Stanford University Budget Plan 2017/18 · Stanford has three principal categories of financial...

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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

STA N FO R D U N I V E R S I T Y

B U D G E T P L A N 2 0 1 7 / 1 8

iiiEXECUTIVE SUMMARY

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

vEXECUTIVE SUMMARY

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 OPERATIONSThe 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.

REVENUEStudent 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.

EXPENSECompensation—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.

viiEXECUTIVE SUMMARY

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 INITIATIVESStanford’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.

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

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 BUDGETA 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.

ixEXECUTIVE SUMMARY

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.

Academic/Faculty Support6.8

Other 1

5.9Non-Salary& Facilities

12.2 New Programs5.8

Program Enhancement6.0

Base Conversion6.8

Endowment Mitigation

4.0

Contingency20.0

Salaries &Benefits19.9

Market-based Adjustments

32.1

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

IncrementalAllocations

18.6

Administrative Support5.9

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

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.

ACKNOWLEDGEMENTSIn 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.

xiEXECUTIVE SUMMARY

REQUESTED APPROVAL AND ORGANIZATION OF THIS DOCUMENTThe 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

xiiiTABLE OF CONTENTS

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

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

APPENDIX B: SUPPLEMENTARY INFORMATION ................................................................................................................103

xiv TABLE OF CONTENTS

1INTRODUCTION: BUDGETING AT STANFORD

INTRODUCTION: BUDGETING AT STANFORD

Budgeting 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

initiatives, 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 ACCOUNTINGStanford’s budgets are developed and managed according to

the principles of fund accounting. Revenue is segregated into

a variety of fund types, and the use of the revenue is governed

by the restrictions of the fund. For example, each expendable

gift is put into an individual fund, and the recipient must use

the funds in accordance with the wishes of the donor. Gifts of

endowment are also put into separate funds, but the corpus

itself is not usually spent. An annual payout on the endow-

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

spent appropriately and to report to donors on the activities

that their funds support. Monies received from government

agencies, foundations, or other outside sponsors are also

deposited in separate, individual funds to ensure strict adher-

ence to the terms of the grants and/or contracts that govern

the use of the funds. Non-gift and non-sponsored research

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-

ticular program, for a capital project, or to create a reserve.

Stanford’s consolidated revenues by fund type are shown at

the right.

BUDGET MANAGEMENTAt the end of fiscal year 2015/16, Stanford had roughly

23,000 active expendable funds and more than 8,000

endowment funds. So how does Stanford budget and

manage all these funds? It goes without saying that

the university uses a sophisticated financial account-

ing system to set up the individual funds, to record each

financial transaction, and to track fund balances. But nearly

all of the decision-making for the use of Stanford’s funds

General Funds23%

Designated27%

Restricted22%

Grants &Contracts

22%

Auxiliaries & Service Centers 6%

2017/18 CONSOLIDATED REVENUES BY FUND TYPE

2 INTRODUCTION: BUDGETING AT STANFORD

is made at the local level, consistent with the decentral-

ized and entrepreneurial spirit of the university. Unlike a

corporation, Stanford is closer to a collection of disparate,

autonomous businesses with widely varying cost struc-

tures and resources. As such, each principal investigator is

accountable for the responsible use of his/her grant funding,

each gift recipient must ensure that the gift funds are used

in accordance with the donor’s wishes, and each school must

fulfill the expectations for teaching and scholarship within

its available resources. Schedule 21 in Appendix B shows

expendable fund balances by academic unit and by level of

control.

BUDGET CONTROLThe primary control on local unit budgets at Stanford is

available funding. Except for general oversight and policies

governing the appropriate and prudent use of university

funds, the central administration does not place additional

limits on spending. For example, if a faculty member needs

to hire a postdoctoral fellow to help carry out a particular

research project, and if grant funding is secured to cover this

expense, the university does not second-guess this decision.

Conversely, two important budget matters are controlled

centrally: faculty billets and space.

Because the majority of Stanford’s funding is under the

direct control of a faculty member, a department, or a school,

these entities are able to support programs as long as they

maintain a positive fund balance. This, however, does not

mean that the programs must operate with a surplus dur-

ing any particular fiscal year. In fact, a “deficit” is usually

reflective of a planned use of prior year fund balances. A

simple example of this is when a department receives a

gift of $5.0 million to be spent over five years. If the funds

are spent evenly over the time period, the program will

show a surplus of $4.0 million in the first year and will

generate an ending fund balance of $4.0 million. In each of

the next four years, this program will receive no revenue, will

expend $1.0 million dollars, and will thus generate an annual

deficit of $1.0 million while drawing down the fund balance

of the gift.

The Consolidated Budget for Operations, the aggregate

of all of Stanford’s smaller budgets, is therefore not centrally

managed in the corporate sense. Nonetheless, a great deal

of planning goes into the development of the individual unit

budgets that aggregate into the Consolidated Budget of

the university.

DEVELOPMENT OF THE CONSOLIDATED BUDGET AND THE ROLE OF GENERAL FUNDSAnother key element in the development of the units’ budgets

and the Consolidated Budget are university general funds,

which are funds that can be used for any university purpose.

General funds play a particularly important role in the overall

budget, because they cover many expenses for which it is

difficult to raise restricted funds, such as administration and

campus maintenance. The main sources of general funds are

tuition income, indirect cost recovery, unrestricted endow-

ment income, and income from the expendable funds pool.

Each school and administrative unit receives general funds

in support of both academic and administrative functions.

The process for allocating general funds is controlled by the

provost and aided by the Budget Group, which includes rep-

resentation from both faculty and administration.

The critical elements of the process are a forecast of available

general funds, a thorough review of each unit’s programmatic

plans and available local funding, and an assessment of cen-

tral university obligations such as building maintenance and

debt service. Balancing the needs and the resources is the

ultimate goal of the Budget Group. The general funds alloca-

tion process is described in more depth in Chapter 1.

3CONSOLIDATED BUDGET FOR OPERATIONS

CHAPTER 1

CONSOLIDATED BUDGET FOR OPERATIONS

In this chapter we review the details of the 2017/18 Consolidated Budget for Operations, describe the general

funds allocation process and results, and present a forecasted Statement of Activities.

CONSOLIDATED BUDGET FOR OPERATIONSThe Consolidated Budget for Operations provides a man-

agement-oriented overview of all non-capital revenues and

expenditures for Stanford University in the fiscal year. It is

based on forecasts from the schools and administrative ar-

eas. These forecasts are then merged with the general funds

budget forecast and adjusted by the University Budget Office

for consistency. The Consolidated Budget includes only those

revenues and expenses available for current operations. It

does not include plant funds, student loan funds, or endow-

ment principal funds, although it does reflect endowment

payout. It also does not include the budgets of Stanford

Health Care or Stanford Children’s Health.

The 2017/18 Consolidated Budget for Operations shows total

revenue of $6,261.4 million and expenses of $5,853.3 million,

resulting in a net operating surplus of $408.1 million. After

projected transfers of $242.8 million, predominately to plant

funds, the Consolidated Budget shows a surplus of $165.4

million.

Total revenues in 2017/18 are projected to increase $296.8

million or 5.0% over revenues expected in 2016/17. As has

been the case for several years, the total growth belies the

variability among the component revenue sources. Health

care services revenue is expected to continue at double-digit

growth, as Stanford Medicine expands both on campus and

in new faculty practice locations throughout the Bay Area.

Total investment income is also expected to increase sharply,

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

1 Net Revenues after Transfers: $6,018.7 Million

UniversitySponsored Research

17%

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Restrictions6%

EndowmentIncome

20%

Other Investment Income

5%

Other Income8% Student Income

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Health Care Services20%

SLAC 9%

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30%

Compensation62%

Debt Service3%

Financial Aid5%

2017/18 CONSOLIDATED EXPENSES: $5,853.3M

4 CONSOLIDATED BUDGET FOR OPERATIONS

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as normal investment returns in the current year drive the

return to full payout on the expendable funds pool in 2017/18.

Payout on the expendable funds pool was roughly half of

the full amount in 2016/17. Sponsored research support is

projected to decline by 2.7%, with SLAC totals decreasing

13.2% due to a significant decline in construction activity.

University sponsored research, exclusive of SLAC, is bud-

geted to increase by 3.8%. Student income is projected to

grow slightly faster than the approved tuition rate increase.

Excluding SLAC, total revenues in 2017/18 are projected to

grow by 7.2%.

Total expenses in 2017/18 are forecast to grow by 4.1% over

the projected year-end results for 2016/17, and by 6.3%

excluding SLAC. SLAC expenses are expected to decline by

13.2% overall, driven by a $91.9 million, or 30%, decrease in

construction activity compared to 2016/17. A very competi-

tive salary program, targeted market-based salary increases

for some faculty and staff, and continued headcount growth

combine to push total compensation expenses up by 8.2%,

excluding SLAC. Growth in general operating expenses is

expected to be comparable to that seen in past years.

The table on the facing page shows the projected consoli-

dated revenues and expenses for 2017/18. For comparison

purposes, it also shows the actual revenues and expenses for

2015/16 and both the budget and the year-end projection for

the current fiscal year, 2016/17. Definitions of key terms are

provided below.

THE CONSOLIDATED BUDGET BY PRINCIPAL REVENUE AND EXPENSE CATEGORIES

Revenues

Student IncomeStudent income is expected to increase by 3.8% in 2017/18 to

$937.4 million. Increases in student charges are approved by

the Board of Trustees and are guided by a number of consid-

erations: programmatic needs, the effectiveness of the finan-

cial aid program, the impact of the economy on the families

of students, and Stanford’s pricing position relative to peers.

Tuition and Fees—Stanford expects to generate $742.9 mil-

lion in tuition and fee revenue in 2017/18, a 3.6% increase

over 2016/17. Tuition and fees from undergraduate programs

are projected to be 3.5% higher than the current year, consis-

tent with the approved tuition rate. Graduate student tuition

revenue will increase by 3.8%, a slightly higher pace than

undergraduate tuition, due to continued modest growth in

total graduate student enrollment. While tuition and fees will

KEY TERMS

General Funds: Unrestricted funds that can be used for any university

purpose. The largest sources are tuition, unrestricted endowment

income, and indirect cost recovery.

Designated Funds: Funds that come to the university as unrestricted but

are directed to particular schools and departments, or for specific

purposes by management agreement.

Restricted Funds: Include expendable and endowment income funds

that can only be spent in accordance with donor restrictions.

Grants and Contracts: The direct component of sponsored research,

both federal and non-federal. Individual principal investigators

control these funds.

Auxiliaries: Self-contained entities such as Residential & Dining

Enterprises and Athletics that generate income and charge

directly for their services. These entities usually pay the university

for central services provided.

Service Centers: Entities that provide services primarily for internal

clients for which they charge rates to recover expenses.

Net Assets Released from Restrictions: Under GAAP, gifts and

pledges that contain specific donor restrictions preventing their

spending in the current fiscal year are classified as “temporarily

restricted,” and are not included in the Consolidated Budget for

Operations. When the restrictions are released, these funds become

available for use and are included as part of the Consolidated Budget

on the line Net Assets Released from Restrictions. These funds

include cash payments on prior year pledges and funds transferred

from pending funds to gift funds.

Financial Aid: Includes expenses for undergraduate and graduate

student aid. Student salaries, stipends, and tuition allowances are

not considered to be financial aid and are included in other lines in

the Consolidated Budget.

Formula Areas: Budget units whose allocations of general funds are

predetermined by a formula agreed to by the provost and the unit.

Principal formula units include the Graduate School of Business,

the School of Medicine, and Continuing Studies/Summer Session.


contribute only 11.9% of Stanford’s total revenue in 2017/18,

it will comprise 50.1% of general funds. As such, it is a vital

source of unrestricted revenue. In addition to supporting

faculty and staff salaries, student services, financial aid, and

other direct academic program needs, tuition plays a crucial

role in funding infrastructure, support services, and other

operational activities.

The general tuition rate increase for 2017/18, approved by

the Board of Trustees in February, is 3.5%, which results in

a rate of $48,987 for undergraduates and non-professional

graduate students. The rate increase was set after care-

ful consideration of the current economic circumstances

weighed against the budgetary needs. Stanford continues

to be, along with its peers MIT, Harvard, Yale, and Princeton,

one of the lowest priced universities among the highly selec-

tive private universities that comprise the Consortium on

Financing Higher Education (COFHE). The median tuition

of the COFHE university cohort increased 3.9% for 2016/17,

leaving Stanford’s tuition rank unchanged at 15th out of 17.

The approved 3.5% tuition increase applies to the undergrad-

uate tuition rate, the general graduate tuition rate, and the

graduate tuition rates for first year MBA students, the School

of Engineering, the School of Law, and the School of Medicine.

Room and Board—Total room and board income is projected

to be $194.5 million in 2017/18, increasing by 4.3% over

the current year. The re-opening of the Schwab Residential

Center, which is currently under renovation, will push room

and board revenue in 2017/18 to rise somewhat faster than

the rate increase, as more graduate students are housed.

In February, the Trustees approved a combined undergradu-

ate room and board rate increase of 3.5% for 2017/18, bring-

ing the undergraduate rate to $15,112. The undergraduate

room rate will increase by 4.4%, and the 19-meal board plan

will increase by only 2.2%. The graduate housing room rate

will increase by 4.75%. Stanford’s combined room and board

rate increases continue to be less than the COFHE university

median, and, as a result, Stanford’s room and board ranking

in 2016/17 dropped from 11th to 12th out of 17. The 2017/18

recommended rate increases will allow Residential and Dining

Enterprises (R&DE) to maintain Stanford’s high-quality resi-

dential and dining programs by supporting debt service on

new and renovated facilities, inflationary impacts on operat-

ing costs (including the higher cost of attracting and retaining

labor, elevated utility rates, and the increased security mea-

sures in technology), and planned escalation in asset renewal.

Sponsored Research and Indirect Cost Recovery

UniversityUniversity sponsored research revenue, excluding SLAC, is

forecast to be $1,084.8 million in 2017/18, a 3.8% increase

from 2016/17. The amount includes direct research revenue

from external grants and contracts ($806.8 million) as well as

reimbursement for indirect costs incurred by the university in

support of sponsored activities ($278.0 million).

SPONSORED RESEARCH REVENUE (Excluding SLAC) [IN MILLIONS OF DOLLARS] PERCENT

2016/17 2017/18 CHANGE

Federal Directs 538.2 548.2 1.9%

Non-Federal Directs 240.6 258.6 7.5%

Total Directs 778.8 806.8 3.6%

Total Indirects 266.8 278.0 4.2%

Total Research 1,045.6 1,084.8 3.8%

Currently 69% of university research funding is provided by

the federal government, and that proportion has been shrink-

ing from 75% five years prior. Overall, federal direct research

revenue is expected to reach $548.2 million in 2017/18, a

1.9% increase over 2016/17. Behind this modest increase

are very contrasting growth trajectories between the School

of Medicine (SoM) and other academic units. Over the last

five years, the SoM has had close to 5% annual growth in

federal research funding, bolstered by new research activity

brought by incremental faculty and stable growth of support

from the National Institutes of Health (NIH). Although the

recent federal budget proposals may leave the university

research activity open to risk, the SoM is confident that it will

continue to hold a strong position compared to peer institu-

tions under the current research climate and projects a 5.0%

increase in the 2017/18 federal research budget. On the con-

trary, federal research funding for other academic units has

been languishing in the past five years, with a steady decline

of about 2% a year. In 2016/17, non-medical schools have

seen less funding support across all federal sponsors except

the NIH. The National Science Foundation, in particular, was

down by 7% as of the first six months of the year. Those units

are concerned over uncertainties with the federal research

outlook, and many project a small decline or a relatively flat

volume compared to the prior year. The only exception is


the School of Engineering, anticipating increased spending

in the Bioengineering Department due to new faculty hires.

Overall, federal research support for schools other than SoM

is forecast to decrease by 2.5%.

On a brighter side, the university has benefited from solid and

consistent growth in non-federal direct research, averaging

about 8.5% a year over the last five years, and the trend is

comparable between the SoM and other academic units. In

2017/18, non-federal direct research will reach $258.6 mil-

lion, a 7.5% increase over the prior year. Non-federal research

activity will likely continue to be energized by the increased

investment from U.S. corporations, foundations, and other

non-profit organizations. They together fund about 72% of

the total non-federal research at Stanford, and their volumes

escalated by 10% in the first six months of 2016/17. Among

schools, the SoM forecasts an 8.9% increase, in line with the

over 9% annual growth for the school in the past five years.

Despite an estimated 30% plunge in the funding from the

California Institute for Regenerative Medicine (CIRM) in

2016/17, the SoM anticipates the funding from the state’s

stem cell research agency to remain flat in 2017/18. In the

Dean of Research, funding for the Global Climate and Energy

Project, which signaled declines in both 2015/16 and 2016/17,

will extend into 2017/18 and is anticipated to remain flat.

Within non-medical academic units, growth in the range

of 4% to 6% is anticipated. The only variation lies in the

Graduate School of Education, which estimates a 4% decline

in anticipation of multiple faculty retirements in 2017/18,

following several years of robust growth in the school’s non-

federal research areas.

Indirect cost recovery will total $278.0 million in 2017/18,

increasing by 4.2%. The facilities & administration rates (or

indirect cost rate) will be the same as the rates in the prior

year, with the on-campus organized research rate at 57.0%.

The growth in indirect cost recovery will slightly outpace

direct research volume for two reasons. First, fewer capital

equipment purchases are anticipated in 2017/18, a type of

research activity exempt from indirect cost recovery. As a

result, a higher portion of direct research funding in 2017/18

will be assessed the indirect cost rate. Second, the SoM proj-

ects indirect costs recovered from the animal care facility to

be 8% higher in 2017/18.

SLACStanford operates SLAC National Accelerator Laboratory

(SLAC), a federally funded research and development center,

for the Department of Energy (DOE). The DOE funds over

95% of SLAC’s budget. SLAC’s sponsored research budget of

$559.4 million in 2017/18 has two components: SLAC facility

operations, including research & development activities, and

DOE-funded construction projects. The facility operations

budget is anticipated to increase modestly, reaching over

$320 million. The 2017/18 construction budget is projected

to decline approximately $90 million from a high of $330

million in 2016/17, due primarily to various sub-contract

activities winding down. SLAC’s $1 billion upgrade to the

Linac Coherent Light Source (LCLS) is still on track with an

anticipated $190 million in funding again next year. SLAC

research and construction programs are discussed in more

detail in Chapter 2.

Health Care ServicesStrong growth is projected to continue into 2017/18 for health

care services income with a budget of $1,253.2 million, or an

11.6% increase over the current year. Health care services

revenue is expected to continue to grow rapidly over the

next few years, as the School of Medicine recruits clinically

active faculty and clinician educators in conjunction with the

expansion of Stanford Health Care and Stanford Children’s

Health. The School of Medicine and the hospitals have an in-

tegrated clinical strategy that includes the growth essential to

maintaining preeminence in a highly competitive health care

market and to providing the highly specialized care required

for training purposes by a leading academic medical center.

The School of Medicine generates more than 90% of the

university’s total health care services revenue, the majority of

which is paid by Stanford Health Care and Stanford Children’s

Health through the professional services and funds flow

agreements. These agreements pass a portion of the hospi-

tals’ clinical service revenues to the academic departments

based on clinician productivity, with additional payments

made for department overhead costs, medical direction

leadership, programmatic development, and for measures of

quality, safety, and value. Hospital payments cover compen-

sation expenses for faculty, clinician educators, and staff who

are directly involved in the clinical mission. In addition the

funds flow agreements cover non-compensation expenses

of the clinical mission and provide support of the academic

and research mission. Clinical revenues in 2017/18 are pro-

jected to increase 12.9% to $1,011.8 million. An additional

$133.6 million of hospital payments to the School of Medicine

cover the university’s formula assessment on the school’s


clinical revenue, rent, use of the library, 3-D imaging, and

other non-clinical programs and services.

The remaining $107.8 million in health care services revenue

represents payments from the hospitals to other parts of the

university: $28.7 million to Business Affairs, primarily for

communications services; $25.4 million to Land, Buildings

and Real Estate for operations and maintenance and utilities,

the Marguerite shuttle service, and parking permits; $12.0

million to the Office of Development for hospital fundraising

support; $11.4 million to the Office of the General Counsel for

legal services; and $23.5 million to the central administration

for parking structure debt service, Stanford Infrastructure

Program fees, and general overhead.

Gifts and Net Assets Released from RestrictionsRevenue from expendable gifts and net assets released from

restrictions is budgeted to be $391.2 million in 2017/18, com-

parable to the amounts in 2015/16 and 2016/17. Because

there is substantial volatility in the timing of gifts, in particular

the use of pending gifts, a zero growth assumption is prudent

for planning purposes.

Expendable gifts are those immediately available for purposes

specified by the donor and do not include gifts to endowment

principal, gifts for capital projects, gifts pending designation,

or non-government grants. Net assets released from restric-

tions include cash payments on gift pledges made in prior

years, as well as pending gifts whose designation has been

determined.

Investment IncomeIn 2017/18, investment income is expected to increase by

$170.1 million to $1,519.2 million, a 12.6% increase over

2016/17. This total includes endowment payout to operations

as well as other investment income described below.

Endowment Income—Endowment payout to operations in

2017/18 is expected to be $1,243.4 million, an increase of

5.7% over 2016/17. Endowment income includes payout

from individual funds invested in the merged pool (MP), as

well as specifically invested endowments (e.g., oil and mineral

rights), and net rental income from the Stanford Research

Park and other endowed lands.

The payout to an individual endowment fund invested in the

merged pool in 2017/18 will increase by only 1.6%, following

a year of no growth. Total merged pool payout, however, is

expected to increase by 5.2% due to new gifts and pledges

to endowment principal during the remainder of the current

year and throughout 2017/18, as well as transfers by schools

and departments of $119.2 million from expendable balances

to endowments at the end of the current fiscal year. We are

also expecting to reinvest $275 million to the Tier I Buffer at

the end of the current fiscal year, resulting from expendable

funds pool returns in excess of the 2016/17 expendable funds

pool payout. Together these additions contribute roughly $35

million to endowment payout in 2017/18.

The 2017/18 proposed spending rate (payout per share) for

the MP is derived from the application of the university’s

smoothing rule. The smoothing rule is used to dampen the

impact on the budget of annual fluctuations in the market

value of the endowment, thereby providing stability to budget

planning. Stanford’s smoothing rule uses the approved target

payout rate of 5.5% to calculate a target payout per share in

the current year, 2016/17. Taking a weighted average of the

target payout per share and the current year’s actual payout

per share results in a smoothed payout per share. The payout

per share for 2017/18 is derived by increasing the smoothed

payout per share by the long-term growth factor of 3.5%.

Finally, the 2017/18 proposed payout per share is expected to

provide an overall endowment payout rate that is within the

range of 4.0% to 6.0%. The spending rate was approved by

the Trustees at the February 2017 meeting.

Of the total endowment income, $261.3 million or 21% is

unrestricted and a source of general funds. The unrestricted

endowment income includes payout from unrestricted MP

funds, income generated from Stanford endowed lands, and

a small amount of other specifically invested endowment

income. The unrestricted portion of endowment income

is expected to increase at a much faster pace (12.5%) in

2017/18 than the restricted portion (4.0%), driven by the

reinvestment of $275 million of excess expendable funds pool

payout in the Tier I Buffer, as well as continued strong growth

in real estate income. Unrestricted income from Stanford

lands is projected to be $102.9 million in 2017/18, providing

nearly 40% of unrestricted endowment income.

Other Investment Income—Other investment income is

expected to increase sharply from $172.2 million in 2016/17

to $275.8 million in 2017/18, a 60.1% jump. Other invest-

ment income comprises two categories of revenue: payout

to operations from the expendable funds pool (EFP) and

earnings from the endowment income funds pool (EIFP), and


investment income from several smaller sources as described

below. The first of these sources, payout from the EFP, can

experience extreme volatility but has a buffering policy in

place, as described below.

The EFP is a collection of thousands of individual funds and

is projected to have a 2017/18 year-end balance of $4.2 bil-

lion. Approximately 80% of the funds in the EFP receive no

payout directly. Rather, a variable payout of 0% to 5.5% on

the balances of these so-called zero return accounts, based

on the actual EFP investment returns during the prior fis-

cal year, is paid to general funds, both centrally and in the

formula schools. The EFP is invested mostly in the merged

pool (MP), and thus the EFP return follows closely the return

on the MP. In the current year, the zero-return funds, which

comprise 82.8% of the EFP, will receive a payout rate of 2.5%,

which was the total investment return on the EFP in the previ-

ous year, 2015/16. EFP returns are expected to be well above

5.5% in the current year, so the EFP payout on the zero-return

funds are budgeted at the full 5.5% allowed by policy. Both

the expected increase in the EFP balance and the increase in

the investment return contribute to the significant increase

in payout in 2017/18. The remaining funds invested in the

EFP receive a payout equal to a money-market return, which

is expected to remain minimal at 0.5% in 2017/18, yielding

$3.6 million. The EIFP is expected to earn $1.8 million and to

have a fund balance of $355.0 million at the end of 2017/18.

The $3.5 billion of ending fund balances in the Consolidated

Budget for Operations shown on page 4 includes all of the

EIFP but only $3.2 billion of the total $4.2 billion invested

in the EFP. This consists of general operating funds, desig-

nated funds, expendable gifts, and non-federal sponsored

research funds. The portion of the EFP not included in the

Consolidated Budget comprises roughly $770 million in plant

and debt pool funds and $230 million in student loan, pend-

ing, and agency funds.

The non-EFP portion of other investment income comprises

$46.6 million in investment income distributed to support

the operations of the Stanford Management Company and

the real estate division of Land, Buildings and Real Estate;

$19.3 million in interest income on the Stanford Housing

Assistance Center (SHAC) portfolio; and miscellaneous other

investment income including rents from the Sand Hill Offices,

security lending, and other interest income. The non-EFP

portion of other investment income is projected to be $98

million in 2017/18.

Special Program Fees and Other IncomeSpecial program fees and other income revenue is budgeted

at $516.2 million in 2017/18, an increase of 1.5% over the

expected level in 2016/17. This category is a collection of

revenue streams that includes executive education instruction

fees; technology licensing income; academic corporate affili-

ates income; ticket, admission, and broadcast fees for athletic

and other events; conference and symposium revenues; rental

income from the Mid-Point Technology Park and the Welch

Road and Stanford West Apartments; and participation fees

collected by the travel/study programs. The slower growth in

2017/18 is due partially to the tail-off of a major patent that

accounted for over 70% of university licensing income and

partially to diminishing rental income from the Mid-Point

Technology Park as the university embarks on the construc-

tion of an administrative campus in Redwood City. This

income category also includes a wide range of other miscel-

laneous income streams throughout the university, ranging

from retail revenues in Residential & Dining Enterprises to

fees for the use of various athletic facilities such as the golf

driving range and summer sports camps.

Expenses

Total CompensationTotal Compensation in the Consolidated Budget for

Operations includes faculty, staff, bargaining unit, and stu-

dent assistantship salaries; fringe benefits; tuition benefits

for research and teaching assistants; and other non-salary

compensation such as bonuses and incentive pay. Total

compensation in 2017/18 is budgeted to be $3,621.5 million,

a 7.8% increase over the 2016/17 year-end projection of

$3,359.2 million. The approved merit programs for faculty

and staff, targeted market-based increases, and anticipated

headcount growth drive this increase.

Salaries—Total salary expense for faculty and staff, including

SLAC, is expected to grow by 7.7% in 2017/18 to $2,380.6

million. Overall, projected salary expense in 2017/18 is the

result of the approved salary program, incremental funding to

increase the competitiveness of faculty salaries for selected

disciplines and departments, and total combined headcount

growth of 3.6% for faculty and staff. The headcount growth

assumption is based on observations of the 2016/17 actual

headcount trend and analysis of historical average growth.

Within this aggregate, the university anticipates faculty

growth to be 1.8% in 2017/18. In recent years, the number of


academic staff has grown significantly across the university in

support of expanding academic programs in the schools and

independent labs and growth in clinical activities. In particu-

lar, the School of Medicine expects to hire 70 additional clini-

cian educators in 2017/18, a significant driver in the overall

increase in academic staff, which is expected to increase by

6.0%. The headcount for non-academic staff is projected to

rise 3.5%, consistent with recent years’ growth.

Similar to past years, the approved salary program takes

into consideration the financial condition of the university

as well as the current labor market status. The annual sal-

ary program was guided by the university’s compensation

philosophy, which is to set faculty salaries at a level that will

maintain Stanford’s competitive position both nationally and

internationally for the very best faculty; and to set staff sala-

ries competitive within the local employment market in order

to attract and retain top talent. Department level faculty

salary data analysis shows that Stanford continues to enjoy a

competitive faculty salary position in most areas, but targeted

allocations above the standard faculty merit pool were made

in selected cases. A review of salary survey data in several lo-

cal markets indicates that staff salaries are in line with market

median salaries as of September 2016. The salary program

for 2017/18 was established accordingly.

Every year a minimum salary is set for research and teaching

assistants, although departments and programs may choose

to pay more than the minimum. The goal is for graduate

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

minimum salary will be increased by 4.25%.

Fringe Benefits—Fringe benefits expense is projected to

increase 7.1% in 2017/18 to $733.6 million, growing at a

slightly slower pace than salaries due to a drop in the main

fringe benefits rate.

The university tracks the benefits costs separately for four

distinct employee groups and charges a different rate for each

group based on the types of benefits that each is eligible to

receive. The federally negotiated rates are calculated as a

ratio of total benefits costs to total payroll for each group:

n Regular benefits-eligible employees

n Postdoctoral research affiliates

n Casual/temporary employees

n Graduate research and teaching assistants

In addition, the university applies a fifth rate to eligible sala-

ries to recover the costs of the Tuition Grant Program (TGP),

which provides undergraduate college tuition benefits for

the dependents of eligible faculty and staff. The government

does not allow these charges, so the TGP rate is applied only

to faculty and staff salaries that are not charged to govern-

ment sponsored projects or academic service centers. The

TGP rate will drop for a second year in a row from 1.75% to

1.60% in 2017/18, and this cost comprises roughly $29.5 mil-

lion of the university’s total fringe benefits expense.

Ninety-five percent of all fringe benefits expense is incurred

for regular benefits-eligible employees, and the proposed

rate for this group in 2017/18 is expected to decrease 0.3 rate

points over the negotiated rate for 2016/17. The fringe ben-

efits rates for postdoctoral research affiliates and for casual/

temporary employees are expected to increase in 2017/18,

while the rate for graduate research and teaching assistants

is projected to decrease somewhat.

FRINGE BENEFITS RATES NEGOTIATED PROPOSED 2016/17 2017/18

Regular Benefits-Eligible Employees 30.7% 30.4%

Postdoctoral Research Affiliates 22.6% 23.5%

Casual/Temporary Employees 8.4% 8.5%

Graduate RAs and TAs 5.4% 5.0%

Average Blended Rate 28.3% 28.1%

The major cost components contributing to the regular

benefits-eligible rate and major changes are noted below:

n The major factor driving the regular benefits-eligible rate

down is the projected cost for retirement medical insur-

ance. The cost of this program is projected to decrease

from the budgeted 2016/17 amount of $19.0 million to

only $10.1 million in 2017/18, causing the rate to drop by

0.5 rate points. The retirement health plan benefit was

changed in 2006. The old program provided to retirees

the same health benefits as active employees. Under the

new program, the university’s contribution to a retiree’s

health plan is a fixed dollar amount, based on years of

service at the time of retirement, and the contribution

increases at the pace of the university’s compensation

program rather than medical inflation. Many employees

were grandfathered into the old plan, but each year a


higher proportion of new retirees fall under the new

program. The significant decrease in the program costs

in 2017/18 results from fewer retirees choosing to enroll

in a health plan immediately upon retirement, as well as a

greater number electing to waive coverage.

n Employee health plans comprise 32.2% of the fringe pool

for regular benefits-eligible employees and are expected

to add 0.2 rate points in 2017/18. The cost to the univer-

sity for these plans is projected to be $210.6 million, an

increase of 11.6% over the budgeted cost for the plans

in 2016/17. The increase is driven by a combination of

enrollment growth and medical cost inflation. The aver-

age cost of the health plans per employee is projected to

increase by 7.0%.

n Starting in 2017/18, transportation benefits will be

included in the fringe pool. The program costs include

Caltrain Go Pass, VTA Eco Pass, and other transportation

benefits to regular benefits-eligible employees and sala-

ried postdoctoral scholars. Inclusion of the $3.4 million

transportation program in the fringe pool adds 0.15 rate

points to the RBE rate.

n A cash contribution to the closed Stanford Retirement

Annuity Plan will increase the rate by 0.2 rate points, but

will reduce the Pension Benefit Guaranty Corporation vari-

able premium.

n The under-recovery of fringe costs in previous years will

be slightly lower in 2017/18, resulting in a further 0.1 rate

point decrease.

The 2017/18 postdoctoral research affiliates fringe rate will

increase 0.9 rate points from the 2016/17 negotiated rate,

mainly due to the inclusion of the transportation program

in the benefits pool, medical inflation, and the impact of the

carry forward from prior years.

The fringe rate for casual/temporary employees is projected

to increase by only 0.1 rate point. The rate for graduate re-

search and teaching assistants (RAs and TAs) is expected to

decrease by 0.4 rate points due to the Cardinal Care health

insurance premium remaining flat and to the impact of the

carry forward from prior years.

Financial Aid Stanford expects to spend a total of $298.2 million on student

financial aid for undergraduate and graduate students in

2017/18, $42.9 million of which will come from general funds.

Designated and restricted funds ($238.0 million) and grants

and contracts ($17.4 million) will support the remainder.

Total budgeted financial aid is 4.3% greater the projected

total for 2016/17, as discussed below.

Undergraduate Aid—In 2017/18 Stanford students will

receive $154.4 million in undergraduate need-based scholar-

ships, of which $148.9 million will be from Stanford resources.

In addition to Stanford resources, $5.5 million will come from

federal grants, mostly Pell and Supplemental Educational

Opportunity Grant (SEOG) grants, an amount comparable to

2016/17 but slightly less than historical levels. Cal Grants,

which are not reflected in the Consolidated Budget for

Operations as they are awarded directly to the students, will

provide $3.0 million, a slight decrease from the current year.

Due to a major policy change for financial aid at the federal

level, undergraduate need-based financial aid expense will

increase 4.4% over the projection for 2016/17, a rate that

is almost one point higher than the growth in the student

budget. Applications for financial aid for 2017/18 will focus

on data from the 2015 tax year, the so-called prior-prior year,

to calculate an expected family contribution. This change

greatly simplifies the application process, as students no lon-

ger have to estimate and then later correct income from the

most recent tax year. It also allows the application process to

begin earlier in better alignment with Stanford’s early admis-

sion program. It is expected that overall parent contributions

will be lower, which is reflected in the growth in the financial

aid budget.

