leads Stanford’s shop for 40-50 academic women of color was a huge suc- engagement with federal, state, and local governments, as cess, and similar programs will continue. well as fostering Stanford’s relationship with neighboring The Stanford Distinguished Careers Institute (DCI) offers ac- communities. GCR promotes the university’s research and complished individuals from all walks of life the opportunity education mission through contact with public officials, to come to Stanford for a yearlong residential program of per- tracking of pertinent legislation and regulatory proposals, sonal renewal and community engagement. DCI is designed and, when appropriate, lobbying on behalf of the university to enhance and improve the life journey through renewed on a wide variety of issues ranging from land use policies to purpose, community and network building, and a recalibration funding for the basic sciences. How Stanford strategically of health and wellness for individuals. As the program enters and thoughtfully uses its land and infrastructure systems to its third year of operation, enrollment and program size are serve its mission is controlled by several local government projected to remain constant and revenue flat. entities, most significantly Santa Clara County and the City of Palo Alto. Continuing Studies Programs (CSP) shares the rich educa- tional resources of the university with neighboring, matricu- The application for a new General Use Permit from Santa lated, and returning students to nurture a vibrant learning Clara County will be an area of significant activity in 2017 and community, to nourish the life of the mind, and to promote into 2018. Public engagement will be increasing as fiscal year the pleasures of intellectual exploration and exchange. CSP 2017/18 begins, assuming Santa Clara County’s draft environ- continues to record stronger-than-anticipated enrollment mental impact study is released on the current schedule. The growth; in particular, the high school and visiting under- analysis of key impacts of Stanford’s proposed development graduate student population has grown 4%-5%. In 2017/18, on, e.g., traffic congestion and the need for affordable housing Summer Sessions (SS) is looking to expand its online course will generate significant community discussion. The negotia- offerings to complement special programs such as Veteran tion of mitigation measures to offset potential impacts will be Accelerator 2.4 and Horizon Scholars. These programs pro- part of the discussion. vide full scholarship opportunities and tailored programming The current federal government policy environment requires for selected students. Developing and maintaining high- significantly increased effort and resources to defend and ad- quality online courses allows CSP/SS to continue reaching vance the university’s research and education mission. There new students from an increasingly diverse population. will be opportunities to advance some priorities, including Finally, the transitions of the president and provost have had regulatory reform at research funding agencies and the an impact on the immediate operations of the PPO as they Department of Education, as well as Bay Area transportation make decisions about staffing levels to meet new initiatives. upgrades as a part of transportation infrastructure funding ADMINISTRATIVE & AUXILIARY UNITS 59

legislation. However, OPA expects to confront the most way with this segment. As it did throughout the pilot, SAA challenging policy environment it has faced in many years will continue to collaborate with the major graduate student regarding research funding, college costs, endowments and organizations across campus. tax reform, the Affordable Care Act, and immigration, among New general funds in 2017/18 will also allow SAA to cease other areas. voluntary-contribution fundraising efforts that have his- Other key topics of importance to the university include torically supported Stanford magazine. While solicitations admission and financial aid policies, student services and to readers of the magazine have been an effective means of rights, campus sexual assault and campus safety, student garnering financial support for it, there has been increasing athlete rights, privacy protection of research involving hu- pushback from alumni to these solicitations and a growing man samples, treatment of animals used in research, state risk of damaging the tremendous goodwill that has been built research funding, land use/zoning policies, affordable hous- through Stanford magazine. ing, and resources for nonprofit organizations. SAA launched a multicity welcome tour for President Marc Tessier-Lavigne in 2016/17. This program gives alumni an op- STANFORD ALUMNI ASSOCIATION portunity to hear from and meet the new Stanford president. The welcome tour will continue through 2017/18, supported The Stanford Alumni Association (SAA) projects $49.3 mil- by presidential funds. lion in gross revenue and operating transfers and $49.6 mil- lion in total expenses in 2017/18, resulting in a reduction of The multiyear and critically important SAA/Office of $317,000 in its consolidated fund balance. Reserve balances Development (OOD) technology transition project (ADAPT) are projected to stand at $2.7 million at the end of 2017/18. continues to be a top priority for SAA. The migration of the shared SAA/OOD constituent database to a Salesforce plat- Business and program revenues, coupled with income from form is under way and paves the path for both organizations lifetime membership, building, and other endowment fund to better serve and meet the digital needs and expectations pay-outs, will generate over 75% of SAA’s gross revenue. of alumni, donors, and campus partners. From targeted and The remaining revenue will come from base and one-time dynamic communications to digital content on topics and general funds and presidential funds. Gross revenue and platforms relevant to alumni, this technology overhaul will gross expense will increase 5% from 2016/17 projected lev- allow SAA to connect with and engage an increasingly diverse els. This increase reflects the inclusion of special one-time alumni body. programming for a multicity president’s welcome tour funded by presidential funds as well as investments in graduate-only Global economic and political instability will continue to pres- student and alumni programming. ent a challenge to SAA businesses in 2017/18. More specifi- cally, SAA’s Travel/Study program, a key internal generator of In 2015/16 and 2016/17, SAA self-funded a pilot program funding for SAA-subsidized program offerings, has become to tailor a set of programs, communications, and content to subject to increased volatility. In response, SAA remains meet the needs of graduate-only constituents. The goal was focused on opportunities for revenue enhancement and cost to increase the connection to Stanford and to other graduate- savings across its portfolio. only students and alumni, a segment which is traditionally underrepresented in SAA activities. These efforts resulted SAA’s mission is to reach, serve, and engage all alumni and in engagement growth of 11% for graduate-only alumni over students; to foster a lifelong intellectual and emotional con- this period, as compared to 7% growth in undergraduate nection between the university and its graduates; and to and dual-degree alumni engagement. These early successes provide the university with goodwill and support. The stra- have only begun to scratch the surface of the potential to tegic investments discussed above are expected to deliver a engage this growing segment of the alumni population. The significant return to the university in heightened connection, incremental base and one-time general funds received for increased engagement, and a stronger community of alumni 2017/18 to enhance and develop new graduate-only student and students. and alumni offerings will allow SAA to continue making head- 60 ADMINISTRATIVE & AUXILIARY UNITS

STUDENT AFFAIRS and Vaden, to provide a coordinated response to students who may have experienced sexual misconduct. The mission of Student Affairs is to educate students to make meaningful contributions as citizens of a complex world. A combination of one-time general funds and base funding Student Affairs offers a range of services and programs de- allocations was granted for 2017/18 to support the univer- signed to enhance the academic enterprise and to empower sity’s commitment to inclusivity—specifically CED’s work students to embody community standards of respect, resil- focused on diversity education for all students and support ience, individual leadership, and collective responsibility. The for first-generation and low-income students. Three-year goal is to support, sustain, and engage students in programs bridge funding has been extended to the Markaz: Resource that cultivate good habits of mind, ethical behavior, empathy, Center, which has been critical in working with students and intellectual curiosity. affected by executive orders issued by the federal govern- ment regarding travel and immigration. In addition, Bechtel Student Affairs comprises seven units encompassing more International Center has received emergency funding to than 25 offices that provide undergraduate and gradu- support increased demands for document processing and ate students with a range of services, opportunities, and outreach, also a byproduct of federal executive orders. One- resources. The seven units, led by associate vice provosts, time, one-year funding for 2017/18 will support a student are Administration; BEAM (Bridging Education, Ambition & leadership development program designed by Student Meaningful Work), Stanford Career Education; Community Activities and Leadership, expansion of Cardinal Quarter Engagement and Diversity (CED); Dean of Students; Fellowships focused on communities served by CED, and Residential Education; University Registrar and Student and resources in BEAM to help students maximize connections Academic Services; and Vaden Health Center. and opportunities by leveraging digital environments. One- For 2017/18, Student Affairs projects total revenues and time funding continues to support the Office of Alcohol Policy operating transfers of $76.0 million and expenses of $77.3 and Education’s alcohol education programs and alcohol-free million, resulting in a planned operating deficit of $1.2 mil- activities. lion. Primary drivers of the deficit include expenses related Greg Boardman, vice provost for student affairs, who has to expansion of the Haas Center’s Cardinal Service initiative led Student Affairs for more than a decade, will retire at the and rising costs of laboratory and other health care expenses end of 2016/17, marking a leadership change for the division. at Vaden Health Center. The deficit will be supported by Student Affairs’ strategic planning initiative, entitled “The drawdowns against expendable gifts in the case of the Haas Future of Student Affairs,” will continue under new leadership Center and by accumulated reserves in the case of Vaden. An and in tandem with Stanford’s university-wide long-range increase in revenue totaling $3.2 million is due in part to an planning process. accounting process adjustment providing greater visibility of Residential Education house dues, resulting in a $1.6 million pass-through of revenue and expense. Consolidated fund UNIVERSITY COMMUNICATIONS balances of $26.6 million are expected at year-end. The Office of University Communications assists Stanford Projected growth in funding is modest and includes increased to influence and inspire a changing world by broadly sharing levels of restricted income to support the Haas Center’s discoveries, expertise, and ideas in compelling, sophisticated Cardinal Service initiative and the First-Generation and Low- ways with millions of people around the world. It serves as Income Program’s Opportunity Fund. Funding is expected Stanford’s primary, trusted source of information about the to continue for the Office of Community Standards, in part- university, its expert resource for professional communica- nership with the Title IX Office, to address issues related tions advice and support, and its leader in communications to sexual assault, relationship violence, and other conduct innovations, standards, and training. prohibited by Title IX. These efforts include a pilot program University Communications oversees all central internal and for investigating and adjudicating alleged incidents of sexual external communication programs for the university, includ- misconduct. Funding also is expected to continue for the ing executive communications; institutional media relations; Confidential Support Team, which has been supported with primary Web, mobile, digital, and social platforms; visual soft funds and is jointly sponsored by the School of Medicine ADMINISTRATIVE & AUXILIARY UNITS 61

identity and brand management crisis response; the Stanford n Planning for emergency and crisis communications by News Service; Stanford Report; and Stanford Video. The unit strengthening emergency planning and preparation across manages university-wide communications policies, including University Communications, including additional training, those on filming and photography, Web accessibility, social role playing, and real-time response exercises. media, visual identity, and use of the Stanford name. It also University Communications forecasts a modest ending bal- manages special programs such as TEDx Stanford, a pilot ance of $119,000, of which approximately $93,000, or 78%, with SiriusXM radio, and shares management oversight of is restricted to specific projects and endowment-related Stanford Web Services with University IT. It also provides expenditures. leadership, tools, guidelines, training, and resources to a network of more than 150 communications professionals in campus units and the seven schools. UNIVERSITY HUMAN RESOURCES

The Office of University Communications projects total University Human Resources (UHR) advances Stanford’s revenues and transfers of $8.3 million and expenses of $8.3 mission of excellence in teaching, learning, and research by million, resulting in a balanced budget. Total revenues and cultivating an environment of high employee engagement, transfers are budgeted to increase 12% from $7.4 million in performance, and productivity while supporting the chang- 2016/17, and total expenses are expected to increase 11% ing nature of work to ensure the university’s workforce is from $7.5 million. Incremental base general funds allocated prepared to meet its future needs. UHR delivers programs include funding to support a broad spectrum of services and services that foster continuous improvement, stream- provided by University Communications to the campus com- line employee administrative processes, and ensure staff at munity, as well as resources to address some of University Stanford feel valued, supported, and respected. The units Communications’ priorities and initiatives for 2017/18, within UHR are talent management and workforce strategy, such as: employee and labor relations, client services, compensation, benefits (including the Work Life Office, childcare centers, n Providing communications leadership to the campus and the Faculty Staff Help Center), and HR communications. at large and support for major campus initiatives such as long-range planning, student support services, the UHR’s 2017-19 strategic plan was developed in collaboration General Use Permit application process, the Redwood City with the Administrative Planning Executive Committee and campus, the Knight-Hennessy Scholars, graduate student the HR community, and in keeping with the results of the staff housing, and sustainability. survey. Strategic areas of focus include workforce planning, talent attraction, talent management, employee engagement, n Conveying the need for ongoing federal support for re- and HR excellence. search and the value of innovation to economic growth. The 2017/18 consolidated budget shows revenues and oper- n Highlighting the strength and importance of the humani- ties, and of student exposure to a broad, liberal education. ating transfers of $14.8 million and expenses of $15.3 million. The budget plan commits approximately $545,000 of prior n Launching a redesign of the Stanford.edu home page, years’ operational savings to supplement revenues and trans- Stanford Report, and Stanford Mobile in mobile-friendly, fers, which will be used to support the initiation of projects responsive formats. critical to the launch of HR’s strategic plan. n Refining content delivery to provide more timely infor- The projected fund balance at the end of 2017/18 is $2.8 mil- mation about Stanford and compelling stories across all lion, of which approximately two-thirds are in the operating platforms. budget and the remainder designated for childcare centers. n Identifying platforms to better meet the unique communi- These funds will maintain UHR’s ability to address unforeseen cations needs of students and faculty. emergencies, self-fund emerging same-year initiatives, man- n Creating a more robust brand and identity toolkit to age shortfalls due to fringe volatility, meet the university’s make it easier for the campus community to incorporate evolving priorities, and, with designated funds, continue to Stanford into communications and events. invest in priorities for Stanford’s childcare centers, including 62 ADMINISTRATIVE & AUXILIARY UNITS

closure of the Pepper Tree and Rainbow centers, expan- Stanford Redwood City campus in 2019. While the early sion and relocation of the Children’s Center of the Stanford emphasis is on the organizations and employees who will Community, and opening of the new childcare center at move, the change management initiatives also address Stanford Redwood City. the changes likely for faculty and staff who will remain on the original Stanford campus. In addition, UHR is in the UHR will continue to focus on the strategic priorities estab- early stages of adding manager development courses to lished in its three-year plan: augment its current programs. n Workforce planning—Piloting a workforce planning pro- n Employee engagement—UHR continues to advise and cess to identify and plan for the workforce needed, then support staff survey action planning, implementation, optimize HR and related plans (for better decision making and communication. UHR is also in the early stages of and resource allocation). Pilots have been initiated in the assessing options to enhance benefits offerings and/ School of Engineering and Business Affairs. or programs as well as to improve staff recognition and n Talent attraction—Evaluating results of an end-to-end rewards programs. recruiting process assessment to develop plans and n HR excellence—UHR is committed to continuous im- programs to enhance talent attraction. Preliminary recom- provement of its programs. In 2017/18, it will expand its mendations upon which enhancements will be based are HR shared-services model more completely to increase ef- to improve tools and resources, develop shared candidate ficiency while focusing on the quality of how it delivers its pools, and enhance internal movement of staff. services. UHR is also reviewing HR policies and processes n Talent management—Leading the change management to ensure clarity, consistency, and any changes needed to process for the relocation of 2,700 employees to the new support the move to the Stanford Redwood City campus. ADMINISTRATIVE & AUXILIARY UNITS 63

MAJOR AUXILIARY UNITS

he budget lines for the School of Medicine, the Graduate School of Business (GSB), Humanities & Sciences (H&S), the Vice Provost for Undergraduate Education (VPUE), and Stanford University Libraries (SUL) Tinclude auxiliary revenues and expenses. These auxiliary operations include the Schwab Center of the GSB, Stanford University Press in SUL, Bing Overseas Studies in VPUE, and Stanford in Washington and Bing Nursery School in H&S. These items are separately identified in the schools’ consolidated forecasts in Appendix A. The major independent auxiliaries are Athletics and Residential & Dining Enterprises (R&DE). Due to the size of the Stanford University Press it is also included in this chapter.

ATHLETICS the assumption that only one Pac-12 team will play in a major bowl game. Expenses related to intercollegiate activities are The fiscal outlook for the Department of Athletics, PE, and expected to increase by 4.3%, most significantly in two key Recreation (DAPER) appears more favorable in 2017/18 than areas. Compensation expenses are increasing due to con- it has in past years. DAPER projects a surplus of approxi- tractual obligations and a generous salary program planned mately $1.5 million in 2017/18 based on projected revenues to match the overall university program. Additionally, facili- of $135.9 million and expenses of $134.4 million. Significant ties expenses are increasing as DAPER continues to manage changes in revenues are anticipated in key areas, creating significant deferred-maintenance needs and incorporate an overall expected increase of 2.9% over the projection for operating expenses for new facilities. 2016/17. Overall expenses are expected to grow by 4.0% from the projection for 2016/17. DAPER’s consolidated Ancillary Activities budget consists of three distinct sets of activities: auxiliary Revenues and transfers from ancillary activities in 2017/18 operations ($102.8 million), financial aid ($26.1 million), and are projected to be $24.4 million. These revenues comprise designated activities ($7.0 million). general funds (primarily to support the PE, Recreation, and Wellness area of the department); a contribution from the Auxiliary Operations university benefits pool (to support facilities open to all stu- Auxiliary operations are made up of two primary areas, inter- dents, faculty, and staff); and revenues from the golf course, collegiate activities and ancillary activities, with net income the equestrian center, the Stanford Campus Recreation from the latter helping to support the former. Association, and camp operations. Expenses related to these activities are projected to be $21.8 million in 2017/18. Intercollegiate Activities The golf course and camp operations produce a surplus of Revenues and transfers from intercollegiate activities in approximately $2.6 million that supports the intercollegiate 2017/18 are projected to be $78.4 million. Projected ex- side of DAPER’s operations. All areas of ancillary activities penses are $79.6 million. The $1.2 million deficit is funded are projected to have only inflationary growth in revenues and through net income from ancillary operations, specifically the expenses over 2016/17 projections. golf course and camp operations. Intercollegiate revenues are projected to be up approximately 3.9% in 2017/18. This Financial Aid is due to the combination of a significant increase (approxi- DAPER’s financial aid endowment continues to be a signifi- mately $2.0 million) in revenue from football ticket sales be- cant asset to the department. However, financial aid expens- cause of a more favorable home schedule, moderate increas- es will continue to exceed endowment payouts in 2017/18, es in revenue from broadcasting and restricted gifts, and a and DAPER projects needing a transfer of approximately moderate decrease in revenue from the NCAA/Pac-12 due to $2.9 million from operating revenues to balance the financial 64 ADMINISTRATIVE & AUXILIARY UNITS

aid budget. Projected revenues (including this transfer) are R&DE plans to use the projected increases in revenue along $26.1 million, and expenses are $26.0 million. This budget with continued efficiencies in operations to address debt provides approximately 340 scholarships that benefit over service on new and renovated facilities, inflationary impacts 500 student-athletes. This compares to projected 2016/17 on operating costs (including the higher cost of attracting revenues and expenses of $25.1 million. The increase in and retaining labor, elevated utility rates, and the increased expenses is due primarily to general growth in tuition, room, security measures in technology), and planned escalation in and board rates. asset renewal.

Designated Activities The 2017/18 budget plan reflects transfers in to fund certain debt service related to the capital plan and to help maintain DAPER’s designated activities consist primarily of camps, room rental rates at reasonable levels vis-à-vis the market. which are mainly pass-through operations and not actively The plan also includes revenues, expenses, and additional managed by the department. The remaining activities gener- offsetting transfers in to provide housing for students at cam- ate revenues that are transferred to support auxiliary opera- pus rates in the local community. The plan includes strategic tions. Significant changes are not expected in any designated funding to support residential living and learning; R&DE plans activities in 2017/18. In total, revenues and expenses from to transfer out approximately $11.0 million to Residential designated activities are projected to be $7.0 million in Education, Residential Computing, the Graduate Life Office, 2017/18, compared to a projected $6.9 million in 2016/17. and Summer Session, among others.

RESIDENTIAL & DINING ENTERPRISES R&DE continues to make significant investments in its physi- cal plant. R&DE has developed a long-range capital plan and Residential & Dining Enterprises (R&DE) is a university aux- a long-range planned maintenance program to address its iliary generating revenues primarily through room and board, facility renewal needs, with expenditures of $31 million in conferences, cafés, catering, a guest house, concessions, and 2016/17 and $39 million in 2017/18, as well as additional other enterprises. R&DE houses over 13,000 undergradu- investments in future years, on a variety of renovation proj- ate and graduate students and their dependents and serves ects. R&DE has also initiated a plan to address a backlog of approximately 6.5 million meals annually, while providing deferred maintenance across residential and dining facilities. stewardship for 5 million square feet of physical plant. R&DE The long-range capital plan and deferred-maintenance back- supports the university’s academic mission by providing high- log plan both address life-safety system upgrades to meet quality services to students and the Stanford community in a current code; interior and exterior restorations; and window, sustainable and fiscally responsible manner. R&DE ensures roof, plumbing, mechanical, and electrical replacements critical facility needs for life safety and code compliance are across the student housing and dining system. met while maintaining safe, comfortable, and contemporary R&DE’s 2017/18 capital project plan will mainly focus on me- living and dining spaces. chanical, electrical, plumbing, infrastructure, and hardscape The 2017/18 budget plan projects a break-even auxiliary repairs and improvements in numerous locations; life-safety budget with total revenues and net transfers of $269.1 mil- and restroom upgrades in certain residential facilities; and lion to offset related expenses. The auxiliary budget plan several renovations to resident fellow apartments. also includes a planned use of $2.0 million of reserves for Stanford is in the design stage of constructing additional maintenance and capital projects. graduate housing in Escondido Village. This new housing The 2017/18 combined undergraduate room and board rate will include approximately 2,400 new bed spaces, replacing increase is 3.5% (4.4% for room and 2.2% for board), while approximately 400 that are being demolished, for a net in- the graduate housing room rent rate increase is 4.75%. crease of 2,020 bed spaces. The R&DE 2017/18 budget plan Overall room and board revenues are projected to increase reflects the impact of the reduction of bed spaces during the by $6.5 million. R&DE total auxiliary revenue (excluding demolition and construction period. transfers) for 2017/18 is projected to increase by $10.0 million (4.3%) over the prior-year projection. ADMINISTRATIVE & AUXILIARY UNITS 65

R&DE operates in a dynamic and changing environment; March 1, 2017. Ingram Academic is now responsible for all therefore, it is essential to plan for uncertainties. This is sales and distribution of Press print and digital output. This done by constantly pursuing excellence, diversifying revenue shift allows access to a broader national network of sales sources, managing costs, mitigating risk, increasing internal representatives, roughly 15 times the size of the previous controls, driving business results, and maintaining appropri- network, as well as a state-of-the-art digital infrastructure ate reserves. that will greatly aid experimentation with new content and distribution forms. The Press expects a strong financial return STANFORD UNIVERSITY PRESS on this move within 12 months. The program of interactive scholarly works (ISW), funded by The Stanford University Press consolidated budget for the Andrew W. Mellon Foundation, launched its first project, 2017/18 projects revenue and expenses of $7.6 million, which Enchanting the Desert, by Nicholas Bauch, in the spring includes $2.3 million in university subsidies. of 2016 with a Facebook livestreamed event in the David The growth in ebook sales across the publishing marketplace Rumsey Map Center. The Press now has a strong pipeline of over the past decade has halted, and indeed retreated, with projects to publish over the remaining two years of the grant. print books remaining the dominant format—over 80% of The ISW team has been working closely with the staff of the Press sales are from print. Consolidation within various retail Stanford Libraries on issues of maintenance and archiving, and wholesale outlets has continued to narrow the distribu- and these discussions are also positively impacting the pres- tion chain, but this also allows the Press to tighten its channel ervation outlook of the book and print program of the Press. marketing to be more efficient. The Press expects an output Efforts to increase the profile of the Press in the broader pub- of 135-40 titles in 2017/18. lic debate, through its trade publishing program and the grow- A major strategic effort for the Press during 2016/17 was ing prominence of its academic author pool have begun to the evaluation of its North American distributor. The bear fruit. In 2016/17 there were prominent reviews of Press North American marketplace accounts for close to 90% of titles in the New York Review of Books, Forbes, and Salon, sales, and thus this is the most significant partnership for as well as frequent media appearances on CNN, MSNBC, the Press. After an extensive request-for-proposals process, and NBC News. This year a Press title was also awarded the the Press began operations through Ingram Academic on prestigious Prose Award for Social Science. 66 ADMINISTRATIVE & AUXILIARY UNITS CAPITAL PLAN AND CAPITAL BUDGET 67

CHAPTER 4 CAPITAL PLAN AND CAPITAL BUDGET

tanford’s 2017/18–2019/20 Capital Plan and 2017/18 Capital Budget are based on projections of the major capital projects that the university plans to pursue in support of its academic mission. The rolling SCapital Plan includes projects that are in progress or are expected to commence during the next three years. The Capital Budget represents the anticipated capital expenditures in the first of these years. Both the Capital Plan and the Capital Budget are subject to change based on funding availability, budget affordability, and university priorities.

