Harvard Projects $750-Million Revenue Shortfall
HARVARD FORECASTS
a net shortfall of $415 million in anticipated revenue for the fiscal year ending this June 30, reflecting the effects of the coronavirus
pandemic, and a further $750-million shortfall compared to budgeted expectations for the year beginning July 1.
Katie Lapp, executive vice president,
disclosed the projections to the community in an email to faculty and staff members released this morning.
For perspective,
the University’s operating revenues were $5.5 billion in the fiscal year ended June 30, 2019, and have been growing at about 5 pecent in recent years—
propelled by distributions from the endowment and torrid growth in executive and continuing education (see below).
She also announced that
the decision to guarantee pay and benefits to directly employed staff and contract workers
—including those who provide dining, custodial, and security services that were disrupted by the closing of campus—has been extended from May 28 to June 28.
Today’s message updates guidance
provided in an April 13 note from President Lawrence S. Bacow, Provost Alan Garber, and Lapp.
In totaling the fiscal effects this year,
Lapp cited the costs of “refunding room and board for the last half of the semester and providing moving, travel, and other financial assistance to students who were required to depart campus.
It also includes the necessary step of cancelling in-person Continuing and Executive Education courses and programs, and the loss of funding from federal and non-federal sources due to the closure of labs.
”Harvard Magazine
https://harvardmagazine.com/2020/05/harvard-projects-750-million-revenue-shortfall
financial report
https://finance.harvard.edu/files/fad/files/fy19_harvard_financial_report.pdf
Harvard sees $1.2 billion revenue shortfall due to pandemic | CBR