Stanford has long been committed to need-blind admissions

supported by a financial aid program that meets the demon-

strated financial need of all admitted undergraduate students.

Since 2008/09 one of the hallmarks of the need-based pro-

gram has been simple benchmarks that make it easy for pro-

spective students, particularly from low-income backgrounds,

to understand likely financial support from Stanford. These

benchmarks were updated for 2015/16 as follows:

n For families with total annual income below $65,000 (for-

merly $60,000) and typical assets for this income range,

Stanford will not expect a parent contribution toward

educational costs. Tuition, room and board, and other

expenses will be covered with scholarship or grant funds.

n For families with total annual income below $125,000

(formerly $100,000) and typical assets for this income

range, the expected parent contribution will be low enough


to ensure that all tuition charges will be covered with

scholarship or grant funds.

Stanford’s financial aid program continues to be one of the

most generous in the country, ensuring that a family’s eco-

nomic circumstances will not prevent admitted students from

enrolling. The overall number of aid recipients in 2017/18 will

be reduced slightly due to minor differences between the size

and composition of the current senior class and the expected

incoming student body in 2017/18.

It is interesting to note the relative share of university fund-

ing sources supporting this critical program. Five years ago,

president’s funds support was 20%, and endowment income

support at $75.0 million provided 59%. Since then, gener-

ous donor support has allowed endowment income support

to steadily increase to 71% of Stanford resources supporting

need-based aid. Incremental gifts to endowment for need-

based aid result in annual endowment payout that outpaces

standard incremental costs of the program. Absent major

changes in the program, the increases in endowment payout

allow for slower increases in support from general funds.

The table below shows the detail of undergraduate

need-based scholarship aid. Schedules 8 and 9 in Appendix

B provide supplemental information on undergraduate

financial aid.

Athletic scholarships, which are not need-based, will be

awarded to undergraduate students in the amount of $26.0

million in 2017/18, a 3.5% increase over the projection for

the current year.

Graduate Aid—Stanford provides several kinds of financial

support to graduate students, the total of which is expected

to reach $431.9 million in 2017/18. As the table on the facing

page indicates, this includes the tuition component of fel-

lowships in the amount of $117.4 million, which is reflected in

the Financial Aid line of the Consolidated Budget. Financial

aid for graduate students is expected to increase by 4.5%,

consistent with the planned increases in tuition, more gener-

ous graduate support in selected disciplines, and projected

increase in the number of graduate students. The table also

shows the budgets, not represented in the Financial Aid line

of the budget, for stipends, tuition allowance, and RA and TA

salaries of $314.9 million. Consistent with the presentation

of Stanford’s financial statements, tuition allowance (tuition

benefits for RAs and TAs) and RA and TA salary expenses are

in the Compensation line, and the stipend amount is in the

Other Operating Expenses line of the Consolidated Budget

for Operations on page 4. The minimum rate for TA and

RA salaries and stipends will increase by 4.25% in 2017/18;

tuition allowance expense is expected to increase by 6.5%,

higher than the tuition rate increase due to more RAs and

TAs, particularly in the School of Engineering and the School

of Medicine.

Graduate student support is funded by all of Stanford’s vari-

ous fund types, with the exception of service center funds. In

aggregate, unrestricted funds (general funds and designated

funds) contribute roughly 35%, restricted funds (gifts and

endowment) support about 41%, and grants and contracts

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 3.6Endowment Income 75.0 81.4 86.9 95.2 100.3 105.1President’s Funds - The Tier II Buffer 9.3 President’s Funds - The Stanford Fund 16.6 18.3 18.5 18.5 17.7 17.6General Funds 23.6 23.6 21.9 17.4 20.7 22.7Subtotal Stanford Funded Scholarship Aid 127.4 126.5 130.9 135.2 142.6 148.9Federal Grants 5.6 5.5 5.8 5.8 5.5 5.5Total 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


supply the remaining 24%. However, the patterns of funding

vary substantially within the schools. Not surprisingly, grants

and contracts provide a significantly higher proportion of

graduate student funding in the research-intensive schools

like Medicine and Engineering. The professional schools rely

almost exclusively on restricted funds.

While not matriculated as graduate students, Stanford also

provides support to postdoctoral research affiliates. More

than sixty percent of these individuals work in the School

of Medicine, and 68.2% of support for all postdocs is pro-

vided by sponsored research funding. Postdocs are charged

a tuition fee of $125 per quarter, which is mostly covered by

school funds as well as by general funds. Postdocs receive a

salary or a stipend and health benefits in exchange for their

work. The total expense for postdocs is expected to be $146.1

million in 2017/18, an increase of 5.5% over 2016/17.

Schedule 5 in Appendix B details graduate student and post-

doc support by source of funds.

Internal Debt ServiceStanford issues debt securities in the capital market to fi-

nance capital projects and to provide bridge financing for

the receipt of gifts for capital projects. Internal loans are

advanced to projects and amortized over the useful life of as-

sets in equal installments. These internal loans are assessed

the Budgeted Interest Rate (BIR), which is the weighted

average rate of the debt issued to finance capital projects and

includes bond issuance and administrative costs. The BIR is

set at 4.25% for 2017/18, no change from the rate of the past

four years.

Internal debt service in the Consolidated Budget is projected

to be $199.3 million in 2017/18, only $200,000 more than

in 2016/17. It includes debt service incurred on the internal

loans used to finance capital projects and bridge-finance the

receipt of gifts, but excludes $9.6 million of debt service for

the Rosewood Sand Hill Hotel and the Sand Hill Road Office

Complex.

The reason for an essentially flat internal debt service ex-

pense is two-fold. In 2016/17, $3.6 million of remaining debt

was written off for existing two-story buildings in Escondido

Village (EV) after they were demolished for the construction

of the new EV Graduate Residences. This one-time write-off,

which inflated the debt service amount in 2016/17, will no

longer exist in the 2017/18 budget. Nonetheless, incremen-

tal debt service from additional housing projects will offset

this decrease in 2017/18. The most significant increment is

the $2.6 million for the Colonnade, an apartment complex

acquired by the university in 2016/17 as part of the Housing

Acquisition Initiative. $1.7 million of debt service is also antici-

pated for the University Terrace Faculty Homes project before

the housing units are fully occupied in 2018/19.

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 134.5 418.2 206.1 758.91 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.


Other Operating ExpensesOther operating expenses include all non-salary expenditures

in the Consolidated Budget except financial aid and internal

debt service, which are detailed separately above. This cate-

gory, which accounts for nearly 30% of university consolidat-

ed expenses, will total $1,734.2 million in 2017/18, decreasing

by 2.6% from the projected 2016/17 level. The decrease is

entirely attributable to SLAC’s construction program, whose

costs are expensed rather than capitalized as the facilities

are owned and depreciated by the federal government. After

accelerated construction in 2016/17, the spending for one

of SLAC’s major capital projects—the upgrade of the Linac

Coherent Light Source (LCLS-II)—is scheduled to slow down,

lowering SLAC’s non-salary expenditure to $297.7 million, a

reduction of nearly 24%.

Exclusive of SLAC construction costs, the growth rate of other

operating expenses will be 3.3%. A few expenditure compo-

nents have seen increases ranging from 5% to 10% in recent

years, due partially to the inflation in the local economy and

partially to increasing business needs across the university.

However, in light of the tepid growth of endowment payout

in 2016/17 and 2017/18, many units have implemented cost

control strategies to moderate the growth of non-salary

expenditures. Several units have even strategically applied

budget cuts to a portion of their non-salary budgets. This

trend will continue into 2017/18. As a result, other operating

expenses are expected to increase at a much slower pace

than in prior years.

OTHER OPERATING EXPENSES[IN MILLIONS OF DOLLARS]

PERCENT MAJOR COMPONENTS 2016/17 2017/18 CHANGE

SLAC Non-Salary 389.9 297.7 -23.7%

Materials and Supplies 271.5 281.0 3.5%

Professional Services 216.6 230.7 6.5%

Stipends and Other Aid 141.8 148.8 5.0%

General Services 141.0 144.5 2.5%

Repairs and Maintenance 107.6 113.0 5.0%

Capital Equipment and Library Materials 103.8 95.1 -8.4%

Telecommunications and Utilities 52.0 54.9 5.5%

Other 356.4 368.5 3.4%

Total 1,780.7 1,734.2 -2.6%

Following the SLAC non-salary expenditure, the largest com-

ponent of other operating expenses is materials and supplies,

totaling $281.0 million in 2017/18. Fifty percent of these

expenses are for the purchase of materials and supplies in

laboratories and research settings. After the sale of the Blood

Center to Stanford Health Care, the expenditure level of lab

materials leveled off in 2015/16. Nonetheless, normal growth

of 3.5% is anticipated for both 2016/17 and 2017/18.

Expenses for professional services are the third largest com-

ponent. Largely comprising legal, accounting, and consulting

services, this expense category is projected to be $230.7

million in 2017/18, a 6.5% increase. Although fluctuating

year over year, it has shown robust growth ranging from 6%

to 9% a year, propelled by individual units’ operational needs

in a very decentralized business environment.

Also included in other operating expenses are stipends for

graduate students and postdoctoral scholars and other non-

tuition aid, rising to $148.8 million in 2017/18. Close to sixty

percent of expenses in this category are for graduate student

stipends. They will increase 5.0%, in anticipation of average

stipend payment growth and graduate student enrollment

growth. Expenses related to general and administrative ser-

vices will increase modestly to $144.5 million. They represent

a diverse range of external payments for non-professional

services, including insurance, permits, royalties, marketing,

and advertising services. This expense category experienced

only 2.5% of growth as of the first six months of 2016/17, and

that trend is expected to continue as many units have delib-

erately constrained their general non-salary budgets in the

face of slower endowment payout growth in the near future.

Besides the SLAC non-salary expense, capital equipment and

library materials is the only category expected to decline,

reducing by 8.4% to $95.1 million. In 2016/17, the university

purchased a set of advanced microscopic instruments for

the fields of biology and biomedical sciences, which cost ap-

proximately $14 million.

The remaining types of expenses comprise external pay-

ments for repairs and maintenance of buildings, equipment,

and vehicles ($113.0 million); payments for rental and leases

($77.1 million), which have grown 15% on a compounded an-

nual basis due to the expansion of off-campus facilities and

housing units; external payments for telecommunications

and utilities commodities in university buildings ($54.9 mil-

lion); and services purchased from Stanford Health Care and

Stanford Children’s Health ($48.5 million). Expenses related

to repairs and maintenance and utilities will be addressed

in more detail in the following sections. The remainder,


$242.9 million, includes a variety of expenditures, ranging

from travel expenses, to the cost of food associated with

residential and dining services, to other property related

expenses.

Utilities—In the past few years, Stanford’s energy utilities,

including electricity, steam/hot water, and chilled water, have

been undergoing major changes. The university completed

the Stanford Energy System Innovations (SESI) project in

2015. The Stanford Solar Generation Station, a 68-megawatt

peak solar plant, also came online at the end of 2016. This

solar plant, along with 5 megawatts of rooftop solar systems

being implemented on campus, provides 53% of Stanford’s

total electricity use. The remaining 47% of the power comes

from the general California grid, which is currently at least

27% renewable and will grow to 50% renewable by 2030

per state law.

After two consecutive years of decreases, the utilities budget

will stay essentially flat at $103.4 million in 2017/18. Prior

year utility budgets included $30 million to write-off the

utility assets associated with the old energy system, includ-

ing $2 million in 2016/17, which is the final write-off. As

the write-off costs scaled down, the utilities budgets have

shown steady declines over the past two years. Offsetting

this downward trend are increases in electricity prices and

water consumption in 2017/18. In 2017/18, the purchase price

of electricity is expected to increase 2% due, in large part, to

the full-year implementation of more expensive renewable

energy. Water consumption is also anticipated to rise as the

drought eases and new facilities come online.

The delivery of utilities to the campus involves three signifi-

cant components: 1) externally purchased utilities (36%), 2)

debt amortization on capital expenditures (40%), and 3)

operations and maintenance in support of utility delivery

(24%). Land, Buildings and Real Estate (LBRE) provides

the majority of campus utilities ($90.4 million in 2017/18)

through charge-out rates that are a function of the total costs

of the three components noted above and units’ consumption

of the respective utilities. Units purchase an additional $12.9

million of utilities from external providers, including the City

of Palo Alto, Pacific Gas & Electric, Constellation Energy, and

the hospitals. Some examples are $6.2 million paid by the

School of Medicine for utilities at the Stanford Research Park

and Medical Center buildings; $3.7 million paid by Residential

& Dining Enterprises primarily to cover the utility needs at

Munger, Escondido Village, and off-campus housing units;

and $1.0 million by the Office of the President and Provost

for utilities in the common areas and vacant housing units of

Stanford West, Welch Road, and Colonnade properties.

Operations & Maintenance—Operations & Maintenance

(O&M) includes grounds maintenance, custodial, trash,

recycling, elevator repair, gutter maintenance, re-lamping,

and other services along with preventive and reactive main-

tenance on buildings, infrastructure, equipment, and vehicles.

The total O&M budget for the university is projected to be

$189.1 million in 2017/18, rising 4.0% from 2016/17.

The largest component in the O&M budget is the external

payment for repairs and maintenance, which is a subset of

other operating expenses discussed above. It will increase

5.0% to $113.0 million in 2017/18, due to a combination of

inflationary cost rise and incremental O&M needs for new

academic, administrative, and athletic facilities. They in-

clude the newly renovated Kingscote office space, the Bass

Biology Building, the Athletic Academic Advising and Rowing

Building, and additional outdoor lighting, pathways and water

ways maintenance.

The total O&M budget also encompasses significant expens-

es that are found in other lines of the Consolidated Budget:

1) $39.1 million of internal O&M services performed by the

service centers in LBRE, including most of the grounds ser-

vices for the campus, approximately 50% of the building

maintenance, and 100% of the infrastructure maintenance

(e.g., storm drains and roads). These service center ex-

penses are reflected in the other internal transfers line of the

Consolidated Budget.

2) $20.2 million of labor costs for O&M staff hired by indi-

vidual units. A significant portion, $14.8 million, resides in

two auxiliary units, Residential & Dining Enterprises (R&DE)

and DAPER. They employ bargaining unit staff to perform

custodial and maintenance services in housing and athletic

facilities. The labor costs are captured in compensation ex-

penses of the Consolidated Budget.

3) $10.5 million of other non-salary expenses directly associ-

ated with the provision of O&M services. They principally

include costs for temporary services, contract administra-

tion, and equipment rentals for performing O&M. They are

dispersed across a variety of other operating expense items

in the Consolidated Budget.


4) $6.3 million of services charged by Stanford Health Care,

mostly incurred by the School of Medicine (SoM).

In addition to LBRE, several other units oversee O&M for

large areas of the campus. R&DE provides the operations and

maintenance for approximately 33% of the campus; SoM for

about 11%; and DAPER for approximately 6%. The Graduate

School of Business (GSB) is fiscally responsible for operations

and maintenance of the Knight Management Center and the

new Highland Hall.

TransfersThe transfers section of the Consolidated Budget for

Operations accounts for the transfers of funds between units,

between fund types, and out of the Consolidated Budget

altogether, and yields the change in fund balances expected

in each fund type and in the Consolidated Budget as a whole.

In 2017/18, transfers result in a net reduction from operating

results of $242.8 million.

The schools, administrative departments, and central admin-

istration authorize movements of funds out of operations to

create other types of assets. These assets include student

loan funds, funds functioning as endowment (FFE), capital

plant projects or reserves, and funds held in trust for indepen-

dent agencies such as the Howard Hughes Medical Institute,

the Carnegie Institution, and the Associated Students of

Stanford University. These transfers to and from assets

vary widely from year to year, and a single transaction can

greatly affect these numbers and the resulting bottom line

of the Consolidated Budget. Using information provided by

budget units, and combining that information with central

administration commitments, the Consolidated Budget for

Operations adds or subtracts these transfers from the operat-

ing results (revenues less expenses).

n Transfers to Endowment Principal—This line represents

transfers of expendable funds to endowment principal,

which create FFE, or withdrawals of FFE to support opera-

tions. In 2017/18 Stanford is projecting that a net $110.2

million will be transferred to FFE from current operating

funds. This figure is informed by the units’ individual bud-

get plans but has been increased by the University Budget

Office to reach a level comparable to the actual results in

each of the past five years. Most often schools and de-

partments identify excess funds to invest in FFE during the

year-end process when their operating results are known

and may not include these actions in their budget plans.

n Transfers to Plant—The transfers in this category are

primarily for capital projects. Total transfers to plant of

$162.0 million are planned for 2017/18. Roughly $124 mil-

lion of this total are transfers made from central university

funds and include just over $100 million from the Capital

Facilities Fund (CFF) and the Facilities Reserve to support

plant projects (see more on the CFF in Chapter 4), $10

million for faculty home purchases, and $15 million for

Stanford Infrastructure Program projects funded from

the hospitals. The School of Medicine plans to transfer

$28 million to plant to support the Center for Academic

Medicine 1, the Stanford Oak Garden Children’s Center,

and phases 2 and 3 of the renovation of the Li Ka Shing

Center. Land, Buildings and Real Estate will transfer $7

million from the Planned Maintenance Program for capital

renewal projects. The remainder is made up of smaller

amounts transferred to capital projects out of other units.

n Other Internal Transfers—Additional financial activity af-

fects the net results of the Consolidated Budget, including

internal revenue and internal expense, which are gener-

ated from those charges that are made between depart-

ments within the university for services provided through

charge-out mechanisms. Communication services

provided by Business Affairs IT to university departments

are one type of internal revenue and expense. Another is

the charge that the Department of Project Management

(the group that manages construction projects on cam-

pus) allocates to capital projects that use their services.

These charges contribute to the revenue and expense of

individual departments and fund types but, ultimately,

are netted against each other in the presentation of the

Consolidated Budget to avoid double counting. There is,

however, a net $29.4 million of internal revenue flowing

into the Consolidated Budget, primarily from capital plant

funds, which are outside the Consolidated Budget, into

service centers and other funds within the Consolidated

Budget. Additionally, this amount includes transfers of

current funds to student loan funds, such as the loan

forgiveness programs in Graduate School of Education and

Law. It also includes any transfers from living trusts and

pending funds.


GENERAL FUNDSThe general funds budget is an essential element of the

Consolidated Budget, because general funds can be used

for any university purpose, and they support the necessary

administration and infrastructure for all core activities at

the university. The main sources of these funds are student

tuition, indirect cost recovery from sponsored activity, unre-

stricted endowment income, and income from the expend-

able funds pool (EFP). Each school receives an allocation of

general funds, which supports both academic and adminis-

trative functions. Administrative units are supported almost

entirely by general funds.

General funds revenue in 2017/18 is projected to be $1,450.7

million, an increase of 10.2%, or $133.8 million over the ex-

pected level for 2016/17. Nearly 50% of this increase is due

to a $64.0 million payout on zero-return funds in the EFP. In

2016/17, income from EFP to general funds was about half of

the historical average, because the EFP investment return in

the prior year was only 2.5%, significantly below the univer-

sity 5.5% stipulated payout. In 2017/18, general funds will

receive the full payout in anticipation of an investment return

above 5.5% in 2016/17. EFP payout is discussed in detail in

the earlier section on investment income. Supplementing

the higher EFP payout to general funds are a $26.1 million

increase in student income, largely reflecting increased tuition

rates, and a $29.1 million increase in endowment income,

propelled by payout growth in unrestricted endowments and

strong rental income from Stanford endowed lands. Other

small increases, totaling $14.6 million, come from growth in

indirect cost recovery, health care income, and other external

income.

2017/18 NON-FORMULA GENERAL FUNDS Per negotiated formula arrangements, $200.5 million of

general funds will flow to the School of Medicine, the

Graduate School of Business, and other formula units. In

addition, $146.3 million is set aside for the Capital Facilities

Funds, the Academic Facilities Reserve, the Housing Reserve,

and other smaller items. The remaining $1,103.9 million of

general funds are allocated by the provost to non-formula

units.

During the annual general funds budgeting process, each

budget unit meets with the Budget Group, the provost’s

advisory body composed of senior faculty and administra-

tors to, 1) review the programmatic goals and priorities of

the organization; 2) report on financial status and progress

of current programs; 3) discuss faculty and student growth

and funding plans; and, 4) submit requests for incremental

general funds. At the end of the process, the provost makes

allocation decisions based on the units’ presentations, consul-

tation with the Budget Group, and a final forecast of available

general funds.

The Budget Group took a cautious approach in allocating

general funds this year, guided by three main areas of focus.

First, the group stressed the need to strengthen faculty and

staff compensation programs, in an effort to address regional

affordability issues. Second, the group was mindful of slower

growth in endowment payout in the recent fiscal years and its

impact on schools whose budgets are heavily dependent on

endowment income. Third, the provost intended to maintain

a reasonable general funds surplus to have the capacity to

1) respond to important initiatives arising from the univer-

sity long-range planning, a process spanning from spring

2017 to winter 2018; and 2) prepare for potential shortfalls

in research funding given uncertainties with federal

research support.

In light of those areas of concerns, $19.9 million was allo-

cated to fund compensation programs and associated fringe

benefits, including a very competitive salary program for

both faculty and staff in 2017/18. $4 million of endowment

mitigation funds were provided to selected schools to bridge

the gap between endowment payout growth and expense

growth. Lastly, $20 million of contingency funds were set

aside against research uncertainties and outcomes from the

long-range planning process.

In addition, $18.6 million of incremental general funds were

allocated to units in support of specific programs. Within

that, $6.8 million is distributed to existing programs presently

on one-time general funds or reserve funds, and $6.0 million

is for the enhancement of current programs. The remaining

$6.8 million will fuel the start-up of new programs and fund

new positions.

The incremental allocations are reflected in the pie chart

on the following page. They are distributed among aca-

demic/faculty, administrative, and other programs in rela-

tively even proportions: $6.9 million will support faculty and

core academic programs; $5.9 million will bolster various


Academic/Faculty Support6.8

Other5.9

Non-Salary& Facilities

12.2 New Programs5.8

Program Enhancement6.0

Base Conversion6.8

Endowment Mitigation

4.0

Contingency20.0

Salaries &Benefits19.9

Market-based Adjustments

32.1

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

IncrementalAllocations

18.6

Administrative Support5.9

administrative functional areas; and $5.9 million will be

spent on a variety of other programs, including new facilities,

student service programs, and those that improve business

systems and campus security.

The goal to increase campus affordability again plays an in-

strumental role in making incremental allocations. Of these

allocations, $2.0 million is aimed at resolving faculty salary

equity and retention issues, and $777,000 of base support

is allotted to the faculty childcare assistance program, in-

cluding increasing the gross income thresholds for program

eligibility and annual childcare award amounts. Among other

faculty and academic programs, the Faculty Incentive Funds

(FIF) and Faculty Development Initiative (FDI) received $1.8

million towards new billets; and the Environmental Health &

Safety department received over $700,000 to permanently

fund lab safety positions and communication programming

as a strategic move to raise the research safety profile of the

university (see detailed discussion on the facing page).

In the administrative areas, incremental general funds are

geared towards relieving workloads in academic support

areas, driven by expanded business needs and increasing

operational complexity. For instance, $700,000 is appropri-

ated to the Admission and Financial Aid Office to handle

the growing number of application reviews and to manage

the expanded alumni interview program. An equal amount

of funds is provided to the Office of Development to maintain

and add development and stewardship officers, given the

rising number of gift prospects and school-specific

fundraising needs.

Incremental allocations made to student areas also highlight

the university’s continuing efforts to enrich the student expe-

rience and financial support. Significant increments include

$900,000 to fund additional tuition allowance for research

assistants and close to $550,000 to convert the Community

Engagement and Diversity unit including the Diversity

and First-Gen Office within Student Affairs from one-time to

base support.

Furthermore, approximately $1.7 million will support incre-

mental O&M and utilities needs for new buildings and facili-

ties, including, but not limited to, the Bass Biology Building

and the newly-renovated Kingscote Garden. Additional

resources, totaling $2.5 million, will help boost campus

security and business applications. The latter includes the

rollout of the ADAPT (Alumni and Development Application

Transformation) system, the maintenance of an expanded

university network, the management of the newly-imple-

mented course evaluation platform, and the expansion of the

Graduate Financial Planning application.


ENVIRONMENTAL HEALTH AND SAFETY

In a follow-up to the 2014 faculty-led task force on

Advancing Safety Culture in the university laboratory, and

with the encouragement of the University Budget Group,

Environmental Health and Safety (EH&S) developed a

multi-year strategic plan to address the findings and

recommendations from the Task Force report. The over-

arching focus of EH&S’s current efforts is on advancing

and implementing an effective and responsive culture of

safety across the University. The five key priorities are:

n Research and Academic Support—EH&S can help

prevent mistakes and better anticipate risk in our cam-

pus community by coordinating and integrating more

fully with research, teaching, and learning activities

that are integral to Stanford’s mission. Furthermore,

by integrating safety (i.e., building it into the way

researchers and faculty think and work), EH&S can

reduce administrative burden and positively impact

the next generation of thought leaders.

n Institutional Emergency Management and Con-

tinuity Planning—No unit or area of the university

is isolated from the impact of an emergency, and the

need to prepare and plan is universal. The focus is to

build on existing efforts to ensure life safety by helping

campus partners increase resiliency and limit disrup-

tion to critical functions through pre-planning, training,

and exercises.

n Injury Prevention and Loss Protection—Preventing

and reducing workplace injuries is essential to advanc-

ing employee wellness and campus-wide operational

efficiency. Integration of safety programs with the

delivery of medical services through the on-campus

Occupational Health Center (OHC) is instrumental to

the long-term strategy.

n Business Processes and Data Management—As a

result of compliance needs, EH&S has made substan-

tial investments in technology and data management.

By focusing on the user experience, EH&S can signifi-

cantly impact the utility of safety-related systems and

services.

n Outreach and Communications—Effective communi-

cation and outreach programs are essential to the suc-

cess of safety and health initiatives. A comprehensive

broad-based communication strategy will facilitate

behavioral and attitudinal changes within our campus

community.

To achieve these strategic goals, EH&S has identified a

combination of resources and guiding principles. EH&S

will receive $700,000 of base general funds in 2017/18

and will invest it into initial efforts focusing on:

1) ensuring appropriate technical resources are avail-

able to support myriad and ever changing research

programs, including newly emerging technologies, as

well as providing the expertise necessary to address

occupational safety challenges across the broader

campus;

2) improving systems and processes to make it easier for

all faculty, staff, and students to act and perform their

work safely; and

3) enhancing training, outreach, and communities of

practice that enable safety knowledge to be more

efficiently disseminated.

Through on-going engagement, EH&S will advance a

culture that integrates safety and health seamlessly with

the work of laboratories and classrooms, bringing safety

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.


PROJECTED STATEMENT OF ACTIVITIESStanford University, as a not-for-profit institution and a

recipient of restricted donations, uses a fund accounting

approach to manage itself internally. Stanford also pres-

ents a Statement of Activities, prepared in accordance with

accounting principles generally recognized in the United

States (GAAP). The Statement of Activities summarizes all

changes in net assets during the year (both operating and

non-operating).

The table on the next page compares the Consolidated

Budget for Operations with the projected operating results

section of the Statement of Activities. Cash resources are

classified into fund groups, which are subject to different legal

and management constraints.

There are four different categories of funds:

1) Current Funds, which include revenue to be used for

operating activities—e.g., tuition revenue, sponsored re-

search support, endowment payout, and other investment

income;

2) Endowment Principal Funds, which include all of Stanford’s

endowment funds, both those restricted by the donor,

and those designated as endowment funds by university

management;

3) Plant Funds, which include all funds to be used for capital

projects, such as construction of new facilities or debt

service; and

4) Student Loan Funds, which include those funds to be lent

to students.

The Consolidated Budget for Operations includes only current

funds, and reflects the sources and uses of those funds on a

modified cash basis that more closely matches the way the

university is managed internally. Within these current funds,

specific funds are further classified by their purpose and level

of restriction. The Consolidated Budget for Operations also

reflects the transfer of current funds for investment in other

fund groups: funds functioning as endowment, student loan

funds, and plant funds. For example, a school may choose to

transfer operating revenue to fund a future capital project.

Similarly, a department may decide to move unspent cur-

rent funds to the endowment, either to build capital for a

particular purpose, or to maximize the return on those funds

as a long-term investment. In both these instances, these

funds are no longer available to support operations, so they

decrease the Consolidated Budget for Operations operating

results. These transfers, however, have no impact on the

Statement of Activities operating results, as the net assets of

the university have not changed (one form of asset has been

converted into another type of asset).

Converting the Consolidated Budget into the Statement of ActivitiesTo convert the Consolidated Budget to the Statement of

Activities under GAAP, certain revenue and expense reclas-

sifications, transfers, and adjustments are necessary.

The following adjustments are made to the Consolidated

Budget to align it with the GAAP basis Statement of

Activities:

a) Eliminate Fund Transfers. The Consolidated Budget

includes transfers of $276.3 million of current funds to other

fund groups, including plant, student loans, and funds func-

tioning as endowment. The transfers out are added back for

the Statement of Activities.

b) Remove Capital Equipment purchases. The Consolidated

Budget includes the projected current year’s purchases of

capital equipment as expense. For GAAP purposes, the cost

of capital equipment is recorded as an asset on the Statement

of Financial Position. As a result, $95.1 million is eliminated

from Consolidated Budget expenses.

c) Record Depreciation expense for the current year’s asset

use. The Statement of Activities includes the current year’s

depreciation expense related to capital assets. Depreciation

expense includes the depreciation of capital equipment and

other capital assets, such as buildings and land improve-

ments. This adjustment adds $365.4 million of expense to

the Statement of Activities.

d) Adjust Fringe Benefit expenses. The Consolidated

Budget reports the fringe benefits cost based on the fringe

benefits rates charged on salaries; the rates may include

over- or under-recovery of actual costs from prior years. The

Statement of Activities reflects only current year expenses

for fringe benefits, so the over- or under-recovery amount

has to be removed from Salaries and Benefits. The Statement

of Activities also includes accruals for certain benefits, such

as pension and post-retirement benefits that are required by


COMPARISON OF CONSOLIDATED BUDGET AND STATEMENT OF ACTIVITIES, 2017/18Unrestricted 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


GAAP to be shown as expense in the period the employee

earns the benefit. For 2017/18, GAAP expenses are expected

to be higher than budgeted expenses by $30.9 million.

e) Reclassify Financial Aid. GAAP requires that the tuition

portion of student financial aid be shown as a reduction of

student revenue. In the Consolidated Budget, financial aid

is reported as an operating expense. Accordingly, $298.2

million of student financial aid expense is reclassified as a

reduction of student revenues in the Statement of Activities,

resulting in no change in results.

f) Adjust for Health Care Services. For GAAP purposes,

health care services revenues received from the hospitals

are reported net of expenses that the hospitals charge the

university. The Consolidated Budget presents these revenues

and expenses on a gross basis. This adjustment results in a

reduction of $52.8 million in both Other Operating Expenses

and health care services revenues, with no net change to the

bottom line.

g) Adjust for Internal Investment Management Expenses.

Included in the Consolidated Budget revenues and expenses

are $47.7 million of expenses of the Stanford Management

Company and the real estate operations within Land,

Buildings & Real Estate. For GAAP purposes, these expenses,

incurred as part of the generation of investment returns, are

netted against investment earnings. This adjustment reduces

Other Investment Income, as well as reducing $30.1 million

from compensation and $17.6 million from non-compensation

expenses, with no net change in the bottom line.

h) Adjust for Debt Service. The Consolidated Budget in-

cludes all internal debt service. It reflects the use of funds to

amortize principal and interest. On a GAAP basis, interest

expense is reported in the Statement of Activities and repay-

ment of debt principal is reported as reductions in Notes and

Bonds Payable in the Statement of Financial Position. GAAP

amounts also include interest payments for the Rosewood

Hotel and Sand Hill Road Offices, which are not included in

the Consolidated Budget for Operations. Therefore, Internal

Debt Service expense must be reduced by the amount of

internal principal amortization, increased for the Rosewood

Hotel and Sand Hill Road Offices interest, and adjusted to

account for the difference between internal and external

interest payments. These combined adjustments reduce

internal debt service expense by $65.7 million.

i) Eliminate Net Internal Revenue/Expense. The Statement

of Activities includes the activity of all fund types, while the

Consolidated Budget does not include plant funds. Therefore,

the net inflow of $33.5 million from plant funds into the

Consolidated Budget for purchases of internal services is

eliminated.

j) Include Stanford Sierra Camp. The Statement of

Activities includes the revenues and expenses of the Sierra

Camp that the Alumni Association runs as a separate lim-

ited liability corporation. $5.6 million in revenues and $5.5

million in expenses is added ($2.8 million in Salaries and

Benefits and $2.7 million in Other Operating Expenses) to the

Consolidated Budget for Operations.

k) Eliminate Hospital Equity Transfers. Payments received

from the hospitals for which no services are required to

be provided by the university are considered transfers of

equity between the university and the Hospitals and are not

included in operating revenue in the Statement of Activities.

These include contributions by Hospital construction proj-

ects to the Stanford Infrastructure Program and performance

bonuses related to Physician Service Agreements. In the

Consolidated Budget, they show as health care services

income. This adjustment removes $41.1 million of revenue.

l) Include Stanford University Power LLC. To more ef-

fectively manage Stanford’s Direct Access electricity pro-

curement program, the university conducts all electricity

procurement transactions through this LLC, which is not in-

cluded in the Consolidated Budget. Including these electric-

ity purchases in the Statement of Activities increases Other

Operating Expenses by $17 million.

In summary, the impact of these adjustments decreases the

Consolidated Budget’s projected $165.4 million surplus by

$50.7 million, resulting in a projected surplus of $114.7 million

in the Statement of Activities.

23ACADEMIC UNITS

CHAPTER 2

ACADEMIC UNITS

SLAC 12%H&S 11%

Medicine48%

Engineering 8%

GSB 5%

Libraries 2%

Education 2%SE3 1%

Law 2%

Other1 4%

Dean of Research 5%

Auxiliary$403.4 Million

Administrative$1,195.8 Million

2017/18 Consolidated Expenses by Academic Unit

Academic Units$4,806.8 Million

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

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

OVERVIEW OF ACADEMIC UNITS

This 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.

Overall, 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.