At almost $4.3 billion, the Capital Plan reflects the larg- (EOC/ECH) ($35.1 million), new faculty homes at Cabrillo/ est capital program in Stanford’s history. It demonstrates Dolores ($18 million), and renovations at both the Li Ka Shing the significant investment Stanford continues to make in Center ($10 million) and the Center for Advanced Study in its facilities, driven by the academic priorities for teaching, Behavioral Sciences ($9.8 million). research, and related activities, described in Chapter 2, and The following ten significant projects make up 81% of the initiatives of the administrative and auxiliary units that Stanford’s Capital Plan: the EV Graduate Residences support the academic mission, described in Chapter 3. It ($1,091.7 million), Stanford Redwood City Phase 1 ($568.8 also demonstrates Stanford’s commitment to student and million), the Housing Acquisition Initiative ($500 million), faculty housing, with 47% of the plan allocated to building, the Neuro/ChEM-H (Chemistry, Engineering & Medicine for acquiring, or renovating new and existing housing inventory. Human Health) Research Complex ($257 million), Center for Significant examples of this commitment are the $1.1 billion Academic Medicine 1 (CAM 1) ($222.9 million), BioMedical Escondido Village (EV) Graduate Residences, which will in- Innovations Building 1 and Tunnel (BMI 1) ($210 million), crease the graduate student housing stock by 2,020 net new Middle Plaza at 500 El Camino Real Residential ($182 mil- beds, and the $500 million Housing Acquisition Initiative for lion), University Terrace Faculty Homes ($176.5 million), faculty and staff. the Anne T. and Robert M. Bass Biology Research Building With the 2016/17 project completions, Stanford will have in- (Bass Biology Building) and associated projects ($152.2 mil- vested approximately $6 billion in its facilities, infrastructure, lion), and the new Earth, Energy & Environmental Sciences and commercial real estate since 2000. Across the campus, Building ($100 million). The remaining 19% of the Capital aging facilities have been replaced with new and renovated Plan comprises 24 projects and 8 infrastructure programs. buildings capable of supporting cutting-edge science, en- For a detailed listing of all Capital Plan projects and programs, gineering, medicine, and the collaborative research among see the tables on pages 82–84. them, as well as with new facilities for business, athletics, law, The Capital Plan accounts for the long-term budget impacts and the arts. Off-campus commercial development projects on operations, maintenance, and utilities (O&M) and debt provide additional income to the university. service. These obligations are included in the university’s In addition to the many projects currently under way and pre- long-range budget planning. viously forecasted, the Capital Plan now includes the follow- This chapter provides an overview of the capital planning ing new projects: Tenant Improvements at 3145 ($58.8 mil- process, describes current strategic initiatives, presents the lion) and 3172 ($15.8 million) Porter Drive, a new Emergency 2017/18–2019/20 Capital Plan and related constraints, and Operations Center/Electronic Communications Hub discusses the 2017/18 Capital Budget. 68 CAPITAL PLAN AND CAPITAL BUDGET

CAPITAL PLANNING OVERVIEW at 1,518,000 sf, as detailed in the Stanford in Redwood City Precise Plan. Stanford does not have specific plans for the timing or composition of the remaining square footage of the CAPITAL PLANNING AT STANFORD campus at this time. Stanford’s Capital Plan is a three-year rolling plan with com- The prospective Phase 1 will accommodate about 2,700 mitments made for projects with fully identified and approved staff: School of Medicine (SoM), including Medical Center funding. Cash flow expenditure forecasts for these projects Development (946); Business Affairs (893); Land, Buildings extend beyond the three-year period, and budget impacts and Real Estate (LBRE) (170); the Office of Development on O&M and debt service will commence at construction (154); University Human Resources (135); Continuing Studies completion. The plan includes forecasts of both cash flow (85); Libraries (73); Residential & Dining Enterprises (R&DE) and budget impacts by year, as well as the impacts of projects (73); the Vice Provost for Teaching and Learning (25); and beyond the three-year period (see tables on page 76). other tenants yet to be confirmed (100). The development The Capital Plan is set in the context of a longer-term capital and subsequent move will free up almost 150,000 sf on forecast. The details of this forecast, particularly funding campus as well as in the Stanford Research Park; space in the sources and schedules, are less clear than those of the three- latter will then be re-leased to third-party tenants at market year plan, as the needs and funding sources that may emerge rates, increasing revenues to Stanford. over the long-term horizon are difficult to anticipate. Plans Stanford Redwood City gives the university an opportunity to tend to evolve as some projects prove more feasible than provide its administrative staff with an outstanding, sustain- others based upon shifting funding realities and academic able, and healthy workplace environment. This new campus priorities. will comprise Class A office buildings, conference and din- ing facilities, a fitness center with lap pool, and a child care STRATEGIC INITIATIVES center. A 2.5-acre park, multiple courtyards, and a greenway The following university strategic initiatives are integral to this connecting the entire campus will create an attractive setting. year’s Capital Plan: EV Graduate Residences n Stanford Redwood City Stanford’s bold commitment to build a 1.8 million-sf resi- n EV Graduate Residences dential complex with 2,431 new graduate beds responds to n General Use Permit a critical need to provide additional graduate student hous- n Growth and transportation ing on campus in an undersupplied and escalating housing

n Campus circulation and parking market. The construction of the EV Graduate Residences supports the campus land use strategy to increase the density Stanford Redwood City of Escondido Village in order to provide adequate housing Stanford’s plans for an off-site administrative campus in for a growing graduate student population, and enables the Redwood City continue to move forward. Consistent with the university to devote other areas of the core campus to under- strategic development envisioned with the 2005 acquisition graduate housing and academics. of the Redwood City property, select administrative staff will The new complex will primarily house single graduate stu- relocate to this site in order to preserve core campus space dents, although units will be available for couples without for the university’s highest academic priorities. Plans have children. Demolition of existing two-story buildings that commenced to implement a comprehensive Phase 1 develop- house approximately 400 students will be required, result- ment of 653,647 square feet (sf)—565,777 sf of office build- ing in an overall gain of 2,020 net new beds. The variety of ings, 78,262 sf of amenity buildings, and 9,608 sf of utility apartments builds upon the suite models of premium studios, and IT infrastructure—as well as parking for 1,702 vehicles. two-bedroom suites, and junior studio suites, as offered in Site work, demolition, and foundations have commenced the neighboring Kennedy Graduate Residences. The four with construction for the core and shell anticipated to begin new residence halls will each provide lounges, huddle rooms, in spring 2017. Full build-out of the 35-acre parcel is capped laundry rooms, exercise areas, and music practice spaces. CAPITAL PLAN AND CAPITAL BUDGET 69

In addition to housing students, a primary objective of this sf of academic facilities and 3,150 housing units/student project is to provide opportunities to build a vibrant sense of beds, with construction expected to be completed by 2035. community among the graduate students and to encourage This next GUP will help Stanford address emerging teaching, strong connections to the campus. The two-story market research, and housing needs over this time period. pavilion, entry tower, and associated arcade will face the campus and define an inviting gateway into Escondido Village Growth and Transportation from the terminus of Serra Mall. These community gateway Reduction of trips to the campus is likely the most difficult components, which will include a café/bar, a grand lounge, challenge and one that may constrain the university’s future and a mini-market for online shopping and pick-up, will also growth. Though Stanford has a tremendous track record with provide an architectural scale that is comfortable and tem- its award-winning Transportation Demand Management pers the height of the residential wings. The arcaded court (TDM) programs, the university must do more, not only for and hardscape, as well as the more casual commons space, the core campus but also for other Stanford lands. Informed will support programs that will serve as the hub for graduate by extensive studies with multiple transportation experts life. The central commons will face and engage the existing as well as an innovative transportation mode choice model, EV greenway and be programmed and energized by a range Stanford has developed a matrix of choices and actions that of activation components (i.e., outdoor seating and eating, can be implemented to improve the local transportation net- event space, coffee cart, art, etc.). work. The region’s network is at capacity at peak times, and no “silver bullet” exists to solve this regional problem. It will This project includes two new underground parking structures likely take years of constant prioritization to make a positive to support the graduate students and community. Manzanita impact. The university will continue to focus on this effort Garage will house 850 parking spaces with passive recreation and work collaboratively with large private employers, neigh- space above. The EV parking structure to be constructed bors, local agencies, and transportation specialists to identify along Serra Street will house 350 parking spaces with ad- and implement incremental programs that mitigate traffic ditional spaces above to accommodate ADA requirements, impacts and improve the regional network. Stanford will also loading, and service. continue recent efforts to support and facilitate development The construction of the EV Graduate Residences and park- of large-scale regional solutions, such as Caltrain electrifica- ing garages will take place over three years, with occupancy tion and the 101 High Occupancy Vehicle (HOV) lane through targeted for fall 2020. San Mateo County. A number of land use planning efforts focused on future growth are now under way. These include General Use Permit strong emphases on major circulation patterns and transit Stanford has submitted an application to Santa Clara County system options as well as on identifying how land use choices for an updated General Use Permit (GUP) to guide campus can optimize transportation and TDM options. planning over the next two decades. This permit is known as the “2018 GUP” due to expected approval in 2018. Campus Circulation and Parking As Stanford continues to expand its core campus footprint as Stanford has been operating under two key Santa Clara well as increase its density, campus planners have identified County entitlement documents: a Community Plan and a alternatives for improving circulation, reducing congestion, 2000 GUP. The Community Plan provides a set of rules and and promoting safety. The measures that the university has policies to guide the university’s land use planning over an prioritized will have positive impacts on campus circulation extended period of time. The GUP implements those policies and service, vehicular traffic, and the safety of bicyclists and and includes specific conditions to minimize the impacts of pedestrians. Stanford’s development.

The 2000 Community Plan and GUP were intended to pro- East Campus Circulation vide Stanford with flexibility in its land use within an agreed- Circulation and parking will be reconfigured on the east cam- upon framework, with accountability to the county, neighbors, pus to accommodate significant capital projects including and the campus communities. Stanford’s application for the the EV Graduate Residences, Public Safety Building, and the 2018 GUP includes a development request for 2.275 million EOC/ECH. The components of the work in this area include: 70 CAPITAL PLAN AND CAPITAL BUDGET

STANFORD’S COMMITMENT TO HOUSING

From its earliest days, Stanford has focused on supporting The Board of Trustees approved this initiative to expand a residential academic environment. Currently, Stanford Stanford’s housing supply by acquiring land or residential provides on-campus housing for almost all undergraduate units proximate to, or within easy transit of, campus. The students, just over 50% of graduate students, and about Colonnade apartment community was purchased under one-third of Stanford faculty members. Stanford prioritizes this initiative and provides 167 units of housing for faculty use of its core academic lands to house students and faculty and staff. The program is anticipated to yield a combination because housing students and faculty in close proximity of rental units for faculty and staff and single-family homes fosters collaboration and learning. Staff and other affiliated available for purchase by faculty on the affordable restricted housing has been provided outside of the academic campus ground lease. lands, in nearby jurisdictions. Middle Plaza Residential is a new mixed-use development Stanford’s commitment to housing of all types is evident in under application with the City of Menlo Park. The project is the current Capital Plan. In total, housing projects represent expected to include 215 multi-family rental units, which will $2.0 billion, or almost half of the entire 2017/18-2019/20 be made available to faculty and staff. Unit types are ex- Capital Plan. The table below provides a consolidated list pected to comprise both one- and two-bedroom apartments. of all current housing projects followed by a more detailed University Terrace Faculty Homes is a 17-acre development description of the individual projects: in Palo Alto consisting of 68 single-family homes and 112 EV Graduate Residences is the largest capital project condominiums. All units will be made available to faculty for in Stanford history. The project will add 2,020 net new purchase at affordable prices through use of the restricted graduate beds in Escondido Village, raising the percentage of ground lease. Amenities will include a community center graduate students housed to approximately 75%, from just building, fitness center, and pool. over 50% today. The project includes construction of ap- Cabrillo/Dolores Faculty Homes is currently under design proximately 1,200 parking spaces (750 net new) in two un- development and will consist of 8 homes in the faculty derground structures. Unit types will include premium stu- subdivision. Two university-owned homes located along dio, two-bedroom, and junior studio apartments. Amenities Dolores will be demolished to make way for this project, are planned to include a market pavilion that houses a café, which will add much-needed affordable homes within the mini-market, and grand event lounge; a large multi-purpose neighborhood. room; meeting and huddle spaces; music practice spaces; Renovations of Rains and Schwab support and maintain and technology resource spaces. Stanford’s existing student housing stock. The Housing Acquisition Initiative recognizes that Stanford’s housing strategies are necessarily multi-pronged.

2017/18–2019/20 Number of Capital Plan Project Description Resident Type Beds/Units (in millions of dollars) New Housing Additions EV Graduate Residences Graduate Students 2,020 net new beds 1,091.7 Housing Acquisition Initiative Faculty and Staff 270 1 units 500.0 Middle Plaza Residential Faculty and Staff 215 units 182.0 University Terrace Faculty Homes Faculty 180 units 176.5 Cabrillo/Dolores Faculty Homes Faculty 8 units 18.0

Renovations of Existing Housing Various Renovations Graduate Students n/a 59.9 Total 2,028.1 1 Acquisitions of 270 units are anticipated over the next 7-8 years CAPITAL PLAN AND CAPITAL BUDGET 71

l Campus Drive/Serra Street Roundabout—The l North/South Axis—Improvements to the North/ roundabout will replace two separate existing inter- South Axis from Serra Mall to Roth Way will provide sections, improve pedestrian crossings, and reconfig- a safe bike/pedestrian connector.

ure the barrels of Campus Drive with dedicated bike l New Parking Structure—854 new parking lanes and a uniform landscaped median. spaces (550 net new) will be constructed below the

l Serra Mall Closure—The plan to close Serra Mall CAM 1 building. from Galvez Street to Campus Drive for pedestrians, Roundabouts bikes, and shuttles requires the completion of “en- abling” projects including reconfigured service areas The roundabout installations on Campus Drive at the inter- and parking at Encina Hall, service improvements sections of Escondido Road, Bowdoin Street, Santa Teresa at Burnham Pavilion, and a new drop-off at Schwab Street, and Galvez Street are evidence of how circulation can Graduate Residences. These projects are important improve without compromising bicycle and pedestrian safety. because Serra Mall is the primary path for infrastruc- In addition to the Campus Drive/Serra Street roundabout that ture improvements for the major capital projects on is a key component of our east campus improvements, three the east side of campus. additional roundabouts will be studied at the intersections of Galvez Street/Arboretum Road, Campus Drive/Mayfield l Serra Street Reconfiguration—Enhancements Avenue, and Campus Drive/Roth Way. planned on Serra Street from Campus Drive to El Camino include improving vehicular lanes, reconfigur- ing intersections and pedestrian crossings, upgrading bike lanes, and adding transit and drop-off areas. THE CAPITAL PLAN,

l Manzanita Garage—This facility will build on the 2017/18-2019/20 best practices of the Wilbur and Roble parking struc- Stanford’s academic campus, including SoM but excluding tures, with parking below grade and a recreation field the hospitals, has over 700 facilities providing nearly 18.8 above. The 850 new spaces will support, in part, the million sf of space, including approximately 5.3 million sf for needs of the EV Graduate Residences. student housing units and 2.4 million sf for parking structures.

l EV Parking Structure—This below-grade facility The physical plant has a historical cost of $9.3 billion and an along Serra Street will include 350 spaces with ad- estimated replacement cost of $12.7 billion. ditional parking above. The Capital Plan includes a forecast of Stanford’s annual l Bonair Siding Road—To provide safe access to the programs to restore, maintain, and improve campus facilities new Public Safety Building and EOC/ECH, Bonair for teaching, research, housing, and related activities and Siding Road will be reconfigured to include appropri- outlines Stanford’s needs for new facilities. The Capital Plan ate vehicular lanes, bike lanes, sidewalks, and lighting. is compiled, reviewed, and approved in a coordinated manner West Campus Circulation across the university. The plan carefully balances institutional needs for new and renovated facilities with the challenging Modifications to the circulation on the west side of campus constraints of limited development entitlements, available will accommodate the future Neuro/ChEM-H Research funding, and budget affordability. Complex, the Bass Biology Building, and CAM 1. The compo- nents of this work include: Projects listed in the Capital Plan are those approved by the provost. Many are under the purview of the Board of l Serra Mall Extension—To promote connections, Trustees. Board-level approval is required for projects meet- improve pedestrian safety, and facilitate Marguerite ing specific criteria, including: shuttle circulation, Serra Mall will extend to an im- proved intersection at Foundations Way and Campus n Projects with a total cost of $10 million and above. Drive. n New building construction (including faculty housing). l Via Pueblo Extension—To facilitate service, Via n Projects that use 5,000 or more new sf within the aca- Pueblo will extend from Via Ortega to Panama Street. demic growth boundary. 72 CAPITAL PLAN AND CAPITAL BUDGET

n Changes in land use. FORECASTED CONSTRUCTION n Projects with major exterior design changes. PROJECTS Projected expenditures in the 2017/18–2019/20 Capital Plan, Forecasted projects are those anticipated to receive Board of which include major construction projects in various stages Trustees approval over the next three years. These projects of development and numerous infrastructure projects and total $608.5 million (14% of the plan) and are listed on page programs, total $4.3 billion. The table below provides a com- 83. Like those in design and construction, these projects are parison of the current and the last two Capital Plans. contingent upon funding. For this group, $161.8 million (27%) remains to be fundraised, and $24.9 million (4%) has yet to COMPARATIVE CAPITAL PLANS be identified. [IN MILLIONS OF DOLLARS] 2017/18 2016/17 2015/16 Project costs within this category have decreased by $453.6 Design/Construction 2,890.7 2,213.5 1,521.9 million from 2016/17. A number of projects have moved into Forecasted 608.5 1,062.1 862.0 the design and construction category, as noted above. This decrease is partially offset by new projects added to this Infrastructure and Other 779.7 809.0 514.3 year’s Capital Plan, including Tenant Improvements at 3145 Total 4,278.9 4,084.6 2,898.2 ($58.8 million) and 3172 ($15.8 million) Porter Drive, a new EOC/ECH ($35.1 million), new faculty homes at Cabrillo/ Dolores ($18 million), and renovations at both the Li Ka Shing This year’s plan is $194.3 million (5%) higher than last year’s. Center ($10 million) and the Center for Advanced Study in New projects and scope and corresponding budget increases Behavioral Sciences ($9.8 million). for existing projects have more than offset projects complet- ing in 2016/17. INFRASTRUCTURE AND OTHER PROGRAMS PROJECTS IN DESIGN AND CONSTRUCTION The Housing Acquisition Initiative and Stanford’s ongoing efforts to renew its infrastructure are reflected in a budget of Projects in design and construction total $2.89 billion (68% $779.7 million (18% of the plan) and are listed on page 84. of the plan). Construction of these projects is contingent Infrastructure and Other Programs costs have decreased upon fundraising of $130.1 million (5%). This category com- $29.3 million from last year. prises 18 projects, as shown in the table on page 82. The largest program in this category is the Housing The cost of projects in design and construction has gone up Acquisition Initiative. Established in 2014, this program by $677.2 million from 2016/17 as a result of the advance- reflects the high priority that Stanford places on its ability to ment of projects from the forecasted category and budget provide affordable housing options for existing and prospec- increases, partially offset by project completions. Projects tive faculty and staff. In recognition of this critical need, the moving from the forecasted to the design and construction Board of Trustees has increased the overall funding of this stage include CAM 1 ($222.9 million), BMI 1 ($210 million), program, originally established at $200 million, to a total of the Public Safety Building ($31.5 million), Encina Complex $500 million. Upgrades ($25.8 million), the Athletic Academic Advising and Rowing Building (AAARB) ($25 million), Denning House Infrastructure programs include the Investment in Plant ($23.1 million), Environmental Health & Safety Facility (Planned Maintenance) Program, the Stanford Infrastructure Expansion ($16.5 million), two children’s centers ($19 million Program (SIP), the Capital Utilities Program (CUP), upgrades total), Schwab Residential Center Renovations ($11.3 mil- to Information Technology and Communications Systems, the lion), and four District Work Centers ($8.5 million). Projects R&DE Major Renovation Plan, Whole Building Energy Retrofit scheduled to be completed in 2016/17 and thus excluded Program Group 2, Storm Drainage projects, and a Campus from the plan include the David and Joan Traitel Building ($65 Drive roundabout. SIP projects are funded through construc- million) and the Kingscote Renovation ($17.5 million). tion project surcharges. The other projects are funded by central funds, debt, and/or service center charge-out rates. CAPITAL PLAN AND CAPITAL BUDGET 73

Investment in Plant major programmatic improvements in the student housing (Planned Maintenance) Program and dining physical plant. Projects anticipated over the next Annual Investment in Plant assets represent the mainte- three years total $11.4 million and include phased installa- nance funds planned to be invested to preserve and optimize tion of new sprinklers and fire alarm systems in Escondido Stanford’s existing facilities and infrastructure (e.g., pathways, Village high-rise and low-rise housing. Completed projects outdoor structures, and grounds). These projects are based will be maintained through the Stanford Housing, Dining, and on life cycle planning, the key concept being that life expec- Hospitality Asset Renewal Programs. tancies of facility subsystems are known and, as a result, maintenance schedules can be predicted. The three-year Whole Building Energy Retrofit Program estimated program cost is $156.4 million. Group 2 This retrofit program seeks to reduce energy consumption in Stanford Infrastructure Program Stanford’s largest energy-intensive buildings. The program SIP consists of campus and transportation projects and began in 2003/04 with studies of the top 12 energy-consum- programs for the improvement and general support of the ing buildings, representing $15.9 million of energy expenses university’s academic community, hospitals, and physical per year, or nearly 36% of the campus total. It has since been plant. SIP expenditures are expected to total $43.2 million expanded to additional large energy-consuming buildings. over the next three years (excluding funding for replace- The retrofits completed thus far have delivered annual en- ment parking spaces). SIP projects include campus transit, ergy cost savings of $4.7 million (a payback of less than four parking lot infrastructure, and site improvements; landscape years) and PG&E rebates of $2.2 million. The forecasted cost design and enhancements; bicycle, cart, and pedestrian path for future projects is $7.2 million. Details of this program are construction; and lighting, signage, and outdoor art installa- shown in the table on the following page. tions. This year’s plan includes $25.4 million to fund campus infrastructure projects. Storm Drainage The ongoing storm drainage program includes projects for Capital Utilities Program improving and expanding the capacity of the campus storm The $36.2 million, three-year CUP plan will improve electrical, drainage system, building storm water detention facilities, hot water, water, chilled water, and wastewater utility sys- replacing deteriorated pipes, and improving drainage around tems. The CUP covers expansion of systems as required by buildings. In addition, recently adopted storm water quality campus growth ($20.5 million) and replacement of systems regulations necessitate new storm water treatment approach- that are near the end of their useful life ($15.7 million). es, such as bioswales and bioretention facilities, to minimize conveyance of contamination from common storms to natural Information Technology and water bodies. These approaches will be incorporated region- Communications Systems ally or on new building sites, as appropriate. New approaches involving storm and irrigation water runoff capture and reuse The university’s computing and communications systems will also be implemented where appropriate. The Capital Plan provide comprehensive data, voice, and video services to also includes improvements to the storm drainage system in the campus community. Over time, these systems must be the faculty/staff housing area of campus, adding storm drain- improved and/or replaced to maintain a consistently high age infrastructure where none exists and upgrading existing level of service. Additionally, new technologies provide more drainage infrastructure to conventional levels of protection. efficient, faster, and/or more cost-effective solutions. Planned The three-year estimated program cost is $4.5 million. upgrades to these critical university systems total $16.8 mil- lion, including $2.4 million to replace systems at two ECHs. Campus Drive Roundabout R&DE Major Renovation Plan As previously discussed, Stanford plans to construct a roundabout at Campus Drive and Serra Street at a cost of This Residential & Dining Enterprises (R&DE) program ad- $4 million. dresses health and safety issues, seismic upgrades, code compliance, energy conservation and sustainability, and 74 CAPITAL PLAN AND CAPITAL BUDGET

WHOLE BUILDING ENERGY RETROFIT PROGRAM ESTIMATED ANNUAL ACTUAL PROJECT RETROFIT STATUS CONSUMPTION SAVINGS SAVINGS Stauffer I - Chemistry Complete 38% 46% Gordon & Betty Moore Materials Research 1 Complete 32% 10% Paul Allen Center for Integrated Systems (CIS) Complete 15% 14% Forsythe (George) Hall Complete 8% 8% Stauffer II - Physical Chemistry Complete 38% 43% Gates Computer Science Complete 29% 27% Beckman Center for Molecular and Genetic Medicine Complete 46% 32% Gilbert Biological Sciences Complete 35% 32% Cantor Center for Visual Arts Complete 13% 14% Bing Wing (Green Library West) Complete 16% 50% Packard Electrical Engineering Complete 26% 37% Arrillaga Alumni Center Complete 27% 31% RAF I Complete 11% 11% RAF II Complete 30% 30% CIS Distributed Digital Control 2 Complete 5% TBD Clark Center 2 Complete 11% TBD Green Earth Sciences Design 15% Varian Physics Laboratory Design 24% Mechanical Engineering Laboratory Construction 24% Keck Science Study complete 20% Center for Clinical Sciences Research (CCSR) Study complete 13% 1 Construction scope reduced from original survey. 2 Actual savings to be verified.