24 ACADEMIC UNITS

GRADUATE SCHOOL OF BUSINESS

PROGRAMMATIC DIRECTIONSThe Graduate School of Business (GSB) has a mission to

create ideas that deepen and advance the understanding of

management and, with those ideas, to develop innovative,

principled, and insightful leaders who change the world. The

GSB remains focused on pairing faculty research and teaching

with the practical application of that research to address the

business and management challenges that exist in the world

today. The GSB offers the two-year full-time MBA, PhDs in

seven distinct fields of study, and the Master of Science in

Management. In addition, the GSB runs a host of custom,

open, online, and international executive education programs.

Academic year 2016/17 was one of leadership transition for

the GSB, with the arrival of the new dean and the appoint-

ment of two new faculty senior associate deans. The GSB

created two committees to explore and develop a vision for

research and management education at the school over the

next 10-15 years. The process is designed to complement the

university’s long-range planning process.

Faculty Research and TeachingThe GSB plans to maintain roughly 125 tenure-line faculty. In

addition, roughly 150 lecturers bring in expertise from organi-

zations across the world. The school continues to emphasize

support for faculty research through its Centers and Initiatives

for Research, Curriculum & Learning Experiences (CIRCLE).

CIRCLE facilitates connections to industry leaders, provides

highly technical support for data-driven research, provides

research assistance, and manages events that disseminate

learnings.

The Student ExperienceThe breadth of the elective curriculum remains one of the

strengths of the GSB. Last year the school offered 173 elec-

tives that provided students with opportunities to take cours-

es matching their passions and priorities. Beyond the campus,

the MBA program organized 22 Global Study Trips and 3

Global Seminars that took nearly 600 students to 23 different

countries for 8-10 days. The Global Management Immersion

Experience program sent 90 first- and second-year students

to 32 countries to hone their international management skills

by working in corporate, government, and nonprofit organiza-

tions for a minimum of four weeks.

The GSB continues to attract the highest-quality students into

all of its degree programs. The student body is more diverse

than ever, and selectivity and yield continue to increase, a

trend that parallels that of the university’s undergraduate pro-

gram. Nearly 41% of the MBA class of 2018 are women. The

[IN MILLIONS OF DOLLARS] 2015/16 2016/17 2017/18 ACTUALS PROJECTION PLAN

Total Revenues 233.8 250.3 256.5

Expenses

Salaries and Benefits 138.6 147.2 154.8

Non-Salary 92.6 101.4 109.3

Total Expenses 231.2 248.6 264.1

Operating Results 2.7 1.7 (7.6)

Transfers From (to) Endowment & Other Assets (10.8) (0.3) 0.6

Transfers From (to) Plant 0.1 23.1 0.0

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

Schwab 4%

Endowment Payout

32%

Other 5%

General Funds26%Executive

Education21%

Gifts 12%

2017/18 Consolidated Revenues$256.5 Million

25ACADEMIC UNITS

GSB has a number of pilot initiatives in support of increasing

diversity. One successful pilot has been the research fellows

program. This is a postbaccalaureate program for eight high-

potential individuals to gain valuable experience as research

assistants, take doctoral-level courses, and participate in the

intellectual community. The program targets students from

underrepresented groups and covers the cost of their tuition

and living expenses. Its goal is to broaden the pipeline of

prospective PhD students, with an emphasis on attracting

women and minorities.

The GSB’s newest residence, Highland Hall, opened in the fall

of 2016, increasing the number of beds available for business

students from 280 to 480. The GSB can now provide hous-

ing to all of its single, first-year MBA students. Immediately

following completion of Highland Hall, the GSB began

renovation of the Schwab Residential Center, which will be

completed in 2017/18.

Global ImpactThe GSB continues to reach into international markets to

bring a range of insights to students, provide research oppor-

tunities for faculty, and stay connected to dynamic trends in

global business. The primary global programs are the Global

Innovation Programs, the Stanford Institute for Innovation in

Developing Economies (Seed), and the Executive Education

Online LEAD Certificate in Corporate Innovation. Each year,

the Global Innovation Programs deliver leadership, innova-

tion, and entrepreneurship programs in person and through

distance education technology to 900 young professionals,

aspiring innovators, government leaders, and prospective

students all around the world. More than 170 students from

around the globe enroll in the two online LEAD Certificate

program cohorts annually. This intellectually rigorous,

yearlong, multidisciplinary, high-touch program is delivered

entirely online with both synchronous and asynchronous ele-

ments. It also involves extensive cohort-based learning and

networking experiences, sometimes using a virtual reality

platform. The eight-course, one-year program has become

a model for integrating education technology to improve

program curricula. Seed, with regional centers in West and

East Africa, will be opening its third international center in

southern India at the beginning of 2017/18. Seed’s mission is

to end the cycle of poverty in developing economies through

in-country educational programs, student internships, and re-

search. After running its educational programs free of charge

for four years, Seed began charging a small fee based on feed-

back that participants should have a stake in the programs.

CONSOLIDATED BUDGET OVERVIEW The school projects a 2017/18 consolidated budget with total

revenue and transfers of $256.5 million, expenses of $264.1

million, and a net deficit of $7.0 million after $600,000 in

transfers from endowment and other assets. This net deficit

compares to a $500,000 deficit in 2016/17, excluding a one-

time transfer into the GSB of $25 million from a bequeathed

gift. The GSB expects $85.7 million in fund balances at year-

end.

The GSB projects that revenues and transfers for 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

and newly endowed gifts. This increase is offset by $1.9 mil-

lion due to a conservative estimate of investment income.

Gift revenue is planned to grow primarily in Seed restricted

funds. Other revenue growth is planned from Executive

Education through the online LEAD program and new face-

to-face programs. Seed also plans to add revenue through its

new educational program fees. Finally, the completion of the

Schwab Residential Center Renovations in early 2017/18 will

result in higher revenue from GSB residences.

Overall, the Business School projects a $15.5 million, or 6%,

increase in expenses in 2017/18. Compensation is projected

to increase primarily due to merit increases as well as staff

growth in Seed. Non-compensation expenses are projected

to increase above inflationary growth. The largest areas of

expense growth within the GSB are Seed, due to its new re-

gional center; Executive Education; research support; and fel-

lowship support. Increased expenses for Seed and Executive

Education are offset by their increased revenue.

The 7.5% decrease in fund balances is projected to reduce

unrestricted funds by $3.5 million and restricted funds by

$3.5 million in 2017/18.

26 ACADEMIC UNITS

SCHOOL OF EARTH, ENERGY & ENVIRONMENTAL SCIENCES

PROGRAMMATIC DIRECTIONSThe School of Earth, Energy & Environmental Sciences

(Stanford Earth, SE3) is dedicated to creating knowledge to

understand Earth and sustain its inhabitants. In the summer

of 2016, Stanford Earth launched a new strategic planning

effort. This is an exciting process and an important one to

ensure the health and vibrancy of the school. The planning

process confirmed the priority of four challenge areas that

constitute the school’s research focus on the environment

and sustainability (the energy future, climate solutions, re-

ducing disaster risk, and food and water security) and began

to identify new research challenges. More importantly, a

number of critical goals will guide activities and investment in

2017/18 and beyond. Implementation of these goals is already

under way. The goals are:

n Engage all Stanford students in gaining knowledge about

Earth and increasing their awareness of its resource and

environmental challenges.

n Enhance the life and career success of graduate students

and postdoctoral scholars.

n Support, foster, and strengthen collaborations both across

departments and with others in and outside the university.

n Accelerate the impact of SE3’s research.

n Enhance organizational culture, work environment, and

diversity.

n Fund, design, and build a new building for Stanford Earth.

The school’s top strategic priority is increasing Stanford

undergraduate engagement and deepening its impact on

undergraduate education. The school believes there is a need

for new, flexible degree programs and new ways to touch

the lives of all students. The following are a few examples of

activities already under way:

n A new minor in Earth systems sustainability and a new

master’s in sustainability science and practice in response

to demand for a sustainability curriculum.

n One-unit courses, such as Know Your Planet, make it easy

for all students to engage, regardless of time commit-

ments to majors.

n A suite of “Big Earth” courses, seminars, and intern-

ships allows students to combine a love of computation

and data science with their application to Earth and

sustainability challenges.

The second goal is to enrich the academic experiences of

graduate students and postdoctoral scholars and prepare

them for careers. A range of activities, including modifying



Expenses


Non-Salary 19.5 17.3 17.8


Operating Results (2.7) (4.8) (5.8)

Transfers From (to) Endowment & Other Assets 1.1 1.1 1.2

Transfers From (to) Plant 0.0 (1.9) 0.6

Surplus / (Deficit) (1.7) (5.7) (4.0)



SponsoredResearch

17% Endowment Payout

40%

Other 8%Affiliates

11%

General Funds20%

Gifts 4%


27ACADEMIC UNITS

the graduate admissions process, improving mentoring,

and creating more professional development offerings, is

in development.

The third and fourth goals focus on improving opportunities

for interdisciplinary collaborations within and outside of

SE3, along with accelerating the impact of Stanford Earth’s

research through new partnerships with decision makers

in government and nongovernmental organizations, as well

as new professional education offerings. Achieving these

goals will take investment from seed money for innovative

collaborations to foster broader interactions among gradu-

ate students and postdocs, to the development of specific

executive education curricula. While resources are limited,

the school plans to experiment on a small scale to assess

long-term impact.

The final two goals—enhancing organizational culture and

diversity, and securing funding for a new building for Stanford

Earth to replace the well-worn Mitchell Building—will con-

tinue to evolve over the next several years.

In addition, 2017/18 will be a year of significant transition

for Stanford Earth. Dean Pamela Matson will step down

December 31, 2017, after leading the school for 15 years. The

growth and evolution of the school over this time has been re-

markable. Stanford Earth has significantly expanded its areas

of research and teaching and increased its number of faculty

(and disciplines covered) by 40% and its graduate student

population by over 50% while only growing its footprint by

8%. The strategic plan developed in 2016/17 will provide an

excellent launching pad for a new dean and allow progress to

continue despite the leadership change.

Financially, 2016/17 has been a cautious year. As anticipated,

because of zero endowment payout growth and lagging sup-

port from federal agencies and the energy industry, SE3 will

end this fiscal year dipping significantly into reserves for a

third consecutive year. Projections for 2017/18 are looking

somewhat better, thanks in part to modest, as opposed to

flat, endowment income growth, but more significantly to

the allocation of additional base general funds to address the

lack of endowment growth against cost rise. Federal funding,

particularly in the areas of climate change and sustainability,

will likely continue to drop in the next several years, limiting

SE3’s ability to invest in new activities and increasing reliance

on reserves to weather the financial storm.

CONSOLIDATED BUDGET OVERVIEWSE3 projects $65.9 million in total revenues and operating

transfers in 2017/18 and $71.7 million in total expenses, with

a resulting shortfall of $4.0 million after $1.8 million of asset

transfers. Slow revenue growth reflects modest endowment

payout growth and flat gifts, designated affiliate program in-

come, and sponsored revenue. At this time the future of these

income streams remains uncertain and is subject to change

depending on fundraising success, oil and gas industry per-

formance, and federal research funding availability. Asset

transfers account for another $1.8 million; these comprise a

$1.2 million transfer from endowment principal to income, as

is mandated by two venture funds, and a $600,000 repay-

ment of bridge funding for the Huffington Barn project, as the

pledge is paid. There are no planned capital projects requiring

local funding in 2017/18 and consequently no transfers out

to plant.

Of the total $71.7 million in projected expenses, compensa-

tion accounts for $53.9 million and non-compensation for

$17.8 million. Two to three faculty hires are anticipated in

2017/18, largely into existing billets vacated due to retire-

ments. Any incremental spending will be limited and care-

fully considered in the context of strategic plan goals and

constrained resources.

The budgetary shortfall is expected to lead to reserve draw-

downs in all non-sponsored fund types, including reserves

held by the school, departments, and programs, as well as

affiliate program reserves and individual start-up funds, which

are controlled by faculty.

CAPITAL PLANSE3’s capital plan for 2017/18 continues efforts from

prior years. Most significantly, the new Earth, Energy and

Environmental Sciences building will seek concept and site

approval from the Board of Trustees in calendar 2017. The

project has been scaled back due to limited total funding,

from $115 million to $100 million. Detailed programming

and design development will be the focus for 2017/18.

Construction is slated to begin in 2019 with completion

planned for 2021.

In fall 2017, Stanford Earth plans to dedicate the Huffington

Barn at the O’Donohue Family Stanford Educational Farm. A

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

PROGRAMMATIC DIRECTIONS

Long-Range Planning and New Initiatives As the Graduate School of Education (GSE) begins its centen-

nial year, it is focusing on several strategic priorities that will

guide programmatic and financial planning. While education

is necessarily a multidisciplinary field, the GSE is concentrat-

ing on areas in which its unique balance of research and train-

ing for practice can have the greatest impact. One such area

addresses “learners in peril”: students who are disadvantaged

by social and/or biological causes. These are the populations

who depend on an extraordinary education the most, but are

at the greatest risk for not receiving one and the least able to

advocate for themselves. Imminent discoveries and emerging

research methods create new possibilities of affecting the

lives of countless students, together with their families and

communities.

New programs have emerged as a result of this focus. The

GSE has launched a doctoral specialization in race, inequal-

ity, and language in education, which will begin admitting

students in 2018/19. The dean has also convened an interdis-

ciplinary committee to consider establishing a new program

in special education, leveraging Stanford’s strengths in the

neurosciences, adaptive technologies, and public policy to

complement the GSE’s leadership in learning science and

teacher training. As these new initiatives emerge and take

shape, the GSE will also continue to support areas of tra-

ditional strength, ranging from humanistic disciplines and

pedagogical research to learning technologies and cognitive

science.

The GSE’s budget priorities for 2017/18 include the support

of these new initiatives, as well as of activities undertaken

in the past two years to strengthen collaboration within the

school and to help increase and sustain its commitments to

diversity and inclusion.

Achievements and Program Continuation/Enhancements

Students:

n The GSE has expanded the doctoral funding package to

include two quarters of student summer funding. The pri-

mary goals are to provide packages to attract top doctoral

talent and to reduce the financial burdens on the doctoral

student population.

n The dean funded fellowships for master’s students to

enhance diversity within the cohort in 2016/17 and has

expanded these fellowships for 2017/18.

n The GSE is piloting a needs-considerate financial aid pro-

gram for master’s students as a way of attracting a more

diverse applicant pool and partially compensating for the

reduction of federal loan programs.



Expenses


Non-Salary 26.5 24.4 23.6


Operating Results 19.4 2.4 1.2

Transfers From (to) Endowment & Other Assets (10.8) (1.3) (1.2)


Surplus / (Deficit) 8.6 1.1 0.1



Endowment Payout 17%

SponsoredResearch

33%

Other 10%

General Funds26%

Gifts 14%


29ACADEMIC UNITS

n A faculty committee focused on improving the PhD ex-

perience will report findings and recommended actions

in 2017/18.

Faculty:n The faculty have modified the GSE’s processes for hiring

and promotion to encourage greater efficiency and trans-

parency.

n The GSE has launched a new junior faculty mentoring

program to help integrate new scholars into the com-

munity and increase their chances of success through the

reappointment and tenure processes.

GSE-Wide Community Initiatives:

n The GSE has established and filled a new position of chief

inclusion officer (CIO). In 2017/18, the CIO will work with

faculty, staff, and students to foster a greater sense of

community and inclusion across the school.

n The school has completed the programming and early

feasibility phases of a new building planning process. In

2017/18, the GSE will start the next phase of the building

planning and begin short-term facilities renovations to im-

prove the quality and efficiency of current school spaces.

n A unique research/practice partnership with San Francisco

Unified School District continues, engaging nearly half of

the GSE’s faculty in helping to resolve the most pressing

issues facing the district leadership. The GSE will focus on

the expansion of its partnerships with local area schools

and districts in 2017/18.

n The GSE has launched a regular SiriusXM radio show

discussing research-based approaches to common topics

in education.

CONSOLIDATED BUDGET OVERVIEWThe GSE projects a 2017/18 consolidated budget with total

revenue and transfers of $76.4 million and expenses of $75.2

million, resulting in an operating surplus of $1.2 million. After

net asset transfers of $1.2 million, the school projects a very

modest consolidated surplus of $50,000. Compared with the

2016/17 year-end projection, 2017/18 revenues and transfers

will decrease by $741,000 (1.0%), while expenses are pro-

jected to increase by $420,000 (0.6%).

The major driver of expense growth is compensation. Total

compensation expense will grow by $1.2 million; this in-

crease will largely be offset by a $700,000 reduction in other

external expenses, due mostly to the expiration of an

off-campus lease.

The GSE projects total sponsored research activity to be flat

in 2016/17 and decrease 2.5% in 2017/18. As in recent years,

funding from federal sponsors is trending downward, and for

the first time in over seven years, the GSE is also projecting

a decrease in non-federal funding. The conservative 4%

decrease in non-federal funding is due to retirements of GSE

faculty who have traditionally brought in large volumes of

research grants. However, in spite of the decline, sponsored

research remains the largest funding source for GSE, making

up 33% of the revenues in the budget.

The GSE is closely monitoring the impact of the slow growth

in endowment payouts for 2016/17 and 2017/18 on its op-

erations. The primary areas of impact are the student aid

and faculty salary budgets. For 2017/18 the GSE anticipates

a shortfall in operating budget support from endowments of

roughly $200,000 that will need to be covered with other

GSE funds. Accumulated balances will provide sustained

funding in the short term. However, the GSE will need to seek

sources of additional funding to support the status quo and

to make growth and new initiatives possible.

CAPITAL PLANThe GSE has substantial and long-standing facilities needs

that are increasingly constraining programmatic development

and growth. The GSE School of Education Building opened in

1938. There have been no significant renovations since the

original construction. Although this building serves as a core

facility for the GSE, the school controls only one-third of its

usable square footage. Consequently, GSE faculty, staff, and

students are located in multiple buildings, on and off campus,

in configurations of varying size and adequacy. The lack of

sufficient contiguous space has adverse effects on cohesion

and community.

As a long-term solution, the GSE continues the new building

planning process, completing the programming and early

feasibility phases in 2016/17. The schematic design phase

will begin in 2017/18. In the short term, the GSE will create

more efficient and modern spaces in the existing facilities

and bring more of the community to the core GSE buildings.

In 2017/18, the GSE will use a combination of central funding

and school reserves (up to $4 million) to renovate the School

of Education building basement, including relocating the

café and creating new office and meeting spaces for students

and staff.

30 ACADEMIC UNITS

SCHOOL OF ENGINEERING

PROGRAMMATIC DIRECTIONSIn February 2017 the School of Engineering (SoE) welcomed a

new dean, Jennifer Widom, a professor of computer science

and electrical engineering. Dean Widom was previously chair

of the Computer Science Department, served as the senior

associate dean for faculty and academic affairs, and was a key

leader in the SoE Future strategic planning process.

The school has implemented several of the operational rec-

ommendations from SoE Future and is on track to launch a

pilot of the Catalyst for Collaborative Solutions beginning in

the fall of 2017/18. The Catalyst pilot will bring together dedi-

cated cross-functional teams including third-, fourth-, and

fifth-year graduate students, postdocs, industry experts, and

faculty from across Stanford to address the grand challenges

outlined in SoE Future. The $12 million pilot will support four

teams for three-year terms (two teams beginning in 2017/18

and two teams beginning in 2018/19); it will be funded

through a combination of fundraising and a presidential

commitment. The Catalyst will provide project funding and

strategic workshops in support of interdisciplinary research

across SoE, the university, and beyond, to achieve impactful

and lasting solutions to the world’s most pressing problems.

These grand challenge problems have an engineering com-

ponent as part of their core solution, but engineers alone will

not solve these problems. This need to bring multidisciplinary

researchers together is the driving force behind the Catalyst.

In the long run, the Catalyst aspires to become an interna-

tionally recognized model of a purposeful, high-impact, and

interdisciplinary research ecosystem.

The school is facing a very competitive landscape for fac-

ulty pursuing computational research, particularly in the

Computer Science Department. Rapid expansion in the field

of computer science and applied computation has created

tremendous market-based pressure on faculty compensa-

tion. Given Stanford’s location and symbiotic relationship

with Silicon Valley, there has long been some loss of faculty

to industry, but the benefits of moving to industry have been

balanced by those of pursuing an academic research and

teaching agenda at a world-class institution like Stanford.

However, the landscape at peer and nonpeer institutions

and in industry is changing, and the school’s salary structure

for this cohort places it at a competitive disadvantage in hir-

ing and retention in this competitive area. An incremental

increase in general funds will provide targeted help to attract

and retain key faculty in this area.

A continuing need in SoE for several years has been fund-

ing for teaching assistants (TAs) to provide support for

faculty in teaching. The university has increased the school’s



Expenses


Non-Salary 153.8 150.7 149.4



Transfers From (to) Endowment & Other Assets (6.7) (9.1) 1.7

Transfers From (to) Plant (4.7) (2.0) 0.0

Surplus / (Deficit) 19.4 (7.7) 3.7



Endowment Payout

16%

SponsoredResearch

36%

Affiliates 4%Auxiliary Income 1%

Other 10%General Funds

25%

Gifts 8%


31ACADEMIC UNITS

TA funding substantially in recent years. Recent data show a

slowing in the growth rate of undergraduate enrollment, and

consequently, the school’s allocation for TA tuition and salary

will only grow by cost rise.

CONSOLIDATED BUDGET OVERVIEWSoE projects a 2017/18 consolidated budget with total rev-

enue and transfers of $400.2 million and expenses of $398.2

million, resulting in a net surplus of $3.7 million after $1.7 mil-

lion of transfers from endowment principal. Compared with

2016/17 year-end projections, 2017/18 revenues will increase

by 5.4% and expenses by 4.4%.

Sponsored research remains the largest single component of

SoE finances at approximately 36% of revenue. Federal grants

are projected to grow 5% in 2017/18, due to increased spend-

ing in the Bioengineering Department. Non-federal sponsored

research will see small growth from 2016/17 levels but has

increased by 32% since 2015 due to ongoing, large research

grants from industry.

Other revenue sources are projected to increase by $6.5 mil-

lion. Expendable gifts and endowment income are expected

to increase by $3.8 million combined, and a $1.1 million

increase in base general funds support from the university

will help SoE address faculty salary concerns and provide

additional support staff.

The majority of endowment payout schoolwide supports

faculty salaries and students through endowed chairs and

fellowships. Minimal growth in endowment payout, combined

with faculty merit and market retention increases, may cause

the school to use reserve balances to meet faculty payroll in

the short term. Departments are managing graduate student

admissions to ensure enrollments are aligned with available

fellowship income. Although there is no schoolwide plan to

reduce expenses due to endowment payout concerns, there

may be some targeted cutbacks, and programmatic growth

and innovation that would have been funded via endowment

payout growth will be curtailed.

The overall school reserve position is strong, but the funds are

asymmetrically distributed among faculty, departments, and

the school. Of the total reserves, individual faculty and labora-

tory groups control 91% ($107.8 million) of designated fund

balances and 90% ($93 million) of expendable gift balances,

most of which are earmarked for research. The majority of

reserves controlled by the school are restricted to faculty and

student support, which leaves the dean without much finan-

cial flexibility. To address the endowment growth problem and

the lack of flexible operating funds, SoE made the strategic

decision to transfer $10 million from school-controlled funds

to funds functioning as endowment in 2016/17 to support

general operations.

CAPITAL PLAN The SoE is focusing on renovations and planning for the

future. The school began operations in two new shared

fabrication facilities in the Allen Building in 2016/17. The

Experimental Fabrication Facility and the Systems Prototyping

Facility were designed to meet the needs of researchers and

students today, while helping inform the school about future

directions in fabrication as it explores alternatives for the ag-

ing clean room in Allen. Research activity in both facilities is

ramping up in line with projections.

Renovations to both the Durand Building and the Gates

Building began in 2016/17. The Durand Renovation – Phase 4,

the final phase, began in April 2017. The Durand renovation

will allow for growth in the Aeronautics and Astronautics and

the Materials Science and Engineering departments by mak-

ing use of space vacated by Mechanical Engineering and the

Stanford Center for Professional Development. Renovations to

the third floor of the Gates Building will improve office space

and increase student, faculty, and staff density to support

growth in Computer Science. The Gates loading dock is be-

ing relocated to accommodate the construction of the Bass

Biology Building. The school will invest $4 million to renovate

labs for new faculty in the Durand, Shriram, and Mechanical

Engineering buildings.

The school is doing long-range planning to address the grow-

ing intersections of computation with almost every other field

of inquiry at the university. The school envisions a new facility

sited and designed in a way that cultivates and nurtures these

intersections, and it intends to begin formal programming for

a new building in 2017/18.

32 ACADEMIC UNITS

SCHOOL OF HUMANITIES & SCIENCES

PROGRAMMATIC DIRECTIONSThe School of Humanities & Sciences (H&S) remains in a

position of strength despite tightening budget constraints.

Several years of investments in faculty and facilities have

reinforced the school’s strong academic and programmatic

standing, but also greatly reduced unrestricted reserves.

During 2010-13, H&S grew its faculty by 10%, replacing

losses that occurred after the 2008 recession. Faculty size is

now sufficient to meet academic needs but is also straining

financial and space capacities. H&S returned to a replace-

ment rate of hiring three years ago, but large faculty start-up

costs from the hiring surge will continue to impact its budget

for several more years. For the foreseeable future, additional

faculty growth will target gender and racial diversity and the

neurosciences and Chemistry, Engineering and Medicine for

Human Health (ChEM-H) initiatives.

With the goal of increasing undergraduate student interest

in the humanities and social sciences, H&S has launched

several new programs and curricular enhancements, includ-

ing feeder programs for promising high school students and

placement programs for graduates. These initiatives have

contributed to small increases in humanities undergraduate

course and degree enrollments across the past four years. In

this same vein, several initiatives in the social sciences focus

on data science, the analysis of massive data sets, and how

behavioral research informs the work of engineers and others

in applied fields.

Doctoral student enrollments increased 9% between 2007

and 2014 but have been flat during the past two years.

Selectivity of the graduate student body continues to in-

crease, but some competing institutions are beginning to of-

fer an additional year of guaranteed funding, raising concerns

about longer-term competitiveness. The availability of fewer

academic jobs has impacted time to degree as some students

delay graduation to gain additional experience and become

more competitive in the job market. While enrollment is

projected to remain stable, the ChEM-H and neurosciences

initiatives and the Knight-Hennessy Scholars program should

enhance the school’s ability to attract and support top doc-

toral students.

CONSOLIDATED BUDGET OVERVIEWFor 2017/18, H&S projects revenues and operating transfers

of $540.3 million and expenses of $518.4 million, resulting

in an operating surplus of $21.9 million. After $9.5 million

of net transfers to assets, the school projects an increase



Expenses


Non-Salary 164.2 171.5 175.8




Transfers From (to) Plant 4.7 (18.6) (5.0)




Endowment Payout

31%

SponsoredResearch

17%

Other 9%General Funds

38%

Gifts 4%


Auxiliary Income1%

33ACADEMIC UNITS

in consolidated fund balances of $12.4 million, with an

ending balance of $305.4 million. Fund balance growth is

projected primarily in restricted gift and faculty-controlled

research funds.

Dean’s Office unrestricted reserves have declined from a

high of $74 million in 2010/11 to a projected $17 million at

the end of 2017/18. $50 million of reserves has been used to

fund significant portions of new arts and sciences facilities

– notably the Bass Biology, ChEM-H, and McMurtry Art and

Art History buildings. Reserves are also being used to fund a

portion of the faculty hire start-up packages associated with

the post-recession hiring surge. This net use will continue into

2017/18 and for several more years, gradually diminishing as

the impact of replacement-rate hiring takes effect.

Lagging endowment payout during 2016/17 and 2017/18 is

placing additional stress on the school’s finances. H&S is

highly dependent on endowment payout for funding core

operations and also incremental activities that may range

from new academic programming to essential staffing. The

$3.7 million funding gap between cost rise and minimal

endowment payout increases was managed in 2016/17 by

reducing graduate aid allocation to departments, eliminat-

ing nonessential expenditures, and using department and

program reserves. The 2017/18 funding gap is projected to be

$3.1 million. A significant portion of the gap will be mitigated

by additional general funding, while the remainder will be

accommodated through a second year of budget reductions

and uses of reserves. The effects of these funding reductions

on operations and accumulated fund balances will not be

fully known until fiscal year-end for both of these years. The

Dean’s Office will closely monitor these impacts and work

with departments and programs to ensure the sustainability

of operations.

After several years of volatility, grant and contract volume

increased sharply in 2015/16, a result of several senior faculty

hires and large grant renewals. Federal grant and contract

volume is projected to be flat during 2016/17 and decrease

slightly in real terms during 2017/18. A small increase in non-

federal grant and contract volume is projected for 2016/17,

with volumes flattening in 2017/18. H&S has not yet seen

the major volume declines experienced by other schools, but

projections indicate slow or no growth during the upcoming

years.

Consolidated budget numbers include programs (Cantor

Center for Visual Arts, Stanford Arts Institute, Stanford Live,

Bing Concert Hall, Anderson Collection, and Institute for

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

will reduce the school’s annual expenditures by $20 million

and accumulated fund balances by approximately $25 million.

CAPITAL PLANH&S continues to manage the largest capital plan in its his-

tory. During the upcoming two years, the school will focus

on development of the new science quad and evaluation of

humanities and arts performance spaces. The Bass Biology

Building will be completed in summer 2018, triggering faculty

moves from the Mudd Chemistry Building and its subsequent

demolition. During summer 2017, the Physics Learning Center

will move into newly renovated space in Building 60 on the

main quad, and students will begin taking courses there in

fall 2017. The Sapp Center for Teaching and Learning opened

recently, providing innovative teaching and study spaces for

undergraduate students. The Roble Gym now houses the

Department of Theater & Performance Studies along with a

“black box” theater, dance studios, and an arts gym.

34 ACADEMIC UNITS

SCHOOL OF LAW

PROGRAMMATIC DIRECTIONSStanford Law School (SLS) graduates excel in a wide variety

of professional settings, and the school is enhancing its de-

gree programs by focusing on two primary areas: curricular

innovation and faculty recruitment. The Law School continues

to innovate in its curriculum to better prepare its graduates

for their professional futures, and it has prioritized the hiring

of new, diverse faculty members to facilitate changes to the

curriculum as well as to support the interdisciplinary interests

of SLS students.

SLS recognizes that future lawyers should understand the le-

vers of policy making and implementation, that globalization

of the economy requires lawyers to have a global perspective,

and that technological advances are transforming the delivery

of legal services. To address these issues, the Law School is

pursuing a set of new curricular initiatives.

The first of these initiatives, the Law and Policy Lab, provides

opportunities for students to tackle real-life policy challenges

for actual clients. Across 60 practicums over the past three

years, students and faculty have worked with and advised

clients on issues such as international security, patent trolls,

wildlife trafficking, and copyright policy. The second initiative

exposes students to transnational issues across substantive

areas of the law. To underscore the importance placed on this

initiative, SLS has created a new position of associate dean for

global programs that focuses on building a high-quality cur-

riculum exposing students to the world of global legal prac-

tice. The third initiative addresses how technological changes

are transforming the delivery of legal services. These changes

both threaten current models for delivering legal services and

hold the promise of expanding access to legal services for

people who are currently underserved. Creating a curriculum

to address these issues is challenging, but SLS is well placed

to lead in this critical field and is actively exploring how the

curriculum should evolve to reflect these developments.

The practical legal training students receive through work

in the Mills Legal Clinic, where they represent actual clients

under the close supervision of clinical faculty, will leverage

the tools and knowledge they gain through the new innova-

tive curricular offerings. Through university support and con-

tinued fundraising, the school now offers 11 clinics covering

areas such as intellectual property, education law and policy,

criminal defense, environmental law, and international human

rights. In response to the current changes in immigration

policy, SLS is expanding its Immigrants’ Rights Clinic, through

which faculty have provided advice, information, and counsel

to members of the Stanford community who are directly



Expenses


Non-Salary 22.2 24.1 25.5








Endowment Payout

44%

Sponsored Research 2%

Executive Education 4% General Funds37%

Gifts 13%


35ACADEMIC UNITS

affected by these policy changes. The intensive training SLS

students receive in the clinics serves them well as they begin

their professional lives after graduation, and can spark or

reinforce their dedication to pursuing public interest careers.

The SLS student population is small, and admission is ex-

tremely selective. In order to continue to attract an extraordi-

nary, diverse student body with varied professional interests,

the school’s financial aid program seeks to make a law school

education affordable to all. A relatively flat endowment pay-

out in recent years has created some pressure on the financial

aid program, but admission decisions are need-blind, and

the school continues to meet all identified financial need of

admitted students. SLS has made fundraising for financial aid

a high priority, and the school will continue its strong commit-

ment to a need-based financial aid program. In addition, the

school makes sure that graduates can pursue legal careers in

public service and public interest law through a generous loan

forgiveness program.

The faculty is small and exceptional, and the school continues

to expand its ranks to support the exciting developments tak-

ing place in the study and practice of law. Like many schools,

SLS is in the midst of a generational shift in its faculty. In

anticipation of future retirements, 17 individuals have joined

the faculty over the past few years. These additions to the

faculty recognize the desire of SLS students to explore stud-

ies in a variety of disciplines by reflecting a continued com-

mitment to interdisciplinary research and teaching. Three of

the new faculty members have joint appointments (two with

the School of Medicine and one with the Freeman Spogli

Institute), and many of the tenured and tenure-track faculty

have a PhD as well as a JD. The recruitment and retention of

faculty remains a high priority for the school and an area of

focused effort and activity.

CONSOLIDATED BUDGET OVERVIEWThe 2017/18 consolidated budget comprises total revenues

and operating transfers of $96.9 million, expenses of $90.1

million, and transfers to assets of $6.7 million. SLS projects an

increase in expendable fund balances of $100,000. The trans-

fers to assets include $3.5 million to student loan to cover SLS

Loan Repayment Assistance Program obligations; $1.7 million

transferred to plant for continuation of the Crown Quadrangle

renovation; and $1.5 million of unused restricted endowment

income reinvested into funds functioning as endowment.

Consolidated revenue, exclusive of operating transfers, is

anticipated to increase 2% to $62.8 million. Designated

income ($5.2 million), expendable gifts ($12.6 million),

and endowment income ($43.0 million) will each grow by

2%. Sponsored research remains steady and will gener-

ate $2.2 million, of which $1.5 million will be spent on the

U.S. Department of State multiyear grant to support the

Afghanistan Legal Education Project. Finally, general funds

will increase by 6% to $35.3 million.