Other Stanford Entities renovations at the Old Winery (formerly the Stanford Barn). In an effort to present a comprehensive view of university- The university is the beneficiary of the income from these planned construction, the capital planning process has investments. Academic projects managed by Real Estate included Stanford’s commercial real estate investments, are Stanford Redwood City Phase 1, which broke ground Stanford Health Care (SHC), Lucile Packard Children’s in January 2017, and three new housing developments: Hospital (LPCH), and SLAC National Accelerator Laboratory. University Terrace Faculty Homes in Palo Alto, Middle Plaza Although the tables at the end of this chapter do not include at 500 El Camino Real – Residential in Menlo Park, and these entities (with the exception of academic projects man- the Cabrillo/Dolores Residences in the faculty subdivision. aged by Stanford Real Estate), brief descriptions of the real University Terrace will provide 180 units for faculty purchase, estate, SHC, and LPCH capital programs follow. The SLAC with the first units being delivered by June 2017. The remain- capital programs are addressed in Chapter 2. ing two housing projects are currently in the planning phase.

Real Estate Stanford Health Care and Lucile Packard Children’s Hospital LBRE’s Real Estate department (Real Estate) is managing ten projects totaling $1.25 billion in various stages of plan- Stanford Medicine’s Renewal Project includes the develop- ning and development on Stanford lands. Six of these are ment of approximately 1.3 million sf of net new hospital, commercial real estate investment projects. These are clinic, and medical office space on the main medical campus 3170 Porter Drive, 3181 Porter Drive, 3406 Hillview Avenue, and the Hoover medical campus. The project received devel- 2131 Sand Hill Road, the Middle Plaza office buildings, and opment entitlements from the City of Palo Alto in 2011, and CAPITAL PLAN AND CAPITAL BUDGET 75 significant project milestones have been achieved since that Capital Plan Funding Sources time. Major utility upgrades to serve the new medical facili- As the pie chart shows below, Stanford’s Capital Plan relies ties have been completed along Welch and Quarry Roads. All on several funding sources, including current funds, gifts, and improvements on the Hoover medical campus are complete, debt. Depending upon fundraising realities and time frames, including the renovation of the historic Hoover Pavilion, the some projects will prove more difficult than others to under- construction of a new 1,070-car parking structure, and the take. As a result, it is possible that projects in the Capital Plan construction of a 92,000-sf Neuroscience Health Center, will have to be cancelled, delayed, or scaled back in scope. which opened for patient care in January 2016. On the main medical campus, construction of both the new SHC pavilions For any projects relying on gifts to be raised, the Office of and the LPCH expansion continues to progress, with interior Development has determined that fundraising plans are finish work, building systems testing, and site work currently feasible, although the time frames for the receipt of gifts are underway. The SHC and LPCH hospital projects are esti- mated to cost $2.0 billion and $1.3 billion respectively, with anticipated completion in 2018/19 for SHC and 2017/18 for THE CAPITAL PLAN 2017/18-2019/20 LPCH. $4.3 BILLION Sources of Funds OVERALL SUMMARY Resources to be Identified Other 3% 1% A table summarizing the 2017/18–2019/20 Capital Plan ap- Academic Debt Current Funds pears on the next page. It includes projects and programs in 19% 29% the design and construction and forecasted stages, as well as infrastructure and other categories that are currently active or are anticipated to commence in the next three years.

The expenditures necessary to complete the three-year Gifts in Hand Service Center/ or Pledged Capital Plan are anticipated to extend beyond 2019/20. To Auxiliary Debt 12% 29% Gifts to be differentiate between the estimated costs of the plan and Raised 7% the forecasted spending to complete projects and programs, an additional table (Capital Plan Cash Flows) forecasts the Uses of Funds by Program Category Capital Plan expenditure cash flow based on project and Infrastructure/Other 7% Academic/Research program schedules. Academic Support 28% O&M and debt service costs for each project will impact 17% Athletics/Student the university’s budget once construction is substantially Activities complete. Although the Capital Plan Summary shows the 1% full budget impacts of all completed projects, it is important to note that these impacts align with the project completion Housing 47% schedule and will therefore be absorbed by the university budget over a period beyond the three-year plan. The Capital Plan Impact on Budget table forecasts these budget impacts Uses of Funds by Project Type Infrastructure/Other 6% by area of responsibility (e.g., general funds, formula schools). Renovations 8% New Construction The tables at the end of this chapter provide a detailed list of 86% the projects included in the Capital Plan.

The following sections address Capital Plan funding sources and uses, along with resource constraints. 76 CAPITAL PLAN AND CAPITAL BUDGET

SUMMARY OF THREE-YEAR CAPITAL PLAN 2017/18-2019/20 [IN MILLIONS OF DOLLARS] PROJECT FUNDING SOURCE GIFTS UNIVERSITY DEBT ANNUAL CONTINUING COSTS SERVICE ESTIMATED CAPITAL CENTER/ RESOURCES PROJECT BUDGET CURRENT IN HAND OR TO BE AUXILIARY ACADEMIC TO BE DEBT OPERATIONS & COST 2017/18 FUNDS 1 PLEDGED RAISED DEBT DEBT OTHER IDENTIFIED 2 SERVICE MAINTENANCE 3 Projects in Design & Construction 2,890.7 1,045.9 656.2 496.9 130.1 762.0 696.3 149.2 72.3 53.6 Forecasted Projects 608.5 54.6 118.3 24.5 161.8 175.6 103.4 24.9 17.1 8.9 Total Construction Plan 3,499.2 1,100.4 774.5 521.4 291.9 937.6 799.7 149.2 24.9 89.4 62.5 Infrastructure Programs 779.7 130.8 453.6 300.6 25.5 17.0 0.1 Total Three-Year Capital Plan 2017/18-2019/20 4,278.9 1,231.2 1,228.1 521.4 291.9 1,238.2 825.2 149.2 24.9 106.4 62.6 1 Includes funds from university and school reserves, and the GUP and SIP programs. 2 Anticipated funding for this category is through a combination of school, department and university reserves, and other sources. 3 Operations & Maintenance includes planned and reactive/preventative maintenance, zone management, utilities, contracts, grounds, and outdoor lighting.

CAPITAL PLAN CASH FLOWS [IN MILLIONS OF DOLLARS] 2016/17 & 2020/21 & PRIOR 2017/18 2018/19 2019/20 THEREAFTER TOTAL Projects in Design & Construction 579.7 1,045.9 812.6 409.7 42.8 2,890.7 Forecasted Projects 11.7 54.6 185.3 222.6 134.4 608.5 Total Construction Plan 591.4 1,100.4 997.9 632.3 177.2 3,499.2 Infrastructure Programs 233.0 130.8 130.4 129.2 156.4 779.7 Total Three-Year Capital Plan 2017/18-2019/20 824.3 1,231.2 1,128.3 761.5 333.6 4,278.9

CAPITAL PLAN IMPACT ON BUDGET [IN MILLIONS OF DOLLARS] 2020/21 & 2018/19 2019/20 THEREAFTER TOTAL Debt Service General Funds 3.1 22.7 20.6 46.4 Formula and Other Schools 0.3 15.8 7.0 23.1 Auxiliary 0.4 0.3 35.5 36.1 Other 1 0.3 0.2 0.2 0.8 Total Debt Service 4.1 39.0 63.3 106.4

Operations and Maintenance General Funds 4.7 13.8 3.3 21.8 Formula and Other Schools 13.5 14.0 27.5 Auxiliary 0.4 12.9 13.3 Total Operations and Maintenance 5.1 27.3 30.2 62.6 1 Primarily the hospitals along with Forsythe facility, Faculty Staff Housing, and outside entities. CAPITAL PLAN AND CAPITAL BUDGET 77

subject to change. “Resources to be identified” are expected addition, through fiscal year-end 2016/17 and 2017/18, $97 to come from a combination of school, department, and uni- million in internal amortization proceeds on debt-funded versity reserves, as well as other sources. projects will become available to lend to projects, and $301 million in forecasted pledge and other payments will retire Uses of Funds by Program Category and debt issued to bridge finance the receipt of gifts and cost of Project Type construction. The middle chart on page 75 divides Capital Plan activity into The three-year Capital Plan will require a total of $2.3 billion program categories—Academic/Research, Infrastructure and of debt for projects under construction or for projects to be Other, Academic Support, Housing, and Athletics/Student approved in or before 2017/18: Activities—with the largest categories being Housing, Academic/Research, and Academic Support at 47%, 28%, n $1,510 million to complete projects already approved or and 17% of the plan, respectively. The bottom chart breaks under construction; out the same activity into project types, including New n $337 million for projects to be approved in 2017/18; and Construction, Infrastructure, and Renovations. n $433 million to bridge finance the receipt of gift pledges for projects approved or under construction. CAPITAL PLAN CONSTRAINTS Additional debt may be required to finance the Faculty Staff Affordability Housing program. As of May 1, 2017, the portfolio of debt- subsidized mortgages had increased by $20.5 million to $496 The incremental internal debt service expected at the million. completion of all projects commencing in the three-year plan period (completion dates range from 2017/18 to 2024/25) Projects identified in the three-year Capital Plan and to be totals $106.4 million annually (excluding debt service for approved after 2017/18 will require an additional $200 million bridge financing the receipt of gifts and operating lease in debt. Debt for these projects has not been committed, and payments). Of this amount, $46.4 million will be serviced allocations will be evaluated in the context of debt capacity, by general funds, $23.1 million by the formula schools (GSB affordability, viability of the funding plan, and GUP limitations. and SoM), and $36.9 million by auxiliary and other opera- tions. Service center debt is funded through rates paid by Entitlements customers and has been allocated and included in the totals The Stanford campus encompasses 8,180 acres in six jurisdic- for general funds, formula schools, auxiliary operations, and tions. Of this total, 4,017 acres, including most of the central other operations. campus, are within unincorporated Santa Clara County.

The additional O&M costs expected at the completion of all In December 2000, Santa Clara County approved a GUP that projects commencing in the three-year period total $62.6 allows Stanford to construct up to 2,035,000 additional gross million per year. Of this amount, $21.8 million will be serviced sf of academic-related buildings on the core campus and by general funds, $27.5 million by the formula schools, and up to 3,018 new housing units. An additional 1,450 housing $13.3 million by auxiliary and other operations. O&M and units were approved on March 24, 2016, pursuant to GUP debt service on capital projects compete directly with other Condition F.7, raising the housing allocation to 4,468 hous- academic program initiatives for funding allocations. ing units.

Debt Capacity Conditions of approval included the following: As of May 1, 2017, $1.1 billion of bond proceeds are available n Creation of an academic growth boundary to limit the to finance capital projects and faculty mortgages, including buildable area to the core campus for a minimum of 25 $281 million of unexpended tax-exempt bond proceeds, and years; $780 million of unexpended taxable bond proceeds. Interim n Approval of a sustainable development study (SDS) financing facilities totaling $500 million of taxable commer- before new construction exceeds 1 million gross sf (Santa cial paper, $296 million of tax-exempt commercial paper, and Clara County approved the SDS in April 2009); and $448 million of undrawn lines of credit are also available. In 78 CAPITAL PLAN AND CAPITAL BUDGET

n Construction of 605 units of housing for each 500,000 MAJOR CAPITAL PROJECTS - gross sf of new academic building. PERCENT OF COMPLETION 2017/181 [IN MILLIONS OF DOLLARS] Given the stringent requirements imposed by the GUP and ESTIMATED the increasingly difficult entitlement environment, Stanford CAPITAL ESTIMATED PERCENT BUDGET PROJECT COMPLETE BY carefully manages the allocation of new growth. Construction 2017/18 COST 2017/18 through 2015/16 accounted for 1.4 million GUP sf. The Escondido Village (EV) Graduate 2017/18-2019/20 Capital Plan includes 463,963 GUP sf Residences 171.2 1,091.7 29% currently in design and construction and 30,032 GUP sf in Stanford Redwood City Phase 1 329.4 568.8 74% forecasted projects, including the related demolitions. With Neuro/ChEM-H Research Complex 119.2 257.0 76% the completion of planned housing projects, Stanford will Center for Academic Medicine 1 have added 4,424 net new housing units since approval of (CAM 1) 103.9 222.9 48% the GUP, exceeding the housing linkage requirement for the BioMedical Innovations full academic build-out allowed by the GUP. Building 1 and Tunnel (BMI 1) 104.0 210.0 58% University Terrace Faculty As discussed on page 69, Stanford has submitted an applica- Homes (180 units) 45.0 176.5 100% tion to Santa Clara County for an updated GUP. This permit Anne T. and Robert M. Bass is expected to be approved in 2018. Biology Research Building 58.9 152.2 100% Frost Amphitheater Improvements 19.9 33.5 100% Public Safety Building 12.4 31.5 50% THE CAPITAL BUDGET, 2017/18 Athletic Academic Advising and Rowing Building 16.7 25.0 100% At $1.2 billion, the 2017/18 Capital Budget reflects only a Denning House 15.0 23.1 92% portion of the costs of the projects in the Capital Plan, as Durand Renovation - Phase 4 10.3 17.4 100% most of them span more than one year. The following table Environmental Health & highlights the major capital projects for which expenditures Safety Facility Expansion 12.6 16.5 92% under the 2017/18 Capital Budget will be significant, as well Total 1,018.5 2,826.1 as the percentage of each project expected to be complete by 1 Includes projects scheduled to be in construction and with forecasted the end of 2017/18. The map on page 81 shows the locations expenditures greater than $10 million in 2017/18. of these projects.

In 2017/18, LBRE anticipates substantial completion of five major projects with total budgets of $404.6 million and estimated 2017/18 expenditures of $150.8 million. When SOURCES AND USES completed, University Terrace Faculty Homes will provide 180 units to faculty for purchase (see Stanford’s Commitment The Capital Budget is supported by multiple funding sources: to Housing section); the Bass Biology Building will be current funds (which include the Capital Facilities Fund [CFF], the cornerstone of a future science quad in the Biology/ funds from university and school reserves, and GUP and SIP Chemistry/Computer Science Precinct; improvements to fees), gifts, and debt. The university typically allocates CFF Frost Amphitheater will enable the facility to be used for a or debt funding to projects in the absence of other available greater variety of events; the Athletic Academic Advising and funding. The timing of gift receipts, which may be bridge Rowing Building will consolidate a number of Department of financed, will affect the mix of project funding. Athletics, Physical Education, and Recreation programs and The following pie charts show the uses of funds under the allow optimization of vacated space; and Durand Phase 4 will $1.2 billion Capital Budget by project type and program complete the renovation of the building. category. Anticipated expenditures of $439.8 million (36%) for Academic/Research projects include the Neuro/ ChEM-H Research Complex, CAM 1, BMI 1, and the Bass Biology Building. Academic Support projects are projected at CAPITAL PLAN AND CAPITAL BUDGET 79

CAPITAL FACILITIES FUND (CFF) THE CAPITAL BUDGET 2017/18 Funding Sources and Committed Uses of Funding $1.2 BILLION [IN MILLIONS OF DOLLARS] 2016/17 2017/18 Sources of Funding Uses of Funds by Project Type Formula Units Infrastructure/Other School of Medicine 17.8 18.4 8% Hoover Institution 4.4 4.4 Renovations New Construction 3% 89% Non-Formula 27.7 90.2 Total Funding 49.9 113.0

Committed Uses of Funding Center for Academic Medicine 1 (CAM 1) 13.3 0.9 Neuro/ChEM-H Research Complex 2.7 Stanford Oak Garden Children’s Center 1.8 5.7 3145 Porter Drive Tenant Improvements 2.9 LKSC Renovation Phases 2 and 3 2.5 Uses of Funds by Program Category Other School of Medicine Projects 6.4 Hoover Institution Projects 4.4 4.4 Infrastructure/Other 8% Academic/Research Formula Units Project Subtotal 22.2 22.8 36% Neuro/ChEM-H Research Complex 50.4 Academic Stanford Redwood City Phase 1 19.1 Support 33% Bioengineering Equipment 9.7 Emergency Operations Center 5.3 4.9 Durand Renovation Phase 4 5.0 GUP 4 4.5 3.6 Sapp Center for Science Teaching and Learning 3.5 Athletics/Student Activities Housing Public Safety Building 2.8 21.1 1% 22% Anderson Collections at Stanford University 2.1 Children Center of Stanford Community 1.1 9.7 Searsville Dam and Reservoir 1.0 1.5 Lagunita Diversion Dam Removal 0.8 2.7 Encina Complex Upgrades 10.0 Other Non-Formula Units Projects 3.4 6.1 Total Commitments 130.9 82.4 $407.1 million (33%), primarily for Stanford Redwood City. Housing projects, forecasted at $269.4 million (22%), in- Annual Funding less Commitments (81.0) 30.6 clude the EV Graduate Residences, University Terrace Faculty Balance at Beginning of Year 93.8 12.8 Homes, and the Housing Acquisition Initiative. Infrastructure Uncommitted Balance 12.8 43.4 and other program investment of $95 million (8%) includes Investment in Plant (Planned Maintenance) and CUP. Lastly, expenditures for Athletics/Student Activities projects are forecasted at $20 million (1%).

Annual transfers to CFF are projected to be $49.9 million in 2016/17 and $113 million in 2017/18 with corresponding commitments of $130.9 million and $82.4 million for these two years. The following table lists projects anticipated to receive CFF funding in 2016/17 and 2017/18. 80 CAPITAL PLAN AND CAPITAL BUDGET

CAPITAL BUDGET IMPACT ON The projected internal debt service funded by unrestricted funds, including general funds and schools’ designated funds, 2017/18 OPERATIONS will decrease by $400,000 in 2017/18. The net change in The 2017/18 Consolidated Budget for Operations includes debt service brings the total annual internal debt service incremental debt service and O&M expenses for projects to borne by unrestricted funds to $83.7 million. be completed in either 2016/17 or 2017/18, but operational In 2017/18, the university will incur about $1.0 million of in- for less than 12 months in the year completed. cremental O&M costs related to a number of new academic Capital projects requiring debt are funded from internal loans and administrative facilities. They include $360,000 for the that are amortized over the asset life in equal installments Kingscote Renovation and $343,000 for the Central Loading (principal and interest). The budgeted interest rate (BIR) Dock. Additional O&M costs for smaller capital projects used to calculate the internal debt service is a blended rate and infrastructure programs account for the balance of the of interest expense on debt issued for capital projects, bond increase. issuance, and administrative costs. The BIR will remain at 4.25% for 2017/18.

Consolidated internal debt service, including that borne CAPITAL PLAN PROJECT DETAIL by formula units, auxiliaries, service centers, Faculty Staff In addition to a map identifying some key project locations, Housing, and real estate investment, is projected to increase the following pages provide tables that list capital projects from $199.1 million to $199.3 million. Additional debt ser- in three categories: projects in design and construction, vice related to the Rosewood Hotel and the Sand Hill Road forecasted construction projects, and infrastructure projects Office Complex is not included in the Consolidated Budget and programs. for Operations. In addition, annual lease payments for rental properties, occupied by the SoM, are projected to be $32.9 million in 2017/18. TY I RD S R F O E N V A

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0.2 0.2 0.3 0.3 0.4 0.5 9.7 2.4 6.6 2.2 1.8 2.4 4.2 0.6 0.8 (0.2) 21.2 53.6 OPERATIONS & OPERATIONS DEBT DEBT 0.5 0.9 1.3 1.8 0.3 2.4 0.6 1.2 ANNUAL CONTINUING COSTS CONTINUING ANNUAL MAINTENANCE SERVICE 72.3 32.1 31.2

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0.0 TO BE TO RESOURCES IDENTIFIED OTHER 14.5 149.2 134.7

8.5 5.0 DEBT 14.5 22.5 31.3 40.0 10.7 20.0 ACADEMIC 696.3 543.8 UNIVERSITY DEBT DEBT 762.0 AUXILIARY AUXILIARY 600.0 162.0 SERVICE CENTER/SERVICE

FUNDING SOURCE PROJECT 2.7 6.9 TO BE TO RAISED 23.0 50.0 47.5 130.1 GIFTS 2.0 4.5 OR 11.3 18.1 23.1 49.9 33.5 IN HAND PLEDGED 102.0 150.0 102.5 496.9

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7.5 4.2 0.2 1.9 FUNDS 11.3 11.5 14.5 17.4 82.5 25.0 51.9 20.0 58.1 31.5 CURRENT 656.2 109.5 209.2

4.8 5.0 3.8 7.2 6.6 2.1 0.3 12.6 16.7 15.0 10.3 11.5 77.4 26.5 45.0 56.5 19.9 12.4 CAPITAL BUDGET 329.4 119.2 159.7 104.0 2017/18 1,045.9

7.5 8.5 4.7 11.3 11.5 16.5 25.8 25.0 23.1 17.4 82.5 56.9 21.9 33.5 31.5 COST 568.8 257.0 166.0 210.0 176.5 125.6 PROJECT ESTIMATED 2,890.7 1,009.2

PROJECT FISCAL YEAR 2017-20 2017-19 2017-18 2017-19 2017-19 2016-19 2017-18 2016-19 2017-18 2016-21 2015-19 2015-19 2016-21 2017-20 2017-20 2017-19 2013-18 2014-18 2014-18 2015-18 2015-18 2017-19

GSB SOE H&S H&S H&S UHR UHR DOR DOR DOR LBRE SOM SOM R&DE R&DE SCHOOL/ DAPER SCHEDULE DEPARTMENT PRES/PROV PRES/PROV PRES/PROV PRES/PROV LBRE

5

4 CAPITAL PLAN 2019/20 CAPITAL (1,200 spaces) Garages Parking Underground beds) net new Buildings (2,020 Residence Includes funds from university and school reserves, and the GUP SIP programs. and school reserves, university Includes funds from and other sources. reserves, of school, department and university a combination is through this category funding for Anticipated lighting. and outdoor grounds, utilities, contracts, management, zone maintenance, includes planned and reactive/preventive & Maintenance Operations SHC and LPCH. Other funding is from Fund. Land Development Other funding is from sales proceeds. Homes debt will be paid off by Faculty Terrace University (854 spaces) Parking Underground Bass Biology Building Bass Elements Connective III Demolition Dock and Stauffer Loading Central in Design & Construction - Projects Subtotal Center Children’s Oak Garden Stanford Centers District Work Renovations Center Residential Schwab Community of Stanford Center Children’s Athletic Academic Advising and Rowing Building and Rowing Advising Academic Athletic Denning House - Phase 4 Renovation Durand Expansion Facility Health & Safety Environmental Phase 1 City Redwood Stanford Complex Research Neuro/ChEM-H 1 ) Medicine 1 (CAM Academic for Center

2017/18 – IN DESIGN & CONSTRUCTION PROJECTS [IN MILLIONS OF DOLLARS] Residences (EV) Graduate Village Escondido Building 1 2 3 4 5 (BMI 1 ) SOM Building 1 and Tunnel BioMedical Innovations Homes (180 units) Faculty Terrace University Anne T. and Robert M. Bass Biology Research Building Biology Research M. Bass and Robert T. Anne Improvements Amphitheater Frost Building Safety Public Upgrades Encina Complex CAPITAL PLAN AND CAPITAL BUDGET 83

3

3.1 6.2 0.8 3.8 0.8 8.9 (5.8) 62.5

OPERATIONS & OPERATIONS DEBT DEBT 6.4 2.4 3.3 3.6 0.9 0.6 ANNUAL CONTINUING COSTS CONTINUING ANNUAL MAINTENANCE SERVICE 89.4 17.1

2 TO BE TO 24.9 24.9 24.9 RESOURCES 0.0 IDENTIFIED OTHER 149.2

7.5 DEBT 40.0 44.1 11.8 ACADEMIC 103.4 799.7 UNIVERSITY DEBT

DEBT 48.6 18.0 AUXILIARY AUXILIARY 109.0 175.6 937.6 SERVICE CENTER/SERVICE FUNDING SOURCE PROJECT

8.5 6.5 5.0 TO BE TO RAISED 48.7 43.0 30.0 20.1 161.8 291.9

GIFTS 3.3 0.1 6.4 3.4 OR 11.3 24.5 IN HAND PLEDGED 521.4

1 4.0 8.9 2.5 1.2 2.2 1.6 73.0 14.7 10.2 CURRENT 118.3 774.5 FUNDS

0.3 4.7 1.9 0.7 0.6 1.2 0.8 2.6 7.3 0.4 2.8 0.2 3.1 12.7 15.4 54.6 CAPITAL BUDGET 2017/18 1,100.4

9.8 8.6 6.5 5.0 5.0 COST 15.8 43.0 30.0 20.1 58.8 48.6 35.1 18.0 12.2 10.0 PROJECT 182.0 100.0 608.5 ESTIMATED 3,499.2

PROJECT FISCAL YEAR 2019-20 2017-20 2018-21 2018-20 2018-22 2018-21 2019-20 2020-21 2017-19 2017-19 2017-19 2017-20 2017-18 2018-20 2017-20 2018-20 2017-18

SLS SE3 GSE H&S DOR LBRE LBRE SOM SOM SOM R&DE SCHOOL/ DAPER DAPER SCHEDULE DEPARTMENT HOOVER HOOVER HOOVER PRES/PROV

CAPITAL PLAN CAPITAL 2019/20 Includes funds from university and school reserves, and the GUP SIP programs. and school reserves, university Includes funds from lighting. and outdoor grounds, utilities, contracts, management, zone maintenance, includes planned and reactive/preventative & Maintenance Operations Renovation Facility Anticipated funding for this category is through a combination of school, department and university reserves, and other sources. reserves, of school, department and university a combination is through this category funding for Anticipated Improvements Tenant Drive Porter 3172 2017/18 – PROJECTS CONSTRUCTION FORECASTED [IN MILLIONS OF DOLLARS] (215 units) - Residential at 500 El Camino Real Middle Plaza 1 2 3 Earth, Energy and Environmental Sciences Building Sciences Earth, and Environmental Energy Campus Renovations Hoover Memorial Building Renovation - Herbert Hoover Renovation Tower - Hoover Building Renovation Henry Hoover - Lou Improvements Tenant Drive 3145 Porter (Phases 2A - 2E) Rains Houses Renovations Hub Communication Ops Center/Electronic Emergency (EOC/ECH) (8 units) Residences Cabrillo/Dolores Chem/Mudd Hall/Organic Demolition of Herrin Lab/Herrin Phases 2 and 3 Renovation LKSC Sciences Study in the Behavioral Advanced for Center Phase 2 Building Seismic Renovation Cubberley Floor - Basement and Second Renovation Quadrangle Crown Seating Improvements Burnham Pavilion Restoration Golf Course Projects - Forecasted Subtotal PLAN - CONSTRUCTION SUBTOTAL 84 CAPITAL PLAN AND CAPITAL BUDGET

3

0.1 0.1 62.6 OPERATIONS & OPERATIONS

DEBT DEBT 1.3 1.0 2.4 2.1 0.8 0.5 0.4 17.0 ANNUAL CONTINUING COSTS CONTINUING ANNUAL MAINTENANCE SERVICE 10.7 106.4

2

0.0 TO BE TO 24.9 RESOURCES

0.0 IDENTIFIED OTHER 149.2

7.2 4.5 DEBT 13.8 25.5 ACADEMIC 825.2 UNIVERSITY DEBT

3.0 DEBT 20.5 15.7 36.2 11.4 AUXILIARY AUXILIARY 250.0 300.6 SERVICE CENTER/SERVICE 1,238.2 FUNDING SOURCE PROJECT

0.0 TO BE TO RAISED 291.9

GIFTS

0.0 OR IN HAND PLEDGED 521.4

1

4.0 64.3 21.0 43.2 10.4 60.7 250.0 156.4 453.6 CURRENT 1,228.1 FUNDS 6.8 9.5 9.6 4.9 6.0 2.6 3.7 1.5 1.0 20.4 35.8 56.2 14.5 10.4 18.6 CAPITAL BUDGET 130.8 2017/18 1,231.2

7.2 4.5 4.0 COST 64.3 21.0 43.2 20.5 15.7 36.2 16.8 10.4 60.7 11.4 PROJECT 779.7 500.0 156.4 ESTIMATED 4,278.9

2018 PROJECT FISCAL YEAR 2018-20 2018-20 2015-25 2018-20 2018-20 2018-20 2018-20 2018-20 2018-20 2018-19 2018-20 2017-20

BA BA LBRE LBRE LBRE LBRE LBRE LBRE LBRE SOM SOM SCHOOL/ R&DE R&DE DAPER DAPER SCHEDULE DEPARTMENT LBRE/SOM LBRE/SOM

4

4

CAPITAL PLAN 2019/20 CAPITAL Non-Formula/Admin Formula R&DE (SHARP/DARP/HARP) Includes funds from university and school reserves, and the GUP and SIP programs. Also includes Tier II contribution for the Housing Acquisition Initiative. Initiative. the Housing Acquisition for II contribution Also includes Tier and the GUP SIP programs. and school reserves, university Includes funds from and other sources. reserves, of school, department and university a combination is through this category funding for Anticipated lighting. and outdoor grounds, utilities, contracts, management, zone maintenance, includes planned and reactive/preventive & Maintenance Operations replacement. which includes subsystem Planned Maintenance, vs. upgrades and code include program generally Plan projects R&DE Major Renovation DAPER Serra in Plant (Planned Maintenance) Investment 2017/18 – AND OTHER INFRASTRUCTURE [IN MILLIONS OF DOLLARS] (HAI) Initiative Housing Acquisition 1 2 3 4 in Plant (Planned Maintenance) Subtotal-Investment (SIP) Program Infrastructure Stanford (CUP) Capital Utilities Program Expansion System Replacement System Subtotal-CUP Systems and Communications Technology Information Plan R&DE Major Renovation Whole Building Energy Retrofit Program Group 2 Group Program Retrofit Whole Building Energy Drainage Storm Roundabouts Campus Drive & Programs Projects - Infrastructure Subtotal PLAN CAPITAL TOTAL APPENDIX A: CONSOLIDATED BUDGETS BY UNIT 85

APPENDIX A CONSOLIDATED BUDGETS FOR SELECTED UNITS

n Consolidated Budget for Operations by Unit, 2017/18

n Summary of 2017/18 General Funds Allocations (Excludes Formula Units)

Consolidated Budget for Operations by Selected Units, 2017/18

Academic Units

n Graduate School of Business

n School of Earth, Energy & Environmental Sciences

n Graduate School of Education

n School of Engineering

n School of Humanities and Sciences

n School of Law

n School of Medicine

n Vice Provost and Dean of Research

n Vice Provost for Undergraduate Education

n Vice Provost for Graduate Education

n Vice Provost for Teaching and Learning

n Hoover Institution

n Stanford University Libraries

Auxiliary Units

n Athletics

n Residential & Dining Enterprises 86 APPENDIX A: CONSOLIDATED BUDGETS BY UNIT

CONSOLIDATED BUDGET FOR OPERATIONS BY UNIT, 2017/18 [IN MILLIONS OF DOLLARS] TOTAL RESULT OF TRANSFERS CHANGE IN REVENUES AND TOTAL CURRENT (TO)/FROM EXPENDABLE TRANSFERS EXPENSES OPERATIONS ASSETS FUND BALANCE Academic Units Graduate School of Business 1 256.5 264.1 (7.6) 0.6 (7.0) School of Earth, Energy & Environmental Sciences 65.4 71.7 (6.3) 1.8 (4.5) Graduate School of Education 76.4 75.2 1.2 (1.2) 0.1 School of Engineering 399.4 398.2 1.2 1.7 2.9 School of Humanities and Sciences 1 529.8 518.4 11.4 (9.5) 1.9 School of Law 96.9 90.1 6.8 (6.7) 0.1 School of Medicine 1 2,464.4 2,327.8 136.6 (43.8) 92.8 Vice Provost and Dean of Research 246.6 234.0 12.6 3.3 15.9 Vice Provost for Undergraduate Education 1 57.2 49.1 8.1 0.1 8.3 Vice Provost for Graduate Education 10.5 12.6 (2.1) (0.3) (2.4) Vice Provost for Teaching and Learning 40.1 39.9 0.2 0.2 Hoover Institution 68.6 72.1 (3.4) (3.4) Stanford University Libraries 1 89.5 89.1 0.4 0.4 SLAC 563.6 564.6 (1.0) (1.0) Total Academic Units 4,964.9 4,806.8 158.1 (53.9) 104.2 Administrative Units Business Affairs 235.9 236.7 (0.9) (0.3) (1.2) Office of Development 91.6 92.2 (0.7) (0.7) General Counsel and Public Safety 42.2 42.4 (0.2) (0.2) Land, Buildings and Real Estate 327.6 322.1 5.5 (6.2) (0.7) Offices of the President and Provost 119.7 114.5 5.2 0.6 5.9 Office of Public Affairs 4.3 4.3 Stanford Alumni Association 49.3 49.6 (0.3) (0.3) Student Affairs 1 76.0 77.3 (1.2) (1.2) University Communications 8.2 8.3 University Human Resources 14.8 15.3 (0.5) (0.5) Stanford Management Company 42.0 42.4 (0.4) (0.4) Undergraduate Admission and Financial Aid 189.7 190.6 (0.9) (0.9) Major Auxiliary Units Athletics 135.9 134.4 1.5 1.5 Residential & Dining Enterprises 267.2 269.1 (1.8) (1.8) Total Administrative & Auxiliary Units 1,604.4 1,599.2 5.2 (5.9) (0.7) Internal Transaction Adjustment 2 (171.0) (96.8) (74.2) 10.9 (63.4) Indirect Cost Adjustment 3 (278.0) (278.0) Grand Total from Units 6,120.3 6,031.3 89.0 (48.9) 40.1 Central Accounts 4 131.4 (124.5) 256.0 (160.1) 95.9 Central Adjustment 5 9.7 (53.5) 63.1 (33.7) 29.4 Total Consolidated Budget 6,261.4 5,853.3 408.1 (242.8) 165.4 Notes: 1 The budgets for these units include auxiliary operations, which are separately identified in the units’ consolidated forecast in Appendix A. 2 Internal revenues and expenses are included in the unit budgets. This adjustment backs out these internal activities from the Consolidated Budget to avoid double counting them. 3 The academic unit budgets include both direct and indirect sponsored income and expenditures. Indirect cost funding passes through the schools and is transferred to the university as expenditures occur. At that point, indirect cost recovery becomes part of unrestricted income for the university. In order not to double count, indirect cost recovery of $278.0 million received by the schools is taken out in the “Indirect Cost Adjustment” line. 4 Central Accounts encompass funds not belonging to any particular budget unit that are used for university-wide activities, such as academic debt service payments; centrally funded tuition allowance; miscellaneous university expenses; Presidential and Provostial discretionary funds; and the general funds surplus. 5 Additional central adjustments for revenues, expenses and asset transfers are made to bring the sum of the unit projections in line with the overall projection. The $9.7 million of net revenue and ($33.7) million of net asset transfer are based on historical experience and reflects the expectation that the university will receive additional unrestricted and/or restricted income and reinvest unspent payout and/or fund balances to endowment principal that cannot be specifically identified by units at this time. APPENDIX A: CONSOLIDATED BUDGETS BY UNIT 87

SUMMARY OF 2017/18 BASE GENERAL FUNDS ALLOCATIONS (EXCLUDES FORMULA UNITS) [IN THOUSANDS OF DOLLARS] SALARY & PROGRAMMATIC 2016/17 TO 2016/17 GF NON-SALARY ADDITIONS/ 2017/18 GF 2017/18 PERCENT ALLOCATION INFLATION (ADJUSTMENTS) ALLOCATION CHANGE CHANGE School of Earth, Energy, and Environmental Sciences 10,345 383 938 11,666 1,321 12.8% Graduate School of Education 18,114 675 225 19,014 900 5.0% School of Engineering 79,298 2,940 1,267 83,505 4,206 5.3% School of Humanities & Sciences 181,963 6,732 3,859 192,554 10,591 5.8% School of Law 31,118 1,183 335 32,636 1,518 4.9% Vice Provost and Dean of Research 45,266 1,568 1,638 48,473 3,207 7.1% Vice Provost for Undergraduate Education 21,455 762 110 22,327 872 4.1% Vice Provost for Graduate Education 7,876 305 8,182 305 3.9% Vice Provost for Teaching and Learning 9,816 335 1,237 11,389 1,572 16.0% Stanford University Libraries 51,727 1,780 344 53,851 2,123 4.1% Total - Academic 1 456,978 16,664 9,953 483,595 26,617 5.8% Business Affairs 2 122,952 4,530 2,729 130,211 7,259 5.9% Office of Development 3 45,377 1,691 3,074 50,142 4,765 10.5% Land, Buildings and Real Estate 4 16,264 239 583 17,086 821 5.1% Offices of the President & Provost 19,169 698 175 20,042 873 4.6% Public Affairs and University Communications 3 8,944 337 (706) 8,576 (368) -4.1% Stanford Alumni Association 11,284 347 475 12,105 822 7.3% Student Affairs 35,964 1,448 533 37,945 1,981 5.5% University Human Resources 11,516 429 1,130 13,074 1,559 13.5% Admission and Financial Aid Operations 10,891 396 800 12,087 1,196 11.0% Other Units 5 28,309 959 1,855 31,123 2,815 9.9% Central Obligations 6 42,669 5,173 (1,175) 46,667 3,999 9.4% Total - Administrative 353,338 16,247 9,474 379,059 25,721 7.3% Undergraduate Financial Aid 21,034 1,662 22,696 1,662 7.9% O&M and Utilities 105,851 3,117 1,672 110,641 4,790 4.5% Debt Service 36,099 (3,861) 32,238 (3,861) -10.7% Capital Facilities Fund 7 26,154 62,556 88,710 62,556 239.2% University Reserves 30,000 20,000 50,000 20,000 66.7% Total - Other Allocations 219,139 918 84,228 304,285 85,146 38.9% Total Non-Formula Allocations 1,029,455 33,829 103,654 1,166,939 137,484 13.4% Unallocated Surplus 28,087 25,875 (2,212) -7.9% Total Non-Formula General Funds 1,057,542 33,829 103,654 1,192,814 135,272 12.8%

NOTES: 1 For this table, the TA tuition allowance expense budgeted centrally and distributed annually on a one-time basis is redistributed to the academic units according to their individual allocations. 2 Property and general insurance allocations are moved from Business Affairs to Central Obligations. 3 In 2017/18, base general funds for the Office of Special Events and Protocol are transferred from Public Affairs to the Office of Development, explaining the decrease in the allocation to Public Affairs and subsequent increase in general funds for the Office of Development. 4 Operations and Maintenance (O&M) and Utilities allocations are moved from Land, Buildings and Real Estate to Other Allocations. 5 Other Units include general funds allocations for General Counsel and Public Safety, Hoover, SLAC, Athletics, Stanford University Press, and the Stanford Faculty Club. 6 Central Obligations include RA tuition allowance and miscellaneous university expenses, property insurance, general insurance, fire contract, and Stanford Research Computing Center allocations. 7 Allocation to the Capital Facilities Fund is reduced in 2016/17 to offset the shortfall in the Expendable Fund Pool (EFP) investment return during 2015/16. 88 APPENDIX A: CONSOLIDATED BUDGETS BY UNIT

641 641 (445) TOTAL 5,403 5,403 (7,617) (6,976) 24,268 24,268 85,057 85,057 47,348 47,348 85,667 85,667 48,509 48,509 92,643 92,643 67,049 67,049 58,915 2017/18 264,098 264,098 184,474 184,474 256,481 256,481

0 0 0 0 520 520 8,852 8,852 5,007 5,007 1,786 1,786 1,539 1,539 7,219 7,219 3,180 3,180 8,852 8,852 (1,547) AUXILIARY & AUXILIARY SERVICE CENTER SERVICE

0 0 0 0 10 10 34 34 99 99 756 756 443 443 169 169 756 756 756 756 GRANTS & GRANTS CONTRACTS

0 0 (9) 180 180 170 170 180 180 5,500 5,500 5,330 5,330 82,113 82,113 RESTRICTED (81,933) ENDOWMENT

0 0 94 94 525 525 227 227 522 522 650 650 718 718 (650) 1,368 1,368 39,000 39,000 39,000 39,000 30,646 30,646 (29,928) RESTRICTED EXPENDABLE

91 91 7,646 7,646 7,677 7,677 4,502 4,502 4,960 4,960 8,347 8,347 2,223 2,223 FUNDS (7,146) (7,146) 33,133 33,133 40,167 40,167 47,314 47,314 63,740 63,740 25,986 25,986 (40,068) DESIGNATED DESIGNATED

0 0 0 0 1,000 1,000 1,000 1,000 BUDGET 11,080 11,080 74,924 74,924 41,634 41,634 41,881 41,881 66,958 66,958 50,470 OPERATING 219,989 219,989 153,031 153,031 219,989 219,989

Internal Expenses Internal Non-Salary Expenses Non-Salary Benefits & Other Compensation Other & Benefits Staff Salaries Staff General Funds Allocation Funds General Salaries Academic Revenues Restricted Revenue Internal Transfers Operating Total Expenses Total Operating Results Operating

Balances Fund Ending Balances Fund Beginning Revenues Expenses Assets Other & Endowment (to) From Transfers Surplus / (Deficit) / Surplus Transfers From (to) Plant (to) From Transfers Revenues Total

686 686 (262) 1,706 5,400 5,400 23,141 23,141 78,256 78,256 45,114 45,114 92,643 45,765 68,116 68,116 65,039 56,333 24,527 24,527 23,083 PROJECTION 248,609 179,189 250,315

Consolidated Budget Plan 2016/17 119 119 2,654 2,654 5,524 5,524 This schedule does not include endowment principal, student loan funds, or plant funds. schedule does not include endowment This of research. costs administrative and general infrastructure Expense for as a Non-Salary this same amount is charged Recovery; Cost includes Indirect revenue and Contracts Grants ACTUALS 20,648 20,648 71,917 71,917 42,763 42,763 68,116 68,116 42,882 42,882 76,143 76,143 61,431 61,431 52,975 2015/16 231,185 231,185 (10,800)

168,808 168,808

GRADUATE SCHOOLGRADUATE OF BUSINESS 2017/18 OF DOLLARS] [IN THOUSANDS Notes: • • agreement. under a formula units operating policy for with Stanford’s consistent costs, administrative and central schedule includes an allocation of tuition revenue • This (8,027)

(1,924) 233,839

APPENDIX A: CONSOLIDATED BUDGETS BY UNIT 89

600 600 (142) TOTAL 2,947 2,947 3,777 3,777 8,179 8,179 1,200 (5,773) (3,973) 71,710 71,710 49,331 49,331 48,916 65,937 65,937 14,843 12,970 12,970 16,997 16,997 28,744 52,889 52,889 2017/18

0 0 0 0 0 0 0 AUXILIARY & AUXILIARY SERVICE CENTER SERVICE

0 0 0 0 (6) 179 179 700 700 5,617 5,617 2,395 2,395 4,024 GRANTS & GRANTS 12,209 12,209 11,509 11,509 12,209 12,209 CONTRACTS

237 237 144 (897) 1,738 1,738 1,357 1,357 1,200 1,200 (2,635) (1,435) 27,722 27,722 14,066 15,501 15,501 RESTRICTED (28,619) ENDOWMENT

55 55 447 447 858 858 600 600 2,400 2,400 1,369 1,369 3,705 3,705 5,511 5,511 1,305 1,305 2,783 2,783 (1,806) (1,206) 17,966 17,966 19,172 19,172 RESTRICTED EXPENDABLE

422 422 346 346 (142) 7,700 7,700 2,467 2,467 8,727 8,727 1,169 1,169 2,529 2,529 4,823 4,823 FUNDS (1,860) (1,860) 10,587 10,587 16,246 16,246 18,106 18,106 DESIGNATED DESIGNATED

529 529 639 639 529 529 110 110 5,152 5,152 1,755 7,785 7,785 BUDGET 41,664 41,664 42,193 42,193 29,223 29,223 12,970 12,970 11,216 15,756 15,756 OPERATING

Revenues Restricted Revenue Internal Internal Expenses Internal Non-Salary Expenses Non-Salary Transfers Operating Staff Salaries Staff General Funds Allocation Funds General Salaries Academic Benefits & Other Compensation Other & Benefits Operating Results Operating Total Expenses Total Revenues Total Balances Fund Ending Expenses Assets Other & Endowment (to) From Transfers Transfers From (to) Plant (to) From Transfers Surplus / (Deficit) / Surplus Balances Fund Beginning

5 (142) 2,869 1,090 4,280 7,827 (4,817) (5,662) 16,26 69,158 69,158 48,400 64,340 14,428 52,889 11,802 11,802 27,768 58,552 PROJECTION

2016/17 9 9 18 Consolidated Budget Plan 2,739 2,739 1,064 3,845 3,845 7,474 7,474 This schedule does not include endowment principal, student loan funds, or plant funds. schedule does not include endowment This 87. in the table on page shown the base figure will not match and therefore in this schedule includes one-time allocations (including tuition allowance) funds allocation shown general The of research. costs administrative and general infrastructure Expense for as a Non-Salary this same amount is charged Recovery; Cost includes Indirect revenue and Contracts Grants ACTUALS 69,181 69,181 49,889 49,889 66,460 66,460 16,748 58,552 58,552 12,717 12,717 15,215 27,005 27,005 60,208 60,208 2015/16 (1,935) (2,721)

SCHOOL OF EARTH, ENERGY & ENVIRONMENTAL SCIENCES 2017 / OF DOLLARS] [IN THOUSANDS Revenues Notes: • • •

(1,656)

90 APPENDIX A: CONSOLIDATED BUDGETS BY UNIT

51 51 (175) TOTAL 1,238 1,238 2,171 2,171 1,995 1,995 (1,187) 75,151 75,151 21,433 21,433 76,388 76,388 19,575 19,575 54,739 54,739 54,893 54,893 17,327 17,327 54,689 54,689 19,675 19,675 14,644 14,644 2017/18 2017/18

0 0 0 0 0 0 0 0 AUXILIARY & AUXILIARY SERVICE CENTER SERVICE

0 0 0 0 96 96 6,119 6,119 5,681 5,681 2,937 2,937 GRANTS & GRANTS 25,163 25,163 10,330 10,330 25,163 25,163 25,163 25,163 CONTRACTS

38 38 735 735 338 338 513 513 592 592 819 819 (952) 2,299 2,299 3,711 3,711 3,034 3,034 4,663 4,663 (9,894) (1,687) 12,928 12,928 RESTRICTED ENDOWMENT

62 62 699 699 300 300 500 500 (438) 7,639 7,639 3,718 3,718 1,643 1,643 7,200 7,200 1,278 1,278 (3,775) 18,430 18,430 18,368 18,368 10,975 10,975 RESTRICTED EXPENDABLE

941 941 398 398 941 941 (175) 6,698 6,698 1,498 1,498 1,988 1,988 1,716 1,716 7,640 7,640 5,827 5,827 2,074 2,074 1,012 1,012 FUNDS 31,460 31,460 30,519 30,519 DESIGNATED DESIGNATED

0 0 0 0 640 640 5,374 5,374 9,505 9,505 1,139 1,139 7,475 7,475 1,139 1,139 BUDGET 33,351 33,351 13,675 13,675 33,351 33,351 19,675 19,675 10,357 OPERATING

Internal Expenses Internal Non-Salary Expenses Non-Salary Revenue Internal Transfers Operating Benefits & Other Compensation Other & Benefits Revenues Restricted Staff Salaries Staff General Funds Allocation Funds General Salaries Academic Operating Results Operating Total Expenses Total Balances Fund Ending Revenues Total Balances Fund Beginning Expenses Assets Other & Endowment (to) From Transfers Surplus / (Deficit) / Surplus Transfers From (to) Plant (to) From Transfers

2,399 2,399 2,258 2,258 2,435 2,435 1,112 1,112 (1,287) 74,731 74,731 22,108 19,230 19,230 54,689 54,689 77,130 77,130 55,349 55,349 16,916 16,916 53,577 53,577 19,501 19,501 14,219 PROJECTION

(156)

2016/17 18 Consolidated Budget Plan (165) 2,621 2,621 3,679 3,679 8,594 8,594 This schedule does not include endowment principal, student loan funds, or plant funds. schedule does not include endowment This 87. in the table on page shown the base figure will not match and therefore in this schedule includes one-time allocations (including tuition allowance) funds allocation shown general The of research. costs administrative and general infrastructure Expense for as a Non-Salary this same amount is charged Recovery; Cost includes Indirect revenue and Contracts Grants ACTUALS 19,444 19,444 72,457 72,457 23,866 23,866 17,908 17,908 53,577 53,577 91,900 91,900 54,647 54,647 15,080 15,080 44,983 44,983 33,739 33,739 12,981 2015/16

(10,850)

GRADUATE SCHOOLGRADUATE OF EDUCATION 2017 / OF DOLLARS] [IN THOUSANDS Revenues • • •

APPENDIX A: CONSOLIDATED BUDGETS BY UNIT 91

TOTAL 3,747 3,747 1,700 1,700 2,047 2,047 9,647 9,647 36,349 36,349 74,105 74,105 16,372 16,372 99,130 99,130 19,648 19,648 2017/18 138,303 138,303 398,164 398,164 271,786 271,786 133,035 133,035 267,828 267,828 400,211 400,211 271,575 271,575

47 47 14 14 (79) (94) (94) 688 688 687 687 1,373 1,373 4,186 4,186 1,391 1,391 4,092 4,092 4,092 4,092 AUXILIARY & AUXILIARY SERVICE CENTER SERVICE

0 0 0 0 2,991 2,991 3,682 3,682 GRANTS & GRANTS 55,823 55,823 17,124 17,124 66,248 66,248 CONTRACTS 145,869 145,869 145,869 145,869 145,869 145,869

319 319 555 555 2,496 2,496 1,519 1,519 1,700 1,700 (3,376) (5,076) 21,852 21,852 16,964 16,964 62,902 62,902 49,711 49,711 16,776 16,776 46,335 46,335 RESTRICTED (46,126) ENDOWMENT