Total consolidated expenses are projected to rise by 5% to

$90.1 million. With operating expenses targeted to grow

faster than income in 2017/18, the Law School is shifting

resources from long-term programming and capital projects

to current operations. Additional staff and salary increases

mean that compensation is expected to grow by 5% to $64.6

million, and non-compensation will grow by 6% to $25.5 mil-

lion. Graduate student financial aid is increasing to $9.3 mil-

lion, while non–financial aid expenses are remaining constant

at $16.2 million.

SLS consolidated expendable fund balances will increase by

$100,000 to $23.8 million. Of this balance, $13.6 million is

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

PROGRAMMATIC DIRECTIONSThe School of Medicine is an academic medical center.

Combined, the medical center, Stanford Health Care (SHC),

and Stanford Children’s Health (SCH) are known as Stanford

Medicine. Stanford Medicine’s mission is to promote funda-

mental, clinical, and translational discovery; to train the bio-

medical leaders of tomorrow; and to transform patient care.

Stanford Medicine recently initiated an integrated strategic

planning process. The full strategic plan is expected to launch

by December 2017.

Stanford Medicine’s vision is to lead the biomedical revolution

in precision health: to precisely predict, prevent, and cure.

Precision health is a fundamental shift to proactive and per-

sonalized health care that empowers people to lead healthy

lives. Stanford Medicine is driving this transformation by

leveraging the art and science of medicine to predict and pre-

vent disease before it strikes and cure it decisively if it does.

Over the past year, a precision health committee, which

included many individuals across Stanford Medicine and the

university, engaged in a thoughtful and collaborative process

to develop a strategic plan for the vision. The committee iden-

tified numerous interconnected and overlapping priorities,

including developing the science of behavior change, building

a data system that learns from every patient engagement, and

facilitating the translation of new technologies into clinical

diagnostics.

Through the Integrated Clinical Strategy Committee, the

school and hospital leaders have established three strategic

priorities for the clinical enterprise: (1) reaching pre-eminence

in key precision health service lines through measured growth

in depth and breadth of clinical services and biomedical in-

novation; (2) expanding off-campus and outpatient services

to provide care through low-capital networks and partner-

ships while concentrating complex care on campus; and (3)

maintaining strong financial performance by improving cost

structure, developing capabilities to manage populations, and

differentiating through consumer-facing technology.

To recognize and enhance teaching and mentoring through-

out Stanford Medicine, the school has launched a Teaching

and Mentoring Academy with a competitive grant program

and a faculty training bootcamp. It has also launched the

Digital Medical Education International Collaborative (Digital

MEdIC), which leverages its expertise in pedagogy and on-

line education. With the goal of increasing global access to

high-quality medical education, Stanford Medicine

has begun conversations with potential partners in India,

developing a strategic plan, and selecting a platform for

disseminating content.


Total Revenues 2,158.2 2,252.0 2,459.8

Expenses

Salaries and Benefits 1,202.1 1,325.6 1,466.6

Non-Salary 742.8 803.9 861.2

Total Expenses 1,944.9 2,129.5 2,327.8



Transfers From (to) Plant (44.9) (20.4) (28.2)


Beginning Fund Balances 999.4 1,119.3 1,219.3

Ending Fund Balances 1,119.3 1,219.3 1,307.5

Endowment Payout

7%

SponsoredResearch

29%

Designated Clinic41%

Patent Income 1%Auxiliary Income 2%

Other 10% General Funds 5%Gifts 5%

2017/18 Consolidated Revenues$2,459.8 Million

37ACADEMIC UNITS

Nationally, effective levels of National Institutes of Health

funding have decreased over the last decade. Despite this,

the school has successfully maintained and grown its re-

search funding. This in part is due to the recruitment of high-

potential and highly prolific investigators and to the provision

of $5.2 million in seed grant funding to faculty from 2013 to

2016 to help ensure that the most innovative studies continue

to get supported. In the first two years of the program, the

school distributed $3.7 million in seed grants; this investment

has returned $20.0 million in new grant funding. Also boost-

ing research efforts, Stanford Medicine was recently selected

to be a founding member of two significant philanthropic

partnerships in biomedicine, the Chan Zuckerberg Biohub and

the Parker Institute for Cancer Immunotherapy.

Despite the current challenging research funding environment

and political proposals that could create even greater uncer-

tainty about future research funding, the school recognizes

the risks, and the current projections do not reflect an impact

from these possibilities.

CONSOLIDATED BUDGET OVERVIEWThe school projects total revenues and transfers of $2,459.8

million in 2017/18 and expenses of $2,327.8 million, yield-

ing an operating surplus of $132.0 million. After transfers to

plant and funds functioning as endowment (FFE) of $43.8

million, the net change in current funds is $88.2 million. The

major growth areas are health care services and sponsored

research, and investment income as payout to the expend-

able funds pool (EFP) in 2017/18 is projected to improve

from the prior year. Offsetting this growth is the expected

decline in patent revenues from the expiration of a key patent

in 2015/16.

Total revenues and transfers are projected to increase 9.2%,

or $207.8 million, to $2,459.8 million in 2017/18. Key drivers

include the following:

n The school renewed a five-year funds flow agreement with

SHC in 2015/16 and renewed its agreement with SCH

in 2016/17. The funds flow changes will spur growth of

12.7%, or $128.8 million, in health care services revenues,

which will reach $1,145.4 million in 2017/18. This growth

is driven by a continued increase in clinical program activi-

ties and by incremental faculty and clinicians.

n Continued faculty recruitment leads to a projected 6.1%

increase in combined federal and non-federal sponsored

research, 5.1% in federal and 9.0% in non-federal.

n With the merged pool projected return improvement

in 2016/17, endowment income, including new gifts, is

projected to increase 3.3%, and the EFP is projected to

achieve the full payout.

Expenses are projected to increase 9.3%, or $198.3 million, to

$2,327.8 million in 2017/18. Major increases will result from

the following:

n Net recruitment of 32 faculty is projected, 20 in the medi-

cal center line and 12 in the university tenure line. In addi-

tion, 70 clinician educators are projected to join Stanford

Medicine in 2017/18.

n Annual total compensation for faculty, clinicians, and staff

is anticipated to increase 10.6%. The main drivers are

increases in clinical activity, incremental recruitment, and

the annual merit program.

n Projected growth in sponsored research and health care

services revenue will drive related non-compensation ex-

penses higher. Rent expenses are also expected to rise as

rent abatement for one leased facility ends in 2016/17 and

the full-year impact of another lease begins in 2017/18.

Transfers of $28.2 million to plant include projects for Center

for Academic Medicine I (CAM 1), the Stanford Oak Garden

Children’s Center, and Li Ka Shing Center Renovation Phases

2 and 3; entitlement payments to the City of Palo Alto; and re-

turn of bridged funds on the Lorry I. Lokey Stem Cell Research

Building and the lease on 1520 Page Mill Road. Transfers to

assets include investments by departments to FFE.

CAPITAL PLANThe school’s two new buildings, BioMedical Innovations

Building 1 (BMI 1) on Pasteur Drive and CAM 1 on Quarry

Road, are on schedule to complete by 2020. The CAM 1

project will begin preconstruction activities during summer

2017 and will add 170,000 square feet of offices, conference

spaces, and other amenities. The project also includes the

construction of an underground parking garage with over 800

parking spaces along with the adjacent 10,000-square-foot

Stanford Oak Garden Children’s Center. The total project cost

is estimated at $230.4 million, jointly funded by the school,

SHC, and SCH. BMI 1 preconstruction activities commenced

during winter 2016, with full construction to begin in spring

2017. The project will add 215,500 square feet of research

space at an estimated cost of $210 million.

38 ACADEMIC UNITS

VICE PROVOST AND DEAN OF RESEARCH

The Office of the Vice Provost and Dean of Research (DoR)

is responsible for facilitation of faculty research and scholar-

ship across all of the schools and departments and serves

as cognizant dean for the 18 university-wide independent

laboratories, institutes, and centers. These “institutes” pro-

vide intellectual and physical environments for research that

invite scientific and scholarly dialogue, facilitate interdisci-

plinary collaborations, support policy-relevant research, and

increase the success of faculty in obtaining research funding.

The office has oversight for the implementation of research

policies and manages the compliance and administrative of-

fices that support research. DoR also oversees major shared

facilities that support a broad range of research and scholarly

activities.

PROGRAMMATIC DIRECTIONSThrough all of its activities, DoR seeks to support faculty com-

petitiveness in research and scholarship. This is particularly

important as obtaining extramural funding becomes increas-

ingly challenging. It will pursue this goal through the following

four program objectives in 2017/18:

n Creating opportunities for interdisciplinary research

through the independent laboratories, institutes, and

centers;

n Providing state-of-the-art shared facilities;

n Minimizing compliance and administration burdens for

faculty and staff; and

n Mitigating research-related safety risks.

Stanford and SLAC are establishing a new Cryo-Electron

Microscopy (cryo-EM) Center to be located at SLAC.

Advances in the design of cryo-EM instruments during the

past few years have created remarkable new opportunities

to study cellular structures and their constituent proteins

and other molecular interactions at a level of precision not

previously possible. The impact of this development is trans-

formative for biology and biomedical sciences. Stanford and

SLAC are exceptionally well positioned to exploit this recent

breakthrough and create a world-leading center for cryo-EM.

The independent institutes are launching several new in-

terdisciplinary initiatives. Bits & Watts is a new Precourt

Institute for Energy initiative focused on innovations for the

21st-century electric grid. A new grid paradigm is needed

to incorporate large amounts of clean power and a growing

number of distributed energy resources, while simultaneously

enabling grid reliability, resilience, security, and affordability.

The Stanford Institute for Economic Policy Research (SIEPR)

launched a predoctoral research fellows program for recent



Expenses


Non-Salary 102.9 115.2 101.5








Endowment Payout 16%

SponsoredResearch

34%

Other 6% General Funds27%

Gifts 13%


Auxiliary Income 2%

Affiliates 2%

39ACADEMIC UNITS

graduates who are considering a PhD to work closely with

one or more faculty and take one Stanford course per quarter

before applying to graduate school. The Woods Institute for

the Environment is hosting a Young Environmental Scholars

Conference that will allow graduate students and postdoctor-

al scholars to present their research in a novel interdisciplin-

ary context that brings together graduate-level researchers

from all seven schools.

CONSOLIDATED BUDGET OVERVIEWThe 2017/18 consolidated budget for DoR shows total rev-

enues and transfers of $237.2 million and expenses of $234.0

million, resulting in a net operating surplus of $3.2 million.

After estimated transfers of $3.3 million from assets, DoR

projects a planned surplus of $6.5 million.

Stanford Neurosciences Institute (SNI) received an unplanned

endowment gift of $54 million and an expendable gift of $29

million for program support in 2016/17. If the one-time gift

of $29 million to SNI is removed as an outlier from 2016/17

revenues, the total revenue in 2017/18 is projected to increase

by $5.5 million, or 3%, from 2016/17. This is primarily due

to increases in endowment payout ($2.3 million) generated

from the new endowment in SNI, gift revenue ($1.1 million),

and non-federal research ($1.5 million), driven by the exten-

sion of the Global Climate and Energy Project activity through

2018/19 and an increase in sponsored funding for new senior

fellows in SIEPR. Federal sponsored research is expected to

remain at the same level ($47.1 million), based on historical

trends over the past five years.

The Titan Krios G2 equipment purchases totaling $15 mil-

lion in 2016/17, $10 million of which was unplanned, inflated

equipment expense and transfers to DoR. Equipment pur-

chases and transfers to DoR are therefore expected to be

significantly lower in 2017/18. As a result, total expenses

in 2017/18 are expected to decrease overall by $7.5 million,

or 3%.

CAPITAL PLAN The SNI and the Chemistry, Engineering and Medicine for

Human Health Institute (ChEM-H) will reside in a new

235,000-square-foot facility. This facility will be home to

more than 40 laboratories, core research facilities, and

meeting spaces. It is strategically located proximate to engi-

neering, medicine, and the basic sciences. Strong connecting

pathways among the Neuro/ChEM-H Research Complex, the

Science and Engineering Quad, the Bass Biology Building, and

Bio-X are integral to the design.

The research center will comprise two main buildings. Each

building will have four floors, one below grade and three

above, with laboratory, meeting, and communal spaces

throughout the building. The labs are designed to be highly

flexible, accommodating a wide variety of research approach-

es, including cell and molecular biology, electrophysiology

and behavior, imaging and microscopy, human neuroscience

and engineering, and theoretical and computational neuro-

science. Each neighborhood of three to five labs will share a

common space adjacent to lab support rooms for specialized

equipment and procedures. The project cost is $257 mil-

lion and is being funded by gifts and institutional support.

Construction of the buildings began in winter 2017 and is

scheduled for completion in spring 2019.

40 ACADEMIC UNITS

VICE PROVOST FOR UNDERGRADUATE EDUCATION

PROGRAMMATIC DIRECTIONSThe Office of the Vice Provost for Undergraduate Education

(VPUE) functions as the heart and conscience of undergradu-

ate education at Stanford, advocating for undergraduates

and partnering with faculty, staff, and students to educate

knowledgeable, engaged citizens and creative, confident lead-

ers. VPUE resources are aimed at connecting students with

opportunities at Stanford, involving faculty with undergradu-

ate education, and realizing fully the vision of a broad liberal

education. VPUE’s strategic planning process has coalesced

around three critical themes under the broad umbrella of re-

thinking liberal education: transforming the pivotal first-year/

sophomore experience, expanding experiential education, and

reaffirming residential education.

Notably, VPUE’s mission and strategic initiatives have been

significantly impacted by a rapidly evolving cultural and

academic environment from which the major challenges fac-

ing undergraduate education at Stanford emerge. Stanford

undergraduates, gifted and capable as they are, are decidedly

different from incoming classes of 5 to 10 years ago in terms

of their intellectual interests, scholarly preparation, socioeco-

nomic backgrounds, and engagement with technology.

Given these realities, the university’s comprehensive and sys-

tematic process of long-range planning has the potential to

produce profound and yet-unknown changes in undergradu-

ate education, along with a concomitant call for additional

financial resources to implement these changes. Rethinking

liberal education will require a willingness to shed some

previously held assumptions about both what is taught and

how it is taught. It will involve a commitment to develop new

pedagogies that more actively capitalize on social and racial

differences, and that integrate attention to student well-being

and creative confidence into academic progress from the out-

set rather than as a concern “outside” the classroom.

In an initiative that is new this year and salient to efforts

to reaffirm the residential experience, VPUE has led the

Residential Cabinet through its residential programs faculty

director, James Campbell. The Residential Cabinet, composed

of five vice provosts, brings together university leaders oper-

ating in the residential arena to ensure broad, coherent stra-

tegic vision, consistent oversight, and a more robust faculty

presence. The cabinet presented its consolidated vision to

the Budget Group this past winter, demonstrating synchron-

icity by reallocating resources across organizational lines to

achieve priorities. In 2017/18, next steps will include forming

a faculty advisory board to oversee processes for creating,

sustaining, and, where necessary, sunsetting residential

programs. In addition, a residential learning environments



Expenses


Non-Salary 25.4 26.8 25.8


Operating Results 1.0 (0.8) (1.2)



Surplus / (Deficit) 1.2 (0.8) (1.1)



Endowment Payout

49%

Other 3%Auxiliary Income

6%General Funds

38%

Gifts 4%


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

41ACADEMIC UNITS

working group will be created to ensure effective collabora-

tion in designing and allocating residential spaces. Finally,

VPUE will begin preparing for a second integrated learning

environment—a living/learning program for first-year stu-

dents—focused on issues of social justice and diversity.

VPUE’s newest pilot in experiential learning, the Stanford in

New York program, launched a quarter focused on media

and finance this past winter. Through an intensive academic

quarter of study, reflective practice, and experiential learning,

students hone their intellectual skills and capacities, develop

their abilities as adaptive learners, and increase their creative

confidence. New York also provides unparalleled opportuni-

ties for students to engage in internships in dynamic organi-

zations, including educational, arts, and cultural institutions;

government and public agencies; social service organizations;

and corporations. In 2017/18, Stanford in New York will ex-

pand to three quarters. The new spring quarter will focus on

New York as a global city and will feature internships in and

around issues of global development, including at the United

Nations. Student response and other program evaluation

measures continue to be very positive.

The class of 2017 will be the first class to graduate fulfill-

ing the Ways of Thinking/Ways of Doing (Ways) breadth

requirements. The Ways concept shifted the undergraduate

program from a disciplinary breadth model to a focus on es-

sential capacities, which may be attained outside or within

the major. The Ways requirements aim to integrate general

education more comprehensively with student experiences,

to provide a persuasive rationale for academic exploration,

and to give students the flexibility to pursue topics of inter-

est across a broad array of course options. VPUE financially

supports academic departments expanding Ways offerings,

particularly in areas with capacity concerns such as Creative

Expression and Ethical Reasoning. VPUE has partnered with

Institutional Research & Decision Support to understand

better how students fulfill their Ways requirements and the

implications of these choices.

In 2016/17, the Bing Overseas Studies Program (BOSP),

VPUE’s flagship program in experiential learning, underwent

two significant programming changes with budgetary impli-

cations. With the assistance of the provost, BOSP offered

summer financial aid to undergraduates attending summer-

quarter programs in Santiago and Cape Town. Summer enroll-

ments subsequently doubled. Also in 2016/17, due to chal-

lenges in attracting students and faculty in residence as well

as difficulties with academic programming, the BOSP faculty

director decided to suspend the Beijing program for 2017/18.

VPUE remains committed to overseas study programs in Asia

and will support BOSP’s exploration of new programming for

next year. BOSP will reexamine Beijing and will also consider

potential alternate locations such as Shanghai.

CONSOLIDATED BUDGET OVERVIEWThe 2017/18 consolidated budget shows total revenues and

operating transfers of $64.3 million and expenses of $65.5

million, yielding an operating deficit of $1.2 million. Revenues

and transfers are expected to increase by $0.5 million from

2016/17, due mainly to slight improvements in endowment

payout, increases in base and one-time general funds, and

the first approved increase to New Student Orientation fees

in nine years. Expendable gifts are expected to decrease by

$230,000 from 2016/17 as Innovation Fund and other high-

dollar pledges tail off.

Expenses are expected to grow by $1.0 million, due primar-

ily to operational costs related to adding a third quarter to

the Stanford in New York program and increases to support

undergraduate research. This year, VPUE applied results of

a three-year expense category analysis to control non-com-

pensation cost growth of continuing programs. Vice Provost

Office expenses were reduced 1.6%. VPUE’s other units

contained their cost rise to less than 3%. Working with the

Office of the Treasurer, VPUE and BOSP financial leadership

took advantage of the strong dollar to lock a currency hedge

early for 2017/18, resulting in $831,000 of anticipated savings

in BOSP operating expenses.

VPUE’s financial strategy is to sustain base programs, to pilot

new initiatives, and to assess their educational outcomes.

VPUE has funded pilot programs with one-time university

funds and expendable gifts and sustained core programs

through endowment payout and general funds. Each year,

VPUE assesses several of its pilot programs, looking at their

achievement of educational aims and their cost-effectiveness.

This process has led VPUE to alter, strengthen, expand, and

even sunset programs.

VPUE’s fund balance is expected to be $20.7 million begin-

ning in 2017/18, with approximately half of that unrestricted.

Fund balances will absorb the deficit for 2017/18.

42 ACADEMIC UNITS

VICE PROVOST FOR GRADUATE EDUCATION

PROGRAMMATIC DIRECTIONS The Vice Provost for Graduate Education (VPGE) plays a key

leadership role, working collaboratively across the university’s

seven schools, in enhancing the quality of graduate educa-

tion for 9,300 students pursuing degrees in more than 200

graduate degree programs and departments. VPGE addresses

several critical university priorities. VPGE administers seven

university-wide fellowships; fosters innovation by providing

opportunities for students’ professional development; and

serves as a catalyst for supporting innovative initiatives within

graduate programs, advancing diversity, and facilitating inter-

disciplinarity. VPGE’s programs and fellowships reach roughly

4,500 graduate students (over 800 on fellowships) annually.

The largest university-wide fellowship program is the

Stanford Graduate Fellowships (SGF) Program in Science and

Engineering, used to attract the best students in the world to

doctoral study in these fields at Stanford. More than 1,500

SGFs have earned doctoral degrees so far. These prestigious

three-year fellowships have encouraged creative approaches

to global problems—approaches such as building highly

efficient solar-powered batteries; developing a chemical

catalyst to make biodegradable plastics from organic, renew-

able materials; and combining 3-D imaging and 3-D printing

to create realistic physical models of rocks that are difficult

to access in person. The Stanford Interdisciplinary Graduate

Fellowships (SIGFs) have also gained momentum with 170

fellowships awarded. These graduate students are advancing

knowledge in unanticipated ways, even defining new lines of

inquiry. SIGF alumni are now teaching or conducting research

at institutions such as Princeton, Yale, Harvard, Duke, MIT,

and Berkeley, in addition to working in industry, government,

and the nonprofit sector. VPGE programs and staff support

the fellows’ pursuit of pioneering research interests that span

disciplines and help them prepare for uncharted interdisci-

plinary career trajectories.

VPGE fellowship funding will increase 8% from 2016/17 to

2017/18, despite minimal growth in endowment payout. The

number of SGFs will remain constant. The SIGF program, on

the other hand, will be growing as pledge payments are re-

ceived. The number of SIGFs will increase until the program

goal of awarding 33 new fellows per year is reached. After

the next few years, the number of fellowships awarded may

require adjustment if endowment income does not bounce

back. Fellowship stipend and tuition amounts will increase

by 3.5% next year. Fund balances will cover this expected

increase in graduate student support.

Endowment Payout forGraduate

Fellowship 80%

General Funds20%




Expenses


Graduate Student Support 35.5 36.3 38.3

Non-Salary 1.9 2.5 2.6



Transfers From (to) Endowment

& Other Assets (0.3) (0.3) (0.3)


Surplus / (Deficit) (1.6) (2.6) (2.4)



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

43ACADEMIC UNITS

A top priority for VPGE is to provide innovative programs in

collaboration with Stanford’s seven schools to recruit stu-

dents from diverse backgrounds and enhance their education-

al experiences while at Stanford. The Diversifying Academia,

Recruiting Excellence (DARE) Doctoral Fellowship Program

for advanced PhD students has become nationally known,

with 166 fellows. Seventy-five percent of DARE alumni work in

the academic sector; recently two have won prestigious early-

career awards, and two have already become tenured faculty.

In addition, VPGE has scaled up the Enhancing Diversity in

Graduate Education (EDGE) Doctoral Fellowship Program,

which supports incoming PhD students in five of Stanford’s

seven schools. EDGE provides mentoring and professional

development resources to support the academic success of

doctoral students in their first two years, with ongoing ac-

cess to research funds. A new initiative awards Diversity and

Inclusion Innovation Funds on a competitive basis to graduate

students and postdocs across the university. This fund was a

prototype for the university-wide fund just launched by the

Diversity Cabinet.

This year VPGE continued to focus on developing new re-

sources open to all graduate students under the banner of

Graduate Professional Development (GPD). These resources

include expanded initiatives in leadership development and

preparation for faculty careers. The GPD framework itself

has become a more sophisticated interactive tool, and more

graduate students are using it to assess their skill levels, de-

termine priorities for gaining proficiency, and locate resources

at Stanford—many of which are provided by VPGE. The major

domains are specialized content knowledge and skills, teach-

ing, communication, leadership and management, career

development, and personal development. Where possible,

programs are recorded for a video archive, to be available for

asynchronous use.

VPGE is in a strong financial position, leveraging and extend-

ing its reach with innovative programs and graduate student

funding across the university. January 2017 marked the 10th

anniversary of VPGE’s founding. As VPGE takes stock and

plans for the future, it will seek input widely from across the

university community to learn what is most valued and what

more can be done to enhance graduate education and gradu-

ate students’ experiences over the next decade.

CONSOLIDATED BUDGET OVERVIEWVPGE projects a 2017/18 consolidated budget with total

revenue and transfers of $43.7 million and expenses of $45.9

million, resulting in an operating deficit of $2.1 million. After

asset transfers of $0.3 million, an overall deficit of $2.4 mil-

lion is expected.

Revenues and transfers comprise mostly endowment pay-

out and general funds. For these two majority components,

endowment payout is expected to be $35.1 million, and $8.4

million is expected from general funds. After transfers of

$400,000 to departments for SCORE (Strengthening the

Core) and SPICE (Stanford Program on International and

Cross-Cultural Education) funding, revenues and transfers

total $43.7 million.

Consolidated expenses comprise 86% direct graduate

student support, 10% compensation and benefits, and 4%

programmatic non-compensation expenses. VPGE will

provide $38.3 million in direct graduate student funding for

several fellowship programs in 2017/18, an increase of ap-

proximately 6% from $36.3 million in 2016/17. Tuition and

salary/stipend rate increases and student growth in fellow-

ships and programs drive this increase. Compensation and

non-compensation expenses are expected to increase slightly

to $4.9 million and $2.6 million, respectively.

Most of VPGE’s graduate student funding is identified as

transfers from its endowment accounts to school/department

operating budgets. The budget plan is to spend down the

consolidated fund balance, using reserves to cover additional

expenses for graduate student funding and programs as well

as anticipated declines in endowment income for multiyear

fellowships. This will reduce the consolidated fund balance to

$49.6 million at year-end.

VPGE’s funding to graduate students and operational expens-

es will continue to increase as both ongoing programs and

new pilot programs are selectively extended to reach more

graduate students in new ways. Over the next three years,

forecast models indicate consolidated deficits of $2.5 million

annually. Fund balances will be used to cover the deficits,

ultimately bringing the consolidated fund balance to $40.7

million by 2019/20. Funding commitments will continue to

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

The Office of the Vice Provost for Teaching and Learning

(VPTL) broadly supports teaching and student learning

across all of Stanford’s programs. VPTL’s mission in support

of faculty-led programs and initiatives is to help Stanford

invent the future research university by supporting teaching

and learning innovation for undergraduate, graduate, profes-

sional, and lifelong learning. VPTL’s activities and services

draw on core competencies in pedagogy, technology, learning

environments, academic business development, and coopera-

tive action.

In 2016/17, VPTL joined forces with the Stanford Center for

Professional Development (SCPD), formerly housed within

the School of Engineering. This move positioned every school

in the university to embark on bigger and broader educa-

tional initiatives that require a rich mix of capabilities. The

year 2016/17 also marked the completion of the learning

management system transition from CourseWork to Canvas,

consolidation of VPTL’s student services into the newly cre-

ated Lathrop Learning Hub, and experimentation with a new

coordinated public engagement model initially focused on the

presidential elections.

PROGRAMMATIC DIRECTIONSLike much of the rest of the university, in 2017/18 VPTL

will be engaged in Stanford’s long-range planning effort.

Additionally, VPTL will evolve its infrastructure to support

emerging programs and seek to understand the needs of

future learners.

Evolving VPTL’s Infrastructure to Support Emerging ProgramsCombining several organizations since 2015, VPTL is focused

on supporting effective pedagogy in all programs and exam-

ining ways to evolve its infrastructure to gain operational

efficiencies. Specifically, VPTL staff are increasing campus

services around communications; evolving digital strategies,

including course delivery, platforms, and modes; and vision-

ing for the redesign of Stanford’s centrally held classrooms.

In 2017/18, VPTL will embark on an infrastructure project

that will enable schools to manage a catalog of offerings for

lifelong learners that can be displayed both at online.stanford.

edu and at school sites. This effort will create a front door for

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.

General Funds38%

Executive Education/

Other62%




Expenses


Non-Salary 21.0 17.9 15.0


Operating Results (6.6) 0.7 (0.5)



Surplus / (Deficit) (6.0) 0.7 (0.5)



45ACADEMIC UNITS

VPTL also has the opportunity to optimize the university’s

approach to course delivery using a range of media, from

recorded lectures to studio- and on location–produced

courses created collaboratively by faculty and VPTL’s in-

structional designers. In doing so, VPTL proactively leverages

faculty time by ensuring that their online course content

reaches as many audiences as effectively as possible. VPTL

will identify the most efficient combination of digital plat-

forms to enable course delivery to the full range of online and

on-campus learners.

In the future, VPTL expects that lecture classes will increas-

ingly be complemented by classes that use other, more active

and participatory learning modalities and have high levels of

instructor/student and peer interaction. The classrooms that

support these models require more space and more flexibility

than the majority of Stanford’s traditional classrooms provide.

As experts in design of conventional and innovative learning

spaces, VPTL staff will participate in new classroom design

and renovation with the schools and Land, Buildings and Real

Estate (LBRE) to ensure new learning modalities are consid-

ered in these projects. VPTL will also work with the schools

and LBRE to develop a roadmap for the thoughtful redesign of

strategically selected centrally managed classrooms.

Understanding Future LearnersVPTL recognizes that each generation of learners is different.

Students today are increasingly invested in personal meaning

and public service. This is reflected in the Stanford 2025 slo-

gan “Find a mission, not a major.” Millennials will change jobs

six times between ages 22 and 32. They grew up with 9/11,

the great recession, internet connectivity, and social media. In

an environment of rapid change and plentiful digital informa-

tion, today’s learners need critical thinking skills, the ability

to reason from evidence, skill in navigating noisy sources of

sometimes unreliable information, the ability to collaborate

effectively with others, and interdisciplinary problem-solving

skills. In 2017/18, VPTL will investigate with its campus

partners what kinds of educational tools, pedagogically

innovative techniques, and learning assessment Stanford

should offer its students to best equip them to develop their

full potential, lead fulfilling lives, and be productive citizens

in tomorrow’s society.

Guided by a faculty advisory board, VPTL will codefine and

facilitate a range of collaborative initiatives and programs

around the topic of future learners. VPTL will partner with

appropriate schools and academic support units to involve

students, faculty, and staff in purposeful engagement around

issues impacting Stanford and higher education more broadly.

Programming will be designed to promote scholarly inquiry,

meaningful dialogue, and thoughtful listening. It will take

several forms: panel discussions, learning symposia, student-

centered special projects, field trips, and more. Aspects of

programming will engage the broader U.S. and international

higher education community.

CONSOLIDATED BUDGET OVERVIEW The 2017/18 consolidated budget for VPTL projects total

revenues of $39.5 million and expenses of $39.9 million, re-

sulting in a planned net operating deficit of $500,000. VPTL

will be in the final year of transition from presidential start-up

funds to general funds at $1 million per year.

Total revenues in 2017/18 are projected to decrease by $3.2

million, or 7.6%, from 2016/17. This decrease is primarily due

to the sunsetting of two large professional certificate pro-

grams within SCPD in 2016/17. It also reflects the $1 million

in one-time presidential support provided in 2016/17 for the

408 Panama Mall studio fit-up.

Total expenses in 2017/18 are projected to decrease by $2.1

million, or 4.9%, from 2016/17. Compensation expenses

are projected to increase by $877,000, or 3.6%, but VPTL

anticipates slightly fewer fixed-term and contingent posi-

tions in 2017/18. Non-compensation expenses are projected

to decrease by $2.9 million, or 16.4%, due primarily to the

completion of the studio fit-up at 408 Panama Mall and the

reduction of external partner payments related to the ending

of two large programs at SCPD.

VPTL expects to have a $9.5 million fund balance. VPTL

plans to utilize this balance to support the planned deficit,

program development for residential and online students,

and a technology reserve to refresh its technology-rich spaces

throughout campus.

46 ACADEMIC UNITS

HOOVER INSTITUTION

PROGRAMMATIC DIRECTIONSThe Hoover Institution seeks to generate ideas from its fel-

lowship, collect knowledge in its library and archives, and

communicate such knowledge and ideas to a broad audi-

ence, particularly undergraduate students at Stanford and

elsewhere. A strategic planning process is currently under

way to provide direction for the institution as it enters its

second century. Operational plans are being developed to

achieve pre-eminence for the institution as a public policy

research center; a collector of materials on social, political,

and economic change in the 20th and 21st centuries; and an

educator on policy issues—broadly speaking, to focus on its

core mission of research and education. The broad outlines

of this strategic plan inform the program and budget plans

for 2017/18. In the next fiscal year, the institution will see

additions to the fellowship and research program, growth

in the collection of archival materials, improvements in ac-

cess for the library and archives, and further expansion of a

broad education program. Development and consolidation of

administrative services and fundraising activities will scale

relative to the needs of the expanded Hoover program.

The strength of Hoover’s research program lies in the excep-

tional ability of its scholars; thus, identifying and attracting

leading academics to refresh the fellowship will be a key pri-

ority. Hoover will focus on recruiting the people necessary to

advance its mission and to advance scholarship in related so-

cial science and humanities disciplines, while de-emphasizing

research in areas outside the institution’s core focus. To this

end, Hoover will develop a more rigorous recruiting process

within the next year, with the goal of adding one net new full-

time senior fellow per year. For 2017/18, the budget includes

one new fellow specializing in China.

Hoover continues to view the convening of scholars to tackle

changes in public policy as an essential function. The primary

mechanisms for gathering these teams are conferences and

seminars. The institution will expand on existing efforts in

this area, not only on the Stanford campus but in Hoover’s

Washington, D.C., offices as well. It will place renewed em-

phasis on producing output intended to reach and impact

audiences beyond those able to attend these meetings.

Program activities for scholar groups studying labor produc-

tivity, immigration reform, climate change, and structural

macroeconomic modeling are in the plans for 2017/18.

Hoover plans to grow specific collecting areas in support of

the mission, building on core strengths and expanding into

new areas of strategic interest to scholars and policy mak-

ers. For 2017/18, Hoover will expand its collecting efforts



Expenses


Non-Salary 22.3 23.7 24.9




Transfers From (to) Plant (20.0) 0.0 0.0

Surplus / (Deficit) (20.8) (3.6) (3.4)



Endowment Payout

41%

Other 4% General Funds 1%

Gifts 52%


Sponsored Research 2%

47ACADEMIC UNITS

in the Middle East and North Africa and in Japan’s modern

diaspora. Technology enhancements will expand access to

Hoover’s collections. Hoover plans to leverage its recently

implemented content management system to deliver col-

lections to a broad online public. As a complement to this

new infrastructure, Hoover is proceeding with digitization on

two fronts: (1) digitizing its most important and endangered

sound, video, and paper collections in house; and (2) work-

ing in partnership with international and U.S. institutions and

with private-sector companies on larger-scale projects. The

project currently under way to digitize 5,000 rare newspaper

titles held by Hoover and Stanford University Libraries is a

relevant example of these partnerships.