990 990 7,808 7,808 2,426 2,426 2,426 2,426 9,701 9,701 2,903 3,137 3,137 (3,630) 24,540 24,540 30,596 30,596 26,966 26,966 RESTRICTED 100,521 100,521 102,947 102,947 EXPENDABLE

987 987 987 987 2,975 2,975 8,883 8,883 1,675 5,556 5,556 4,805 FUNDS (7,318) 11,325 11,325 29,662 29,662 32,412 32,412 30,649 30,649 DESIGNATED DESIGNATED 117,582 117,582 118,568 118,568

7 7 3,804 3,804 3,804 3,804 6,546 6,546 3,804 3,804 BUDGET 60,162 60,162 27,702 27,702 29,848 29,848 99,130 99,130 76,722 47,797 OPERATING 172,056 172,056 175,859 175,859

Benefits & Other Compensation Other & Benefits Staff Salaries Staff Non-Salary Expenses Non-Salary Internal Expenses Internal Revenue Internal General Funds Allocation Funds General Transfers Operating Salaries Academic Revenues Restricted Surplus / (Deficit) / Surplus Operating Results Operating Expenses Assets Other & Endowment (to) From Transfers Transfers From (to) Plant (to) From Transfers Total Expenses Total Balances Fund Beginning Balances Fund Ending Revenues Total

)

3,260 4,702 (1,950 (9,050) (7,740) 32,669 16,098 23,374 23,374 92,962 67,348 PROJECTION 130,532 134,580 134,580 381,226 381,226 263,449 263,449 275,568 275,568 267,828 384,486

2016/17 18 Consolidated Budget Plan 5,875 5,875 This schedule does not include endowment principal, student loan funds, or plant funds. schedule does not include endowment This 87. in the table on page shown the base figure will not match and therefore in this schedule includes one-time allocations (including tuition allowance) funds allocation shown general The of research. costs administrative and general infrastructure Expense for as a Non-Salary this same amount is charged Recovery; Cost includes Indirect revenue and Contracts Grants ACTUALS 29,985 29,985 30,794 30,794 19,423 19,423 16,611 16,611 54,061 54,061 84,557 84,557 65,135 2015/16 121,133 121,133 137,174 137,174

370,038 370,038

256,339 256,339

256,146 (4,710) (6,661)

SCHOOL OF ENGINEERING OF SCHOOL 2017 / OF DOLLARS] [IN THOUSANDS Revenues Notes: • • • 275,568 275,568 400,832 400,832

92 APPENDIX A: CONSOLIDATED BUDGETS BY UNIT

TOTAL 1,513 1,513 (5,000) (4,500) 57,075 57,075 21,884 21,884 19,488 19,488 12,384 12,384 41,464 41,464 2017/18 2017/18 146,868 146,868 138,628 138,628 518,390 518,390 156,330 156,330 292,970 292,970 204,043 204,043 305,354 305,354 293,253 293,253 540,274 540,274

187 187 203 203 258 258 187 187 163 163 350 350 1,510 1,510 4,228 4,228 7,702 7,702 1,502 1,502 5,482 5,482 7,889 7,889 1,373 1,373 1,034 AUXILIARY & AUXILIARY SERVICE CENTER SERVICE

0 0 0 0 4,999 4,999 2,100 2,100 3,200 3,200 GRANTS & GRANTS 25,612 25,612 13,048 13,048 93,343 47,584 47,584 90,143 90,143 93,343 93,343 CONTRACTS

86 86 990 990 402 402 6,216 6,216 1,210 1,210 4,527 1,716 1,716 1,839 1,839 (4,500) 71,679 71,679 73,395 73,395 10,743 10,743 RESTRICTED 165,737 165,737 ENDOWMENT (154,994)

971 971 4,074 4,074 5,360 5,360 1,623 1,623 1,147 1,147 5,360 5,360 7,148 7,148 (2,658) 14,963 14,963 82,684 82,684 88,044 88,044 22,981 22,981 20,323 20,323 RESTRICTED EXPENDABLE

500 500 140 140 1,233 1,233 4,834 4,834 1,619 1,619 4,834 4,834 8,832 8,832 FUNDS 11,255 11,255 45,344 45,344 15,411 15,411 15,826 15,826 40,706 40,706 50,178 50,178 DESIGNATED DESIGNATED 132,738 132,738 137,573 137,573

77 77 286 286 5,286 5,286 5,706 5,706 5,992 5,992 (5,000) BUDGET 45,558 45,558 82,431 82,431 13,486 13,486 OPERATING 103,426 103,426 352,511 352,511 107,610 107,610 203,543 203,543 154,176 154,176 357,797 357,797

Benefits & Other Compensation Other & Benefits Staff Salaries Staff Non-Salary Expenses Non-Salary Academic Salaries Academic Internal Expenses Internal General Funds Allocation Funds General Revenues Restricted Revenue Internal Transfers Operating Operating Results Operating Total Expenses Total Expenses Transfers From (to) Endowment & Other Assets Other & Endowment (to) From Transfers Balances Fund Beginning Surplus / (Deficit) / Surplus Transfers From (to) Plant (to) From Transfers Balances Fund Ending Revenues Total

1,648 1,648 (4,501) (2,387) 54,722 20,696 19,031 19,031 34,167 34,167 PROJECTION (18,582) 142,030 152,442 499,364 295,358 131,139 131,139 199,427 199,427 292,970 284,819 284,819 520,060

2016/17 18 Consolidated Budget Plan 1,580 1,580 This schedule does not include endowment principal, student loan funds, or plant funds. schedule does not include endowment This 87. in the table on page shown the base figure will not match and therefore in this schedule includes one-time allocations (including tuition allowance) funds allocation shown general The of research. costs administrative and general infrastructure Expense for as a Non-Salary this same amount is charged Recovery; Cost includes Indirect revenue and Contracts Grants ACTUALS 52,506 52,506 37,638 37,638 18,906 18,906 28,481 28,481 36,523 36,523 2015/16 4,707 137,318 137,318 (13,864) 145,257 145,257 481,473 266,876 266,876

SCHOOL HUMANITIES OF AND SCIENCES 2017 / OF DOLLARS] [IN THOUSANDS 188,616 Revenues 127,486 Notes: • • • 295,358 295,358

292,392 292,392

519,111 519,111

APPENDIX A: CONSOLIDATED BUDGETS BY UNIT 93

104 104 (268) TOTAL 6,754 6,754 3,576 3,576 (5,000) (1,252) (1,650) 90,108 90,108 21,963 21,963 17,978 17,978 96,862 96,862 35,341 35,341 63,041 32,669 13,922 23,742 23,742 23,846 2017/18 2017/18

0 0 0 0 0 0 0 0 AUXILIARY & AUXILIARY SERVICE CENTER SERVICE

0 0 2 2 0 0 239 239 285 285 172 2,236 2,236 1,538 1,538 2,236 2,236 2,236 2,236 GRANTS & GRANTS CONTRACTS

93 93 90 90 28 28 846 846 439 439 106 118 118 550 550 522 522 5,528 5,528 6,374 6,374 (4,500) (1,000) 42,963 42,963 RESTRICTED (36,589) ENDOWMENT

82 82 54 54 43 43 435 435 135 135 164 164 (500) (500) 1,043 1,043 1,478 1,478 12,602 12,602 20,866 20,866 20,823 20,823 (11,124) RESTRICTED EXPENDABLE

24 24 33 33 183 183 154 154 740 740 106 106 165 165 (268) (150) 1,189 1,189 5,240 5,240 1,372 1,372 2,255 2,255 2,222 2,222 FUNDS (3,600) DESIGNATED DESIGNATED

0 0 175 175 175 175 3,232 3,232 BUDGET 85,402 85,402 19,111 19,111 17,376 17,376 13,608 13,608 35,341 35,341 32,075 85,402 85,402 50,061 50,061 OPERATING

Internal Expenses Internal Non-Salary Expenses Non-Salary Benefits & Other Compensation Other & Benefits Revenues Restricted Salaries Staff Revenue Internal General Funds Allocation Funds General Salaries Academic Transfers Operating Operating Results Operating Total Expenses Total Expenses Assets Other & Endowment (to) From Transfers Transfers From (to) Plant (to) From Transfers Revenues Total Balances Fund Ending Surplus / (Deficit) / Surplus Balances Fund Beginning

(262) (910) 8,172 8,172 3,511 3,511 85,800 85,800 20,561 20,561 61,649 61,649 13,370 17,353 33,495 31,005 93,972 23,742 34,670 34,670 PROJECTION (15,100) (10,928)

(4,000) 2016/17 8 18 Consolidated Budget Plan 600 600 3,429 3,429 This schedule does not include endowment principal, student loan funds, or plant funds. schedule does not include endowment This 87. in the table on page shown the base figure will not match and therefore in this schedule includes one-time allocations (including tuition allowance) funds allocation shown general The of research. costs administrative and general infrastructure Expense for as a Non-Salary this same amount is charged Recovery; Cost includes Indirect revenue and Contracts Grants ACTUALS 12,305 12,305 79,956 79,956 18,765 18,765 59,618 59,618 12,599 16,068 32,104 32,104 29,094 92,261 92,261 34,670 34,670 10,495 10,495 24,175 2015/16

(1,818)

(61)

SCHOOL OF LAW 2017 / OF DOLLARS] [IN THOUSANDS Revenues Notes: • • •

94 APPENDIX A: CONSOLIDATED BUDGETS BY UNIT

TOTAL 4,166 4,166 88,233 88,233 89,836 89,836 (15,643) (28,155) 2017/18 609,828 609,828 711,669 711,669 630,092 630,092 226,652 226,652 122,493 122,493 149,560 149,560 132,031 132,031 1,219,278 1,219,278 2,243,336 2,243,336 1,307,510 2,327,800 2,327,800 2,459,831 2,459,831

45 45 467 467 985 985 154 154 467 467 (313) 7,280 7,280 7,250 7,250 1,090 1,090 16,438 16,438 10,887 10,887 42,841 42,841 42,172 42,172 43,308 43,308 AUXILIARY & AUXILIARY SERVICE CENTER SERVICE

0 0 0 0 (6,906) GRANTS & GRANTS 37,152 37,152 27,236 27,236 CONTRACTS 133,258 133,258 119,326 119,326 378,700 378,700 702,578 702,578 695,672 695,672 695,672 695,672

(850) 8,144 8,144 (1,082) 21,832 21,832 20,335 20,335 14,134 14,134 12,776 12,776 35,794 35,794 14,708 14,708 RESTRICTED (62,095) 177,043 177,043 167,753 167,753 100,240 100,240 180,529 180,529 114,948 114,948 ENDOWMENT

58 58 800 800 (9,456) 20,725 20,725 25,852 25,852 18,552 18,552 20,023 20,023 51,430 51,430 RESTRICTED EXPENDABLE (16,044) (16,844) 129,136 129,136 356,939 356,939 136,582 136,582 340,895 340,895 119,738 119,738

0 0 0 0 CLINIC 41,045 41,045 20,222 20,222 31,719 31,719 DESIGNATED 363,929 363,929 361,379 361,379 818,294 818,294 818,294 818,294 (193,830) 1,012,124 1,012,124

FUNDS 27,832 27,832 38,287 38,287 18,687 18,687 78,814 78,814 51,312 51,312 91,034 91,034 47,606 47,606 79,660 79,660 DESIGNATED DESIGNATED (27,305) (15,361) 221,365 221,365 695,946 695,946 214,932 214,932 786,980 786,980 133,700 133,700 348,632 348,632

0 0 BUDGET (1,048) (1,048) 77,049 77,049 24,518 24,518 54,262 54,262 44,637 44,637 OPERATING 122,493 122,493 118,774 118,774 319,240 319,240 196,747 196,747 319,240 319,240

Staff Salaries Staff General Funds Allocation Funds General Salaries Academic Internal Expenses Internal Non-Salary Expenses Non-Salary Benefits & Other Compensation Other & Benefits Revenues Restricted Revenue Internal Transfers Operating Transfers From (to) Plant (to) From Transfers Revenues Expenses Transfers From (to) Endowment & Other Assets Other & Endowment (to) From Transfers Surplus / (Deficit) / Surplus Balances Fund Beginning Total Expenses Total Balances Fund Ending Operating Results Operating Revenues Total

(2,182) 99,945 99,945 82,704 82,704 18,173 18,173 (20,432) 212,779 212,779 122,561 122,561 543,929 141,216 141,216 662,656 662,656 568,895 568,895 122,559 122,559 PROJECTION 1,119,333 1,119,333 2,028,596 2,028,596 2,129,474 2,129,474 2,252,034 2,252,034 1,219,278 1,219,278

Consolidated Budget Plan 2016/17 18 6,981 6,981 84,463 84,463 (44,878) (44,878) 119,980 119,980 202,677 202,677 100,884 100,884 481,733 999,353 999,353 144,373 144,373 598,437 598,437 517,658 517,658 213,371 213,371 This schedule does not include endowment principal, student loan funds, or plant funds. schedule does not include endowment This ACTUALS 2015/16

SCHOOL OF MEDICINE 2017 / OF DOLLARS] [IN THOUSANDS Notes: • of research. costs administrative and general infrastructure Expense for as a Non-Salary this same amount is charged Recovery; Cost includes Indirect revenue and Contracts • Grants agreement. under a formula units operating policy for with Stanford’s consistent costs, administrative and central schedule includes an allocation of tuition revenue • This

1,965,922 1,965,922 1,119,333 1,119,333 1,944,878 1,944,878

(48,513)

2,158,250 2,158,250 APPENDIX A: CONSOLIDATED BUDGETS BY UNIT 95

TOTAL 4,753 6,469 8,966 3,216 34,131 64,134 47,910 2017/18 218,642 225,111

50,389

237,184 88,482 13,056 233,968

17 77 17 443 831 (345) (328) 5,781 2,259 5,764 AUXILIARY & AUXILIARY SERVICE CENTER SERVICE 1,709 2,154 162,375

0 0 3,617 1,993 (2,813) GRANTS & GRANTS 12,165 80,791 77,978 41,814 77,978 CONTRACTS

5,781 18,390

24 2,409 3,471 4,748 1,504 37,018 40,089 20,668 50,243 15,267 RESTRICTED (16,374) ENDOWMENT 10,154 5,401

3,135

(82) (82) 2,231 3,586 3,646 2,258 (8,575) 30,332 99,301 21,757 10,119 99,219 21,839 RESTRICTED EXPENDABLE

(1,500)

125 2,706 2,373 4,077 1,207 FUNDS (3,620) (2,120) 11,043 74,729 18,507 71,109 20,627 DESIGNATED DESIGNATED

4,753

(1,500)

7,338

10,263

0 0 3,036 3,190 4,867 6,018 4,867 BUDGET 38,984 64,134 10,718 17,494 22,132 92,492 19,279 92,492 OPERATING

Staff Salaries Staff General Funds Allocation Funds General Salaries Academic Benefits & Other Compensation Other & Benefits Revenue Internal Revenues Restricted Transfers Operating Non-Salary Expenses Non-Salary Internal Expenses Internal Expenses Assets Other & Endowment (to) From Transfers Transfers From (to) Plant (to) From Transfers Surplus / (Deficit) / Surplus

Balances Fund Beginning Revenues Total Balances Fund Ending Total Expenses Total Operating Results Operating

1 8,496 4,753 59,624 32,306 24,441 15,210 13,894 PROJECTION 186,461 194,201 269,790 101,302 218,642 241,402

47,548

46,35

28,388

2016/17 18 Consolidated Budget Plan 2,977 This schedule does not include endowment principal, student loan funds, or plant funds. schedule does not include endowment This of research. costs administrative and general infrastructure Expense for as a Non-Salary this same amount is charged Recovery; Cost includes Indirect revenue and Contracts Grants 87. in the table on page shown the base figure will not match in this schedule includes one-time allocations and therefore funds allocation shown general The ACTUALS 44,277 47,443 2015/16

VICE AND DEAN PROVOST OF RESEARCH 2017 / OF DOLLARS] [IN THOUSANDS 45,110 158,983 Revenues 31,013 Notes: • • • 8,874 (8,700) 10,478 183,723

228,655 15,688 91,664 194,201 11,280 225,678

7,502 96 APPENDIX A: CONSOLIDATED BUDGETS BY UNIT

18 / 120 TOTAL 1,774 1,774 7,892 7,892 9,970 (8,729) (1,207) (1,087) 19,632 19,632 39,163 39,163 15,726 15,726 49,105 20,719 17,518 17,518 47,898 47,898 13,742 13,742 2017

0 0 0 0 (640) 3,977 3,977 3,337 3,337 3,337 3,337 3,337 AUXILIARY & AUXILIARY SERVICE CENTER SERVICE

0 0 0 0 0 0 0 0 GRANTS & GRANTS CONTRACTS

0 0 7,107 7,107 8,419 8,419 (1,312) (1,312) (1,312) 31,078 31,078 RESTRICTED (32,389) ENDOWMENT

0 0 120 120 3,268 3,268 2,513 2,513 4,361 4,361 (3,727) (1,213) (1,213) (1,093) RESTRICTED EXPENDABLE (55)

10 10 10 10 911 911 597 597 587 587 587 (260) 6,686 6,686 6,100 6,100 FUNDS DESIGNATED DESIGNATED

(55)

684 684 731 731 731 731 2,570 2,570 1,774 1,774 7,892 7,892 9,970 1,840 BUDGET 28,287 28,287 17,518 17,518 46,489 46,489 45,758 45,758 12,380 12,380 13,742 13,742 OPERATING

Revenue Internal Transfers Operating General Funds Allocation Funds General Revenues Restricted Internal Expenses Internal Academic Salaries Academic Benefits & Other Compensation Other & Benefits Expenses Non-Salary Staff Salaries Staff Balances Fund Ending Revenues Expenses Plant (to) From Transfers Assets Other & Endowment (to) From Transfers Revenues Total Operating Results Operating Total Expenses Total Surplus / (Deficit) / Surplus Balances Fund Beginning

20 20 (778) (758) 2,114 7,747 9,879 9,879 (7,954) 20,719 16,602 39,535 48,137 48,915 12,609 12,609 16,566 21,477 2016/17 PROJECTION (46)

18 Consolidated Budget Plan (37) 999 999 203 203 2,048 2,048 7,403 7,403 1,202 9,451 9,451 (5,538) This schedule does not include endowment principal, student loan funds, or plant funds. schedule does not include endowment This 87. in the table on page shown the base figure will not match and therefore in this schedule includes one-time allocations (including tuition allowance) funds allocation shown general The ACTUALS 21,477 21,477 14,223 14,223 39,241 47,888 47,888 46,889 46,889 12,229 12,229 15,758 20,275 2015/16

VICE FOR UNDERGRADUATE PROVOST EDUCATION 2017 / OF DOLLARS] [IN THOUSANDS Notes: • •

APPENDIX A: CONSOLIDATED BUDGETS BY UNIT 97

709 709 356 356 (270) TOTAL 2,856 2,856 1,580 7,126 7,126 8,509 8,509 (2,105) (2,375) 10,522 10,522 12,626 12,626 33,465 33,465 51,955 51,955 49,580 (31,453) 2017/18

0 0 0 0 0 0 0 AUXILIARY & AUXILIARY SERVICE CENTER SERVICE

0 0 0 0 0 0 0 GRANTS & GRANTS CONTRACTS

372 372 629 629 805 805 (270) 2,075 2,075 1,000 1,000 1,075 33,465 33,465 25,791 25,791 24,986 24,986 RESTRICTED (31,390) ENDOWMENT

44 44 26 26 11 (63) (63) 478 478 397 397 (541) (541) 2,211 2,211 2,753 2,753 RESTRICTED EXPENDABLE

2 2 1 794 794 792 792 791 791 FUNDS (2,500) (1,709) (2,503) (2,503) 21,561 21,561 24,065 24,065 DESIGNATED DESIGNATED

16 16 293 293 356 356 151 151 (135) (135) 2,500 2,500 2,828 2,828 1,568 5,309 7,719 7,719 BUDGET 10,219 10,219 10,354 10,354 OPERATING

Transfers Operating Internal Expenses Internal Staff Salaries Staff Compensation Other & Benefits Expenses Non-Salary Revenue Internal Academic Salaries Academic Revenues Restricted General Funds Allocation Funds General Revenues Total Operating Results Operating Total Expenses Total Balances Fund Ending Revenues Expenses Assets Other & Endowment (to) From Transfers Surplus / (Deficit) / Surplus Balances Fund Beginning Transfers From (to) Plant (to) From Transfers

738 738 193 193 (278) 9,833 9,833 2,780 1,596 6,882 8,180 (2,357) (2,635) 12,190 12,190 51,955 51,955 32,850 32,850 54,590 54,590 PROJECTION (31,197)

2016/17 18 Consolidated Budget Plan 16 16 581 581 180 180 8,325 8,325 9,624 9,624 2,037 2,037 1,384 5,443 7,909 7,909 This schedule does not include endowment principal, student loan funds, or plant funds. schedule does not include endowment This ACTUALS 54,590 54,590 32,402 32,402 56,187 56,187 2015/16

(1,299) (298)

(32,001)

(1,597)

VICE FOR EDUCATION GRADUATE PROVOST 2017 / OF DOLLARS] [IN THOUSANDS Notes: • 87. in the table on page shown the base figure will not match in this schedule includes one-time allocations and therefore funds allocation shown general • The

98 APPENDIX A: CONSOLIDATED BUDGETS BY UNIT

(489) (489) TOTAL 1,769 1,769 8,316 8,316 1,762 1,762 9,537 (1,443) (9,007) 39,457 39,457 39,945 39,945 13,193 13,193 14,905 14,905 10,026 10,026 34,959 34,959 14,948 14,948 2017/18

0 0 0 0 0 0 AUXILIARY & AUXILIARY SERVICE CENTER SERVICE

0 0 0 0 0 0 GRANTS & GRANTS CONTRACTS

0 0 24 24 24 24 24 24 198 198 175 175 188 188 (164) RESTRICTED ENDOWMENT

2 2 2 2 0 (2) (2) 391 391 393 393 RESTRICTED EXPENDABLE

1,304 1,304 9,588 9,588 3,322 3,322 5,513 5,513 3,159 3,159 7,307 7,307 1,168 1,168 FUNDS 16,747 16,747 (1,873) (4,148) (4,148) 20,894 20,894 33,878 33,878 (15,258) DESIGNATED DESIGNATED

465 465 594 594 893 893 430 430 3,637 3,637 3,604 3,604 4,994 4,994 9,392 9,392 5,788 5,788 3,637 3,637 2,151 6,415 6,415 BUDGET 19,049 19,049 14,948 14,948 22,686 22,686 OPERATING

Internal Expenses Internal Non-Salary Expenses Non-Salary Benefits & Other Compensation Other & Benefits Staff Salaries Staff Academic Salaries Academic General Funds Allocation Funds General Revenues Restricted Revenue Internal Transfers Operating Operating Results Operating Total Expenses Total

Balances Fund Ending (Deficit) / Surplus Balances Fund Beginning Expenses Transfers From (to) Endowment & Other Assets Other & Endowment (to) From Transfers

Transfers From (to) Plant (to) From Transfers

Revenues Total

681 681 681 681 1,767 1,767 8,078 8,078 1,766 1,766 9,345 (2,324) (5,000) 42,008 42,008 16,135 16,135 14,263 14,263 10,026 10,026 11,033 11,033 38,980 38,980 42,689 42,689 PROJECTION

2016/17 18 Consolidated Budget Plan 620 620 1,865 1,865 8,234 8,234 9,345 9,345 9,504 9,504 2,260 This schedule does not include endowment principal, student loan funds, or plant funds. schedule does not include endowment This (6,645) (6,025) ACTUALS 45,023 45,023 19,162 19,162 13,501 13,501 15,370 15,370 38,378 38,378 45,313 45,313 2015/16

VICE FOR TEACHING PROVOST AND LEARNING 2017 / OF DOLLARS] [IN THOUSANDS Revenues Notes: • 87. in the table on page shown the base figure will not match in this schedule includes one-time allocations and therefore funds allocation shown general • The (2,876)

(13,562)

APPENDIX A: CONSOLIDATED BUDGETS BY UNIT 99

91 91 112 112 TOTAL 1,010 1,010 2,733 2,733 (3,425) (3,425) 67,428 67,428 68,641 72,067 72,067 23,395 23,395 10,970 12,809 22,160 42,339 42,339 38,914 2017/18

0 0 0 0 0 0 0 0 AUXILIARY & AUXILIARY SERVICE CENTER SERVICE

0 0 0 0 460 460 375 258 690 1,782 1,782 1,782 1,782 1,782 1,782 GRANTS & GRANTS CONTRACTS

5 5 65 65 60 60 989 989 (200) (265) (265) 1,254 1,254 28,136 28,136 RESTRICTED (28,336) ENDOWMENT

128 128 175 175 185 185 115 1,728 1,728 1,125 1,125 (1,432) (3,160) (3,160) 36,850 36,850 39,505 39,505 36,345 (38,282) RESTRICTED EXPENDABLE