As education is an essential function for Hoover, the institu-

tion continues to look for opportunities to disseminate its

work more broadly. The Educating Americans in Public Policy

initiative is intended to translate the research of Hoover’s fel-

lows into accessible, shareable content. In 2017/18, Hoover

will leverage the recently launched PolicyEd.org website to ex-

pand its offerings of short videos, edited and augmented seg-

ments of online courses, and digital communities to inform

the public on matters of public policy. Locally, the David and

Joan Traitel Building opening later this year will provide op-

portunities to engage with the broader Stanford community,

especially undergraduates. This summer, Hoover will use this

new facility to host an inaugural Summer Policy Bootcamp for

undergraduates, a one-week intensive program led by Hoover

scholars. Continuation of this bootcamp is in the budget for

2017/18. Finally, Hoover plans to expand upon its current

educational programs (Cyber Bootcamp, Congressional

Fellowships, Leadership Forum, Media Fellowships, and

Media Roundtables) to reach new audiences.

CONSOLIDATED BUDGET OVERVIEWFor 2017/18, Hoover projects revenues of $68.6 million and

expenses of $72.1 million, for an operating deficit of $3.4

million. Net of these results, end-of-year fund balances are

expected to be $38.9 million, with reductions occurring pri-

marily in restricted reserves.

Revenues are projected to increase by $5.4 million, or 8.6%,

over 2016/17. While endowment income is expected to grow

by only 2.3%, Hoover is optimistic about accelerated expend-

able giving growth as an offset due to recent investments in

the development function. Expendable gifts are expected to

grow significantly, increasing by $4.0 million over 2016/17.

Expense growth is expected to track with revenue growth,

increasing by $5.3 million, or 7.9%. Real growth of expenses

is concentrated in areas where large restricted balances have

accumulated due to past fundraising successes. Fundraising

has preceded expenditures in these areas, with significant

prepayment of long-range pledges building restricted re-

serves. The deficit between current revenues and expenses

will result in drawdowns of these accumulated balances.

Expense growth will be limited to available revenue and is

expected to occur primarily in the following areas:

n One new fellow appointment is budgeted, with the ad-

ditional support staff and research funds required. In

conjunction with this appointment and other recent fellow

additions, research activity will increase.

n Increased expenses for professional services, scholar

payments, and general program costs for the Educating

Americans in Public Policy initiative will continue in

2017/18.

n The new David and Joan Traitel building will incur costs

for operations and preventive and deferred maintenance.

Rental income is expected to partially offset new costs.

n New staff is anticipated in the administrative and develop-

ment functions to support growth in other areas.

CAPITAL PLANBased on findings from a Master Plan study, Hoover deter-

mined a need to make improvements to fellow office spaces

and Library and Archives facilities and storage; to create a

single secure point of entry for visitors; and to better con-

nect existing buildings. The current plan calls for renovating

major interior portions of the Herbert Hoover Memorial and

Lou Henry Hoover buildings, as well as select areas of Hoover

Tower. The project is estimated at $93.2 million and will be

funded locally by Hoover. Due to recent planning discussions,

the option of demolishing existing buildings and replacing

them with new facilities is being considered, with a final

determination expected later this year. A significant issue as-

sociated with the project will be the identification of alternate

storage facilities for Hoover’s library and archive materials.

48 ACADEMIC UNITS

STANFORD UNIVERSITY LIBRARIES

PROGRAMMATIC DIRECTIONSThe Stanford Libraries support students, faculty, and staff

through an extensive set of research support services and

instructional programs, as well as the continued curation of

a world-class set of information resources. While collections

in all their forms will always be a core focus of the libraries,

the service suite that they offer is expanding to include more

direct faculty engagement and interaction with the research

process. In addition, the libraries are actively engaged with

peer institutions to extend the breadth and impact of that

service suite.

As a founding member of the International Image

Interoperability Framework (IIIF) consortium, the libraries

have brought together a global suite of institutions to sup-

port and enable resource sharing in a way that supports

all our programs. IIIF helps ensure that the Stanford Digital

Repository, which continues to expand in terms of both col-

lections housed and use of materials, is leveraged to its fullest

capacity and serves the global good. Similarly, the libraries

are partnering with colleague institutions to support the de-

velopment of linked data services that have the potential to

dramatically improve access to research.

More locally, the libraries are partnering directly with faculty

to support new pedagogical approaches. One excellent ex-

ample is the Massively Multiplayer Humanities project, which

allows larger classes than ever before to work hands-on with

original materials from the Stanford Archives and Special

Collections. Where in the past, history students might not

have accessed these primary sources until their senior year,

this program is allowing large freshman classes to have the

experience.

Facilities are central to the libraries service portfolio, as users

look to library spaces both for access to collections and as

places for private study and team collaboration. The newly

opened Robin Li & Melissa Ma Library in the Sapp Center is a

wonderful example of both. The library brings together collec-

tions from biology, chemistry, math, and statistics in a single

facility and offers a spectrum of study spaces and classrooms

for students and faculty.

Returning to collections, this year the libraries have worked

extensively with the university’s Budget Office to review

trends in pricing for library materials. For many years, prices

for information resources have increased at a rate signifi-



Expenses


Non-Salary 37.7 39.4 37.4



Transfers From (to) Endowment & Other Assets (0.1) 0.0 0.0





Endowment Payout

18%

Sponsored Research

2%

Gifts 1%

Other 9%

General Funds62%

University Press8%


49ACADEMIC UNITS

cantly exceeding the rate of inflation. This has in large part

been driven by dramatic increases in prices among for-profit

journal publishers; however, significant pressure has also

arisen from the need to acquire more extensive data sets

and from challenges around academic use of ebooks. In the

future, the libraries hope this improved understanding of cost

drivers in the industry will allow more careful assessment of

appropriate budget levels.

Finally, the libraries continue to face challenges in recruiting

and retaining academic staff. This has been an ongoing con-

cern for some years, and the libraries continue to seek new

approaches to attract the talented and qualified staff that are

needed to continue to provide the innovative services that

are the hallmark of the Stanford Libraries. As the university,

under its new president and provost, moves into a strategic

planning phase, recruitment and retention will be a key focus.

CONSOLIDATED BUDGET OVERVIEWConsolidated revenues and transfers are expected to total

$89.5 million. They consist of $55.2 million in general funds,

$10.5 million in auxiliary revenue and transfers, and $23.9

million in restricted funds. Consolidated expenses are pro-

jected to total $89.1 million, resulting in an operating surplus

of approximately $400,000. Compensation expenses are

budgeted at $51.7 million, operating expenses at $13.7 million,

and library materials acquisitions at $23.7 million. The base

budget for library material acquisition is projected to grow

about 4% from the 2016/17 level.

Fund balances at the end of 2017/18 are expected to be

$12.9 million. The libraries project balances of approximately

$400,000 in the operating budget, $1.3 million in designated

funds, $1.6 million in restricted expendable funds, $5.3 million

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

PROGRAMMATIC DIRECTIONSStanford University operates SLAC for the Department of

Energy (DOE) through a management and operating contract.

SLAC has two primary, integrated strategic goals: innovat-

ing and operating premier accelerator-based facilities and

leveraging those facilities to develop new scientific pursuits.

Stanford developed a new model contract for the manage-

ment and operation of SLAC with the DOE in calendar year

2016. This new model, which is currently in the first year

of a three-year pilot at SLAC, tailors DOE requirements to

the circumstances and risk profile at SLAC. It also enables

SLAC to take greater advantage of existing Stanford policies

and systems. For example, the model allows SLAC to rely on

Stanford’s cyber security policies and systems. The model is

expected to improve SLAC’s systems and flexibility and thus

contribute to SLAC’s mission, and if the pilot is successful,

the model could be expanded to other national laboratories.

Separately, and independent of the development of this

new model, the Secretary of the Department of Energy has

approved a contract extension for SLAC, to be effective

October 1, 2017.

Scientific User FacilitiesSLAC’s user facilities draw more than 2,700 researchers from

around the world annually, with Stanford users representing

more than 10%. The laboratory operates two X-ray scien-

tific user facilities: Linac Coherent Light Source (LCLS) and

Stanford Synchrotron Radiation Light Source (SSRL). LCLS is

the world’s first hard X-ray free electron laser (FEL). This facil-

ity has transformed the field of X-ray science and positioned

SLAC as a world-leading center for FEL science. In order to

maintain pre-eminence, SLAC and DOE are constructing an

upgrade to the facility (LCLS-II) that will expand the accelera-

tor’s range of X-ray energies, significantly enhancing SLAC’s

scientific capability and capacity.

SSRL provides X-ray beams and advanced instrumentation

for research ranging from energy storage to drug discovery. A

large number of faculty groups from four of Stanford’s schools

pursue research enabled by SSRL. Stanford is contributing

funding towards a new Macromolecular Crystallography

beamline, to be completed in 2017, which will enable struc-

tural biology research in areas of biomedical, biological, and

bioenergy sciences. SSRL is also building an energy materials



Expenses


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


Operating Results 1.6 (1.0) (1.0)

Transfers From (to) Endowment &

Other Assets 0.0 0.0 0.0


Surplus / (Deficit) 1.6 (1.0) (1.0)



DOE Research Funds

57%

University Funds1%DOE

Construction Funds42%


51ACADEMIC UNITS

beamline that will further leverage materials research pro-

grams at Stanford.

Another SLAC user facility, Facility for Advanced Accelerator

Experimental Tests (FACET), completed its planned run

in 2016/17 and has been successful with breakthrough

science, especially in the area of plasma wakefield accel-

eration of electrons and positrons. FACET II, an upgrade

to FACET, received DOE approval in December 2015.

While the project is adversely affected by the 2016/17 con-

tinuing resolution, the lab has a mitigation strategy to keep

it moving forward.

Science ProgramsSLAC recognizes that providing world-class research facilities

is not enough. To ensure that SLAC carries out the best sci-

ence, the laboratory must continually take a leadership role

in identifying and pursuing new science opportunities. SLAC’s

core scientific competencies recognized by the DOE include

accelerator science and technology, advanced instrumenta-

tion, chemical and molecular science, condensed matter

physics and materials science, high energy density science,

and particle physics. SLAC’s science directorate pursues

part of its research through joint Stanford-SLAC institutes,

including the Photon Ultrafast Laser Science and Engineering

Center (PULSE), the Stanford Institute for Materials and

Energy Sciences (SIMES), and the SUNCAT Center for

Sustainable Energy through Catalysis. The PULSE Ultrafast

Electron Diffraction “electron camera” captures some of

nature’s speediest processes, revealing trillionth-of-a-second

motions of electrons and atomic nuclei. SIMES is develop-

ing next-generation battery technologies, and SUNCAT is

expanding carbon dioxide fuel research with a five-year,

$7.5 million grant from the DOE’s Joint Center for Artificial

Photosynthesis. The chemical sciences division is developing

new programs in core-level X-ray spectroscopy, enabled by

the capabilities of LCLS-II. SLAC also partners with Stanford

to develop the following capabilities:

n Macromolecular Structure Knowledge Center—Seed

funding from Chemistry, Engineering and Medicine for

Human Health and the School of Engineering (SoE) will

enable SLAC to provide scientific expertise and state-of-

the-art equipment for the production, purification, and

characterization of biological macromolecules.

n Cryo-electron microscopy—Stanford and SLAC are hir-

ing a joint faculty member to build what will become a

forefront capability in integrated structural biology and

imaging.

n Computer science division at SLAC—Seed funding from

SLAC, SoE, and the Dean of Research will fund faculty from

Stanford’s Computer Science Department to support the

extreme data management needs at SLAC.

n System prototyping facility—SLAC and SoE capabilities

will be joined to support electronic subsystem design for

cutting-edge research across campus.

CONSOLIDATED BUDGET OVERVIEWThe 2017/18 SLAC consolidated budget projects expenses

of $564.6 million, which includes $322.6 million for direct

research, $236.8 million for major capital projects, and $5.2

million for Stanford-related activities.

Consolidated expenses are expected to decrease 13.1% in

2017/18 from the $649.7 million projected for 2016/17 due

to the construction spend profile of LCLS-II, which begins to

taper down in 2017/18. The direct research programs, how-

ever, reflect growth over the 2016/17 planned level consistent

with SLAC’s strategy of 2% growth by adding new sponsors

to the traditional funding sources.

Included in the DOE contract is a $4.6 million performance

fee paid to the university for operations. In return, the uni-

versity makes available to SLAC $1.9 million of general funds

and $1.0 million of director discretionary funds.

CAPITAL PLANSLAC’s long-range development plan supports future scien-

tific program direction by consolidating research activities,

upgrading infrastructure, renovating facilities, and demolish-

ing substandard structures. This plan serves as a working

document and resource guide beyond the immediate future

of planned capital projects.

SLAC has two major federally funded construction projects

ongoing. The $1,045 million LCLS-II project builds on the

success of LCLS to ensure that the United States maintains a

world-leading capability for advanced research in energy, ma-

terials, biology, and chemistry. The $168 million, 3.2-gigapixel

Large Synoptic Survey Telescope (LSST) camera is the largest

digital camera ever built for astronomy. It is currently under

construction in Chile. The LSST will survey the entire visible

southern sky every few days for a decade, providing a public

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.

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)

53ADMINISTRATIVE & AUXILIARY UNITS

CHAPTER 3

ADMINISTRATIVE & AUXILIARY UNITS

This chapter focuses on initiatives and priorities in the administrative and auxiliary units of

the university.

Development & Alumni 9%

Admission & Financial Aid

12%

Business Affairs 15%

Other1 7%

Land, Buildings & Real Estate 20%

Athletics 8%

2017/18 Consolidated Expenses by Administrative & Auxiliary Units

Academic$4,806.8 million

Administrative & Major Auxiliary Units

$1,599.2 million

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

Residential & Dining 17%

President & Provost 7%

Student Affairs 5%

54 ADMINISTRATIVE & AUXILIARY UNITS

BUSINESS AFFAIRS

The Business Affairs organization provides administrative

infrastructure, systems, services, and support for the ben-

efit of the university community. Business Affairs’ vision

is, “Together we will make administration seamless and

efficient to enable and support teaching, learning and re-

search.” Business Affairs units include Financial Management

Services (Controller’s Office, Treasurer’s Office, Purchasing

& Payments); University IT (IT Services, Administrative

Systems, Information Security Office, UIT Shared Services);

Office of Research Administration; Audit, Compliance, Risk

and Privacy; and Business Development.

The 2017/18 consolidated budget for Business Affairs shows

revenues and operating transfers of $235.9 million and ex-

penses of $236.7 million. After an additional $300,000 in

transfers to assets, total fund balances are projected to be

approximately $34 million at the end of 2017/18, a use of

$1.2 million. Reserves will fund one-time strategic priorities

in operations and enterprise IT systems projects.

Total expenses are projected to be 3% higher than in 2016/17.

Business Affairs is projecting FTE growth of 18 (2%) and

is absorbing $1.0 million of gift-processing activity previ-

ously handled by the Office of Development and Stanford

Management Company. Increased annual network and

academic systems support costs are also projected. These

increases are offset by decreases of $1.1 million in service

center and IT systems project expenses due to completion

of one-time projects.

Revenues and transfers will increase by $7.0 million. The

increase is primarily from general funds and revenue growth

of 1%, offset by transfers to other units. Of the general funds

increase, $4.8 million is growth in base, while $1.8 million

relates to a modification of sources from internal revenue and

transfers to general funds. The remainder is from increasing

networking and IT systems expenses.

Each year Business Affairs focuses on a specific group of

principal initiatives, many of which span multiple years, with

annual milestones and deliverables. These initiatives are

focused on continuous improvement in delivering excellent

client service, making administrative processes and systems

more efficient, and mitigating enterprise risk.

The top principal Business Affairs initiatives include the

following:

n Information Security—Provide security solutions such

that Stanford has no incidents attributable to a lack of

best practices. This is a multiyear initiative with two major

initiatives focused on protecting high-risk data in 2017/18:

(1) implementing minimum security standards for all

university-managed servers and applications handling

high-risk data, and (2) strengthening initial authentica-

tion to third-party services, such as payroll and benefit

partners.

n Talent Development—In support of growing Business

Affairs internal talent, continue a multiyear program for

staff development that includes exposure, experience,

and education. Business Affairs is implementing a pilot

program in which three employees will participate in

yearlong rotational assignments.

n Integrated Identity and Access Management Program—

Implement a modern, scalable identity and access man-

agement solution that will be replicated in the cloud and

will replace the existing system.

n Evolve and Consolidate Financial Planning and

Reporting—Consolidate and update tools for financial

management reporting, moving financial reporting content

to OBIEE (analysis and Business Intelligence Publisher).

This multiyear program is nearing completion and is ad-

dressing campus hunger for comprehensive and reliable

financial reporting capability.

n Communication/Collaboration—Partner with other

units and the Chief Information Officer Council to evolve

Stanford’s integrated collaboration/communication solu-

tion to include voice, video, and instant messaging in addi-

tion to email and calendar, and to support robust solutions

among the main campus, Redwood City, and other remote

sites.

n Purchase to Pay—Conduct a multiyear, multifocused

effort to improve in the spend management and purchas-

ing marketplace areas. Expanding from a pilot to regular

operations, the office is focusing on establishing a collab-

orative approach to produce higher and more sustainable

levels of adoption. It has established a university-wide

spend advisory board, which for the first time includes

representation from SLAC and the hospitals. Procurement

is also introducing Amazon as the university’s purchasing

marketplace, with built-in compliance that is simple and

easy to use and requires little training.

OFFICE OF DEVELOPMENT

The Office of Development (OOD) projects revenues and

transfers of $91.6 million and total expenses of $92.2 mil-

lion in 2017/18, resulting in the planned use of $712,000

in reserves. OOD fund balances are anticipated to decline

due to increased short-term investments in Earth, Energy &

Environmental Sciences; Engineering; and other development

programs. OOD’s main funding sources remain general funds

and support from the School of Medicine and Stanford Health

Care for Medical Center development costs.

Total expenses for 2017/18 are 9.1% higher than the 2016/17

year-end projection. Much of this growth results from a com-

prehensive replacement of OOD’s IT infrastructure.

Both the 2016/17 year-end projection and the 2017/18 budget

have increased over previously reported figures because of

the transition of a department—the Office of Special Events

and Protocol—from the Office of Public Affairs to the Office

of Development.

In 2015/16, philanthropic support for Stanford University

reached $951.2 million, a figure that includes both of the

university’s affiliated hospitals. A decline from the prior

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

alumni and friends to the breadth of disciplines and activities

at Stanford.

Looking ahead to 2017/18, OOD will remain actively engaged

with existing and prospective donors to support key university

and hospital priorities, including programs in the neurosci-

ences and Chemistry, Engineering and Medicine for Human

Health; the Accelerator for Collaborative Engineering; ongo-

ing postcampaign priorities in Stanford Medicine; and the

Stanford Institute for Innovation in Developing Economies

(Seed). OOD will invest general funds and reserves in critical

areas consistent with its strategic goals:

n Create an environment that attracts top candidates

and provides employees with opportunities for growth

and development—OOD’s talent manager has created a

pipeline of internal and external candidates for fundraising

roles, and he will continue efforts to grow that pipeline.

OOD will also remain focused on creating opportunities

for advancement within the organization and across the

university for all employees. OOD must ensure that top

staff are retained and nurtured during the many phases of

their careers.

n Support the university’s long-range planning process—

With all units focused on the future, development staff are

being thoughtful about how best to organize and ready

OOD for what comes after the process is complete.

n Engage volunteer leaders—OOD has launched a pilot

called LEAD (Lifelong Engagement and Advocacy for

Development), a program aimed at identifying and inspir-

ing future leadership volunteers, and will continue to focus

on creatively involving volunteers in university life.

n Develop systems and business processes that maximize

Stanford’s ability to engage donors and prospects in

timely, meaningful, and personalized ways—OOD is

actively engaged with the Stanford Alumni Association

to retire shared 20-year-old IT infrastructure and move to

Salesforce and other technologies. The ADAPT (Alumni

and Development Application Transformation) project

launched in July 2015 and will take place over five years.

It covers all aspects of OOD’s system needs, including

constituent management, communications, events, mar-

keting automation, gift processing, reporting and business

intelligence, and stewardship.

GENERAL COUNSEL AND PUBLIC SAFETY

Office of General CounselThe Office of General Counsel (OGC) projects a balanced

budget of $18.9 million in 2017/18. Of this, $11.4 million is a

direct pass-through for health care legal services, $2.6 million

is from university units that reimburse OGC for legal services

on an annual basis, and approximately $5 million is general

funds, including a carryforward of $300,000 from 2016/17.

Not included in these numbers is about $9 million for out-

side counsel fees that will be reimbursed by other university

schools and departments, for a total of about $28 million in

legal spending. The 2017/18 budget reflects a 3% increase

from the 2016/17 year-end projections.

Client demand for legal services has increased and continues

to increase the volume of work that is required. Based on

client demand, OGC added a new FTE (real estate attorney)

in 2016/17, and it expects to hire an additional attorney in

2017/18 to meet the growing demand for legal services in

other areas. OGC is also reviewing salary levels for lawyers,

as they appear to be below market.


OGC will continue to focus on its main strategic priorities: (1)

proactively trying to constrain costs by increasing efficiency;

(2) identifying risk to minimize it; (3) conducting preventative

counseling and more comprehensive client training; and (4)

resolving disputes early. OGC will continue its effort to main-

tain an optimal balance between inside and outside counsel

to provide cost-effective, high-quality service.

Public Safety The Department of Public Safety (DPS) budget projects a

surplus of $78,000 for 2017/18, assuming anticipated salary

savings from vacant positions and projected revenue from

event security operations. Consolidated revenues and trans-

fers of $23.5 million are offset by budgeted expenses of $23.4

million. The fire and emergency communication services con-

tract constitutes approximately 32% of the total DPS budget

at $7.5 million for 2017/18.

The contract with the City of Palo Alto for fire prevention

services expired in October 2015. Stanford and the city have

agreed to a short-term extension that allows the Palo Alto

Fire Department to continue to serve Stanford while the par-

ties continue working towards finalizing a new agreement for

fire services. The fire contract budget projection for 2017/18

of $7.5 million is based on the fixed-fee model described in

the current extension to the contract. The actual 2017/18

expenses to Stanford could change based on the outcome of

current labor negotiations.

Programmatic changes for DPS in 2017/18 include increasing

the numbers of sworn and nonsworn personnel to support

evolving security needs on campus; implementing a new

fire services contract; improving the functionality of the uni-

versity’s AlertSU emergency communications system; and

implementing a county-mandated radio system to enhance

interagency communication. Moving forward with the design

phase of the new Public Safety facility will also be an area of

focus for 2017/18.

LAND, BUILDINGS AND REAL ESTATE

Land, Buildings and Real Estate (LBRE) is responsible for

the university’s Capital Plan; commercial real estate on

endowed lands; campus utilities, grounds, and parking and

transportation; and stewardship for 8,180 acres of campus

and contiguous land, as well as construction and operational

management of the Stanford Redwood City campus. LBRE

also manages operations and maintenance (O&M) for over

320 academic buildings and 6 parking structures totaling over

10 million square feet (sf).

During 2017/18, LBRE estimates revenues and transfers of

$327.6 million and expenses of $322.1 million. After account-

ing for net transfers to plant of $6.2 million for capital renewal

projects, LBRE forecasts a $718,000 deficit, which will be

covered by beginning reserve balances.

Total expenses in 2017/18 are expected to increase by $5.9

million, or 1.9%, over 2016/17 as a result of:

n An increase of $2.9 million in external energy and water

utility expenses, offset by a decrease of $911,000 in debt

service;

n Incremental O&M costs of $1.6 million for new campus

structures (Bass Biology, the Kingscote Renovation,

Education Farm, Athletic Academic Advising and Rowing,

and Environmental Health & Safety Expansion); and

n General increases in compensation and materials.

In addition to the responsibilities listed above, LBRE leads

numerous initiatives that typically span years from concept

to completion. These initiatives are described in detail in

Chapter 4, Capital Plan and Capital Budget, and include:

n Stanford Redwood City

n Escondido Village Graduate Residences

n General Use Permit (GUP)

n Growth and transportation

n Parking and circulation

Additionally, LBRE is currently implementing the following

operational initiatives: Facilities 2020, the Integrated Controls

and Analytic Program (iCAP), and the Electricity Purchase

Strategy.

Facilities 2020

Facilities 2020, an initiative that moves facilities operations

from a “central shops” organization to a hybrid “district” or-

ganization, will return 55,000 GUP sf from LBRE to academic

(or other) use as determined by the university. Additionally,

it will save significant travel hours for maintenance techni-

cians and, as a result, will reduce both the workforce and

dependence on vehicles. Four district work centers (DWCs)

will be constructed in strategic locations on campus to al-

low the technicians to be closer to the buildings they serve,

therefore enhancing customer service. Three DWCs will be

located on or near Memorial Way, the Roth Garage, and the


Hansen Experimental Physics Lab; the fourth will utilize part

of the existing bookstore. A renovated Bonair hub will house

functions that cannot be decentralized. Occupancy of the

DWCs is planned for October 2018. Once fully implemented,

Facilities 2020 is projected to return $1.6 million annually to

general funds ($2.2 million savings net of $611,000 in debt

service for construction of the DWCs).

Integrated Controls and Analytic Program

iCAP will modernize the control systems that regulate basic

processes in buildings: heating and cooling, ventilation, light-

ing, and more. Modern computer-based controls offer the

potential to integrate all of these processes under one system.

A master building controls upgrade plan targets the largest

105 buildings on campus over a 10-year period, aligning the

work with existing facilities renewal, energy efficiency, and

maintenance programs, thereby avoiding the need for incre-

mental funding.

iCAP costs include the purchase of building controls and

analytic software. The total program is estimated to cost $50

million over 10 years. Energy and O&M savings are projected

to be $8 million per year (once all phases are implemented),

resulting in a simple payback of 6.25 years.

Electricity Purchase Strategy

In 2015, Stanford executed long-term power purchase agree-

ments for new on- and off-site solar electricity generation

equivalent to 56% of total campus electricity use (53% off-

site and 3% on-site). Off-site solar generation commenced

December 22, 2016, with on-campus generation following on

March 31, 2017. Power generated from the rooftop facilities

is consumed directly by university buildings. However, in

accordance with state electrical grid operating procedures,

power from the off-campus solar facility is sold into the grid

at the point of generation in Southern California, and energy

is purchased at the point it is taken off the grid in Northern

California.

Since August 2016, the university has purchased 100% of its

electricity from the day-ahead market. However, it continu-

ously reviews other options, which may include fixed-price

block agreements, additional generation from renewable

sources, and/or a combination of all of the above. Purchase

option considerations include cost, price stabilization,

sustainability goals, and regulatory compliance.

To more effectively manage Stanford’s Direct Access elec-

tricity procurement program, the university established the

wholly owned subsidiary Stanford University Power LLC. All

electricity procurement transactions have been or will soon

be transferred to the LLC.

OFFICES OF THE PRESIDENT AND PROVOST

The budget of the Offices of the President & Provost (PPO)

for 2017/18 will consist of revenues and operating transfers of

$119.7 million; expenses of $114.5 million; and transfers from

assets of $650,000, resulting in a net change in fund bal-

ances of $5.9 million. These figures represent changes over

the 2016/17 year-end projections of 5.5% in revenues and

operating transfers, 5.4% in expenses, and 20.5% in transfers

from assets (to support the housing loan programs within the

Faculty/Staff Housing Office). Most of the increase in fund

balances results from unspent endowment payout supporting

the new Knight-Hennessy Scholars program.

Beginning in fall 2018, the Knight-Hennessy Scholars pro-

gram, a new graduate-level scholarship, will select up to 100

high-achieving students with demonstrated leadership and

civic commitment who will receive full funding to pursue

a graduate education at Stanford. In addition to their core

Stanford degree programs, these scholars will have additional

opportunities for leadership training, mentorship, and cohort-

based experiential learning across multiple disciplines.

The PPO comprises a collection of administrative units. The

unit has changed in size and composition as groups have

been moved administratively around the university. In ad-

dition to the operations of the President’s Office and the

Provost’s Office, the PPO includes the University Budget

Office, the Academic Secretary’s Office, the Ombuds Office,

Continuing Studies, the Office for Religious Life, the Office of

Institutional Equity and Access, and several other small units

that support university-wide services.

In 2016/17, five offices were brought together under the um-

brella of the Office of Institutional Equity and Access: Title

IX, Sexual Assault & Relationship Abuse Education, Sexual

Harassment Policy Office, Diversity & Access, and the Office

of the University Ombuds. The senior associate vice provost

is continuing to assess programmatic needs and anticipates

there may be some reorganization of office responsibilities to

best serve the Stanford community in achieving the collective


mission of preventing discrimination, harassment, and sexual

violence, and responding to and redressing allegations of

misconduct. Several new educational programs have been

developed specific to the needs of undergraduate and gradu-

ate students.

Some PPO units, the Office of Religious Life in particular, are

working to develop plans for programs and staffing levels in

the context of slower growth in endowment income.

The vice provost for faculty development and diversity is

planning several initiatives that will be funded with reserves.

Programs such as Writer’s Retreat and workshops on man-

agement and mentoring have been well received. A national,

two-day intensive leadership program and mentoring work-

shop for 40-50 academic women of color was a huge suc-

cess, and similar programs will continue.

The Stanford Distinguished Careers Institute (DCI) offers ac-

complished individuals from all walks of life the opportunity

to come to Stanford for a yearlong residential program of per-

sonal renewal and community engagement. DCI is designed

to enhance and improve the life journey through renewed

purpose, community and network building, and a recalibration

of health and wellness for individuals. As the program enters

its third year of operation, enrollment and program size are

projected to remain constant and revenue flat.

Continuing Studies Programs (CSP) shares the rich educa-

tional resources of the university with neighboring, matricu-

lated, and returning students to nurture a vibrant learning

community, to nourish the life of the mind, and to promote

the pleasures of intellectual exploration and exchange. CSP

continues to record stronger-than-anticipated enrollment

growth; in particular, the high school and visiting under-

graduate student population has grown 4%-5%. In 2017/18,

Summer Sessions (SS) is looking to expand its online course

offerings to complement special programs such as Veteran

Accelerator 2.4 and Horizon Scholars. These programs pro-

vide full scholarship opportunities and tailored programming

for selected students. Developing and maintaining high-

quality online courses allows CSP/SS to continue reaching

new students from an increasingly diverse population.

Finally, the transitions of the president and provost have had

an impact on the immediate operations of the PPO as they

make decisions about staffing levels to meet new initiatives.

OFFICE OF PUBLIC AFFAIRS

The Office of Public Affairs (OPA) projects total revenues

and transfers of $4.3 million and expenses of $4.3 million,

resulting in a balanced budget. Total revenues and transfers

are budgeted to decrease 9% from $4.7 million in 2016/17,

and total expenses are expected to decrease 12% from $4.9

million. Incremental base general funds allocated to OPA

include funding to support its mission. OPA forecasts an end-

ing balance of $634,000, of which approximately $460,000,

or 73%, represents a very modest unrestricted reserve to

support internal and external strategic programs.

In consultation with university leadership, OPA’s Government

and Community Relations Office (GCR) leads Stanford’s

engagement with federal, state, and local governments, as

well as fostering Stanford’s relationship with neighboring

communities. GCR promotes the university’s research and

education mission through contact with public officials,

tracking of pertinent legislation and regulatory proposals,

and, when appropriate, lobbying on behalf of the university

on a wide variety of issues ranging from land use policies to

funding for the basic sciences. How Stanford strategically

and thoughtfully uses its land and infrastructure systems to

serve its mission is controlled by several local government

entities, most significantly Santa Clara County and the City

of Palo Alto.

The application for a new General Use Permit from Santa

Clara County will be an area of significant activity in 2017 and

into 2018. Public engagement will be increasing as fiscal year

2017/18 begins, assuming Santa Clara County’s draft environ-

mental impact study is released on the current schedule. The

analysis of key impacts of Stanford’s proposed development

on, e.g., traffic congestion and the need for affordable housing

will generate significant community discussion. The negotia-

tion of mitigation measures to offset potential impacts will be

part of the discussion.

The current federal government policy environment requires

significantly increased effort and resources to defend and ad-

vance the university’s research and education mission. There

will be opportunities to advance some priorities, including

regulatory reform at research funding agencies and the

Department of Education, as well as Bay Area transportation

upgrades as a part of transportation infrastructure funding


legislation. However, OPA expects to confront the most

challenging policy environment it has faced in many years

regarding research funding, college costs, endowments and

tax reform, the Affordable Care Act, and immigration, among

other areas.

Other key topics of importance to the university include

admission and financial aid policies, student services and

rights, campus sexual assault and campus safety, student

athlete rights, privacy protection of research involving hu-

man samples, treatment of animals used in research, state

research funding, land use/zoning policies, affordable hous-

ing, and resources for nonprofit organizations.

STANFORD ALUMNI ASSOCIATION

The Stanford Alumni Association (SAA) projects $49.3 mil-

lion in gross revenue and operating transfers and $49.6 mil-

lion in total expenses in 2017/18, resulting in a reduction of

$317,000 in its consolidated fund balance. Reserve balances

are projected to stand at $2.7 million at the end of 2017/18.

Business and program revenues, coupled with income from

lifetime membership, building, and other endowment fund

pay-outs, will generate over 75% of SAA’s gross revenue.

The remaining revenue will come from base and one-time

general funds and presidential funds. Gross revenue and

gross expense will increase 5% from 2016/17 projected lev-

els. This increase reflects the inclusion of special one-time

programming for a multicity president’s welcome tour funded

by presidential funds as well as investments in graduate-only

student and alumni programming.

In 2015/16 and 2016/17, SAA self-funded a pilot program

to tailor a set of programs, communications, and content to

meet the needs of graduate-only constituents. The goal was

to increase the connection to Stanford and to other graduate-

only students and alumni, a segment which is traditionally

underrepresented in SAA activities. These efforts resulted

in engagement growth of 11% for graduate-only alumni over

this period, as compared to 7% growth in undergraduate

and dual-degree alumni engagement. These early successes

have only begun to scratch the surface of the potential to

engage this growing segment of the alumni population. The

incremental base and one-time general funds received for

2017/18 to enhance and develop new graduate-only student

and alumni offerings will allow SAA to continue making head-

way with this segment. As it did throughout the pilot, SAA

will continue to collaborate with the major graduate student

organizations across campus.

New general funds in 2017/18 will also allow SAA to cease

voluntary-contribution fundraising efforts that have his-

torically supported Stanford magazine. While solicitations

to readers of the magazine have been an effective means of

garnering financial support for it, there has been increasing

pushback from alumni to these solicitations and a growing

risk of damaging the tremendous goodwill that has been built

through Stanford magazine.