0 0 0 0 25 25 25 25 25 25 635 635 112 (722) 1,419 1,419 1,419 FUNDS DESIGNATED DESIGNATED

0 0 25 25 161 161 161 1,010 1,010 2,600 BUDGET 67,432 67,432 68,467 68,467 68,467 68,467 10,420 10,420 22,750 22,750 12,437 20,260 OPERATING

Transfers Operating Revenue Internal Revenues Restricted General Funds Allocation Funds General Salaries Staff Expenses Internal Academic Salaries Academic Compensation Other & Benefits Expenses Non-Salary Revenues Total Operating Results Operating Total Expenses Total

Revenues Expenses Surplus / (Deficit) / Surplus Balances Fund Beginning Balances Fund Ending Transfers From (to) Plant (to) From Transfers Transfers From (to) Endowment & Other Assets Other & Endowment (to) From Transfers

56 56 164 164 951 951 9,421 9,421 1,826 (3,599) (3,599) 61,991 61,991 63,163 66,762 66,762 21,672 21,672 11,922 21,921 45,938 45,938 42,339 2016/17 PROJECTION

18 Consolidated Budget Plan 674 674 110 110 810 810 2,425 2,425 9,150 9,150 1,890 This schedule does not include endowment principal, student loan funds, or plant funds. schedule does not include endowment This ACTUALS 58,778 58,778 60,372 63,621 63,621 20,748 20,748 11,407 20,427 66,763 66,763 45,938 2015/16 (20,000)

(3,249)

(20,824)

HOOVER INSTITUTION 2017 / OF DOLLARS] [IN THOUSANDS Notes • of research. costs administrative and general infrastructure Expense for as a Non-Salary this same amount is charged Recovery; Cost includes Indirect revenue and Contracts • Grants

100 APPENDIX A: CONSOLIDATED BUDGETS BY UNIT

51 51 448 448 448 448 TOTAL 3,859 3,859 6,826 6,826 89,066 89,066 33,548 33,548 13,107 13,107 27,488 27,488 27,487 27,487 12,878 12,878 89,514 89,514 11,064 55,151 55,151 12,430 12,430 2017/18

24 24 786 786 680 680 786 786 9,755 9,755 3,782 3,782 1,283 1,283 4,010 4,010 7,180 7,180 2,089 2,089 3,337 3,337 1,303 1,303 10,541 10,541 AUXILIARY & AUXILIARY SERVICE CENTER SERVICE

0 0 2 2 0 0 650 650 361 361 2,141 2,141 1,128 1,128 2,141 2,141 2,141 GRANTS & GRANTS CONTRACTS

320 320 (311) (311) 4,320 4,320 4,000 4,000 5,267 5,267 4,009 4,009 5,579 5,579 16,326 16,326 RESTRICTED (12,317) ENDOWMENT

56 56 756 756 172 172 128 128 400 400 725 725 552 552 (173) (204) (204) 1,625 1,625 1,829 1,829 RESTRICTED EXPENDABLE

5 5 35 35 27 27 178 178 146 146 178 178 105 105 323 323 (819) 1,115 1,115 3,510 3,510 3,332 3,332 FUNDS DESIGNATED DESIGNATED

0 0 0 0 387 387 387 387 2,803 2,803 BUDGET 71,949 71,949 24,943 24,943 11,300 11,300 16,798 16,798 21,945 21,945 55,151 55,151 10,957 10,957 71,949 71,949 OPERATING

Internal Expenses Internal Non-Salary Expenses Non-Salary Benefits & Other Compensation Other & Benefits Transfers Operating Revenue Internal Staff Salaries Staff General Funds Allocation Funds General Revenues Restricted Academic Salaries Academic Results Operating

Total Expenses Total

Surplus / (Deficit) / Surplus Expenses Transfers From (to) Endowment & Other Assets Other & Endowment (to) From Transfers Transfers From (to) Plant (to) From Transfers Balances Fund Ending

Revenues Total Balances Fund Beginning

57 57 328 328 328 328 4,665 4,665 7,729 7,729 89,468 89,468 34,752 34,752 13,979 13,979 25,235 25,235 54,480 54,480 27,530 12,430 12,430 10,837 10,837 89,795 89,795 12,102 12,102 2016/17 PROJECTION

18 Consolidated Budget Plan 433 433 3,576 3,576 3,337 3,337 3,367 3,367 9,928 9,928 3,444 8,658 8,658 This schedule does not include endowment principal, student loan funds, or plant funds. schedule does not include endowment This 87. in the table on page shown the base figure will not match in this schedule includes one-time allocations and therefore funds allocation shown general The ACTUALS 81,237 81,237 34,373 34,373 12,711 12,711 20,888 20,888 55,376 55,376 25,637 12,102 12,102 84,813 84,813 2015/16

(132)

STANFORD UNIVERSITY LIBRARIESSTANFORD 2017 / OF DOLLARS] [IN THOUSANDS Revenues Notes: • of research. costs administrative and general infrastructure Expense for as a Non-Salary this same amount is charged Recovery; Cost includes Indirect revenue and Contracts • Grants •

APPENDIX A: CONSOLIDATED BUDGETS BY UNIT 101

AUXILIARY ACTIVITIES 0

0 0 395 395 143 143 8,257 8,257 8,544 8,544 8,466 7,853 7,853 1,497 1,497 TOTAL 13,279 13,279 62,579 62,579 23,192 23,192 12,660 11,045 52,645 52,645 26,000 20,200 20,200 14,957 14,957 13,792 13,792 15,289 2017/18 134,359 134,359 135,856 135,856

0 0 0 0 0 0 OTHER 6,500 6,500 1,412 1,412 1,412 1,412 (6,500) ENDOWMENT

0 0 55 55 55 55 2,863 2,863 23,192 23,192 26,000 26,000 26,000 26,000 26,055 26,055 ENDOWMENT SCHOLARSHIP

0 0 0 0 0 0 13,700 13,700 10,336 10,336 10,336 10,336 RESTRICTED (13,700) EXPENDABLE

0 0 200 200 100 100 FUNDS 2,800 2,800 3,900 3,900 1,750 1,750 7,000 7,000 4,278 4,278 4,278 4,278 7,000 7,000 7,000 7,000 (1,750) DESIGNATED

395 395 143 143 853 853 (792) 8,257 8,257 8,544 8,544 6,716 6,716 1,442 1,442 (2,234) 10,479 10,479 52,645 52,645 58,679 10,845 10,845 12,560 12,560 14,957 14,957 19,087 19,087 AUXILIARY 101,359 101,359 102,801 102,801

Restricted Revenues - Other - Revenues Restricted Services/Supplies General Scholarships - Revenues Restricted Intercollegiate Compensation Scholarships Service Debt Travel/Entertainment Facilities/Maintenance Funds University Course) Golf (e.g., Auxiliaries Expenditures Capital Other Transfers Operating Total Expenses Total Assets (To)/From Transfers Surplus/(Deficit) Balances Fund Beginning and Transfers Revenues Total Balances Fund Ending

385 140 525 525 8,011 8,011 Other 8,158 8,158 8,103 7,832 7,832 Camps 2,736 PROJECTION 50,658 59,974 25,121 19,566 19,566 12,895 10,581 22,757 22,757 12,126 14,371 11,056 11,056 13,792 129,233 131,969 131,969

Consolidated Budget Plan 2016/17 18 475 475 3,793 3,793 9,487 9,487 1,239 1,239 8,026 8,026 9,885 9,885 7,863 7,863 1,893 1,893 1,380 1,380 9,676 9,676 46,342 46,342 58,564 23,623 23,623 23,232 23,232 11,311 22,102 22,102 16,787 14,789 14,789 11,056 11,056 2015/16 125,277 125,277 134,133 134,133 ACTUALS

ATHLETICS 2017 / OF DOLLARS] [IN THOUSANDS Revenues Expense

(7,476)

102 APPENDIX A: CONSOLIDATED BUDGETS BY UNIT

AUXILIARY ACTIVITIES

RESIDENTIAL & DINING ENTERPRISES 2017/18 Auxiliary Budget Plan* [IN THOUSANDS OF DOLLARS] 2015/16 2016/17 2017/18 ACTUALS PROJECTION PLAN Revenues Student Payments – Room & Board 153,956 159,474 165,828 Student Payments – Off Campus 9,829 14,252 14,430 Conference Income 16,834 17,206 18,129 Catering and Executive Dining 18,399 19,629 20,151 Retail, Concessions, and Vending 11,252 10,231 11,436 Stanford Guest House 5,342 5,127 5,370 Other Operating Income 7,029 6,236 6,813 Interest Income 122 84 124 Total Revenues 222,763 232,239 242,281 Transfers Grad Housing Subsidy: Off Campus 15,105 20,633 23,610 Debt Service & Rate Containment Subsidies 7,836 15,647 12,240 Transfers (Net) related to Project Funds, and from Reserves 140 1,367 1,960 Transfers to ResEd, ResComp and GLO (10,225) (10,700) (11,024) Total Transfers 12,856 26,947 26,786

Total Revenue and Transfers 235,619 259,186 269,067

Expenses Salaries and Benefits 68,633 72,802 78,035 Food Cost 16,070 16,121 17,075 EM&S, Services, Commissions and Other 28,987 27,697 27,995 Rental and Leases Off Campus 22,904 31,022 33,512 Utilities and Telecommunication 13,610 14,701 15,474 Maintenance and Asset Renewal 27,494 29,507 32,209 Debt Service 49,353 58,694 55,817 G&A, Insurance and Taxes 8,568 8,642 8,950 Total Expenses 235,619 259,186 269,067 Auxiliary Operating Results 0 0 0 Change in Reserve and Endowment Funds (1,459) (3,745) (1,960) Consolidated Results and Net Fund Transfers (1,459) (3,745) (1,960) Beginning Fund Balance 23,574 22,115 18,370 Projected Ending Fund Balance 22,115 18,370 16,410 Notes: • The revenue, transfer, and expense amounts in this table represent the auxiliary operation of R&DE only • Fund Balance does not include endowment principal - $4 million Funds Functioning as Endowment (FFE) APPENDIX B: SUPPLEMENTARY INFORMATION 103

APPENDIX B SUPPLEMENTARY INFORMATION

he tables and graphs in this Appendix provide historical and statistical data on enrollment, tuition and room and board rates, financial aid, faculty, staff, selected expenditures, the endowment, and fund Tbalances. The short summaries below serve as an introduction to the schedules and highlight interesting trends or historical occurrences.

Schedule 1—Student Enrollment for Schedule 4—Postdoctoral Scholars by Autumn Quarter School and by Gender The total enrollment for undergraduate and graduate The postdoctoral scholar population in most schools students rose slightly in 2016/17 as compared to the prior continues to trend up, although the total growth of 1.5% year. Undergraduate enrollment increased by 38 to 7,032 in 2016/17 is smaller than the 4.7% average annual students. Graduate student enrollment grew by 108 students growth over the past ten years. Of the 2,297 postdoctoral in 2016/17, a roughly 1.2% increase. Historic annual growth scholars in 2016/17, almost 60% reside in the School of for graduate students has been closer to 1.5%. Medicine. SLAC’s recent growth is due to a change in the way postdoctoral scholars are accounted for, not because of Schedule 2—Freshman Student Apply/ growth or new programs. Admit/Enroll Statistics Stanford’s undergraduate student body has remained Schedule 5—Graduate Student and relatively constant over the past five years, but the number Postdoc Support of applications has increased significantly, resulting in a At Stanford, teaching assistants and research assistants earn progressively lower admissions rate. While the admissions salaries as part of their compensation, and most receive an rate dropped to 4.8%, one of the lowest in the nation, allowance towards their tuition charges. Graduate fellows enrollment yield rose to another historic high at 82.1% of receive financial aid that covers some or all of their tuition applicants and continues to be one of the highest in the charges, and most receive stipends that help cover living nation. expenses. Postdoctoral students receive salaries and benefits as part of their appointment, and many also receive tuition Schedule 3—Graduate Student Apply/ allowance and living expense stipends. Admit/Enroll Statistics Grants and contracts cover roughly a quarter of graduate Graduate student applications are up 2.6% over 2015/16, student expenses and about 70% of postdoctoral scholar continuing its rising trend. Because of the application growth, expenses. University and school unrestricted (or general as well as a slight increase to the admittance rate, the yield use) funds, designated funds, and endowment income funds rate for enrolling students fell two percentage points from restricted specifically to graduate student aid cover the the prior year to 59.5%. Enrollment numbers nevertheless remaining expenses. In 2015/16, the support to graduate have grown steadily over the past ten years by 1.3% annually students and postdoctoral scholars at Stanford increased as applications increased by 3.4% and admissions rose by 0.5% annually. 104 APPENDIX B: SUPPLEMENTARY INFORMATION

6.3% and 5.3%, respectively, versus the prior year. The total Schedule 9—Undergraduate Financial Aid overall support reached $523 million. When support in grants Budget Needs and Sources and contracts has decreased, general funds has increasingly This schedule shows the total needs and sources of support bridged the gap. for undergraduate students who receive need-based financial aid. The total needs are driven by the growth in the student Schedule 6—Graduate Enrollment budget and by the number of students on aid. For 2017/18, by School and Degree the budget for need-based aid will increase by 3.1%. This This table shows the trend of graduate student enrollment increase is slightly less than the approved 3.5% increase in within each school and across degree programs. In 2016/17, tuition and room and board rates due to 10 fewer students approximately 62% of graduate student enrollments were requiring need-based aid in 2017/18 versus the prior year. in either H&S or Engineering. The enrollment has increased The endowment has played a progressively larger role university-wide over the ten-year span at a compounded (36% to 47% of total undergraduate financial aid support annual growth rate of 1.4%. During this same period, between 2011/12 and 2017/18) in providing assistance for Engineering has added the most students (390), while School undergraduate financial aid, and as a result has allowed of Earth, Energy & Environmental Sciences has had the fastest unrestricted funds to be redirected to other areas of the total growth (47%) over the ten year period. The makeup of university. graduate students has stayed consistent over this period: 51% doctorate, 29% masters, and 20% professional. Schedule 10—Majors with the Largest Number of Baccalaureate Degrees Schedule 7—Undergraduate Tuition and Conferred Room & Board Rates This schedule shows the twenty undergraduate majors that The 2017/18 annual undergraduate tuition rate, mandatory granted the most degrees in 2015/16. Human Biology was fees, and cost of room and board are projected to increase to the most popular between 2006/07 and 2012/13. In 2013/14 $64,729, an increase of 3.5% versus the previous year. Aside Computer Science took the top spot, posting a significant from 2012/13, the increase in the total annual cost to attend growth of 60% over 2012/13. Nearly all undergraduate Stanford has remained at 3.5% since 2010/11. students and a growing number of graduate students take the introductory Computer Science course. The gap Schedule 8—Undergraduate Financial Aid between Human Biology and Computer Science increased by Type of Aid and Source of Funds further in 2015/16, with Computer Science growing 22% This schedule shows the various types of financial aid and Human Biology falling 15%. From 2014/15 to 2015/16, awarded to undergraduate students, including non-need the combination of Chemical, Electrical, and Mechanical based scholarships. In 2015/16, total undergraduate financial Engineering increased at a rate of 9%. aid was $186.9 million, a 4.0% increase over the previous year. Funding from federal and state grants continued their Schedule 11—Students Housed on Campus decreasing trend, collectively dropping from $10.7 million in The percentage of undergraduate students housed on 2012/13 to $9.6 million in 2015/16, more drastic if factoring campus has been about 91% for the twenty years shown in in inflation. During this same period, scholarships awarded by this table. The graduate on-campus housing program has Stanford increased from $145.9 million to $157.7 million. This expanded significantly since 1998/99, and the trailing ten- growth is primarily driven by support from its endowment, year average of graduate students housed by Stanford is 57%. which grew its contribution from $93.1 million to $116.9 The subsidized off-campus housing program for graduate million during this same period, a compound annual growth students has grown rapidly from 198 students in 2012/13 to of 7.9%. 1125 students in 2016/17, due to a displacement caused by the construction of new graduate housing on campus. For 2016/17, the percentage of graduate students housed by Stanford has grown to 64.1%, from 60.1% in 2014/15. APPENDIX B: SUPPLEMENTARY INFORMATION 105

Schedule 12—Total Professorial Faculty and costs that contribute to the weighted average of the four individual benefits rates, which was 28.5% in 2015/16. The total professoriate has increased by 27 (1.3%) to 2,180 Versus 2014/15, the total fringe benefits program costs in 2016/17, not far off from the ten-year annual growth rate increased by 8.5% in 2015/16, which is slightly above the of 2.0%. The growth in Full, Associate, and Non-Tenure Line annual growth of 6.7% from 2008/09. Retirement and Professors (36) offsets a small decrease in the number of insurance benefits, which account for 89% of fringe benefits, Assistant Professors (9). grew by 6.8% and 2.4%, respectively. Severance pay Schedule 13—Distribution of Tenured, experienced another spike in 2015/16 as in 2013/14. Non-Tenured, and Non-Tenure Line Faculty Schedule 16—Sponsored Research Expense This schedule provides a disaggregated view of the data in by Agency and Fund Source Schedule 12 by school over the last three years. The School In 2015/16, federally sponsored research expenses of Medicine and School of Humanities and Sciences hold increased by 3.6%, a modest decline from the 5.5% increase roughly 70% of faculty appointments across the university. experienced in 2014/15. The research expenses sponsored At the university level the total number of tenured faculty has by non-federal sources remained strong, surging by 9.4% expanded by 31 (about 3%) between 2014/15 and 2016/17; ($22.9 million) over 2014/15. In addition, the annual growth the number of non-tenured faculty in the tenure line has has been 9.8% over the past three years. Overall, the direct increased by 8 (about 2%); and the number of non-tenure research volume was $700.8 million in 2015/16; the mix of line faculty has increased by 23 (about 4%) during the same funding has slowly shifted from federal to non-federal over period. The School of Medicine increased tenured and non- the displayed period. Ten years earlier in 2005/06, federal tenure line faculty by 5.9% and 5.3% respectively during this direct research comprised 83.4% of direct funding, but that same period. figure has fallen to 71.8% in 2015/16. Schedule 14—Number of Non-Teaching Employees Schedule 17—Sponsored Research Contracts and Grants by School This schedule shows the number of regular non-teaching This table presents the sponsored research expenses for employees by academic, administrative, and auxiliary units. the schools and the Dean of Research over seven years. The The number of employees increased by 686 (5.2%) in 2016. expenses for the School of Medicine, as a percentage of In particular, the School of Medicine added 447 employees university-wide sponsored research, has reached a new peak (10.2% increase) due to further growth and enhancement at 64% in 2015/16. Sponsored research for the School of in clinical research activities. The Stanford Center for Humanities and Sciences also increased 16.8% from 2014/15, Professional Development (SCPD) transitioned from the offsetting the ongoing decrease in funding to the School of School of Engineering to the Vice Provost for Teaching and Engineering and thereby increasing Sponsored research for Learning in 2016, contributing to their inverse shifts. Since non-Medicine units in 2015/16. The School of Medicine has 2008/09 when Stanford was forced to right-size because of enjoyed a 5.6% compound annual growth from 2009/10 to the recession, it has experienced a continuous annual growth 2015/16. During this same period, only the Graduate School of around 3%. of Education received consistent, year-over-year increases Schedule 15—Fringe Benefits Detail with 15.0% compound annual growth. Fringe benefits rates provide a mechanism to support Schedule 18—Plant Expenditures by Unit the various components of non-salary compensation for This schedule shows expenses from reserves or borrowed employees. Stanford has four distinct fringe benefits rates funds for building or infrastructure projects related to various for (1) regular benefits-eligible employees, which include units. Expenditures for equipment are excluded from these most faculty and staff; (2) postdoctoral research affiliates; figures. Total plant expenditures for 2015/16 were $469 (3) casual/temporary employees; and (4) graduate research million. Some key drivers of the plant expenditures include and teaching assistants. This schedule shows the programs 106 APPENDIX B: SUPPLEMENTARY INFORMATION

project completions of the Graduate School of Business Schedule 21—Academic Unit Expendable residence hall (Highland Hall), the 408 Panama Mall office Fund Balances at Year End by Level of building, Meier and Norcliffe Halls at Lagunita Court, the Control Roble Gymnasium Renovation, and the Arrillaga Fieldhouse. This schedule shows total expendable fund balances In addition, projects in design and construction contributed (excluding sponsored research) by level of control within to plant expenditures, such as the University Terrace Faculty the academic units over the last three years along with the Homes, Sapp Center for Science Teaching and Learning, compound annual growth. “Level of control” indicates the and the David and Joan Traitel Building (formerly Hoover authority of funds within each school. Overall, approximately Institution Conference Center and Office Building). 80% of the fund balances comprise the combination of school/institution and department/program levels in the Schedule 19—Endowment Market Value and past three years. The dynamics of fund balance growth has Merged Pool Rate of Return also varied by level of control among the schools. The fund The annual nominal rate of return for the merged pool in balances at the department/program and faculty levels had 2015/16 was -0.4% for the 12 months ending June 30, 2016. significant annual growth at 16.0% and 16.8%, respectively, This slightly negative performance nonetheless exceeded while fund balances show a small 1.0% decline at the school/ most peer and benchmark results. The endowment market institution level. value was up to $22.4 billion, a 0.8% increase over 2014/15. The target payout rate remains 5.5%. Schedule 22—Consolidated Budget for Operations History Schedule 20—Expendable Fund Balances This schedule shows actual results from 2010/11 through at Year End 2015/16, including the 2016/17 year end projection and This schedule shows total expendable fund balances the 2017/18 budget plan for the Consolidated Budget (excluding sponsored research) by academic unit (excluding for Operations. While expense growth has outpaced SLAC) over the past decade. Aided by continuous growth revenue growth for the period shown (6.6% versus 6.3%, in its healthcare services revenue, the School of Medicine respectively), the net operating results each year continue has almost tripled its fund balance between 2007/08 and to provide steady additions to fund balances, even after 2017/18. In addition, it has gone from representing 38% of the transferring a significant amount to assets such as total academic unit fund balances to 54% between 2007/08 endowment principal and plant. On average, the university and 2017/18. The Graduate School of Education, School of nets an operating income of roughly 8% of revenue over the Medicine, and VP and Dean of Research have the fastest displayed period. compound annual growth over the period. APPENDIX B: SUPPLEMENTARY INFORMATION 107

SCHEDULE 1

STUDENT ENROLLMENT FOR AUTUMN QUARTER 2007/08 through 2016/17

UNDERGRADUATE GRADUATE TGR 1 TOTAL TOTAL YEAR WOMEN MEN TOTAL WOMEN MEN TOTAL WOMEN MEN TOTAL GRADUATE ALL

2007/08 3,313 3,446 6,759 2,382 4,439 6,821 550 815 1,365 8,186 14,945

2008/09 3,384 3,428 6,812 2,450 4,509 6,959 548 821 1,369 8,328 15,140

2009/10 3,405 3,473 6,878 2,507 4,529 7,036 558 847 1,405 8,441 15,319

2010/11 3,334 3,553 6,887 2,635 4,678 7,313 597 869 1,466 8,779 15,666

2011/12 3,342 3,585 6,927 2,651 4,675 7,326 571 899 1,470 8,796 15,723

2012/13 3,346 3,653 6,999 2,697 4,690 7,387 600 884 1,484 8,871 15,870

2013/14 3,274 3,706 6,980 2,773 4,724 7,497 574 826 1,400 8,897 15,877

2014/15 3,314 3,704 7,018 2,887 4,809 7,696 596 826 1,422 9,118 16,136

2015/16 3,331 3,663 6,994 2,966 4,776 7,742 584 870 1,454 9,196 16,190

2016/17 3,412 3,620 7,032 3,030 4,901 7,931 557 816 1,373 9,304 16,336

Source: IR&DS Office fall quarter third week enrollment figures. 1 Terminal Graduate Registration (TGR) allows students to register at a reduced tuition rate while they work on a dissertation, thesis, or department project. 108 APPENDIX B: SUPPLEMENTARY INFORMATION

SCHEDULE 2

FRESHMAN APPLY/ADMIT/ENROLL STATISTICS Fall 2007 through Fall 2016

TOTAL APPLICATIONS ADMISSIONS ENROLLMENT PERCENT PERCENT OF PERCENT OF CHANGE FROM APPLICANTS ADMITTED PREVIOUS ADMITTED APPLICANTS YEAR NUMBER YEAR NUMBER (ADMIT RATE) NUMBER ENROLLING (YIELD)