SAA launched a multicity welcome tour for President Marc

Tessier-Lavigne in 2016/17. This program gives alumni an op-

portunity to hear from and meet the new Stanford president.

The welcome tour will continue through 2017/18, supported

by presidential funds.

The multiyear and critically important SAA/Office of

Development (OOD) technology transition project (ADAPT)

continues to be a top priority for SAA. The migration of the

shared SAA/OOD constituent database to a Salesforce plat-

form is under way and paves the path for both organizations

to better serve and meet the digital needs and expectations

of alumni, donors, and campus partners. From targeted and

dynamic communications to digital content on topics and

platforms relevant to alumni, this technology overhaul will

allow SAA to connect with and engage an increasingly diverse

alumni body.

Global economic and political instability will continue to pres-

ent a challenge to SAA businesses in 2017/18. More specifi-

cally, SAA’s Travel/Study program, a key internal generator of

funding for SAA-subsidized program offerings, has become

subject to increased volatility. In response, SAA remains

focused on opportunities for revenue enhancement and cost

savings across its portfolio.

SAA’s mission is to reach, serve, and engage all alumni and

students; to foster a lifelong intellectual and emotional con-

nection between the university and its graduates; and to

provide the university with goodwill and support. The stra-

tegic investments discussed above are expected to deliver a

significant return to the university in heightened connection,

increased engagement, and a stronger community of alumni

and students.


STUDENT AFFAIRS

The mission of Student Affairs is to educate students to make

meaningful contributions as citizens of a complex world.

Student Affairs offers a range of services and programs de-

signed to enhance the academic enterprise and to empower

students to embody community standards of respect, resil-

ience, individual leadership, and collective responsibility. The

goal is to support, sustain, and engage students in programs

that cultivate good habits of mind, ethical behavior, empathy,

and intellectual curiosity.

Student Affairs comprises seven units encompassing more

than 25 offices that provide undergraduate and gradu-

ate students with a range of services, opportunities, and

resources. The seven units, led by associate vice provosts,

are Administration; BEAM (Bridging Education, Ambition &

Meaningful Work), Stanford Career Education; Community

Engagement and Diversity (CED); Dean of Students;

Residential Education; University Registrar and Student and

Academic Services; and Vaden Health Center.

For 2017/18, Student Affairs projects total revenues and

operating transfers of $76.0 million and expenses of $77.3

million, resulting in a planned operating deficit of $1.2 mil-

lion. Primary drivers of the deficit include expenses related

to expansion of the Haas Center’s Cardinal Service initiative

and rising costs of laboratory and other health care expenses

at Vaden Health Center. The deficit will be supported by

drawdowns against expendable gifts in the case of the Haas

Center and by accumulated reserves in the case of Vaden. An

increase in revenue totaling $3.2 million is due in part to an

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

balances of $26.6 million are expected at year-end.

Projected growth in funding is modest and includes increased

levels of restricted income to support the Haas Center’s

Cardinal Service initiative and the First-Generation and Low-

Income Program’s Opportunity Fund. Funding is expected

to continue for the Office of Community Standards, in part-

nership with the Title IX Office, to address issues related

to sexual assault, relationship violence, and other conduct

prohibited by Title IX. These efforts include a pilot program

for investigating and adjudicating alleged incidents of sexual

misconduct. Funding also is expected to continue for the

Confidential Support Team, which has been supported with

soft funds and is jointly sponsored by the School of Medicine

and Vaden, to provide a coordinated response to students

who may have experienced sexual misconduct.

A combination of one-time general funds and base funding

allocations was granted for 2017/18 to support the univer-

sity’s commitment to inclusivity—specifically CED’s work

focused on diversity education for all students and support

for first-generation and low-income students. Three-year

bridge funding has been extended to the Markaz: Resource

Center, which has been critical in working with students

affected by executive orders issued by the federal govern-

ment regarding travel and immigration. In addition, Bechtel

International Center has received emergency funding to

support increased demands for document processing and

outreach, also a byproduct of federal executive orders. One-

time, one-year funding for 2017/18 will support a student

leadership development program designed by Student

Activities and Leadership, expansion of Cardinal Quarter

Fellowships focused on communities served by CED, and

resources in BEAM to help students maximize connections

and opportunities by leveraging digital environments. One-

time funding continues to support the Office of Alcohol Policy

and Education’s alcohol education programs and alcohol-free

activities.

Greg Boardman, vice provost for student affairs, who has

led Student Affairs for more than a decade, will retire at the

end of 2016/17, marking a leadership change for the division.

Student Affairs’ strategic planning initiative, entitled “The

Future of Student Affairs,” will continue under new leadership

and in tandem with Stanford’s university-wide long-range

planning process.

UNIVERSITY COMMUNICATIONS

The Office of University Communications assists Stanford

to influence and inspire a changing world by broadly sharing

discoveries, expertise, and ideas in compelling, sophisticated

ways with millions of people around the world. It serves as

Stanford’s primary, trusted source of information about the

university, its expert resource for professional communica-

tions advice and support, and its leader in communications

innovations, standards, and training.

University Communications oversees all central internal and

external communication programs for the university, includ-

ing executive communications; institutional media relations;

primary Web, mobile, digital, and social platforms; visual


identity and brand management crisis response; the Stanford

News Service; Stanford Report; and Stanford Video. The unit

manages university-wide communications policies, including

those on filming and photography, Web accessibility, social

media, visual identity, and use of the Stanford name. It also

manages special programs such as TEDx Stanford, a pilot

with SiriusXM radio, and shares management oversight of

Stanford Web Services with University IT. It also provides

leadership, tools, guidelines, training, and resources to a

network of more than 150 communications professionals in

campus units and the seven schools.

The Office of University Communications projects total

revenues and transfers of $8.3 million and expenses of $8.3

million, resulting in a balanced budget. Total revenues and

transfers are budgeted to increase 12% from $7.4 million in

2016/17, and total expenses are expected to increase 11%

from $7.5 million. Incremental base general funds allocated

include funding to support a broad spectrum of services

provided by University Communications to the campus com-

munity, as well as resources to address some of University

Communications’ priorities and initiatives for 2017/18,

such as:

n Providing communications leadership to the campus

at large and support for major campus initiatives such

as long-range planning, student support services, the

General Use Permit application process, the Redwood City

campus, the Knight-Hennessy Scholars, graduate student

housing, and sustainability.

n Conveying the need for ongoing federal support for re-

search and the value of innovation to economic growth.

n Highlighting the strength and importance of the humani-

ties, and of student exposure to a broad, liberal education.

n Launching a redesign of the Stanford.edu home page,

Stanford Report, and Stanford Mobile in mobile-friendly,

responsive formats.

n Refining content delivery to provide more timely infor-

mation about Stanford and compelling stories across all

platforms.

n Identifying platforms to better meet the unique communi-

cations needs of students and faculty.

n Creating a more robust brand and identity toolkit to

make it easier for the campus community to incorporate

Stanford into communications and events.

n Planning for emergency and crisis communications by

strengthening emergency planning and preparation across

University Communications, including additional training,

role playing, and real-time response exercises.

University Communications forecasts a modest ending bal-

ance of $119,000, of which approximately $93,000, or 78%,

is restricted to specific projects and endowment-related

expenditures.

UNIVERSITY HUMAN RESOURCES

University Human Resources (UHR) advances Stanford’s

mission of excellence in teaching, learning, and research by

cultivating an environment of high employee engagement,

performance, and productivity while supporting the chang-

ing nature of work to ensure the university’s workforce is

prepared to meet its future needs. UHR delivers programs

and services that foster continuous improvement, stream-

line employee administrative processes, and ensure staff at

Stanford feel valued, supported, and respected. The units

within UHR are talent management and workforce strategy,

employee and labor relations, client services, compensation,

benefits (including the Work Life Office, childcare centers,

and the Faculty Staff Help Center), and HR communications.

UHR’s 2017-19 strategic plan was developed in collaboration

with the Administrative Planning Executive Committee and

the HR community, and in keeping with the results of the staff

survey. Strategic areas of focus include workforce planning,

talent attraction, talent management, employee engagement,

and HR excellence.

The 2017/18 consolidated budget shows revenues and oper-

ating transfers of $14.8 million and expenses of $15.3 million.

The budget plan commits approximately $545,000 of prior

years’ operational savings to supplement revenues and trans-

fers, which will be used to support the initiation of projects

critical to the launch of HR’s strategic plan.

The projected fund balance at the end of 2017/18 is $2.8 mil-

lion, of which approximately two-thirds are in the operating

budget and the remainder designated for childcare centers.

These funds will maintain UHR’s ability to address unforeseen

emergencies, self-fund emerging same-year initiatives, man-

age shortfalls due to fringe volatility, meet the university’s

evolving priorities, and, with designated funds, continue to

invest in priorities for Stanford’s childcare centers, including


closure of the Pepper Tree and Rainbow centers, expan-

sion and relocation of the Children’s Center of the Stanford

Community, and opening of the new childcare center at

Stanford Redwood City.

UHR will continue to focus on the strategic priorities estab-

lished in its three-year plan:

n Workforce planning—Piloting a workforce planning pro-

cess to identify and plan for the workforce needed, then

optimize HR and related plans (for better decision making

and resource allocation). Pilots have been initiated in the

School of Engineering and Business Affairs.

n Talent attraction—Evaluating results of an end-to-end

recruiting process assessment to develop plans and

programs to enhance talent attraction. Preliminary recom-

mendations upon which enhancements will be based are

to improve tools and resources, develop shared candidate

pools, and enhance internal movement of staff.

n Talent management—Leading the change management

process for the relocation of 2,700 employees to the new

Stanford Redwood City campus in 2019. While the early

emphasis is on the organizations and employees who will

move, the change management initiatives also address

the changes likely for faculty and staff who will remain on

the original Stanford campus. In addition, UHR is in the

early stages of adding manager development courses to

augment its current programs.

n Employee engagement—UHR continues to advise and

support staff survey action planning, implementation,

and communication. UHR is also in the early stages of

assessing options to enhance benefits offerings and/

or programs as well as to improve staff recognition and

rewards programs.

n HR excellence—UHR is committed to continuous im-

provement of its programs. In 2017/18, it will expand its

HR shared-services model more completely to increase ef-

ficiency while focusing on the quality of how it delivers its

services. UHR is also reviewing HR policies and processes

to ensure clarity, consistency, and any changes needed to

support the move to the Stanford Redwood City campus.


MAJOR AUXILIARY UNITS

The 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)

include 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 fiscal outlook for the Department of Athletics, PE, and

Recreation (DAPER) appears more favorable in 2017/18 than

it has in past years. DAPER projects a surplus of approxi-

mately $1.5 million in 2017/18 based on projected revenues

of $135.9 million and expenses of $134.4 million. Significant

changes in revenues are anticipated in key areas, creating

an overall expected increase of 2.9% over the projection for

2016/17. Overall expenses are expected to grow by 4.0%

from the projection for 2016/17. DAPER’s consolidated

budget consists of three distinct sets of activities: auxiliary

operations ($102.8 million), financial aid ($26.1 million), and

designated activities ($7.0 million).

Auxiliary Operations

Auxiliary operations are made up of two primary areas, inter-

collegiate activities and ancillary activities, with net income

from the latter helping to support the former.

Intercollegiate Activities

Revenues and transfers from intercollegiate activities in

2017/18 are projected to be $78.4 million. Projected ex-

penses are $79.6 million. The $1.2 million deficit is funded

through net income from ancillary operations, specifically the

golf course and camp operations. Intercollegiate revenues

are projected to be up approximately 3.9% in 2017/18. This

is due to the combination of a significant increase (approxi-

mately $2.0 million) in revenue from football ticket sales be-

cause of a more favorable home schedule, moderate increas-

es in revenue from broadcasting and restricted gifts, and a

moderate decrease in revenue from the NCAA/Pac-12 due to

the assumption that only one Pac-12 team will play in a major

bowl game. Expenses related to intercollegiate activities are

expected to increase by 4.3%, most significantly in two key

areas. Compensation expenses are increasing due to con-

tractual obligations and a generous salary program planned

to match the overall university program. Additionally, facili-

ties expenses are increasing as DAPER continues to manage

significant deferred-maintenance needs and incorporate

operating expenses for new facilities.

Ancillary Activities

Revenues and transfers from ancillary activities in 2017/18

are projected to be $24.4 million. These revenues comprise

general funds (primarily to support the PE, Recreation, and

Wellness area of the department); a contribution from the

university benefits pool (to support facilities open to all stu-

dents, faculty, and staff); and revenues from the golf course,

the equestrian center, the Stanford Campus Recreation

Association, and camp operations. Expenses related to

these activities are projected to be $21.8 million in 2017/18.

The golf course and camp operations produce a surplus of

approximately $2.6 million that supports the intercollegiate

side of DAPER’s operations. All areas of ancillary activities

are projected to have only inflationary growth in revenues and

expenses over 2016/17 projections.

Financial Aid

DAPER’s financial aid endowment continues to be a signifi-

cant asset to the department. However, financial aid expens-

es will continue to exceed endowment payouts in 2017/18,

and DAPER projects needing a transfer of approximately

$2.9 million from operating revenues to balance the financial


aid budget. Projected revenues (including this transfer) are

$26.1 million, and expenses are $26.0 million. This budget

provides approximately 340 scholarships that benefit over

500 student-athletes. This compares to projected 2016/17

revenues and expenses of $25.1 million. The increase in

expenses is due primarily to general growth in tuition, room,

and board rates.

Designated Activities

DAPER’s designated activities consist primarily of camps,

which are mainly pass-through operations and not actively

managed by the department. The remaining activities gener-

ate revenues that are transferred to support auxiliary opera-

tions. Significant changes are not expected in any designated

activities in 2017/18. In total, revenues and expenses from

designated activities are projected to be $7.0 million in

2017/18, compared to a projected $6.9 million in 2016/17.

RESIDENTIAL & DINING ENTERPRISES

Residential & Dining Enterprises (R&DE) is a university aux-

iliary generating revenues primarily through room and board,

conferences, cafés, catering, a guest house, concessions, and

other enterprises. R&DE houses over 13,000 undergradu-

ate and graduate students and their dependents and serves

approximately 6.5 million meals annually, while providing

stewardship for 5 million square feet of physical plant. R&DE

supports the university’s academic mission by providing high-

quality services to students and the Stanford community in a

sustainable and fiscally responsible manner. R&DE ensures

critical facility needs for life safety and code compliance are

met while maintaining safe, comfortable, and contemporary

living and dining spaces.

The 2017/18 budget plan projects a break-even auxiliary

budget with total revenues and net transfers of $269.1 mil-

lion to offset related expenses. The auxiliary budget plan

also includes a planned use of $2.0 million of reserves for

maintenance and capital projects.

The 2017/18 combined undergraduate room and board rate

increase is 3.5% (4.4% for room and 2.2% for board), while

the graduate housing room rent rate increase is 4.75%.

Overall room and board revenues are projected to increase

by $6.5 million. R&DE total auxiliary revenue (excluding

transfers) for 2017/18 is projected to increase by $10.0 million

(4.3%) over the prior-year projection.

R&DE plans to use the projected increases in revenue along

with continued efficiencies in operations to address debt

service on new and renovated facilities, inflationary impacts

on operating costs (including the higher cost of attracting

and retaining labor, elevated utility rates, and the increased

security measures in technology), and planned escalation in

asset renewal.

The 2017/18 budget plan reflects transfers in to fund certain

debt service related to the capital plan and to help maintain

room rental rates at reasonable levels vis-à-vis the market.

The plan also includes revenues, expenses, and additional

offsetting transfers in to provide housing for students at cam-

pus rates in the local community. The plan includes strategic

funding to support residential living and learning; R&DE plans

to transfer out approximately $11.0 million to Residential

Education, Residential Computing, the Graduate Life Office,

and Summer Session, among others.

R&DE continues to make significant investments in its physi-

cal plant. R&DE has developed a long-range capital plan and

a long-range planned maintenance program to address its

facility renewal needs, with expenditures of $31 million in

2016/17 and $39 million in 2017/18, as well as additional

investments in future years, on a variety of renovation proj-

ects. R&DE has also initiated a plan to address a backlog of

deferred maintenance across residential and dining facilities.

The long-range capital plan and deferred-maintenance back-

log plan both address life-safety system upgrades to meet

current code; interior and exterior restorations; and window,

roof, plumbing, mechanical, and electrical replacements

across the student housing and dining system.

R&DE’s 2017/18 capital project plan will mainly focus on me-

chanical, electrical, plumbing, infrastructure, and hardscape

repairs and improvements in numerous locations; life-safety

and restroom upgrades in certain residential facilities; and

several renovations to resident fellow apartments.

Stanford is in the design stage of constructing additional

graduate housing in Escondido Village. This new housing

will include approximately 2,400 new bed spaces, replacing

approximately 400 that are being demolished, for a net in-

crease of 2,020 bed spaces. The R&DE 2017/18 budget plan

reflects the impact of the reduction of bed spaces during the

demolition and construction period.


R&DE operates in a dynamic and changing environment;

therefore, it is essential to plan for uncertainties. This is

done by constantly pursuing excellence, diversifying revenue

sources, managing costs, mitigating risk, increasing internal

controls, driving business results, and maintaining appropri-

ate reserves.

STANFORD UNIVERSITY PRESS

The Stanford University Press consolidated budget for

2017/18 projects revenue and expenses of $7.6 million, which

includes $2.3 million in university subsidies.

The growth in ebook sales across the publishing marketplace

over the past decade has halted, and indeed retreated, with

print books remaining the dominant format—over 80% of

Press sales are from print. Consolidation within various retail

and wholesale outlets has continued to narrow the distribu-

tion chain, but this also allows the Press to tighten its channel

marketing to be more efficient. The Press expects an output

of 135-40 titles in 2017/18.

A major strategic effort for the Press during 2016/17 was

the evaluation of its North American distributor. The

North American marketplace accounts for close to 90% of

sales, and thus this is the most significant partnership for

the Press. After an extensive request-for-proposals process,

the Press began operations through Ingram Academic on

March 1, 2017. Ingram Academic is now responsible for all

sales and distribution of Press print and digital output. This

shift allows access to a broader national network of sales

representatives, roughly 15 times the size of the previous

network, as well as a state-of-the-art digital infrastructure

that will greatly aid experimentation with new content and

distribution forms. The Press expects a strong financial return

on this move within 12 months.

The program of interactive scholarly works (ISW), funded by

the Andrew W. Mellon Foundation, launched its first project,

Enchanting the Desert, by Nicholas Bauch, in the spring

of 2016 with a Facebook livestreamed event in the David

Rumsey Map Center. The Press now has a strong pipeline of

projects to publish over the remaining two years of the grant.

The ISW team has been working closely with the staff of the

Stanford Libraries on issues of maintenance and archiving,

and these discussions are also positively impacting the pres-

ervation outlook of the book and print program of the Press.

Efforts to increase the profile of the Press in the broader pub-

lic debate, through its trade publishing program and the grow-

ing prominence of its academic author pool have begun to

bear fruit. In 2016/17 there were prominent reviews of Press

titles in the New York Review of Books, Forbes, and Salon,

as well as frequent media appearances on CNN, MSNBC,

and NBC News. This year a Press title was also awarded the

prestigious Prose Award for Social Science.


67CAPITAL PLAN AND CAPITAL BUDGET

CHAPTER 4

CAPITAL PLAN AND CAPITAL BUDGET

At almost $4.3 billion, the Capital Plan reflects the larg-

est capital program in Stanford’s history. It demonstrates

the significant investment Stanford continues to make in

its facilities, driven by the academic priorities for teaching,

research, and related activities, described in Chapter 2, and

the initiatives of the administrative and auxiliary units that

support the academic mission, described in Chapter 3. It

also demonstrates Stanford’s commitment to student and

faculty housing, with 47% of the plan allocated to building,

acquiring, or renovating new and existing housing inventory.

Significant examples of this commitment are the $1.1 billion

Escondido Village (EV) Graduate Residences, which will in-

crease the graduate student housing stock by 2,020 net new

beds, and the $500 million Housing Acquisition Initiative for

faculty and staff.

With the 2016/17 project completions, Stanford will have in-

vested approximately $6 billion in its facilities, infrastructure,

and commercial real estate since 2000. Across the campus,

aging facilities have been replaced with new and renovated

buildings capable of supporting cutting-edge science, en-

gineering, medicine, and the collaborative research among

them, as well as with new facilities for business, athletics, law,

and the arts. Off-campus commercial development projects

provide additional income to the university.

In addition to the many projects currently under way and pre-

viously forecasted, the Capital Plan now includes the follow-

ing new projects: Tenant Improvements at 3145 ($58.8 mil-

lion) and 3172 ($15.8 million) Porter Drive, a new Emergency

Operations Center/Electronic Communications Hub

(EOC/ECH) ($35.1 million), new faculty homes at Cabrillo/

Dolores ($18 million), and renovations at both the Li Ka Shing

Center ($10 million) and the Center for Advanced Study in

Behavioral Sciences ($9.8 million).

The following ten significant projects make up 81% of

Stanford’s Capital Plan: the EV Graduate Residences

($1,091.7 million), Stanford Redwood City Phase 1 ($568.8

million), the Housing Acquisition Initiative ($500 million),

the Neuro/ChEM-H (Chemistry, Engineering & Medicine for

Human Health) Research Complex ($257 million), Center for

Academic Medicine 1 (CAM 1) ($222.9 million), BioMedical

Innovations Building 1 and Tunnel (BMI 1) ($210 million),

Middle Plaza at 500 El Camino Real Residential ($182 mil-

lion), University Terrace Faculty Homes ($176.5 million),

the Anne T. and Robert M. Bass Biology Research Building

(Bass Biology Building) and associated projects ($152.2 mil-

lion), and the new Earth, Energy & Environmental Sciences

Building ($100 million). The remaining 19% of the Capital

Plan comprises 24 projects and 8 infrastructure programs.

For a detailed listing of all Capital Plan projects and programs,

see the tables on pages 82–84.

The Capital Plan accounts for the long-term budget impacts

on operations, maintenance, and utilities (O&M) and debt

service. These obligations are included in the university’s

long-range budget planning.

This chapter provides an overview of the capital planning

process, describes current strategic initiatives, presents the

2017/18–2019/20 Capital Plan and related constraints, and

discusses the 2017/18 Capital Budget.

Stanford’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

Capital 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.

68 CAPITAL PLAN AND CAPITAL BUDGET

CAPITAL PLANNING OVERVIEW

CAPITAL PLANNING AT STANFORDStanford’s Capital Plan is a three-year rolling plan with com-

mitments made for projects with fully identified and approved

funding. Cash flow expenditure forecasts for these projects

extend beyond the three-year period, and budget impacts

on O&M and debt service will commence at construction

completion. The plan includes forecasts of both cash flow

and budget impacts by year, as well as the impacts of projects

beyond the three-year period (see tables on page 76).

The Capital Plan is set in the context of a longer-term capital

forecast. The details of this forecast, particularly funding

sources and schedules, are less clear than those of the three-

year plan, as the needs and funding sources that may emerge

over the long-term horizon are difficult to anticipate. Plans

tend to evolve as some projects prove more feasible than

others based upon shifting funding realities and academic

priorities.

STRATEGIC INITIATIVESThe following university strategic initiatives are integral to this

year’s Capital Plan:

n Stanford Redwood City

n EV Graduate Residences

n General Use Permit

n Growth and transportation

n Campus circulation and parking

Stanford Redwood City Stanford’s plans for an off-site administrative campus in

Redwood City continue to move forward. Consistent with the

strategic development envisioned with the 2005 acquisition

of the Redwood City property, select administrative staff will

relocate to this site in order to preserve core campus space

for the university’s highest academic priorities. Plans have

commenced to implement a comprehensive Phase 1 develop-

ment of 653,647 square feet (sf)—565,777 sf of office build-

ings, 78,262 sf of amenity buildings, and 9,608 sf of utility

and IT infrastructure—as well as parking for 1,702 vehicles.

Site work, demolition, and foundations have commenced

with construction for the core and shell anticipated to begin

in spring 2017. Full build-out of the 35-acre parcel is capped

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

campus at this time.

The prospective Phase 1 will accommodate about 2,700

staff: School of Medicine (SoM), including Medical Center

Development (946); Business Affairs (893); Land, Buildings

and Real Estate (LBRE) (170); the Office of Development

(154); University Human Resources (135); Continuing Studies

(85); Libraries (73); Residential & Dining Enterprises (R&DE)

(73); the Vice Provost for Teaching and Learning (25); and

other tenants yet to be confirmed (100). The development

and subsequent move will free up almost 150,000 sf on

campus as well as in the Stanford Research Park; space in the

latter will then be re-leased to third-party tenants at market

rates, increasing revenues to Stanford.

Stanford Redwood City gives the university an opportunity to

provide its administrative staff with an outstanding, sustain-

able, and healthy workplace environment. This new campus

will comprise Class A office buildings, conference and din-

ing facilities, a fitness center with lap pool, and a child care

center. A 2.5-acre park, multiple courtyards, and a greenway

connecting the entire campus will create an attractive setting.

EV Graduate Residences Stanford’s bold commitment to build a 1.8 million-sf resi-

dential complex with 2,431 new graduate beds responds to

a critical need to provide additional graduate student hous-

ing on campus in an undersupplied and escalating housing

market. The construction of the EV Graduate Residences

supports the campus land use strategy to increase the density

of Escondido Village in order to provide adequate housing

for a growing graduate student population, and enables the

university to devote other areas of the core campus to under-

graduate housing and academics.

The new complex will primarily house single graduate stu-

dents, although units will be available for couples without

children. Demolition of existing two-story buildings that

house approximately 400 students will be required, result-

ing in an overall gain of 2,020 net new beds. The variety of

apartments builds upon the suite models of premium studios,

two-bedroom suites, and junior studio suites, as offered in

the neighboring Kennedy Graduate Residences. The four

new residence halls will each provide lounges, huddle rooms,

laundry rooms, exercise areas, and music practice spaces.


In addition to housing students, a primary objective of this

project is to provide opportunities to build a vibrant sense of

community among the graduate students and to encourage

strong connections to the campus. The two-story market

pavilion, entry tower, and associated arcade will face the

campus and define an inviting gateway into Escondido Village

from the terminus of Serra Mall. These community gateway

components, which will include a café/bar, a grand lounge,

and a mini-market for online shopping and pick-up, will also

provide an architectural scale that is comfortable and tem-

pers the height of the residential wings. The arcaded court

and hardscape, as well as the more casual commons space,

will support programs that will serve as the hub for graduate

life. The central commons will face and engage the existing

EV greenway and be programmed and energized by a range

of activation components (i.e., outdoor seating and eating,

event space, coffee cart, art, etc.).

This project includes two new underground parking structures

to support the graduate students and community. Manzanita

Garage will house 850 parking spaces with passive recreation

space above. The EV parking structure to be constructed

along Serra Street will house 350 parking spaces with ad-

ditional spaces above to accommodate ADA requirements,

loading, and service.

The construction of the EV Graduate Residences and park-

ing garages will take place over three years, with occupancy

targeted for fall 2020.

General Use Permit Stanford has submitted an application to Santa Clara County

for an updated General Use Permit (GUP) to guide campus

planning over the next two decades. This permit is known as

the “2018 GUP” due to expected approval in 2018.

Stanford has been operating under two key Santa Clara

County entitlement documents: a Community Plan and a

2000 GUP. The Community Plan provides a set of rules and

policies to guide the university’s land use planning over an

extended period of time. The GUP implements those policies

and includes specific conditions to minimize the impacts of

Stanford’s development.

The 2000 Community Plan and GUP were intended to pro-

vide Stanford with flexibility in its land use within an agreed-

upon framework, with accountability to the county, neighbors,

and the campus communities. Stanford’s application for the

2018 GUP includes a development request for 2.275 million

sf of academic facilities and 3,150 housing units/student

beds, with construction expected to be completed by 2035.

This next GUP will help Stanford address emerging teaching,

research, and housing needs over this time period.

Growth and Transportation Reduction of trips to the campus is likely the most difficult

challenge and one that may constrain the university’s future

growth. Though Stanford has a tremendous track record with

its award-winning Transportation Demand Management

(TDM) programs, the university must do more, not only for

the core campus but also for other Stanford lands. Informed

by extensive studies with multiple transportation experts

as well as an innovative transportation mode choice model,

Stanford has developed a matrix of choices and actions that

can be implemented to improve the local transportation net-

work. The region’s network is at capacity at peak times, and

no “silver bullet” exists to solve this regional problem. It will

likely take years of constant prioritization to make a positive

impact. The university will continue to focus on this effort

and work collaboratively with large private employers, neigh-

bors, local agencies, and transportation specialists to identify

and implement incremental programs that mitigate traffic

impacts and improve the regional network. Stanford will also

continue recent efforts to support and facilitate development

of large-scale regional solutions, such as Caltrain electrifica-

tion and the 101 High Occupancy Vehicle (HOV) lane through

San Mateo County. A number of land use planning efforts

focused on future growth are now under way. These include

strong emphases on major circulation patterns and transit

system options as well as on identifying how land use choices

can optimize transportation and TDM options.

Campus Circulation and Parking As Stanford continues to expand its core campus footprint as

well as increase its density, campus planners have identified

alternatives for improving circulation, reducing congestion,

and promoting safety. The measures that the university has

prioritized will have positive impacts on campus circulation

and service, vehicular traffic, and the safety of bicyclists and

pedestrians.

East Campus Circulation Circulation and parking will be reconfigured on the east cam-

pus to accommodate significant capital projects including

the EV Graduate Residences, Public Safety Building, and the

EOC/ECH. The components of the work in this area include:


STANFORD’S COMMITMENT TO HOUSING

From its earliest days, Stanford has focused on supporting a residential academic environment. Currently, Stanford provides on-campus housing for almost all undergraduate students, just over 50% of graduate students, and about one-third of Stanford faculty members. Stanford prioritizes use of its core academic lands to house students and faculty because housing students and faculty in close proximity fosters collaboration and learning. Staff and other affiliated housing has been provided outside of the academic campus lands, in nearby jurisdictions.

Stanford’s commitment to housing of all types is evident in the current Capital Plan. In total, housing projects represent $2.0 billion, or almost half of the entire 2017/18-2019/20 Capital Plan. The table below provides a consolidated list of all current housing projects followed by a more detailed description of the individual projects:

EV Graduate Residences is the largest capital project in Stanford history. The project will add 2,020 net new graduate beds in Escondido Village, raising the percentage of graduate students housed to approximately 75%, from just over 50% today. The project includes construction of ap-proximately 1,200 parking spaces (750 net new) in two un-derground structures. Unit types will include premium stu-dio, two-bedroom, and junior studio apartments. Amenities are planned to include a market pavilion that houses a café, mini-market, and grand event lounge; a large multi-purpose room; meeting and huddle spaces; music practice spaces; and technology resource spaces.

The Housing Acquisition Initiative recognizes that Stanford’s housing strategies are necessarily multi-pronged.

The Board of Trustees approved this initiative to expand Stanford’s housing supply by acquiring land or residential units proximate to, or within easy transit of, campus. The Colonnade apartment community was purchased under this initiative and provides 167 units of housing for faculty and staff. The program is anticipated to yield a combination of rental units for faculty and staff and single-family homes available for purchase by faculty on the affordable restricted ground lease.

Middle Plaza Residential is a new mixed-use development under application with the City of Menlo Park. The project is expected to include 215 multi-family rental units, which will be made available to faculty and staff. Unit types are ex-pected to comprise both one- and two-bedroom apartments.

University Terrace Faculty Homes is a 17-acre development in Palo Alto consisting of 68 single-family homes and 112 condominiums. All units will be made available to faculty for purchase at affordable prices through use of the restricted ground lease. Amenities will include a community center building, fitness center, and pool.

Cabrillo/Dolores Faculty Homes is currently under design development and will consist of 8 homes in the faculty subdivision. Two university-owned homes located along Dolores will be demolished to make way for this project, which will add much-needed affordable homes within the neighborhood.

Renovations of Rains and Schwab support and maintain Stanford’s existing student housing stock.

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 2,028.11 Acquisitions of 270 units are anticipated over the next 7-8 years


l Campus Drive/Serra Street Roundabout—The

roundabout will replace two separate existing inter-

sections, improve pedestrian crossings, and reconfig-

ure the barrels of Campus Drive with dedicated bike

lanes and a uniform landscaped median.

l Serra Mall Closure—The plan to close Serra Mall

from Galvez Street to Campus Drive for pedestrians,

bikes, and shuttles requires the completion of “en-

abling” projects including reconfigured service areas

and parking at Encina Hall, service improvements

at Burnham Pavilion, and a new drop-off at Schwab

Graduate Residences. These projects are important

because Serra Mall is the primary path for infrastruc-

ture improvements for the major capital projects on

the east side of campus.

l Serra Street Reconfiguration—Enhancements

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.

l Manzanita Garage—This facility will build on the

best practices of the Wilbur and Roble parking struc-

tures, with parking below grade and a recreation field

above. The 850 new spaces will support, in part, the

needs of the EV Graduate Residences.

l EV Parking Structure—This below-grade facility

along Serra Street will include 350 spaces with ad-

ditional parking above.

l Bonair Siding Road—To provide safe access to the

new Public Safety Building and EOC/ECH, Bonair

Siding Road will be reconfigured to include appropri-

ate vehicular lanes, bike lanes, sidewalks, and lighting.

West Campus CirculationModifications to the circulation on the west side of campus

will accommodate the future Neuro/ChEM-H Research

Complex, the Bass Biology Building, and CAM 1. The compo-

nents of this work include:

l Serra Mall Extension—To promote connections,

improve pedestrian safety, and facilitate Marguerite

shuttle circulation, Serra Mall will extend to an im-

proved intersection at Foundations Way and Campus

Drive.

l Via Pueblo Extension—To facilitate service, Via

Pueblo will extend from Via Ortega to Panama Street.

l North/South Axis—Improvements to the North/

South Axis from Serra Mall to Roth Way will provide

a safe bike/pedestrian connector.

l New Parking Structure—854 new parking

spaces (550 net new) will be constructed below the

CAM 1 building.

Roundabouts The roundabout installations on Campus Drive at the inter-

sections of Escondido Road, Bowdoin Street, Santa Teresa

Street, and Galvez Street are evidence of how circulation can

improve without compromising bicycle and pedestrian safety.

In addition to the Campus Drive/Serra Street roundabout that

is a key component of our east campus improvements, three

additional roundabouts will be studied at the intersections

of Galvez Street/Arboretum Road, Campus Drive/Mayfield

Avenue, and Campus Drive/Roth Way.