Fall 2007 23,958 7.3% 2,464 10.3% 1,723 69.9%

Fall 2008 25,299 5.6% 2,400 9.5% 1,703 71.0%

Fall 2009 30,429 20.3% 2,426 8.0% 1,694 69.8%

Fall 2010 32,022 5.2% 2,340 7.3% 1,674 71.5%

Fall 2011 34,348 7.3% 2,437 7.1% 1,707 70.0%

Fall 2012 36,632 6.6% 2,423 6.6% 1,771 73.1%

Fall 2013 38,828 6.0% 2,208 5.7% 1,677 76.0%

Fall 2014 42,167 8.6% 2,145 5.1% 1,678 78.2%

Fall 2015 42,497 0.8% 2,140 5.0% 1,720 80.4%

Fall 2016 43,997 3.5% 2,118 4.8% 1,739 82.1% APPENDIX B: SUPPLEMENTARY INFORMATION 109

SCHEDULE 3

GRADUATE STUDENT APPLY/ADMIT/ENROLL STATISTICS Fall 2007 through Fall 2016

TOTAL APPLICATIONS ADMISSIONS ENROLLMENT PERCENT PERCENT OF PERCENT OF CHANGE FROM APPLICANTS ADMITTED PREVIOUS ADMITTED APPLICANTS YEAR ENTERING STANFORD NUMBER YEAR NUMBER (ADMIT RATE) NUMBER ENROLLING (YIELD)

Fall 2007 33,623 6.5% 4,352 12.9% 2,400 55.1%

Fall 2008 34,566 2.8% 4,350 12.6% 2,379 54.7%

Fall 2009 36,326 5.1% 4,419 12.2% 2,345 53.1%

Fall 2010 37,983 4.6% 4,580 12.1% 2,608 56.9%

Fall 2011 38,750 2.0% 4,570 11.8% 2,628 57.5%

Fall 2012 41,855 8.0% 4,439 10.6% 2,582 58.2%

Fall 2013 41,539 -0.8% 4,479 10.8% 2,630 58.7%

Fall 2014 43,992 5.9% 4,399 10.0% 2,625 59.7%

Fall 2015 44,437 1.0% 4,318 9.7% 2,656 61.5%

Fall 2016 45,577 2.6% 4,532 9.9% 2,698 59.5% 110 APPENDIX B: SUPPLEMENTARY INFORMATION

SCHEDULE 4

POSTDOCTORAL SCHOLARS BY SCHOOL AND BY GENDER 1 2007/08 through 2016/17

By School 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Graduate School of Business 0 0 2 0 0 0 0 0 0 0 School of Earth, Energy & Environmental Sciences 32 26 40 44 50 59 72 76 75 67 Graduate School of Education 10 10 11 9 9 12 19 20 22 19 School of Engineering 144 158 202 212 228 259 274 308 341 364 School of Humanities and Sciences 283 284 315 392 401 413 427 416 437 435 School of Law 0 1 1 0 2 1 2 0 0 0 School of Medicine 1,037 1,033 1,090 1,231 1,247 1,252 1,258 1,312 1,341 1,355 SLAC 0 0 0 0 0 0 8 21 48 57

Total 1,506 1,512 1,661 1,888 1,937 1,996 2,060 2,153 2,264 2,297

By Gender Female 581 607 673 754 795 828 834 828 878 905 Male 925 905 988 1,134 1,142 1,168 1,226 1,325 1,386 1,392

Source: IR&DS Office fall quarter third week enrollment figures. 1 The postdoctoral scholar population includes medical fellows in the School of Medicine. APPENDIX B: SUPPLEMENTARY INFORMATION 111

SCHEDULE 5

6.4% 9.8% 9.5% 1.9% 0.6% 8.8% 5.3% 7.3% 2.6% 6.4% 6.3% 10.4% -7.4% PERCENT

-37.2% 1.7 7.7 6.5 0.4 0.0 1.8 6.6 5.6 2.7 4.9 (0.1) (1.5) 10.0 AMOUNT 23.1 CHANGE 2014/15 TO 2015/16

1.7 0.2 TOTAL 27.7 86.3 75.3 24.3 19.0 18.7 81.5 81.4 123.8 129.5 100.0% 106.5 393.2 100.0% 0.1 0.2 0.0 2.6 58.7 39.7 15.5 14.0 42.6 88.2 18.5 10.4 22.1 93.5 GRANTS & GRANTS CONTRACTS 4.3 0.5 0.0 6.7 2.4 13.2 12.3 19.4 39.8 19.1 10.1 63.1 37.0 STUDENT AID FUNDS 150.0 RESTRICTED 2015/16 0.5 3.3 8.8 0.5 0.0 5.5 1.5 4.4 4.6 4.0 7.2% 38.1% 23.8% FUNDS 12.4 15.3 17.2 28.3 DESIGNATED

1

2.9 1.1 7.5 0.5 0.2 4.2 0.8 5.0 3.8% 13.3% 14.8% 68.1% FUNDS 14.0 26.1 48.5 28.4 18.2 30.9% FUNGIBLE 121.3 GENERAL/SCHOOL

1.7 0.3 TOTAL 26.0 78.6 23.8 68.8 17.3 20.2 76.0 76.5 113.8 122.9 100.0% 103.8 370.0 100.0% 0.1 0.4 0.0 2.3 54.2 14.3 36.2 13.3 39.0 81.8 17.2 10.2 22.2 88.5

GRANTS & GRANTS

4.4 0.5 0.0 5.6 4.3 /15 CONTRACTS FUNDS 11.2 11.4 16.7 34.0 20.1 10.4 60.0 32.1 136.5 RESTRICTED STUDENT AID STUDENT 2014 0.5 8.3 4.2 0.4 0.0 5.2 2.0 4.0 4.5 3.5 6.7% 34.7% 22.5% FUNDS 10.7 14.3 17.0 26.4 DESIGNATED DESIGNATED

1

2.3 7.6 0.9 0.4 0.3 4.2 0.6 4.1 3.3% 13.8% 16.3% 66.5% 14.3 26.5 44.4 29.0 18.7 30.2% FUNGIBLE 118.7 GENERAL/SCHOOL Assistants Teaching Assistants Research Other Salaries Benefits Salaries Allowance Tuition Tuition Fellowship General/School fungible funds are general funds and some Gift and Endowed funds that can be used for any purpose within a school. any funds that can be used for funds and some Gift and Endowed general fungible funds are General/School

GRADUATE STUDENT AND POSTDOC SUPPORT AND POSTDOC STUDENT GRADUATE [IN MILLIONS OF DOLLARS] FUNDS Student Support Graduate Postdocs Salaries 1 Benefits Tuition

Stipends Total Salaries & Benefits Total Total Postdoc Support Postdoc Total of Total Percent

Stipends Total Graduate Student Support Graduate Total of Total Percent 112 APPENDIX B: SUPPLEMENTARY INFORMATION

SCHEDULE 6

GRADUATE ENROLLMENT BY SCHOOL AND DEGREE 1 2007/08 through 2016/17

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Graduate School of Business 883 877 895 928 940 961 971 1,002 1,007 1,012 Doctoral 101 99 97 101 105 103 110 121 130 131 Master’s 55 60 57 56 67 82 83 89 91 93 Professional 727 718 741 771 768 776 778 792 786 788 School of Earth, Energy & Environmental Sciences 242 256 286 309 338 350 349 361 365 356 Doctoral 195 202 219 233 270 277 267 283 293 287 Master’s 47 54 67 76 68 73 82 78 72 69 Graduate School of Education 333 346 335 365 355 343 355 334 341 312 Doctoral 174 178 166 181 171 178 181 171 158 151 Master’s 159 168 169 184 184 165 174 163 183 161 School of Engineering 3,133 3,267 3,289 3,452 3,452 3,418 3,381 3,419 3,458 3,523 Doctoral 1,474 1,568 1,593 1,604 1,694 1,716 1,707 1,671 1721 1,760 Master’s 1,659 1,699 1,696 1,848 1,758 1,702 1,674 1,748 1737 1,763 School of Humanities & Sciences 2,091 2,103 2,092 2,162 2,159 2,224 2,261 2,300 2,296 2,286 Doctoral 1,756 1,746 1,748 1,799 1,794 1,845 1,871 1,907 1,922 1,901 Master’s 335 357 344 363 365 379 390 393 374 385 School of Law 593 586 590 636 631 641 631 650 649 668 Doctoral 25 21 17 17 20 23 23 21 20 21 Master’s 2 37 39 35 63 59 63 55 70 68 83 Professional 531 526 538 556 552 555 553 559 561 564 School of Medicine 911 893 954 927 921 934 949 985 1,012 1,074 Doctoral 433 422 434 427 428 431 443 471 483 511 Master’s 34 35 62 59 64 61 60 64 74 106 Professional 444 436 458 441 429 442 446 450 455 457 Continuing Studies 67 68 73 Master’s 3 67 67 73 University-wide 8,186 8,328 8,441 8,779 8,796 8,871 8,897 9,118 9,196 9,304 Doctoral 4,158 4,236 4,274 4,362 4,482 4,573 4,602 4,645 4,727 4,762 Master’s 2,326 2,412 2,430 2,649 2,565 2,525 2,518 2,672 2,666 2,733 Professional 1,702 1,680 1,737 1,768 1,749 1,773 1,777 1,801 1,802 1,809

Source: IR&DS Office fall quarter third week enrollment figures. 1 Includes doctoral (including Terminal Graduate Registration), master’s, and professional students (JDs, MDs, MBAs). Beginning 2014/15, includes MLA degrees. 2 LLMs and JSMs are re-classified to Master’s in this table from 2012/13. 3 Beginning 2014/15, MLA students from Continuing Studies are included. APPENDIX B: SUPPLEMENTARY INFORMATION 113

SCHEDULE 7

UNDERGRADUATE TUITION, MANDATORY FEES, AND ROOM & BOARD RATES 1987/88 through 2017/18 [IN DOLLARS] PERCENT CHANGE PERCENT CHANGE PERCENT CHANGE FROM FROM FROM UNDERGRADUATE PREVIOUS ROOM & PREVIOUS PREVIOUS YEAR TUITION YEAR MANDATORY FEES 1 BOARD YEAR TOTAL COST YEAR 1987/88 11,880 6.0% 4,955 5.4% 16,835 5.8% 1988/89 12,564 5.8% 5,257 6.1% 17,821 5.9% 1989/90 13,569 8.0% 5,595 6.4% 19,164 7.5% 1990/91 14,280 5.2% 5,930 6.0% 20,210 5.5% 1991/92 15,102 5.8% 6,160 3.9% 21,262 5.2% 1992/93 16,536 9.5% 6,314 2.5% 22,850 7.5% 1993/94 17,775 7.5% 6,535 3.5% 24,310 6.4% 1994/95 18,669 5.0% 6,796 4.0% 25,465 4.8% 1995/96 19,695 5.5% 7,054 3.8% 26,749 5.0% 1996/97 20,490 4.0% 7,337 4.0% 27,827 4.0% 1997/98 21,300 4.0% 7,557 3.0% 28,857 3.7% 1998/99 22,110 3.8% 7,768 2.8% 29,878 3.5% 1999/00 23,058 4.3% 7,881 1.5% 30,939 3.6% 2000/01 24,441 6.0% 8,030 1.9% 32,471 5.0% 2001/02 25,917 6.0% 8,304 3.4% 34,221 5.4% 2002/03 27,204 5.0% 8,680 4.5% 35,884 4.9% 2003/04 28,563 5.0% 9,073 4.5% 37,636 4.9% 2004/05 29,847 4.5% 9,500 4.7% 39,347 4.5% 2005/06 31,200 4.5% 9,932 4.5% 41,132 4.5% 2006/07 32,994 5.8% 10,367 4.4% 43,361 5.4% 2007/08 34,800 5.5% 10,808 4.3% 45,608 5.2% 2008/09 36,030 3.5% 11,182 3.5% 47,212 3.5% 2009/10 37,380 3.7% 501 11,463 2.5% 49,344 4.5% 2010/11 38,700 3.5% 501 11,876 3.6% 51,077 3.5% 2011/12 40,050 3.5% 519 12,291 3.5% 52,860 3.5% 2012/13 41,252 3.0% 537 12,721 3.5% 54,510 3.1% 2013/14 42,690 3.5% 555 13,166 3.5% 56,411 3.5% 2014/15 44,184 3.5% 573 13,631 3.5% 58,388 3.5% 2015/16 45,729 3.5% 591 14,107 3.5% 60,427 3.5% 2016/17 47,331 3.5% 609 14,601 3.5% 62,541 3.5% 2017/18 48,987 3.5% 630 15,112 3.5% 64,729 3.5%

UNDERGRADUATE TUITION ROOM & BOARD TOTAL COST Compound Annual Increase, 1987/88 – 2017/18 (30 years): 4.8% 3.8% 4.6% Compound Annual Increase, 2007/08 – 2017/18 (10 years): 3.5% 3.4% 3.6%

1 Campus health service fee. 114 APPENDIX B: SUPPLEMENTARY INFORMATION

SCHEDULE 8 6,923 5,405 1,603 2,687 2,413 7,818 18,030 22,727 19,786 10,177 116,923 157,680 186,887 7,283 5,405 1,053 3,275 2,413 9,656 7,818 21,877 19,952 20,214 108,816 150,645 179,730 6,872 5,345 1,193 3,344 2,049 9,475 7,394 24,658 20,141 19,691 101,568 146,367 174,645 7,211 5,796 1,168 3,474 1,807 9,459 7,603 93,058 34,073 18,787 20,143 145,919 174,833 7,474 5,786 1,336 3,666 2,097 9,904 7,883 92,260 34,586 18,018 21,043 144,864 175,126 7,581 5,083 1,212 3,811 1,874 6,957 83,352 36,269 17,381 21,477 10,085 137,002 166,647 1

7,495 5,396 1,227 3,548 1,610 7,006 89,180 26,829 16,756 21,348 10,304 132,765 162,345 5,627 4,447 1,078 4,310 3,117 3,194 7,641 99,682 15,942 18,961 10,216 119,934 147,614 997 5,285 6,545 1,022 3,860 3,044 9,589 74,487 90,711 15,227 19,215 10,070 120,537

5,005 7,876 5,539 1,150 3,780 2,885

14,999 19,102 10,317 10,761 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

61,026 81,565 112,579

3

2 Scholarships Grants Income Gifts and Endowment Awards Athletic Need-based Awards Funds Unrestricted Stanford Figures are actual expenses and are in thousands of dollars. The data include all funds awarded to undergraduate students undergraduate to data include all funds awarded The in thousands of dollars. and are actual expenses are Figures including aid that is not need-based. Aid Office, the Financial through administered in 2015/16. amount is $195,112 wishes. The not need-based per donors’ funds that are Include endowed 9. in Schedule awards funded need-based for Stanford in this schedule will not equal the sum of amounts the figures Thus, Fund. the Stanford Includes support from

UNDERGRADUATE FINANCIAL AID BY TYPE OF AID AND SOURCE OF FUNDS TYPE OF AID AND SOURCE FINANCIAL AID BY UNDERGRADUATE 2015/16 2006/07 through OF DOLLARS] [IN THOUSANDS Stanford Scholarships Stanford Total External Federal Grants External Total Loans Federal Earnings Work-Study Federal Office IR&DS Source: 1 2 3

State Other Total Grand Other Loans Total APPENDIX B: SUPPLEMENTARY INFORMATION 115

SCHEDULE 9 3.1% 3.1% PERCENT 9.5% 0.5% 0.7% 1.9% 2.5% 3.2% 0.8% 4.8%

-0.3% -5.3% -0.3% -0.6% -13.1% 2017/18 TO 6 36 51 (17) 468 486 (10) (132) (101) 2016/17 2,010 6,670 (364) 1,968 6,151 4,787 AMOUNT CHANGE 3,185 1,137 5,309 2,368 5,483 2,792 2,415 22,694 17,572 19,041 59,450 BUDGET 221,500 221,500 199,667 105,072 3,195 1,131 5,273 2,500 5,500 2,740 2,779 20,726 17,673 18,573 58,964 PROJECTED 214,830 214,830 193,516 100,285

3,196 1,396 5,725 2,665 5,777 2,662 2,798 ACTUALS ACTUALS 2015/16 2016/17 2017/18 17,368 18,498 18,061 57,777 95,173 207,178 207,178 186,455 3,254 1,081 5,206 3,238 5,765 2,635 2,550 ACTUALS 21,866 18,460 18,134 59,861 86,921 204,948 204,948 184,179

3,278 1,433 4,782 3,290 5,511 2,599 1,765 2013/14 2014/15 23,555 18,288 17,535 58,585 81,442 198,652 198,652 178,519

3,417 1,745 5,123 3,408 5,643 2,641 1,211 23,558 25,852 17,820 58,415 74,995 2012/13 199,952 199,952 179,491

3,464 1,198 5,312 3,587 6,003 2,638 1,276 ACTUALS ACTUALS ACTUALS 14,264 38,131 17,755 56,580 71,833 2011/12 198,184 198,184 177,792 1

2 Student Budget Needs and Sources, Needs and Sources, Student Budget 2017/18 Funds Unrestricted Department Sources Outside Awards Scholarships State California Grants Federal Funds Fund/President’s Stanford Books and Personal Expenses and Personal Books Income Endowment Expendable Gifts & Board Room Tuition, (Includes parent Contribution Family Total aided students, self-help, for contribution etc.) assets, summer savings, In this table, sources of aid other than the family contribution include only aid awarded to students who are receiving scholarship aid scholarship receiving students who are to include only aid awarded contribution of aid other than the family In this table, sources in Schedule 8. will not equal the figures and grants scholarships the sum of amounts for Thus, Stanford. from funds. funds and specifically invested includes reserve income Endowment

Sources Total Number of Students on Need-Based Aid

Total Student Expenses Total

Travel

UNDERGRADUATE NEED-BASED FINANCIAL AID NEED-BASED UNDERGRADUATE Projected and Student Contributions Including Parental OF DOLLARS] [IN THOUSANDS Needs Sources 1 2

116 APPENDIX B: SUPPLEMENTARY INFORMATION

SCHEDULE 10

MAJORS WITH THE LARGEST NUMBER OF BACCALAUREATE DEGREES CONFERRED 1 2006/07 through 2015/16

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Computer Science 70 66 65 85 87 143 132 211 217 264 Human Biology 167 193 229 219 191 177 177 165 185 157 Biology 9 24 100 121 103 108 98 96 107 Economics 143 165 162 141 120 103 97 86 98 107 Engineering 62 73 93 82 99 99 98 123 125 103 Science, Technology, and Society 22 24 35 40 60 53 65 105 99 96 Mechanical Engineering 59 55 48 54 56 50 60 53 79 94 Management Science and Engineering 56 54 51 59 64 69 55 63 63 60 International Relations 87 107 102 108 103 96 88 63 63 59 English 92 57 75 69 58 68 67 55 51 56 Symbolic Systems 44 28 29 18 21 21 37 44 38 55 Political Science 103 96 71 74 72 72 55 61 44 54 Psychology 102 80 73 79 72 94 84 56 68 54 Electrical Engineering 48 37 47 36 43 39 36 33 42 50 History 71 50 59 63 56 67 67 48 36 45 Mathematics 48 36 48 35 37 43 37 43 36 37 Chemical Engineering 16 18 23 20 23 23 22 22 39 30 Mathematical and Computational Science 24 16 25 22 20 17 25 23 31 27 Civil Engineering 14 14 16 22 21 15 23 21 12 22 Communication 36 43 41 38 43 29 27 25 26 22 Source: IR&DS Office 1 This table includes the 20 degrees in which the most undergraduate degrees were awarded in 2015/16. APPENDIX B: SUPPLEMENTARY INFORMATION 117

SCHEDULE 11

STUDENTS HOUSED ON CAMPUS 1997/98 through 2016/17

PERCENT OF GRADUATE STUDENTS PERCENT OF UNDERGRADUATES UNDERGRADUATES GRADUATE STUDENTS HOUSED IN OFF-CAMPUS GRADUATE STUDENTS YEAR HOUSED ON CAMPUS 1 HOUSED ON CAMPUS HOUSED ON CAMPUS SUBSIDIZED APARTMENTS HOUSED BY STANFORD

1997/98 5,864 88% 3,320 44.6% 1998/99 5,917 90% 3,717 250 52.5% 1999/00 5,955 90% 3,408 584 52.4% 2000/01 5,969 91% 3,887 687 59.4% 2001/02 6,199 93% 3,748 932 62.1% 2002/03 6,138 91% 3,828 932 62.6% 2003/04 6,067 91% 4,013 632 59.6% 2004/05 6,046 90% 4,391 553 61.1% 2005/06 6,116 91% 4,218 430 56.8% 2006/07 6,050 90% 4,255 356 56.2% 2007/08 6,087 90% 4,421 130 55.6% 2008/09 6,160 90% 4,319 138 53.5% 2009/10 6,300 92% 4,650 0 55.1% 2010/11 6,257 91% 4,695 71 54.3% 2011/12 6,302 91% 4,700 68 54.2% 2012/13 6,371 91% 4,776 198 56.1% 2013/14 6,448 92% 4,645 362 56.3% 2014/15 6,503 93% 5,037 440 60.1% 2015/16 6,401 92% 5,001 708 62.1% 2016/17 6,538 93% 4,840 1,125 64.1%

Source: IR&DS Office 1 Students who are in overseas programs are not included. 118 APPENDIX B: SUPPLEMENTARY INFORMATION

SCHEDULE 12

TOTAL PROFESSORIAL FACULTY 1982/83 through 2016/17

TENURE NON-TENURE ASSOCIATE ASSISTANT LINE LINE GRAND PROFESSORS PROFESSORS PROFESSORS 1 TOTAL PROFESSORS TOTAL 1982/83 672 195 284 1,151 116 1,267 1983/84 682 195 286 1,163 129 1,292 1984/85 691 194 272 1,157 135 1,292 1985/86 708 191 261 1,160 135 1,295 1986/87 711 192 262 1,165 150 1,315 1987/88 719 193 274 1,186 149 1,335 1988/89 709 200 268 1,177 147 1,324 1989/90 715 198 265 1,178 146 1,324 1990/91 742 195 278 1,215 161 1,376 1991/92 2 756 205 263 1,224 182 1,406 1992/93 740 209 245 1,194 214 1,408 1993/94 729 203 241 1,173 225 1,398 1994/95 724 198 252 1,174 256 1,430 1995/96 723 205 241 1,169 287 1,456 1996/97 731 205 239 1,175 313 1,488 1997/98 750 213 231 1,194 341 1,535 1998/99 758 217 237 1,212 383 1,595 1999/00 771 204 255 1,230 411 1,641 2000/01 764 198 268 1,230 440 1,670 2001/02 768 204 274 1,246 455 1,701 2002/03 771 202 259 1,232 481 1,713 2003/04 783 196 269 1,248 498 1,746 2004/05 792 193 280 1,265 514 1,779 2005/06 789 210 263 1,262 511 1,773 2006/07 807 210 261 1,278 529 1,807 2007/08 813 217 261 1,291 538 1,829 2008/09 821 224 267 1,312 564 1,876 2009/10 836 233 270 1,339 571 1,910 2010/11 826 237 261 1,324 579 1,903 2011/12 839 246 265 1,350 584 1,934 2012/13 865 252 281 1,398 597 1,995 2013/14 887 252 290 1,429 614 2,043 2014/15 912 257 306 1,475 643 2,118 2015/16 948 243 314 1,505 648 2,153 2016/17 956 253 305 1,514 666 2,180

Source: IR&DS Office September 1st figures. 1 Assistant Professors “Subject to Ph.D.” are included. 2 Beginning in 1991/92, Medical Center Line and Senior Fellows in policy centers and institutes are included in non-tenure line professors. APPENDIX B: SUPPLEMENTARY INFORMATION 119

SCHEDULE 13

DISTRIBUTION OF TENURED, NON-TENURED, AND NON-TENURE LINE PROFESSORIAL FACULTY 1 2014/15 through 2016/17 2014/15 2015/16 2016/17 NON- NON- NON- NON- TENURE NON- TENURE NON- TENURE SCHOOL UNIT OR PROGRAM TENURED TENURED LINE TOTAL TENURED TENURED LINE TOTAL TENURED TENURED LINE TOTAL School of Earth, Energy & Environmental Sciences 40 14 5 59 39 12 9 60 43 11 4 58 Graduate School of Education 41 7 8 56 43 12 4 59 39 11 9 59 School of Engineering 180 46 20 246 184 55 19 258 188 55 14 257 School of Humanities & Sciences 437 124 18 579 442 122 17 581 442 121 18 581 Humanities 178 45 11 234 176 46 10 232 177 46 11 234 Natural Sciences 134 44 3 181 142 41 3 186 143 38 3 184 Social Sciences 125 35 4 164 124 35 4 163 122 37 4 163 School of Law 48 4 9 61 47 5 10 62 46 8 10 64 Other 0 0 18 18 0 0 16 16 0 0 17 17 SUBTOTAL 746 195 78 1,019 755 206 75 1,036 758 206 72 1,036 Graduate School of Business 77 37 1 115 77 46 0 123 79 44 0 123 School of Medicine 287 98 561 946 293 92 570 955 304 89 591 984 SLAC 34 1 3 38 36 0 3 39 34 0 3 37 TOTAL 1,144 331 643 2,118 1,161 344 648 2,153 1,175 339 666 2,180

Source: IR&DS Office September 1st figures. 1 Population includes appointments made part-time, “Subject to Ph.D.,” and coterminous with the availability of funds. 120 APPENDIX B: SUPPLEMENTARY INFORMATION

SCHEDULE 14

NUMBER OF NON-TEACHING EMPLOYEES 1 As of December 15 Each Year 2008 through 2016 2015 TO 2016 CHANGE 2008 2009 2010 2011 2012 2013 2014 2015 2016 AMOUNT PERCENT

Academic Units Graduate School of Business 411 343 338 341 373 402 424 456 477 21 4.6% School of Earth, Energy & Environmental Sciences 84 85 85 98 101 100 107 115 129 14 12.2% Graduate School of Education 104 116 120 156 166 167 186 199 198 (1) -0.5% School of Engineering 448 425 432 455 479 495 520 505 468 (37) -7.3% School of Humanities & Sciences 727 706 705 705 730 760 764 804 801 (3) -0.4% School of Law 166 153 154 155 158 162 155 158 159 1 0.6% School of Medicine 3,360 3,419 3,609 3,725 3,902 3,998 4,248 4,393 4,840 447 10.2% Vice Provost & Dean of Research 531 527 537 569 612 630 642 672 684 12 1.8% University Libraries 572 537 572 569 582 579 442 400 406 6 1.5% SLAC 1,383 1,436 1,539 1,572 1,552 1,443 1,402 1,400 1,430 30 2.1% Other Academic (Hoover Institution, VPUE, VPGE, VPTL 2) 292 281 270 290 340 344 368 457 532 75 16.4%

Academic Unit Total 8,078 8,028 8,361 8,635 8,995 9,080 9,258 9,559 10,124 565 5.9%

Administrative Units Business Affairs 885 872 854 867 912 932 961 962 1,023 61 6.3% Land, Buildings & Real Estate 503 452 452 475 513 531 533 545 537 (8) -1.5% Office of Development 280 249 251 314 329 352 369 377 386 9 2.4% Offices of the President & Provost 198 190 191 195 214 212 243 222 247 25 11.3% Student Affairs, Admission & Financial Aid 303 286 282 320 331 340 350 345 368 23 6.7% Stanford Alumni Association 124 111 114 107 114 121 123 123 115 (8) -6.5% Stanford Management Company 61 61 64 72 70 75 79 64 54 (10) -15.6% Other Administrative (Public Affairs, University Communications, General Counsel and Public Safety) 130 129 128 125 134 148 154 162 167 5 3.1%

Administrative Units Total 2,484 2,350 2,336 2,475 2,617 2,711 2,812 2,800 2,897 97 3.5%

Auxiliary Units Athletics 167 153 158 175 173 185 205 212 229 17 8.0% Residential & Dining Enterprises 538 524 556 550 589 623 660 735 742 7 1.0%

Auxiliary Unit Total 705 677 714 725 762 808 865 947 971 24 2.5% Total 11,267 11,055 11,411 11,835 12,374 12,599 12,935 13,306 13,992 686 5.2% Annual Percentage Change 2.3% -1.9% 3.2% 3.7% 4.6% 1.8% 2.7% 2.9% 5.2%

Source: IR&DS Office 1 Includes benefits-eligible employees only. Does not include students, or employees working less than 50% time or hired for less than 6 months. 2 VPTL was established in 2015. APPENDIX B: SUPPLEMENTARY INFORMATION 121

SCHEDULE 15

391 6,098 Actual 28.5% 22,840 13,214 12,784 54,097 22,810 19,523 18,120 21,412 13,162 134,538 146,085 261,623 602,832 185,068 287,112 616,046 616,046

291 4,836 8,018 28.3% 22,355 12,427 46,361 25,869 18,722 16,986 19,622 125,968 137,726 255,475 570,657 177,837 268,822 567,808 219 3,749 28.4% 20,716 12,976 51,807 27,529 17,294 18,664 20,052 14,461 119,458 129,246 234,550 539,029 154,665 252,672 536,375 4,048 7,910 4,994 27.1% 17,772 13,214 41,381 23,556 15,556 19,748 17,915 112,378 118,045 210,124 490,971 135,834 239,466 482,811 3,322 7,387 (4,220) (8,160) (2,654) (2,849) 20,829 13,552 35,834 19,499 13,637 26,284 14,810 10,613 28.2% 105,094 110,754 210,588 476,205 130,424 229,783 471,985

332 1,301 6,096 27.2% 97,920 15,431 14,096 12,817 32,945 15,740 12,489 22,710 14,360 104,407 176,716 413,621 110,018 203,960 427,717

985 468 2,948 27.7% 93,704 24,931 99,373 15,382 12,592 29,199 16,969 12,064 14,245 14,187 160,248 407,923 101,060 218,476 408,908

364 7,501 26.8% 92,586 97,748 14,761 12,150 44,890 20,338 13,012 16,583 15,689 95,611 16,189 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 (10,841) 159,443 402,532 198,199 391,691 1

16

2

Programs Programs Programs Early Retirement Faculty Stanford Retirement Retirement Stanford Plan/Other Annuity Social Security Retirement University Insurance/Other Life Group Dental Insurance Comp/LTD/ Worker’s Insurance Unemployment Sabbatical Leave Retirement Medical Retirement Medical Insurance Pay Severance The fringe rate at the bottom of the table is the weighted average of the four distinct fringe rates that are charged to to charged that are rates distinct fringe of the four average of the table is weighted at the bottom rate fringe The or more; continuing appointments of half-time and staff with faculty which includes all benefits-eligible employees, (1) regular assistants. and research teaching graduate and (4) employees; (3) casual or temporary scholars; (2) postdoctoral The Stanford Retirement Annuity Plan had a $10.5 million reserve contribution in 2011/12 due to underfunded pension obligations. due to in 2011/12 contribution million reserve Plan had a $10.5 Annuity Retirement Stanford The

[IN THOUSANDS OF DOLLARS] [IN THOUSANDS Retirement Benefits Rate Fringe Average Weighted Programs Insurance Total Carry-forward/Adjustment With Total Carry-forward/Adjustment Carry-forward/Adjustment Year(s) Prior from Programs Benefits Fringe Total Programs Miscellaneous Total Other

FRINGE BENEFITS DETAIL FRINGE BENEFITS 2015 / 2008/09 through Insurance Miscellaneous Note: 1 2 Program Benefits Fringe Programs Retirement Total 122 APPENDIX B: SUPPLEMENTARY INFORMATION

SCHEDULE 16

SPONSORED RESEARCH EXPENSE BY AGENCY AND FUND SOURCE 1 2009/10 through 2015/16 [IN THOUSANDS OF DOLLARS] 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 U.S. Government 2 Health & Human Services 395,209 446,906 413,713 412,511 409,312 444,746 469,355 Department of Defense 58,153 71,627 84,048 89,598 86,630 83,078 82,956 National Science Foundation 71,645 68,856 67,828 69,846 66,492 67,211 66,794 Department of Energy (excluding SLAC) 20,458 24,338 22,810 24,069 27,041 26,853 26,609 National Aeronautics and Space Administration 24,988 22,471 20,963 22,113 17,905 17,881 18,113 Other U.S. Sponsors 9,063 7,952 8,551 7,699 8,477 10,382 9,534 Department of Education 2,757 4,921 4,872 5,675 5,174 5,075 5,258

Subtotal for U.S. Government Agencies 582,274 647,071 622,784 631,512 621,031 655,227 678,619

Direct Expense-U.S. 417,868 463,313 443,430 450,993 441,726 465,581 482,386 Indirect Expense-U.S.3 164,407 183,758 179,355 180,519 179,305 189,645 196,233

Non-U.S. Government Subtotal for Non-U.S. Government 170,536 180,105 186,416 202,620 220,557 243,120 265,970

Direct Expense-Non-U.S. 140,618 146,174 150,566 163,903 179,775 198,407 218,401 Indirect Expense-Non-U.S. 29,918 33,931 35,849 38,717 40,782 44,713 47,569

Grand Totals-U.S. plus Non-U.S. Grand Total 752,811 827,176 809,200 834,132 841,588 898,346 944,589 Grand Total Direct 558,486 609,487 593,996 614,896 621,501 663,988 700,787 Grand Total Indirect 194,325 217,689 215,204 219,236 220,087 234,358 243,802 Percent of Total from U.S. Government 77.3% 78.2% 77.0% 75.7% 73.8% 72.9% 71.8%

1 Figures are only for sponsored research; sponsored instruction and other non-research sponsored activity is not included. In addition, SLAC expense is not included in this table. 2 Agency figures include both direct and indirect expense. 3 Veterinary Service Center indirects are included in this figure. APPENDIX B: SUPPLEMENTARY INFORMATION 123

SCHEDULE 17

SPONSORED RESEARCH CONTRACTS AND GRANTS BY SCHOOL 1 2009/10 through 2015/16 [IN THOUSANDS OF DOLLARS]

School/Unit 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Graduate School of Business 925 1,265 1,273 1,402 380 341 383 School of Earth, Energy & Environmental Sciences 10,035 12,675 14,795 15,060 14,717 15,431 12,841 Graduate School of Education 9,291 15,056 16,974 17,306 18,027 19,902 21,467 School of Engineering 136,999 135,921 144,847 149,419 148,806 143,484 135,975 School of Humanities & Sciences 74,733 77,342 74,436 80,063 71,771 73,890 86,285 School of Law 491 389 410 932 300 1,018 651 School of Medicine 433,863 498,174 475,100 484,162 505,405 563,225 602,615 Vice Provost & Dean of Research 78,637 82,265 77,391 81,367 76,714 74,600 79,269 Other 2 7,835 4,088 3,974 4,422 5,467 6,456 5,102 Total 752,811 827,176 809,200 834,132 841,588 898,346 944,589

Source: Research Financial Compliance & Services; Sponsored Projects Report for the Year Ended August 31, 2016, page 10. 1 Figures are only for sponsored research including both direct and indirect costs; sponsored instruction or other non-research sponsored activity is not included. In addition, SLAC expense is not included in this table. 2 “Other” includes Hoover Institution, Stanford University Libraries, Undergraduate Admission and Financial Aid, Vice Provost for Student Affairs, Offices of the President and Provost, Business Affairs, Public Affairs, and Continuing Studies and Summer Session. 124 APPENDIX B: SUPPLEMENTARY INFORMATION

SCHEDULE 18

PLANT EXPENDITURES BY UNIT 1 2008/09 through 2015/16 [IN THOUSANDS OF DOLLARS]

UNIT 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Graduate School of Business 69,038 116,731 295,433 25,577 2,961 1,455 781 54,692 School of Earth, Energy & Environmental Sciences 2,197 2,950 5,117 2,118 730 192 3,384 1,034 Graduate School of Education 2,201 2,955 843 1,423 769 School of Engineering 55,430 55,976 19,198 9,968 4,165 170,713 10,637 35,228 School of Humanities & Sciences 11,255 14,419 7,930 7,136 107,202 10,089 75,930 46,120 School of Law 78,973 43,434 50,185 4,168 66 11,774 192 895 School of Medicine 134,165 104,880 31,731 32,820 76,588 15,317 45,380 67,525 University Libraries 3 280 41,676 4,651 2,216 Athletics 22,988 10,963 16,639 9,116 29,955 49,001 6,286 44,292 Residential & Dining Enterprises 31,135 21,773 14,288 47,750 27,788 134,083 35,046 111,465 All Other2 105,925 92,761 46,668 49,130 123,850 175,837 377,341 105,569 TOTAL 513,313 467,123 488,032 187,784 374,728 610,138 560,397 469,036

Source: Schedule G-5, Capital Accounting. 1 Expenditures are from either plant or borrowed funds and are for building construction or improvements, or infrastructure. 2 Includes General Plant Improvements expense. APPENDIX B: SUPPLEMENTARY INFORMATION 125

SCHEDULE 19

ENDOWMENT MARKET VALUE AND MERGED POOL RATE OF RETURN 2001/02 through 2015/16 MERGED POOL (FOR 12 MONTHS ENDING JUNE 30) MARKET VALUE OF THE ENDOWMENT ANNUAL NOMINAL ANNUAL REAL YEAR (IN THOUSANDS) 1 RATE OF RETURN RATE OF RETURN 2

2001/02 7,612,769 -2.6% -3.7%

2002/03 8,613,805 8.8% 7.2%

2003/04 9,922,041 18.0% 15.4%

2004/05 12,205,035 19.5% 17.0%

2005/06 3 14,084,676 19.5% 16.2%

2006/07 17,164,836 23.4% 20.7%

2007/08 17,214,373 6.2% 4.0%

2008/09 12,619,094 -25.9% -27.1%

2009/10 13,851,115 14.4% 13.4%

2010/11 16,502,606 22.4% 20.0%

2011/12 17,035,804 1.0% -0.7%

2012/13 18,688,868 12.2% 10.8%

2013/14 21,446,006 16.8% 15.2%

2014/15 22,222,957 7.0% 6.0%

2015/16 22,398,130 -0.4% -1.6%

Source: Stanford University Annual Financial Report and Stanford University Investment Report 1 In addition to market value changes generated by investment returns, annual market value changes are affected by the transfer of payout to support operations, new gifts, and transfers to other assets such as plant funds. 2 The real rate of return is the nominal rate less the rate of price increases, as measured by the Gross Domestic Product price deflator. 3 Beginning in 2005/06, living trusts are no longer included in the reported value of the endowment. The effect is to lower the market value for 2005/06 and beyond. For comparison, the restated value for 2005/06 would have been about $14.7 billion. 126 APPENDIX B: SUPPLEMENTARY INFORMATION

SCHEDULE 20

TO 3.0% 1.3% 0.9% 4.0% 2.1% 4.8% 5.7% 8.1% 3.9% 7.9% CHANGES 2017/18 11.6% 11.6% -0.6% COMPOUND 2007/08 2007/08

9.5 9.5 PLAN 85.7 85.7 19.6 19.6 38.9 38.9 12.9 12.9 48.9 48.9 49.6 49.6 23.8 23.8 54.7 54.7 305.4 305.4 271.6 271.6 225.1 225.1 2017/18 2,453.3 2,453.3 1,307.5 1,307.5

10.0 10.0 92.6 92.6 20.7 20.7 42.3 42.3 12.4 12.4 52.9 52.9 52.0 52.0 23.7 23.7 54.7 54.7 293.0 293.0 267.8 267.8 218.7 218.7 2016/17 PROJECTED 2,360.1 2,360.1 1,219.3 1,219.3

9.3 9.3 68.1 68.1 21.5 21.5 45.9 45.9 12.1 12.1 58.6 58.6 54.6 54.6 34.7 34.7 53.6 53.6 295.4 295.4 275.6 275.6 194.2 194.2 2015/16 2,242.9 2,242.9 1,119.3 1,119.3

2.7 2.7 8.7 8.7 76.1 76.1 20.3 20.3 66.8 66.8 60.2 60.2 56.2 56.2 24.2 24.2 45.0 45.0 267.0 267.0 999.2 999.2 256.1 256.1 183.7 183.7 2014/15 2,066.2 2,066.2

0.3 0.3 7.0 7.0 91.4 91.4 20.2 20.2 41.5 41.5 54.2 54.2 56.3 56.3 24.1 24.1 42.0 42.0 255.3 255.3 846.7 846.7 261.7 261.7 163.6 163.6 2013/14 1,864.3 1,864.3

95.0 95.0 20.3 20.3 34.7 34.7 50.0 50.0 49.7 49.7 14.2 14.2 21.6 21.6 37.4 37.4 278.8 278.8 769.4 769.4 250.4 250.4 141.4 141.4 2012/13 1,762.9 1,762.9

79.0 79.0 22.8 22.8 38.6 38.6 48.2 48.2 49.8 49.8 14.6 14.6 21.9 21.9 38.1 38.1 285.1 285.1 612.9 612.9 232.8 232.8 133.3 133.3 2011/12 1,577.1 1,577.1

65.7 65.7 22.1 22.1 40.2 40.2 46.8 46.8 46.2 46.2 18.4 18.4 21.6 21.6 38.5 38.5 284.3 284.3 572.5 572.5 219.5 219.5 118.6 118.6 2010/11 1,494.4 1,494.4

82.2 82.2 22.0 22.0 38.7 38.7 42.3 42.3 45.1 45.1 21.6 21.6 20.1 20.1 35.5 35.5 264.3 264.3 523.1 523.1 202.5 202.5 111.2 111.2 2009/10 1,408.6 1,408.6

67.0 67.0 19.9 19.9 35.2 35.2 37.9 37.9 39.1 39.1 17.5 17.5 19.1 19.1 32.2 32.2 245.8 245.8 477.4 477.4 199.7 199.7 108.2 108.2 2008/09 1,299.0 1,299.0

64.0 64.0 17.3 17.3 35.5 35.5 30.5 30.5 28.4 28.4 10.5 10.5 25.3 25.3 25.1 25.1 206.4 206.4 443.7 443.7 184.6 184.6 105.1 105.1 2007/08 1,176.4 1,176.4

1

(excluding SLAC) (excluding 2017/2018 through through VP for Teaching and Learning was created in 2012/13. Preceding its inception, all activity was captured within the Offices of the President and Provost. Provost. and President of the within the Offices captured was all activity its inception, Preceding in 2012/13. created was and Learning Teaching VP for

EXPENDABLE FUND BALANCES AT YEAR-END AT FUND BALANCES EXPENDABLE 2007/08 [IN MILLIONS OF DOLLARS] Academic Units Academic Business of School Graduate Sciences & Humanities of School Education Undergraduate for VP 1 Hoover Institution Hoover School of Earth, Energy & Earth,of School & Energy Sciences Environmental Education Graduate for VP Libraries University Law of School Total Academic Units Academic Total Education of School Graduate Learning and Teaching for VP School of Medicine of School School of Engineering of School Research of Dean and VP APPENDIX B: SUPPLEMENTARY INFORMATION 127

SCHEDULE 21

ACADEMIC UNIT EXPENDABLE FUND BALANCES By Level of Control 2013/14 through 2015/16 [IN MILLIONS OF DOLLARS] COMPOUND ANNUAL 2013/14 2014/15 2015/16 GROWTH School of Earth, Energy & Environmental Sciences 54.2 60.2 58.6 3.9% School 23.7 25.5 26.0 4.8% Department/Program 20.4 23.0 20.0 -1.0% Faculty/PI 10.2 11.7 12.5 11.1% School of Education 42.0 45.0 53.6 12.9% School 20.4 21.9 23.8 8.0% Department/Program 14.4 14.1 19.7 16.9% Faculty/PI 7.2 9.0 10.0 18.2% School of Engineering 261.7 256.1 275.6 2.6% School 63.4 53.2 63.8 0.4% Department/Program 100.3 96.7 103.2 1.5% Faculty/PI 98.1 106.2 108.5 5.2% School of Humanities & Sciences 255.3 267.0 295.6 7.6% School 76.2 78.4 88.1 7.6% Department/Program 108.5 109.1 117.7 4.2% Faculty/PI 70.6 79.5 89.7 12.7% School of Law 24.1 24.2 34.7 19.9% School 19.7 20.3 30.2 23.8% Department/Program 4.4 3.9 4.4 0.2% Faculty/PI 0.0 0.0 0.0 0.0 School of Medicine 846.7 999.2 1,119.3 15.0% School 334.9 334.7 324.8 -1.5% Department/Program 331.2 444.1 509.1 24.0% Faculty/PI 180.6 220.4 285.3 25.7% Vice Provost and Dean of Research 163.6 183.7 194.2 9.0% VP/Dean 27.1 23.7 18.1 -18.3% Lab/Center/Institute 119.5 145.2 159.8 15.7% Faculty/PI 17.0 14.8 16.2 -2.2% Graduate School of Business 1 91.4 76.1 68.1 -13.7% Hoover Institution 1 41.5 66.8 45.9 5.2% Vice Provost for Graduate Education 1 56.3 56.2 54.6 -1.5% Vice Provost for Undergraduate Education 1 20.3 20.3 21.5 -2.3% Vice Provost for Teaching and Learning 1 0.3 2.7 9.3 458.1% University Libraries 1 7.0 8.7 12.1 31.5% All Academic Units (excluding SLAC) School/Institution/VP 754.7 752.2 743.3 -0.8% Dept/Prog/Lab/Ctr/Institute 725.8 872.2 976.2 16.0% Faculty/PI 383.9 441.8 523.3 16.8% Total All Academic Units (excluding SLAC) 1,864.3 2,066.2 2,242.9 9.7%

Source: Fund level of restriction as coded in financial system. 1 Fund balances in these units are largely under the control of the Dean/Director/Vice Provost or Program/Department. 128 APPENDIX B: SUPPLEMENTARY INFORMATION

SCHEDULE 22 7.3% 6.6% 6.1% 3.7% 3.8% 4.5% 3.3% 6.2% 6.6% 6.2% 4.5% 3.1% 3.0% 3.1% 6.2% 6.3% 4.1% 6.8% 8.9% 7.2% 4.4% 6.3% 2.6% 12.2% Annual Growth Annual Plan 29.4 2017/18 Compound 369.2 298.2 373.7 199.3 194.5 937.4 806.8 278.0 559.4 251.0 140.2 275.8 516.2 165.4 408.1 (162.0) (110.2) (242.8) 3,621.5 3,358.4 3,523.8 1,734.2 5,853.3 1,084.8 1,253.2 1,243.4 1,519.2 6,261.4 2010/11 to 2017/18 30.6 (98.5) 356.7 286.0 360.1 199.1 186.5 903.4 778.8 266.8 644.2 251.0 140.2 172.2 508.4 152.5 339.6 Projection (119.2) (187.1) 3,359.2 3,205.9 3,358.4 1,780.7 5,625.0 1,045.6 1,122.8 1,176.9 1,349.1 5,964.6 33.9 Actuals 2015/16 2016/17 342.3 269.5 340.5 185.2 174.1 857.0 753.6 251.4 447.8 250.8 140.3 258.0 540.0 215.7 561.9 (254.6) (125.6) (346.2) 3,122.8 2,990.3 3,205.9 1,541.0 5,118.5 1,005.0 1,033.9 1,147.5 1,405.6 5,680.4 34.3 Actuals 330.9 260.5 329.0 198.6 164.3 824.2 716.7 242.6 959.2 430.4 957.9 233.3 156.9 222.6 516.0 258.8 500.4 (165.2) (110.7) (241.6) 2,881.5 2,731.5 2,990.3 1,525.0 4,865.6 1,065.5 1,288.1 5,366.0 40.1 Actuals 2013/14 2014/15 317.4 248.8 313.8 172.7 151.3 782.5 669.7 227.7 897.3 369.3 778.2 211.8 130.2 984.7 232.1 507.1 117.3 425.1 (235.5) (112.5) (307.8) 2,665.3 2,614.2 2,731.5 1,381.6 4,468.3 1,216.8 4,893.5 42.2 Actuals 311.0 242.5 297.0 161.8 144.8 752.9 656.8 225.5 882.3 350.9 714.8 180.7 177.7 921.7 118.3 473.6 183.8 413.2 (154.3) (117.4) (229.5) 2,516.5 2,430.5 2,614.2 1,238.8 4,159.6 1,040.0 4,572.9 10.7 (88.6) Actuals 2011/12 2012/13 298.1 240.6 287.2 141.8 135.9 721.2 639.3 226.4 865.7 368.0 600.5 177.8 110.0 861.7 160.6 437.0 101.4 351.3 (172.1) (249.9) 2,364.1 2,329.1 2,430.5 1,204.6 3,951.2 1,022.3 4,302.5

37.2 Actuals 285.6 274.8 2010/11 (44.8) 127.8 783.4 230.4 159.2 688.2 650.3 225.5 875.8 366.4 558.7 163.7 106.1 151.7 935.1 381.3 (158.0) 183.0 341.0 (150.4) 3,734.3 4,075.3 2,146.1 2,329.1 2,205.1 1,139.6

Undergraduate Programs Programs Undergraduate Graduate Programs Programs Graduate Room and Board and Board Room Direct Costs - University - University Costs Direct Indirect Costs Costs Indirect Endowment Income Income Endowment Other Investment Income Income Other Investment Compensation Compensation Financial Aid Financial Internal Debt Service Debt Service Internal Transfers Other Internal Transfers from (to) Plant (to) from Transfers Other Operating Expense Other Operating Principal Endowment (to) from Transfers Student Income Student Income University Sponsored Research Research Sponsored University Research Sponsored SLAC Health Care Services Services Health Care Gifts In Support of Operations Net Assets Released From Restrictions Restrictions From Released Net Assets Investment Income Income Investment Special Program Fees and Other Income and Other Income Fees Special Program Expenses

CONSOLIDATED BUDGET FOR OPERATIONS HISTORY OPERATIONS BUDGET FOR CONSOLIDATED [IN MILLIONS OF DOLLARS] Revenues Transfers Total Balance Beginning Fund Balance Ending Fund Balances in Fund Change

Transfers Total Expenses Total Results Operating

Total Revenues Revenues Total APPENDIX B: SUPPLEMENTARY INFORMATION 129 130 APPENDIX B: SUPPLEMENTARY INFORMATION

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