THE CAPITAL PLAN, 2017/18-2019/20Stanford’s academic campus, including SoM but excluding

the hospitals, has over 700 facilities providing nearly 18.8

million sf of space, including approximately 5.3 million sf for

student housing units and 2.4 million sf for parking structures.

The physical plant has a historical cost of $9.3 billion and an

estimated replacement cost of $12.7 billion.

The Capital Plan includes a forecast of Stanford’s annual

programs to restore, maintain, and improve campus facilities

for teaching, research, housing, and related activities and

outlines Stanford’s needs for new facilities. The Capital Plan

is compiled, reviewed, and approved in a coordinated manner

across the university. The plan carefully balances institutional

needs for new and renovated facilities with the challenging

constraints of limited development entitlements, available

funding, and budget affordability.

Projects listed in the Capital Plan are those approved by

the provost. Many are under the purview of the Board of

Trustees. Board-level approval is required for projects meet-

ing specific criteria, including:

n Projects with a total cost of $10 million and above.

n New building construction (including faculty housing).

n Projects that use 5,000 or more new sf within the aca-

demic growth boundary.


n Changes in land use.

n Projects with major exterior design changes.

Projected expenditures in the 2017/18–2019/20 Capital Plan,

which include major construction projects in various stages

of development and numerous infrastructure projects and

programs, total $4.3 billion. The table below provides a com-

parison of the current and the last two Capital Plans.

COMPARATIVE CAPITAL PLANS[IN MILLIONS OF DOLLARS] 2017/18 2016/17 2015/16

Design/Construction 2,890.7 2,213.5 1,521.9

Forecasted 608.5 1,062.1 862.0

Infrastructure and Other 779.7 809.0 514.3

Total 4,278.9 4,084.6 2,898.2

This year’s plan is $194.3 million (5%) higher than last year’s.

New projects and scope and corresponding budget increases

for existing projects have more than offset projects complet-

ing in 2016/17.

PROJECTS IN DESIGN AND CONSTRUCTIONProjects in design and construction total $2.89 billion (68%

of the plan). Construction of these projects is contingent

upon fundraising of $130.1 million (5%). This category com-

prises 18 projects, as shown in the table on page 82.

The cost of projects in design and construction has gone up

by $677.2 million from 2016/17 as a result of the advance-

ment of projects from the forecasted category and budget

increases, partially offset by project completions. Projects

moving from the forecasted to the design and construction

stage include CAM 1 ($222.9 million), BMI 1 ($210 million),

the Public Safety Building ($31.5 million), Encina Complex

Upgrades ($25.8 million), the Athletic Academic Advising

and Rowing Building (AAARB) ($25 million), Denning House

($23.1 million), Environmental Health & Safety Facility

Expansion ($16.5 million), two children’s centers ($19 million

total), Schwab Residential Center Renovations ($11.3 mil-

lion), and four District Work Centers ($8.5 million). Projects

scheduled to be completed in 2016/17 and thus excluded

from the plan include the David and Joan Traitel Building ($65

million) and the Kingscote Renovation ($17.5 million).

FORECASTED CONSTRUCTION PROJECTSForecasted projects are those anticipated to receive Board of

Trustees approval over the next three years. These projects

total $608.5 million (14% of the plan) and are listed on page

83. Like those in design and construction, these projects are

contingent upon funding. For this group, $161.8 million (27%)

remains to be fundraised, and $24.9 million (4%) has yet to

be identified.

Project costs within this category have decreased by $453.6

million from 2016/17. A number of projects have moved into

the design and construction category, as noted above. This

decrease is partially offset by new projects added to this

year’s Capital Plan, including Tenant Improvements at 3145

($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

Center ($10 million) and the Center for Advanced Study in

Behavioral Sciences ($9.8 million).

INFRASTRUCTURE AND OTHER PROGRAMSThe Housing Acquisition Initiative and Stanford’s ongoing

efforts to renew its infrastructure are reflected in a budget of

$779.7 million (18% of the plan) and are listed on page 84.

Infrastructure and Other Programs costs have decreased

$29.3 million from last year.

The largest program in this category is the Housing

Acquisition Initiative. Established in 2014, this program

reflects the high priority that Stanford places on its ability to

provide affordable housing options for existing and prospec-

tive faculty and staff. In recognition of this critical need, the

Board of Trustees has increased the overall funding of this

program, originally established at $200 million, to a total of

$500 million.

Infrastructure programs include the Investment in Plant

(Planned Maintenance) Program, the Stanford Infrastructure

Program (SIP), the Capital Utilities Program (CUP), upgrades

to Information Technology and Communications Systems, the

R&DE Major Renovation Plan, Whole Building Energy Retrofit

Program Group 2, Storm Drainage projects, and a Campus

Drive roundabout. SIP projects are funded through construc-

tion project surcharges. The other projects are funded by

central funds, debt, and/or service center charge-out rates.


Investment in Plant (Planned Maintenance) ProgramAnnual Investment in Plant assets represent the mainte-

nance funds planned to be invested to preserve and optimize

Stanford’s existing facilities and infrastructure (e.g., pathways,

outdoor structures, and grounds). These projects are based

on life cycle planning, the key concept being that life expec-

tancies of facility subsystems are known and, as a result,

maintenance schedules can be predicted. The three-year

estimated program cost is $156.4 million.

Stanford Infrastructure ProgramSIP consists of campus and transportation projects and

programs for the improvement and general support of the

university’s academic community, hospitals, and physical

plant. SIP expenditures are expected to total $43.2 million

over the next three years (excluding funding for replace-

ment parking spaces). SIP projects include campus transit,

parking lot infrastructure, and site improvements; landscape

design and enhancements; bicycle, cart, and pedestrian path

construction; and lighting, signage, and outdoor art installa-

tions. This year’s plan includes $25.4 million to fund campus

infrastructure projects.

Capital Utilities ProgramThe $36.2 million, three-year CUP plan will improve electrical,

hot water, water, chilled water, and wastewater utility sys-

tems. The CUP covers expansion of systems as required by

campus growth ($20.5 million) and replacement of systems

that are near the end of their useful life ($15.7 million).

Information Technology and Communications SystemsThe university’s computing and communications systems

provide comprehensive data, voice, and video services to

the campus community. Over time, these systems must be

improved and/or replaced to maintain a consistently high

level of service. Additionally, new technologies provide more

efficient, faster, and/or more cost-effective solutions. Planned

upgrades to these critical university systems total $16.8 mil-

lion, including $2.4 million to replace systems at two ECHs.

R&DE Major Renovation Plan This Residential & Dining Enterprises (R&DE) program ad-

dresses health and safety issues, seismic upgrades, code

compliance, energy conservation and sustainability, and

major programmatic improvements in the student housing

and dining physical plant. Projects anticipated over the next

three years total $11.4 million and include phased installa-

tion of new sprinklers and fire alarm systems in Escondido

Village high-rise and low-rise housing. Completed projects

will be maintained through the Stanford Housing, Dining, and

Hospitality Asset Renewal Programs.

Whole Building Energy Retrofit Program Group 2This retrofit program seeks to reduce energy consumption in

Stanford’s largest energy-intensive buildings. The program

began in 2003/04 with studies of the top 12 energy-consum-

ing buildings, representing $15.9 million of energy expenses

per year, or nearly 36% of the campus total. It has since been

expanded to additional large energy-consuming buildings.

The retrofits completed thus far have delivered annual en-

ergy cost savings of $4.7 million (a payback of less than four

years) and PG&E rebates of $2.2 million. The forecasted cost

for future projects is $7.2 million. Details of this program are

shown in the table on the following page.

Storm Drainage The ongoing storm drainage program includes projects for

improving and expanding the capacity of the campus storm

drainage system, building storm water detention facilities,

replacing deteriorated pipes, and improving drainage around

buildings. In addition, recently adopted storm water quality

regulations necessitate new storm water treatment approach-

es, such as bioswales and bioretention facilities, to minimize

conveyance of contamination from common storms to natural

water bodies. These approaches will be incorporated region-

ally or on new building sites, as appropriate. New approaches

involving storm and irrigation water runoff capture and reuse

will also be implemented where appropriate. The Capital Plan

also includes improvements to the storm drainage system in

the faculty/staff housing area of campus, adding storm drain-

age infrastructure where none exists and upgrading existing

drainage infrastructure to conventional levels of protection.

The three-year estimated program cost is $4.5 million.

Campus Drive RoundaboutAs previously discussed, Stanford plans to construct a

roundabout at Campus Drive and Serra Street at a cost of

$4 million.


Other Stanford EntitiesIn an effort to present a comprehensive view of university-

planned construction, the capital planning process has

included Stanford’s commercial real estate investments,

Stanford Health Care (SHC), Lucile Packard Children’s

Hospital (LPCH), and SLAC National Accelerator Laboratory.

Although the tables at the end of this chapter do not include

these entities (with the exception of academic projects man-

aged by Stanford Real Estate), brief descriptions of the real

estate, SHC, and LPCH capital programs follow. The SLAC

capital programs are addressed in Chapter 2.

Real Estate LBRE’s Real Estate department (Real Estate) is managing

ten projects totaling $1.25 billion in various stages of plan-

ning and development on Stanford lands. Six of these are

commercial real estate investment projects. These are

3170 Porter Drive, 3181 Porter Drive, 3406 Hillview Avenue,

2131 Sand Hill Road, the Middle Plaza office buildings, and

renovations at the Old Winery (formerly the Stanford Barn).

The university is the beneficiary of the income from these

investments. Academic projects managed by Real Estate

are Stanford Redwood City Phase 1, which broke ground

in January 2017, and three new housing developments:

University Terrace Faculty Homes in Palo Alto, Middle Plaza

at 500 El Camino Real – Residential in Menlo Park, and

the Cabrillo/Dolores Residences in the faculty subdivision.

University Terrace will provide 180 units for faculty purchase,

with the first units being delivered by June 2017. The remain-

ing two housing projects are currently in the planning phase.

Stanford Health Care and Lucile Packard Children’s Hospital Stanford Medicine’s Renewal Project includes the develop-

ment of approximately 1.3 million sf of net new hospital,

clinic, and medical office space on the main medical campus

and the Hoover medical campus. The project received devel-

opment entitlements from the City of Palo Alto in 2011, and

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.


significant project milestones have been achieved since that

time. Major utility upgrades to serve the new medical facili-

ties have been completed along Welch and Quarry Roads. All

improvements on the Hoover medical campus are complete,

including the renovation of the historic Hoover Pavilion, the

construction of a new 1,070-car parking structure, and the

construction of a 92,000-sf Neuroscience Health Center,

which opened for patient care in January 2016. On the main

medical campus, construction of both the new SHC pavilions

and the LPCH expansion continues to progress, with interior

finish work, building systems testing, and site work currently

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

LPCH.

OVERALL SUMMARYA table summarizing the 2017/18–2019/20 Capital Plan ap-

pears on the next page. It includes projects and programs in

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

Capital Plan are anticipated to extend beyond 2019/20. To

differentiate between the estimated costs of the plan and

the forecasted spending to complete projects and programs,

an additional table (Capital Plan Cash Flows) forecasts the

Capital Plan expenditure cash flow based on project and

program schedules.

O&M and debt service costs for each project will impact

the university’s budget once construction is substantially

complete. Although the Capital Plan Summary shows the

full budget impacts of all completed projects, it is important

to note that these impacts align with the project completion

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

by area of responsibility (e.g., general funds, formula schools).

The tables at the end of this chapter provide a detailed list of

the projects included in the Capital Plan.

The following sections address Capital Plan funding sources

and uses, along with resource constraints.

Capital Plan Funding SourcesAs the pie chart shows below, Stanford’s Capital Plan relies

on several funding sources, including current funds, gifts, and

debt. Depending upon fundraising realities and time frames,

some projects will prove more difficult than others to under-

take. As a result, it is possible that projects in the Capital Plan

will have to be cancelled, delayed, or scaled back in scope.

For any projects relying on gifts to be raised, the Office of

Development has determined that fundraising plans are

feasible, although the time frames for the receipt of gifts are

THE CAPITAL PLAN 2017/18-2019/20 $4.3 BILLION

Service Center/Auxiliary Debt

29%

Academic Debt19%

Gifts to be Raised

7%

Current Funds29%

Resources to be Identified1%Other 3%

Gifts in Hand or Pledged

12%

Infrastructure/Other7%

Housing47%

Academic Support

17%

Athletics/Student Activities

1%

Academic/Research28%

Sources of Funds

Uses of Funds by Program Category

Infrastructure/Other 6%

Renovations 8% NewConstruction

86%

Uses of Funds by Project Type


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.


subject to change. “Resources to be identified” are expected

to come from a combination of school, department, and uni-

versity reserves, as well as other sources.

Uses of Funds by Program Category and Project TypeThe middle chart on page 75 divides Capital Plan activity into

program categories—Academic/Research, Infrastructure and

Other, Academic Support, Housing, and Athletics/Student

Activities—with the largest categories being Housing,

Academic/Research, and Academic Support at 47%, 28%,

and 17% of the plan, respectively. The bottom chart breaks

out the same activity into project types, including New

Construction, Infrastructure, and Renovations.

CAPITAL PLAN CONSTRAINTS

AffordabilityThe incremental internal debt service expected at the

completion of all projects commencing in the three-year plan

period (completion dates range from 2017/18 to 2024/25)

totals $106.4 million annually (excluding debt service for

bridge financing the receipt of gifts and operating lease

payments). Of this amount, $46.4 million will be serviced

by general funds, $23.1 million by the formula schools (GSB

and SoM), and $36.9 million by auxiliary and other opera-

tions. Service center debt is funded through rates paid by

customers and has been allocated and included in the totals

for general funds, formula schools, auxiliary operations, and

other operations.

The additional O&M costs expected at the completion of all

projects commencing in the three-year period total $62.6

million per year. Of this amount, $21.8 million will be serviced

by general funds, $27.5 million by the formula schools, and

$13.3 million by auxiliary and other operations. O&M and

debt service on capital projects compete directly with other

academic program initiatives for funding allocations.

Debt CapacityAs of May 1, 2017, $1.1 billion of bond proceeds are available

to finance capital projects and faculty mortgages, including

$281 million of unexpended tax-exempt bond proceeds, and

$780 million of unexpended taxable bond proceeds. Interim

financing facilities totaling $500 million of taxable commer-

cial paper, $296 million of tax-exempt commercial paper, and

$448 million of undrawn lines of credit are also available. In

addition, through fiscal year-end 2016/17 and 2017/18, $97

million in internal amortization proceeds on debt-funded

projects will become available to lend to projects, and $301

million in forecasted pledge and other payments will retire

debt issued to bridge finance the receipt of gifts and cost of

construction.

The three-year Capital Plan will require a total of $2.3 billion

of debt for projects under construction or for projects to be

approved in or before 2017/18:

n $1,510 million to complete projects already approved or

under construction;

n $337 million for projects to be approved in 2017/18; and

n $433 million to bridge finance the receipt of gift pledges

for projects approved or under construction.

Additional debt may be required to finance the Faculty Staff

Housing program. As of May 1, 2017, the portfolio of debt-

subsidized mortgages had increased by $20.5 million to $496

million.

Projects identified in the three-year Capital Plan and to be

approved after 2017/18 will require an additional $200 million

in debt. Debt for these projects has not been committed, and

allocations will be evaluated in the context of debt capacity,

affordability, viability of the funding plan, and GUP limitations.

EntitlementsThe Stanford campus encompasses 8,180 acres in six jurisdic-

tions. Of this total, 4,017 acres, including most of the central

campus, are within unincorporated Santa Clara County.

In December 2000, Santa Clara County approved a GUP that

allows Stanford to construct up to 2,035,000 additional gross

sf of academic-related buildings on the core campus and

up to 3,018 new housing units. An additional 1,450 housing

units were approved on March 24, 2016, pursuant to GUP

Condition F.7, raising the housing allocation to 4,468 hous-

ing units.

Conditions of approval included the following:

n Creation of an academic growth boundary to limit the

buildable area to the core campus for a minimum of 25

years;

n Approval of a sustainable development study (SDS)

before new construction exceeds 1 million gross sf (Santa

Clara County approved the SDS in April 2009); and


n Construction of 605 units of housing for each 500,000

gross sf of new academic building.

Given the stringent requirements imposed by the GUP and

the increasingly difficult entitlement environment, Stanford

carefully manages the allocation of new growth. Construction

through 2015/16 accounted for 1.4 million GUP sf. The

2017/18-2019/20 Capital Plan includes 463,963 GUP sf

currently in design and construction and 30,032 GUP sf in

forecasted projects, including the related demolitions. With

the completion of planned housing projects, Stanford will

have added 4,424 net new housing units since approval of

the GUP, exceeding the housing linkage requirement for the

full academic build-out allowed by the GUP.

As discussed on page 69, Stanford has submitted an applica-

tion to Santa Clara County for an updated GUP. This permit

is expected to be approved in 2018.

THE CAPITAL BUDGET, 2017/18At $1.2 billion, the 2017/18 Capital Budget reflects only a

portion of the costs of the projects in the Capital Plan, as

most of them span more than one year. The following table

highlights the major capital projects for which expenditures

under the 2017/18 Capital Budget will be significant, as well

as the percentage of each project expected to be complete by

the end of 2017/18. The map on page 81 shows the locations

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

completed, University Terrace Faculty Homes will provide

180 units to faculty for purchase (see Stanford’s Commitment

to Housing section); the Bass Biology Building will be

the cornerstone of a future science quad in the Biology/

Chemistry/Computer Science Precinct; improvements to

Frost Amphitheater will enable the facility to be used for a

greater variety of events; the Athletic Academic Advising and

Rowing Building will consolidate a number of Department of

Athletics, Physical Education, and Recreation programs and

allow optimization of vacated space; and Durand Phase 4 will

complete the renovation of the building.

SOURCES AND USESThe Capital Budget is supported by multiple funding sources:

current funds (which include the Capital Facilities Fund [CFF],

funds from university and school reserves, and GUP and SIP

fees), gifts, and debt. The university typically allocates CFF

or debt funding to projects in the absence of other available

funding. The timing of gift receipts, which may be bridge

financed, will affect the mix of project funding.

The following pie charts show the uses of funds under the

$1.2 billion Capital Budget by project type and program

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

MAJOR CAPITAL PROJECTS - PERCENT OF COMPLETION 2017/181

[IN MILLIONS OF DOLLARS] ESTIMATED CAPITAL ESTIMATED PERCENT BUDGET PROJECT COMPLETE BY 2017/18 COST 2017/18

Escondido Village (EV) Graduate Residences 171.2 1,091.7 29%

Stanford Redwood City Phase 1 329.4 568.8 74%

Neuro/ChEM-H Research Complex 119.2 257.0 76%

Center for Academic Medicine 1 (CAM 1) 103.9 222.9 48%

BioMedical Innovations Building 1 and Tunnel (BMI 1) 104.0 210.0 58%

University Terrace Faculty Homes (180 units) 45.0 176.5 100%

Anne T. and Robert M. Bass Biology Research Building 58.9 152.2 100%

Frost Amphitheater Improvements 19.9 33.5 100%

Public Safety Building 12.4 31.5 50%

Athletic Academic Advising and Rowing Building 16.7 25.0 100%

Denning House 15.0 23.1 92%

Durand Renovation - Phase 4 10.3 17.4 100%

Environmental Health & Safety Facility Expansion 12.6 16.5 92%

Total 1,018.5 2,826.1 1 Includes projects scheduled to be in construction and with forecasted

expenditures greater than $10 million in 2017/18.


THE CAPITAL BUDGET 2017/18 $1.2 BILLION

New Construction89%

Renovations3%


Uses of Funds by Project Type

Housing22%

Academic Support

33%

Athletics/Student Activities

1%

Academic/Research36%


Uses of Funds by Program Category

$407.1 million (33%), primarily for Stanford Redwood City.

Housing projects, forecasted at $269.4 million (22%), in-

clude the EV Graduate Residences, University Terrace Faculty

Homes, and the Housing Acquisition Initiative. Infrastructure

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.

CAPITAL FACILITIES FUND (CFF)Funding Sources and Committed Uses of Funding[IN MILLIONS OF DOLLARS] 2016/17 2017/18

Sources of Funding

Formula Units

School of Medicine 17.8 18.4

Hoover Institution 4.4 4.4

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

Other School of Medicine Projects 6.4

Hoover Institution Projects 4.4 4.4

Formula Units Project Subtotal 22.2 22.8

Neuro/ChEM-H Research Complex 50.4

Stanford Redwood City Phase 1 19.1

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

Public Safety Building 2.8 21.1

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

Annual Funding less Commitments (81.0) 30.6

Balance at Beginning of Year 93.8 12.8

Uncommitted Balance 12.8 43.4


CAPITAL BUDGET IMPACT ON 2017/18 OPERATIONSThe 2017/18 Consolidated Budget for Operations includes

incremental debt service and O&M expenses for projects to

be completed in either 2016/17 or 2017/18, but operational

for less than 12 months in the year completed.

Capital projects requiring debt are funded from internal loans

that are amortized over the asset life in equal installments

(principal and interest). The budgeted interest rate (BIR)

used to calculate the internal debt service is a blended rate

of interest expense on debt issued for capital projects, bond

issuance, and administrative costs. The BIR will remain at

4.25% for 2017/18.

Consolidated internal debt service, including that borne

by formula units, auxiliaries, service centers, Faculty Staff

Housing, and real estate investment, is projected to increase

from $199.1 million to $199.3 million. Additional debt ser-

vice related to the Rosewood Hotel and the Sand Hill Road

Office Complex is not included in the Consolidated Budget

for Operations. In addition, annual lease payments for rental

properties, occupied by the SoM, are projected to be $32.9

million in 2017/18.

The projected internal debt service funded by unrestricted

funds, including general funds and schools’ designated funds,

will decrease by $400,000 in 2017/18. The net change in

debt service brings the total annual internal debt service

borne by unrestricted funds to $83.7 million.

In 2017/18, the university will incur about $1.0 million of in-

cremental O&M costs related to a number of new academic

and administrative facilities. They include $360,000 for the

Kingscote Renovation and $343,000 for the Central Loading

Dock. Additional O&M costs for smaller capital projects

and infrastructure programs account for the balance of the

increase.

CAPITAL PLAN PROJECT DETAIL In addition to a map identifying some key project locations,

the following pages provide tables that list capital projects

in three categories: projects in design and construction,

forecasted construction projects, and infrastructure projects

and programs.


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85APPENDIX A: CONSOLIDATED BUDGETS BY UNIT

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.


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.


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GR

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SC

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2017

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soli

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2

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TUAL

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21

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258

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rnal

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9

338

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tal E

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)

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ansf

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ginn

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ance

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d Ba

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1,13

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is s

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ule

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not

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wm

ent p

rinc

ipal

, stu

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fund

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ant f

unds

.

• Th

e ge

nera

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ds a

lloca

tion

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wn

in th

is s

ched

ule

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udes

one

-tim

e al

loca

tion

s (i

nclu

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tuit

ion

allo

wan

ce)

and

ther

efor

e w

ill n

ot m

atch

the

base

figu

re s

how

n in

the

tabl

e on

pag

e 87

.

• G

rant

s an

d C

ontr

acts

reve

nue

incl

udes

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rect

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t Rec

over

y; th

is s

ame

amou

nt is

cha

rged

as

a N

on-S

alar

y Ex

pens

e fo

r in

fras

truc

ture

and

gen

eral

adm

inis

trat

ive

cost

s of

rese

arch

.


SC

HO

OL

OF

EN

GIN

EE

RIN

G20

17/1

8 C

onso

lid

ated

Bud

get

Pla

n[I

N T

HO

USA

ND

S O

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ARS

]

201

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ERAT

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DESI

GNAT

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REST

RICT

ED

REST

RICT

ED

GRAN

TS &

AU

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2

017/

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AC

TUAL

S PR

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TION

BU

DGET

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NDAB

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ENDO

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5,55

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Tota

l Rev

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nefit

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16

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l Exp

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s 17

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O

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dow

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ant

19,

423

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nd B

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14

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11

8,56

8

102,

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46

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27

1,57

5

Not

es:

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is s

ched

ule

does

not

incl

ude

endo

wm

ent p

rinc

ipal

, stu

dent

loan

fund

s, o

r pl

ant f

unds

.

• Th

e ge

nera

l fun

ds a

lloca

tion

sho

wn

in th

is s

ched

ule

incl

udes

one

-tim

e al

loca

tion

s (i

nclu

ding

tuit

ion

allo

wan

ce)

and

ther

efor

e w

ill n

ot m

atch

the

base

figu

re s

how

n in

the

tabl

e on

pag

e 87

.

• G

rant

s an

d C

ontr

acts

reve

nue

incl

udes

Indi

rect

Cos

t Rec

over

y; th

is s

ame

amou

nt is

cha

rged

as

a N

on-S

alar

y Ex

pens

e fo

r in

fras

truc

ture

and

gen

eral

adm

inis

trat

ive

cost

s of

rese

arch

.


SC

HO

OL

OF

HU

MA

NIT

IES

AN

D S

CIE

NC

ES

2017

/18

Con

soli

dat

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udge

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lan

[IN

TH

OU

SAN

DS

OF

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LLA

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201

5/16

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REST

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REST

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ED

GRAN

TS &

AU

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2

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18

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TUAL

S PR

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TION

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DGET

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ENDO

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TO

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203,

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1

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nefit

s &

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nsat

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103,

426

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0

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1,51

0

146,

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N

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y Ex

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es

82,4

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rnal

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ense

s 13

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0

258

19

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9,36

4

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l Exp

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s 35

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44

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63

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7

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5,

286

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834

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864)

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) En

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ther

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)

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707

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ant

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00)

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s /

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cit)

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6

4,83

4

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187

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nd B

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992

13

7,57

3

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44

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95

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0

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354

Not

es:

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is s

ched

ule

does

not

incl

ude

endo

wm

ent p

rinc

ipal

, stu

dent

loan

fund

s, o

r pl

ant f

unds

.

• Th

e ge

nera

l fun

ds a

lloca

tion

sho

wn

in th

is s

ched

ule

incl

udes

one

-tim

e al

loca

tion

s (i

nclu

ding

tuit

ion

allo

wan

ce)

and

ther

efor

e w

ill n

ot m

atch

the

base

figu

re s

how

n in

the

tabl

e on

pag

e 87

.

• G

rant

s an

d C

ontr

acts

reve

nue

incl

udes

Indi

rect

Cos

t Rec

over

y; th

is s

ame

amou

nt is

cha

rged

as

a N

on-S

alar

y Ex

pens

e fo

r in

fras

truc

ture

and

gen

eral

adm

inis

trat

ive

cost

s of

rese

arch

.


SC

HO

OL

OF

LAW

2017

/18

Con

soli

dat

ed B

udge

t P

lan

[IN

TH

OU

SAN

DS

OF

DO

LLA

RS]

201

5/16

20

16/1

7

OP

ERAT

ING

DESI

GNAT

ED

REST

RICT

ED

REST

RICT

ED

GRAN

TS &

AU

XILIA

RY &

2

017/

18

AC

TUAL

S PR

OJEC

TION

BU

DGET

FU

NDS

EXPE

NDAB

LE

ENDO

WM

ENT

CONT

RACT

S SE

RVIC

E CE

NTER

TO

TAL

Re

venu

es 3

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ener

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41

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ansf

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00)

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fits

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pens

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9

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nses

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0

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1,53

8

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429

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rnal

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15

4

82

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xpen

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9

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6

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90,1

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to)

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sfer

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lanc

es

175

2,

255

20

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55

0

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Not

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ule

does

not

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wm

ent p

rinc

ipal

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dent

loan

fund

s, o

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• Th

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nera

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ds a

lloca

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sho

wn

in th

is s

ched

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incl

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one

-tim

e al

loca

tion

s (i

nclu

ding

tuit

ion

allo

wan

ce)

and

ther

efor

e w

ill n

ot m

atch

the

base

figu

re s

how

n in

the

tabl

e on

pag

e 87

.

• G

rant

s an

d C

ontr

acts

reve

nue

incl

udes

Indi

rect

Cos

t Rec

over

y; th

is s

ame

amou

nt is

cha

rged

as

a N

on-S

alar

y Ex

pens

e fo

r in

fras

truc

ture

and

gen

eral

adm

inis

trat

ive

cost

s of

rese

arch

.


SC

HO

OL

OF

ME

DIC

INE

2017

/18

Con

soli

dat

ed B

udge

t P

lan

[IN

TH

OU

SAN

DS

OF

DO

LLA

RS]

201

5/16

20

16/1

7

OP

ERAT

ING

DESI

GNAT

ED

DESI

GNAT

ED

REST

RICT

ED

REST

RICT

ED

GRAN

TS &

AU

XILIA

RY &

2

017/

18

AC

TUAL

S PR

OJEC

TION

BU

DGET

FU

NDS

CLIN

IC

EXPE

NDAB

LE

ENDO

WM

ENT

CONT

RACT

S SE

RVIC

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NTER

TO

TAL

Re

venu

es

10

0,88

4

122,

561

Gen

eral

Fun

ds A

lloca

tion

122,

493

12

2,49

3

1,96

5,92

2 2,

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Rest

ricte

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5 1

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043

702

,578

1,

090

2,

243,

336

84

,463

82

,704

Inte

rnal

Rev

enue

47,6

06

58

42

,172

89

,836

6,

981

18

,173

Ope

ratin

g Tr

ansf

ers

196,

747

79

,660

(1

93,8

30)

(9,4

56)

(62,

095)

(6

,906

) 45

4,

166

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8,25

0 2,

252,

034

To

tal R

even

ues

319,

240

34

8,63

2

818,

294

11

9,73

8

114,

948

695

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43

,308

2,

459,

831

Ex

pens

es

48

1,73

3

543,

929

Aca

dem

ic S

alar

ies

24,5

18

38,2

87

363,

929

20

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21

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13

3,25

8

7,28

0

609,

828

20

2,67

7

212,

779

Staf

f Sal

arie

s 77

,049

27

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41

,045

18

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14

,134

37

,152

10

,887

22

6,65

2

51

7,65

8

568,

895

Bene

fits

& O

ther

Com

pens

atio

n 44

,637

51

,312

36

1,37

9

25,8

52

20,3

35

119,

326

7,

250

63

0,09

2

59

8,43

7

662,

656

Non

-Sal

ary

Expe

nses

11

8,77

4

78,8

14

31,7

19

51,4

30

35,7

94

378,

700

16

,438

71

1,66

9

14

4,37

3

141,

216

Inte

rnal

Exp

ense

s 54

,262

18

,687

20

,222

20

,023

8,

144

27

,236

98

5

149,

560

1,94

4,87

8 2,

129,

474

To

tal E

xpen

ses

319,

240

21

4,93

2

818,

294

13

6,58

2

100,

240

695

,672

42

,841

2,

327,

800

21

3,37

1

122,

559

O

pera

ting

Res

ults

0

133,

700

0

(1

6,84

4)

14,7

08

0

467

13

2,03

1

(4

8,51

3)

(2,1

82)

Tran

sfer

s Fr

om (

to)

Endo

wm

ent &

Oth

er A

sset

s

(15,

361)

800

(1

,082

)

(1

5,64

3)

(4

4,87

8)

(20,

432)

Tr

ansf

ers

From

(to

) Pl

ant

(2

7,30

5)

(850

)

(2

8,15

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11

9,98

0

99,9

45

Surp

lus

/ (D

efici

t)

0 91

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0

(1

6,04

4)

12,7

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0

467

88

,233

99

9,35

3 1

,119

,333

Be

ginn

ing

Fund

Bal

ance

s (1

,048

) 69

5,94

6

35

6,93

9

167,

753

(313

) 1,

219,

278

1,11

9,33

3 1,

219,

278

En

ding

Fun

d Ba

lanc

es

(1,0

48)

786,

980

340,

895

18

0,52

9

15

4

1,30

7,51

0

Not

es:

• Th

is s

ched

ule

does

not

incl

ude

endo

wm

ent p

rinc

ipal

, stu

dent

loan

fund

s, o

r pl

ant f

unds

.

• G

rant

s an

d C

ontr

acts

reve

nue

incl

udes

Indi

rect

Cos

t Rec

over

y; th

is s

ame

amou

nt is

cha

rged

as

a N

on-S

alar

y Ex

pens

e fo

r in

fras

truc

ture

and

gen

eral

adm

inis

trat

ive

cost

s of

rese

arch

.

• T

his

sche

dule

incl

udes

an

allo

cati

on o

f tui

tion

reve

nue

and

cent

ral a

dmin

istr

ativ

e co

sts,

con

sist

ent w

ith

Stan

ford

’s p

olic

y fo

r un

its

oper

atin

g un

der

a fo

rmul

a ag

reem

ent.


VIC

E P

RO

VO

ST

AN

D D

EA

N O

F R

ES

EA

RC

H20

17/1

8 C

onso

lid

ated

Bud

get

Pla

n[I

N T

HO

USA

ND

S O

F D

OLL

ARS

]

201

5/16

20

16/1

7

OP

ERAT

ING

DESI

GNAT

ED

REST

RICT

ED

REST

RICT

ED

GRAN

TS &

AU

XILIA

RY &

2

017/

18

AC

TUAL

S PR

OJEC

TION

BU

DGET

FU

NDS

EXPE

NDAB

LE

ENDO

WM

ENT

CONT

RACT

S SE

RVIC

E CE

NTER

TO

TAL

Re

venu

es 4

5,11

0 59

,624

Gen

eral

Fun

ds A

lloca

tion

64,1

34

64

,134

158,

983

186,

461

Re

stric

ted

Reve

nues

3,

190

11,0

43

30,3

32

37,0

18

80,7

91

16

2,37

5

8,

874

8,49

6

Inte

rnal

Rev

enue

3,

036

125

24

5,78

1 8,

966

15,

688

15,2

10

O

pera

ting

Tran

sfer

s 22

,132

7,

338

(8,5

75)

(16,

374)

(2

,813

)

1,70

9

228,

655

269,

790

Tota

l Rev

enue

s 92

,492

18

,507

21

,757

20

,668

77

,978

5,

781

237,

184

Ex

pens

es

31,

013

32,3

06

A

cade

mic

Sal

arie

s 10

,718

2,

373

3,58

6 3,

135

12,1

65

2,15

4 34

,131

44,

277

47,5

48

St

aff S

alar

ies

38,9

84

2,70

6 2,

231

2,40

9 3,

617

443

50,3

89

47,

443

46,3

51

Be

nefit

s &

Oth

er C

ompe

nsat

ion

17,4

94

4,07

7 3,

646

3,47

1 18

,390

83

1 47

,910

91,

664

101,

302

N

on-S

alar

y Ex

pens

es

19,2

79

10,2

63

10,1

19

4,74

8 41

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2,

259

88,4

82

11,

280

13,8

94

In

tern

al E

xpen

ses

6,01

8 1,

207

2,25

8 1,

504

1,99

3 77

13

,056

225,

678

241,

402

Tota

l Exp

ense

s 92

,492

20

,627

21

,839

15

,267

77

,978

5,

764

233,

968

2,

977

28,3

88

Ope

rati

ng R

esul

ts

0 (2

,120

) (8

2)

5,40

1 0

17

3,21

6

7,

502

4,75

3 Tr

ansf

ers

From

(to

) En

dow

men

t & O

ther

Ass

ets

4,

753

4,75

3

(8,7

00)

Tran

sfer

s Fr

om (

to)

Plan

t

(1,5

00)

(1,5

00)

10,

478

24,4

41

Surp

lus

/ (D

efici

t)

0 (3

,620

) (8

2)

10,1

54

0 17

6,

469

183,

723

194,

201

Begi

nnin

g Fu

nd B

alan

ces

4,86

7 74

,729

99

,301

40

,089

(345

) 21

8,64

2

194,

201

218,

642

Endi

ng F

und

Bala

nces

4,

867

71,1

09

99,2

19

50,2

43

(3

28)

225,

111

Not

es:

• Th

is s

ched

ule

does

not

incl

ude

endo

wm

ent p

rinc

ipal

, stu

dent

loan

fund

s, o

r pl

ant f

unds

.

• G

rant

s an

d C

ontr

acts

reve

nue

incl

udes

Indi

rect

Cos

t Rec

over

y; th

is s

ame

amou

nt is

cha

rged

as

a N

on-S

alar

y Ex

pens

e fo

r in

fras

truc

ture

and

gen

eral

adm

inis

trat

ive

cost

s of

rese

arch

.

• Th

e ge

nera

l fun

ds a

lloca

tion

sho

wn

in th

is s

ched

ule

incl

udes

one

-tim

e al

loca

tion

s an

d th

eref

ore

will

not

mat

ch th

e ba

se fi

gure

sho

wn

in th

e ta

ble

on p

age

87.


VIC

E P

RO

VO

ST

FO

R U

ND

ER

GR

AD

UA

TE

ED

UC

AT

ION

2017

/18

Con

soli

dat

ed B

udge

t P

lan

[IN

TH

OU

SAN

DS

OF

DO

LLA

RS]

201

5/16

20

16/1

7

OP

ERAT

ING

DESI

GNAT

ED

REST

RICT

ED

REST

RICT

ED

GRAN

TS &

AU

XILIA

RY &

2

017/

18

AC

TUAL

S PR

OJEC

TION

BU

DGET

FU

NDS

EXPE

NDAB

LE

ENDO

WM

ENT

CONT

RACT

S SE

RVIC

E CE

NTER

TO

TAL

Re

venu

es

14,

223

16

,602

Gen

eral

Fun

ds A

lloca

tion

17,5

18

17

,518

39,

241

39

,535

Rest

ricte

d Re

venu

es

684

91

1

2,51

3

31,0

78

3,

977

39

,163

(3

7)

(46)

Inte

rnal

Rev

enue

(55)

(5

5)

(5

,538

) (7

,954

)

Ope

ratin

g Tr

ansf

ers

28,2

87

(260

) (3

,727

) (3

2,38

9)

(6

40)

(8,7

29)

47,

888

48

,137

To

tal R

even

ues

46,4

89

597

(1

,213

) (1

,312

) 0

3,

337

47

,898

Ex

pens

es

7,

403

7,

747

Aca

dem

ic S

alar

ies

7,89

2

7,

892

12,

229

12

,609

Staf

f Sal

arie

s 13

,742

13,7

42

9,

451

9,

879

Bene

fits

& O

ther

Com

pens

atio

n 9,

970

9,97

0

15,

758

16

,566

Non

-Sal

ary

Expe

nses

12

,380

10

3,33

7

15,7

26

2,

048

2,

114

Inte

rnal

Exp

ense

s 1,

774

1,77

4

46,

889

48

,915

To

tal E

xpen

ses

45,7

58

10

0

0

0

3,33

7

49,1

05

99

9

(778

) O

pera

ting

Res

ults

73

1

587

(1

,213

) (1

,312

) 0

0

(1

,207

)

20

3

20

Tran

sfer

s Fr

om (

to)

Endo

wm

ent &

Oth

er A

sset

s

12

0

12

0

Tr

ansf

ers

From

(to

) Pl

ant

1,

202

(7

58)

Surp

lus

/ (D

efici

t)

731

58

7

(1,0

93)

(1,3

12)

0

0

(1,0

87)

20,

275

21

,477

Be

ginn

ing

Fund

Bal

ance

s 1,

840

6,

100

4,

361

8,

419

20

,719

21,

477

20

,719

En

ding

Fun

d Ba

lanc

es

2,57

0

6,68

6

3,26

8

7,10

7

19,6

32

Not

es:

• Th

is s

ched

ule

does

not

incl

ude

endo

wm

ent p

rinc

ipal

, stu

dent

loan

fund

s, o

r pl

ant f

unds

.

• Th

e ge

nera

l fun

ds a

lloca

tion

sho

wn

in th

is s

ched

ule

incl

udes

one

-tim

e al

loca

tion

s (i

nclu

ding

tuit

ion

allo

wan

ce)

and

ther

efor

e w

ill n

ot m

atch

the

base

figu

re s

how

n in

the

tabl

e on

pag

e 87

.


VIC

E P

RO

VO

ST

FO

R G

RA

DU

AT

E E

DU

CA

TIO

N20

17/1

8 C

onso

lid

ated

Bud

get

Pla

n[I

N T

HO

USA

ND

S O

F D

OLL

ARS

]

201

5/16

20

16/1

7

OP

ERAT

ING

DESI

GNAT

ED

REST

RICT

ED

REST

RICT

ED

GRAN

TS &

AU

XILIA

RY &

2

017/

18

AC

TUAL

S PR

OJEC

TION

BU

DGET

FU

NDS

EXPE

NDAB

LE

ENDO

WM

ENT

CONT

RACT

S SE

RVIC

E CE

NTER

TO

TAL

Re

venu

es

7,

909

8,

180

Gen

eral

Fun

ds A

lloca

tion

7,71

9

791

8,

509

32,

402

32

,850

Rest

ricte

d Re

venu

es

33

,465

33

,465

16

In

tern

al R

even

ue

(32,

001)

(3

1,19

7)

O

pera

ting

Tran

sfer

s 2,

500

(2

,500

) (6

3)

(31,

390)

(3

1,45

3)

8,

325

9,

833

To

tal R

even

ues

10,2

19

(1,7

09)

(63)

2,

075

0

0

10

,522

Ex

pens

es

18

0

193

Aca

dem

ic S

alar

ies

356

356

2,

037

2,

780

Staf

f Sal

arie

s 2,

828

2

26

2,85

6

1,

384

1,

596

Bene

fits

& O

ther

Com

pens

atio

n 1,

568

1

11

1,58

0

5,

443

6,

882

Non

-Sal

ary

Expe

nses

5,

309

79

2

397

62

9

7,12

6

58

1

738

Inte

rnal

Exp

ense

s 29

3

44

37

2

709

9,

624

12

,190

To

tal E

xpen

ses

10,3

54

794

47

8

1,00

0

0

0

12,6

26

(1

,299

) (2

,357

) O

pera

ting

Res

ults

(1

35)

(2,5

03)

(541

) 1,

075

0

0

(2

,105

)

(2

98)

(278

) Tr

ansf

ers

From

(to

) En

dow

men

t & O

ther

Ass

ets

(2

70)

(270

)

Tr

ansf

ers

From

(to

) Pl

ant

(1

,597

) (2

,635

) Su

rplu

s /

(Defi

cit)

(1

35)

(2,5

03)

(541

) 80

5

0

0

(2,3

75)

56,

187

54

,590

Be

ginn

ing

Fund

Bal

ance

s 15

1

24,0

65

2,75

3

24,9

86

51,9

55

54,

590

51

,955

En

ding

Fun

d Ba

lanc

es

16

21,5

61

2,21

1

25,7

91

49,5

80

Not

es:

• Th

is s

ched

ule

does

not

incl

ude

endo

wm

ent p

rinc

ipal

, stu

dent

loan

fund

s, o

r pl

ant f

unds

.

• T

he g

ener

al fu

nds

allo

cati

on s

how

n in

this

sch

edul

e in

clud

es o

ne-t

ime

allo

cati

ons

and

ther

efor

e w

ill n

ot m

atch

the

base

figu

re s

how

n in

the

tabl

e on

pag

e 87

.


VIC

E P

RO

VO

ST

FO

R T

EA

CH

ING

AN

D L

EA

RN

ING

2017

/18

Con

soli

dat

ed B

udge

t P

lan

[IN

TH

OU

SAN

DS

OF

DO

LLA

RS]

201

5/16

20

16/1

7

OP

ERAT

ING

DESI

GNAT

ED

REST

RICT

ED

REST

RICT

ED

GRAN

TS &

AU

XILIA

RY &

2

017/

18

AC

TUAL

S PR

OJEC

TION

BU

DGET

FU

NDS

EXPE

NDAB

LE

ENDO

WM

ENT

CONT

RACT

S SE

RVIC

E CE

NTER

TO

TAL

Re

venu

es

9,50

4

11,0

33

G

ener

al F

unds

Allo

catio

n 14

,948

14,9

48

45,

313

38

,980

Rest

ricte

d Re

venu

es

893

33

,878

188

34

,959

(2

,876

) (2

,324

)

Inte

rnal

Rev

enue

43

0

(1,8

73)

(1,4

43)

(13,

562)

(5

,000

)

Ope

ratin

g Tr

ansf

ers

6,41

5

(15,

258)

(164

)

(9

,007

)

38,

378

4

2,68

9

Tota

l Rev

enue

s 22

,686

16

,747

0

24

0

0

39

,457

Ex

pens

es

2,

260

1,

766

Aca

dem

ic S

alar

ies

594

1,

168

1,

762

13,

501

14

,263

Staf

f Sal

arie

s 9,

392

5,

513

14

,905

8,

234

8,

078

Bene

fits

& O

ther

Com

pens

atio

n 4,

994

3,

322

8,

316

19,

162

16

,135

Non

-Sal

ary

Expe

nses

3,

604

9,

588

2

13,1

93

1,

865

1,

767

Inte

rnal

Exp

ense

s 46

5

1,30

4

1,76

9

45,

023

42

,008

To

tal E

xpen

ses

19,0

49

20,8

94

2

0

0

0

39,9

45

(6

,645

) 68

1

Ope

rati

ng R

esul

ts

3,63

7

(4,1

48)

(2)

24

0

0

(489

)

62

0

Tr

ansf

ers

From

(to

) En

dow

men

t & O

ther

Ass

ets

Tr

ansf

ers

From

(to

) Pl

ant

(6

,025

) 68

1

Surp

lus

/ (D

efici

t)

3,63

7

(4,1

48)

(2)

24

0

0

(489

)

15,

370

9,

345

Be

ginn

ing

Fund

Bal

ance

s 2,

151

7,

307

39

3

175

10

,026

9,

345

10

,026

En

ding

Fun

d Ba

lanc

es

5,78

8

3,15

9

391

19

8

9,53

7

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es:

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is s

ched

ule

does

not

incl

ude

endo

wm

ent p

rinc

ipal

, stu

dent

loan

fund

s, o

r pl

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unds

.

• T

he g

ener

al fu

nds

allo

cati

on s

how

n in

this

sch

edul

e in

clud

es o

ne-t

ime

allo

cati

ons

and

ther

efor

e w

ill n

ot m

atch

the

base

figu

re s

how

n in

the

tabl

e on

pag

e 87

.


HO

OV

ER

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ST

ITU

TIO

N20

17/1

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onso

lid

ated

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get

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RICT

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REST

RICT

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GRAN

TS &

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XILIA

RY &

2

017/

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TUAL

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TION

BU

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NDS

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NDAB

LE

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WM

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RVIC

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NTER

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venu

es

81

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eral

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ds A

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tion

1,

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778

61

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Rest

ricte

d Re

venu

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635

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782

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28

11

0

164

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rnal

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enue

112

11

2

67

4

56

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sfer

s 67

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tal R

even

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cit)

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ginn

ing

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Bal

ance

s 16

1

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es

161

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36

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98

9

38,9

14

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• Th

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a N

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pens

e fo

r in

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ture

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gen

eral

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inis

trat

ive

cost

s of

rese

arch

.


STA

NFO

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es 5

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25,

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1,

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26

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1

7,18

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tern

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24

51

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ansf

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) (1

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(12,

317)

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tal R

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33,5

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tal E

xpen

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8

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ng R

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ts

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(1

32)

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ansf

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(to

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dow

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ansf

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(311

) 0

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6

448

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658

12

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ginn

ing

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s 38

7

3,33

2

1,82

9

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9

1,

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12,

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ding

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d Ba

lanc

es

387

3,

510

1,

625

5,

267

2,08

9

12,8

78

Not

es:

• Th

is s

ched

ule

does

not

incl

ude

endo

wm

ent p

rinc

ipal

, stu

dent

loan

fund

s, o

r pl

ant f

unds

.

• G

rant

s an

d C

ontr

acts

reve

nue

incl

udes

Indi

rect

Cos

t Rec

over

y; th

is s

ame

amou

nt is

cha

rged

as

a N

on-S

alar

y Ex

pens

e fo

r in

fras

truc

ture

and

gen

eral

adm

inis

trat

ive

cost

s of

rese

arch

.

• Th

e ge

nera

l fun

ds a

lloca

tion

sho

wn

in th

is s

ched

ule

incl

udes

one

-tim

e al

loca

tion

s an

d th

eref

ore

will

not

mat

ch th

e ba

se fi

gure

sho

wn

in th

e ta

ble

on p

age

87.


AUXILIARY ACTIVITIESA

TH

LET

ICS

2017

/18

Con

soli

dat

ed B

udge

t P

lan

[IN

TH

OU

SAN

DS

OF

DO

LLA

RS]

20

15/1

6 20

16/1

7

DESI

GNAT

ED

REST

RICT

ED

ENDO

WM

ENT

ENDO

WM

ENT

2017

/18

AC

TUAL

S PR

OJEC

TION

AU

XILIA

RY

FUND

S EX

PEND

ABLE

SC

HOLA

RSHI

P OT

HER

TOTA

L

Re

venu

es

46,3

42

50,6

58

In

terc

olle

giat

e 52

,645

52

,645

22

,102

22

,757

Rest

ricte

d Re

venu

es -

Sch

olar

ship

s

23,1

92

23

,192

23

,232

19

,566

Rest

ricte

d Re

venu

es -

Oth

er

13,7

00

6,

500

20

,200

14

,789

14

,371

Uni

vers

ity F

unds

14

,957

14

,957

8,

026

8,

158

Aux

iliar

ies

(e.g

., G

olf C

ours

e)

8,54

4

8,54

4

9,

885

8,

103

Oth

er

6,71

6

1,75

0

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466

7,

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7,

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ps

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7,

000

7,85

3

1,

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52

5

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pera

ting

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sfer

s 19

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(1

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) (1

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0)

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(6,5

00)

0

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13

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9

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l Rev

enue

s an

d Tr

ansf

ers

102,

801

7,

000

0

26

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0

13

5,85

6

Ex

pens

e

58,5

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ompe

nsat

ion

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79

3,90

0

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,623

25

,121

Scho

lars

hips

26,0

00

26

,000

16

,787

12

,126

Faci

litie

s/M

aint

enan

ce

12,5

60

100

12,6

60

9,

487

10

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Trav

el/E

nter

tain

men

t 10

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20

0

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,045

11

,311

12

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Gen

eral

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vice

s/Su

pplie

s 10

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2,

800

13,2

79

3,

793

8,

011

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er

8,25

7

8,25

7

47

5

385

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t Ser

vice

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5

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1,

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14

0

C

apita

l Exp

endi

ture

s 14

3

143

125

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12

9,23

3

Tota

l Exp

ense

s 10

1,35

9

7,00

0

0

26,0

00

0

134,

359

(7

,476

)

Tran

sfer

s (T

o)/F

rom

Ass

ets

0

1,

380

2,

736

Su

rplu

s/(D

efici

t)

1,44

2

0

0

55

0

1,49

7

9,

676

11

,056

Be

ginn

ing

Fund

Bal

ance

s (2

,234

) 4,

278

10

,336

0

1,

412

13

,792

11

,056

13

,792

En

ding

Fun

d Ba

lanc

es

(792

) 4,

278

10

,336

55

1,

412

15

,289


AUXILIARY ACTIVITIES

RESIDENTIAL & DINING ENTERPRISES2017/18 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)

103APPENDIX B: SUPPLEMENTARY INFORMATION

APPENDIX B

SUPPLEMENTARY INFORMATION

The 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

balances. The short summaries below serve as an introduction to the schedules and highlight interesting

trends or historical occurrences.

Schedule 1—Student Enrollment for Autumn QuarterThe total enrollment for undergraduate and graduate

students rose slightly in 2016/17 as compared to the prior

year. Undergraduate enrollment increased by 38 to 7,032

students. Graduate student enrollment grew by 108 students

in 2016/17, a roughly 1.2% increase. Historic annual growth

for graduate students has been closer to 1.5%.

Schedule 2—Freshman Student Apply/Admit/Enroll Statistics Stanford’s undergraduate student body has remained

relatively constant over the past five years, but the number

of applications has increased significantly, resulting in a

progressively lower admissions rate. While the admissions

rate dropped to 4.8%, one of the lowest in the nation,

enrollment yield rose to another historic high at 82.1% of

applicants and continues to be one of the highest in the

nation.

Schedule 3—Graduate Student Apply/Admit/Enroll Statistics Graduate student applications are up 2.6% over 2015/16,

continuing its rising trend. Because of the application growth,

as well as a slight increase to the admittance rate, the yield

rate for enrolling students fell two percentage points from

the prior year to 59.5%. Enrollment numbers nevertheless

have grown steadily over the past ten years by 1.3% annually

as applications increased by 3.4% and admissions rose by

0.5% annually.

Schedule 4—Postdoctoral Scholars by School and by GenderThe postdoctoral scholar population in most schools

continues to trend up, although the total growth of 1.5%

in 2016/17 is smaller than the 4.7% average annual

growth over the past ten years. Of the 2,297 postdoctoral

scholars in 2016/17, almost 60% reside in the School of

Medicine. SLAC’s recent growth is due to a change in the

way postdoctoral scholars are accounted for, not because of

growth or new programs.

Schedule 5—Graduate Student and Postdoc Support At Stanford, teaching assistants and research assistants earn

salaries as part of their compensation, and most receive an

allowance towards their tuition charges. Graduate fellows

receive financial aid that covers some or all of their tuition

charges, and most receive stipends that help cover living

expenses. Postdoctoral students receive salaries and benefits

as part of their appointment, and many also receive tuition

allowance and living expense stipends.

Grants and contracts cover roughly a quarter of graduate

student expenses and about 70% of postdoctoral scholar

expenses. University and school unrestricted (or general

use) funds, designated funds, and endowment income funds

restricted specifically to graduate student aid cover the

remaining expenses. In 2015/16, the support to graduate

students and postdoctoral scholars at Stanford increased

104 APPENDIX B: SUPPLEMENTARY INFORMATION

6.3% and 5.3%, respectively, versus the prior year. The total

overall support reached $523 million. When support in grants

and contracts has decreased, general funds has increasingly

bridged the gap.

Schedule 6—Graduate Enrollment by School and DegreeThis table shows the trend of graduate student enrollment

within each school and across degree programs. In 2016/17,

approximately 62% of graduate student enrollments were

in either H&S or Engineering. The enrollment has increased

university-wide over the ten-year span at a compounded

annual growth rate of 1.4%. During this same period,

Engineering has added the most students (390), while School

of Earth, Energy & Environmental Sciences has had the fastest

total growth (47%) over the ten year period. The makeup of

graduate students has stayed consistent over this period: 51%

doctorate, 29% masters, and 20% professional.

Schedule 7—Undergraduate Tuition and Room & Board Rates The 2017/18 annual undergraduate tuition rate, mandatory

fees, and cost of room and board are projected to increase to

$64,729, an increase of 3.5% versus the previous year. Aside

from 2012/13, the increase in the total annual cost to attend

Stanford has remained at 3.5% since 2010/11.

Schedule 8—Undergraduate Financial Aid by Type of Aid and Source of Funds This schedule shows the various types of financial aid

awarded to undergraduate students, including non-need

based scholarships. In 2015/16, total undergraduate financial

aid was $186.9 million, a 4.0% increase over the previous

year. Funding from federal and state grants continued their

decreasing trend, collectively dropping from $10.7 million in

2012/13 to $9.6 million in 2015/16, more drastic if factoring

in inflation. During this same period, scholarships awarded by

Stanford increased from $145.9 million to $157.7 million. This

growth is primarily driven by support from its endowment,

which grew its contribution from $93.1 million to $116.9

million during this same period, a compound annual growth

of 7.9%.

Schedule 9—Undergraduate Financial Aid Budget Needs and Sources This schedule shows the total needs and sources of support

for undergraduate students who receive need-based financial

aid. The total needs are driven by the growth in the student

budget and by the number of students on aid. For 2017/18,

the budget for need-based aid will increase by 3.1%. This

increase is slightly less than the approved 3.5% increase in

tuition and room and board rates due to 10 fewer students

requiring need-based aid in 2017/18 versus the prior year.

The endowment has played a progressively larger role

(36% to 47% of total undergraduate financial aid support

between 2011/12 and 2017/18) in providing assistance for

undergraduate financial aid, and as a result has allowed

unrestricted funds to be redirected to other areas of the

university.

Schedule 10—Majors with the Largest Number of Baccalaureate Degrees Conferred This schedule shows the twenty undergraduate majors that

granted the most degrees in 2015/16. Human Biology was

the most popular between 2006/07 and 2012/13. In 2013/14

Computer Science took the top spot, posting a significant

growth of 60% over 2012/13. Nearly all undergraduate

students and a growing number of graduate students

take the introductory Computer Science course. The gap

between Human Biology and Computer Science increased

further in 2015/16, with Computer Science growing 22%

and Human Biology falling 15%. From 2014/15 to 2015/16,

the combination of Chemical, Electrical, and Mechanical

Engineering increased at a rate of 9%.

Schedule 11—Students Housed on Campus The percentage of undergraduate students housed on

campus has been about 91% for the twenty years shown in

this table. The graduate on-campus housing program has

expanded significantly since 1998/99, and the trailing ten-

year average of graduate students housed by Stanford is 57%.

The subsidized off-campus housing program for graduate

students has grown rapidly from 198 students in 2012/13 to

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.


Schedule 12—Total Professorial Faculty The total professoriate has increased by 27 (1.3%) to 2,180

in 2016/17, not far off from the ten-year annual growth rate

of 2.0%. The growth in Full, Associate, and Non-Tenure Line

Professors (36) offsets a small decrease in the number of

Assistant Professors (9).

Schedule 13—Distribution of Tenured, Non-Tenured, and Non-Tenure Line FacultyThis schedule provides a disaggregated view of the data in

Schedule 12 by school over the last three years. The School

of Medicine and School of Humanities and Sciences hold

roughly 70% of faculty appointments across the university.

At the university level the total number of tenured faculty has

expanded by 31 (about 3%) between 2014/15 and 2016/17;

the number of non-tenured faculty in the tenure line has

increased by 8 (about 2%); and the number of non-tenure

line faculty has increased by 23 (about 4%) during the same

period. The School of Medicine increased tenured and non-

tenure line faculty by 5.9% and 5.3% respectively during this

same period.

Schedule 14—Number of Non-Teaching EmployeesThis schedule shows the number of regular non-teaching

employees by academic, administrative, and auxiliary units.

The number of employees increased by 686 (5.2%) in 2016.

In particular, the School of Medicine added 447 employees

(10.2% increase) due to further growth and enhancement

in clinical research activities. The Stanford Center for

Professional Development (SCPD) transitioned from the

School of Engineering to the Vice Provost for Teaching and

Learning in 2016, contributing to their inverse shifts. Since

2008/09 when Stanford was forced to right-size because of

the recession, it has experienced a continuous annual growth

of around 3%.

Schedule 15—Fringe Benefits Detail Fringe benefits rates provide a mechanism to support

the various components of non-salary compensation for

employees. Stanford has four distinct fringe benefits rates

for (1) regular benefits-eligible employees, which include

most faculty and staff; (2) postdoctoral research affiliates;

(3) casual/temporary employees; and (4) graduate research

and teaching assistants. This schedule shows the programs

and costs that contribute to the weighted average of the

four individual benefits rates, which was 28.5% in 2015/16.

Versus 2014/15, the total fringe benefits program costs

increased by 8.5% in 2015/16, which is slightly above the

annual growth of 6.7% from 2008/09. Retirement and

insurance benefits, which account for 89% of fringe benefits,

grew by 6.8% and 2.4%, respectively. Severance pay

experienced another spike in 2015/16 as in 2013/14.

Schedule 16—Sponsored Research Expense by Agency and Fund Source In 2015/16, federally sponsored research expenses

increased by 3.6%, a modest decline from the 5.5% increase

experienced in 2014/15. The research expenses sponsored

by non-federal sources remained strong, surging by 9.4%

($22.9 million) over 2014/15. In addition, the annual growth

has been 9.8% over the past three years. Overall, the direct

research volume was $700.8 million in 2015/16; the mix of

funding has slowly shifted from federal to non-federal over

the displayed period. Ten years earlier in 2005/06, federal

direct research comprised 83.4% of direct funding, but that

figure has fallen to 71.8% in 2015/16.

Schedule 17—Sponsored Research Contracts and Grants by School This table presents the sponsored research expenses for

the schools and the Dean of Research over seven years. The

expenses for the School of Medicine, as a percentage of

university-wide sponsored research, has reached a new peak

at 64% in 2015/16. Sponsored research for the School of

Humanities and Sciences also increased 16.8% from 2014/15,

offsetting the ongoing decrease in funding to the School of

Engineering and thereby increasing Sponsored research for

non-Medicine units in 2015/16. The School of Medicine has

enjoyed a 5.6% compound annual growth from 2009/10 to

2015/16. During this same period, only the Graduate School

of Education received consistent, year-over-year increases

with 15.0% compound annual growth.

Schedule 18—Plant Expenditures by Unit This schedule shows expenses from reserves or borrowed

funds for building or infrastructure projects related to various

units. Expenditures for equipment are excluded from these

figures. Total plant expenditures for 2015/16 were $469

million. Some key drivers of the plant expenditures include


project completions of the Graduate School of Business

residence hall (Highland Hall), the 408 Panama Mall office

building, Meier and Norcliffe Halls at Lagunita Court, the

Roble Gymnasium Renovation, and the Arrillaga Fieldhouse.

In addition, projects in design and construction contributed

to plant expenditures, such as the University Terrace Faculty

Homes, Sapp Center for Science Teaching and Learning,

and the David and Joan Traitel Building (formerly Hoover

Institution Conference Center and Office Building).

Schedule 19—Endowment Market Value and Merged Pool Rate of Return The annual nominal rate of return for the merged pool in

2015/16 was -0.4% for the 12 months ending June 30, 2016.

This slightly negative performance nonetheless exceeded

most peer and benchmark results. The endowment market

value was up to $22.4 billion, a 0.8% increase over 2014/15.

The target payout rate remains 5.5%.

Schedule 20—Expendable Fund Balances at Year EndThis schedule shows total expendable fund balances

(excluding sponsored research) by academic unit (excluding

SLAC) over the past decade. Aided by continuous growth

in its healthcare services revenue, the School of Medicine

has almost tripled its fund balance between 2007/08 and

2017/18. In addition, it has gone from representing 38% of the

total academic unit fund balances to 54% between 2007/08

and 2017/18. The Graduate School of Education, School of

Medicine, and VP and Dean of Research have the fastest

compound annual growth over the period.

Schedule 21—Academic Unit Expendable Fund Balances at Year End by Level of ControlThis schedule shows total expendable fund balances

(excluding sponsored research) by level of control within

the academic units over the last three years along with the

compound annual growth. “Level of control” indicates the

authority of funds within each school. Overall, approximately

80% of the fund balances comprise the combination of

school/institution and department/program levels in the

past three years. The dynamics of fund balance growth has

also varied by level of control among the schools. The fund

balances at the department/program and faculty levels had

significant annual growth at 16.0% and 16.8%, respectively,

while fund balances show a small 1.0% decline at the school/

institution level.

Schedule 22—Consolidated Budget for Operations HistoryThis schedule shows actual results from 2010/11 through

2015/16, including the 2016/17 year end projection and

the 2017/18 budget plan for the Consolidated Budget

for Operations. While expense growth has outpaced

revenue growth for the period shown (6.6% versus 6.3%,

respectively), the net operating results each year continue

to provide steady additions to fund balances, even after

transferring a significant amount to assets such as

endowment principal and plant. On average, the university

nets an operating income of roughly 8% of revenue over the

displayed period.


SCHEDULE 1

STUDENT ENROLLMENT FOR AUTUMN QUARTER2007/08 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.


SCHEDULE 2

FRESHMAN APPLY/ADMIT/ENROLL STATISTICSFall 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%


GRADUATE STUDENT APPLY/ADMIT/ENROLL STATISTICSFall 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%

SCHEDULE 3


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.


SCHEDULE 5

GR

AD

UA

TE

STU

DEN

T A

ND

PO

STD

OC

SU

PP

OR

T[I

N M

ILLI

ON

S O

F D

OLL

ARS

]

2014

/15

2015

/16

GE

NERA

L/SC

HOOL

REST

RICT

ED

GENE

RAL/

SCHO

OL

RE

STRI

CTED

201

4/15

TO

2015

/16

FU

NGIB

LE

DESIG

NATE

D

STUD

ENT A

ID

GRAN

TS &

FUNG

IBLE

DE

SIGNA

TED

STUD

ENT

GRAN

TS &

CHA

NGE

FU

NDS 1

FUND

S FU

NDS

CONT

RACT

S TO

TAL

FUND

S 1 FU

NDS

AID

FUND

S CO

NTRA

CTS

TOTA

L AM

OUNT

PE

RCEN

T

Gra

duat

e St

uden

t Sup

port

Sa

larie

s

Teac

hing

Ass

ista

nts

14.3

0.

5

11.2

0.

1

26.0

14

.0

0.5

13

.2

0.1

27

.7

1.7

6.

4%

Rese

arch

Ass

ista

nts

7.6

8.

3

16.7

36

.2

68.8

7.

5

8.8

19

.4

39.7

75

.3

6.5

9.

5%

Oth

er S

alar

ies

0.4

0.

4

0.5

0.

4

1.7

0.

5

0.5

0.

5

0.2

1.

7

0.0

0.

6%

Bene

fits

4.2

5.

2

5.6

2.

3

17.3

4.

2

5.5

6.

7

2.6

19

.0

1.8

10

.4%

Tota

l Sal

arie

s &

Ben

efits

26

.5

14.3

34

.0

39.0

11

3.8

26

.1

15.3

39

.8

42.6

12

3.8

10.0

8.

8%

Tu

ition

Allo

wan

ce

44.4

4.

0

10.4

17

.2

76.0

48

.5

4.4

10

.1

18.5

81

.5

5.6

7.

3%

Fe

llow

ship

Tui

tion

29.0

4.

5

60.0

10

.2

103.

8

28.4

4.

6

63.1

10

.4

106.

5

2.7

2.

6%

St

ipen

ds

18.7

3.

5

32.1

22

.2

76.5

18

.2

4.0

37

.0

22.1

81

.4

4.9

6.

4%

Tota

l Gra

duat

e St

uden

t Sup

port

11

8.7

26

.4

136.

5

88.5

37

0.0

12

1.3

28

.3

150.

0

93.5

39

3.2

23

.1

6.3%

Perc

ent o

f Tot

al

30.2

%

6.7%

34

.7%

22

.5%

10

0.0%

30

.9%

7.

2%

38.1

%

23.8

%

100.

0%

Post

docs

Sa

larie

s 2.

3

10.7

11

.4

54.2

78

.6

2.9

12

.4

12.3

58

.7

86.3

7.

7

9.8%

Be

nefit

s 0.

9

4.2

4.

4

14.3

23

.8

1.1

3.

3

4.3

15

.5

24.3

0.

4

1.9%

Tu

ition

0.

3

0.0

0.

0

0.0

0.

3

0.2

0.

0

0.0

0.

0

0.2

(0

.1)

-37.

2%

St

ipen

ds

0.6

2.

0

4.3

13

.3

20.2

0.

8

1.5

2.

4

14.0

18

.7

(1.5

) -7

.4%

Tota

l Pos

tdoc

Sup

port

4.

1

17.0

20

.1

81.8

12

2.9

5.

0

17.2

19

.1

88.2

12

9.5

6.

6

5.3%

Perc

ent o

f Tot

al

3.3%

13

.8%

16

.3%

66

.5%

10

0.0%

3.

8%

13.3

%

14.8

%

68.1

%

100.

0%

1

Gen

eral

/Sch

ool f

ungi

ble

fund

s ar

e ge

nera

l fun

ds a

nd s

ome

Gift

and

End

owed

fund

s th

at c

an b

e us

ed fo

r any

pur

pose

with

in a

sch

ool.


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.


SCHEDULE 7

UNDERGRADUATE TUITION, MANDATORY FEES, AND ROOM & BOARD RATES1987/88 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.


SCHEDULE 8

UN

DER

GR

AD

UA

TE

FIN

AN

CIA

L A

ID B

Y T

YP

E O

F A

ID A

ND

SO

UR

CE

OF

FUN

DS

1

2006

/07

thro

ugh

2015

/16

[IN

TH

OU

SAN

DS

OF

DO

LLA

RS]

20

06/0

7 20

07/0

8 20

08/0

9 20

09/1

0 20

10/1

1 20

11/1

2 20

12/1

3 20

13/1

4 20

14/1

5 20

15/1

6

Stan

ford

Sch

olar

ship

s

N

eed-

base

d A

war

ds 2

Sta

nfor

d U

nres

tric

ted

Fund

s 5

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9

97

4,3

10

26,

829

3

6,26

9

34,5

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73

24,6

58

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d En

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3 6

1,02

6

74,

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9

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2

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101,

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Sour

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R&D

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ed fu

nds

that

are

not

nee

d-ba

sed

per d

onor

s’ w

ishe

s. T

he a

mou

nt is

$19

5,11

2 in

20

15/1

6.

Thus

, the

figu

res

in th

is s

ched

ule

will

not

equ

al th

e su

m o

f the

am

ount

s fo

r Sta

nfor

d fu

nded

nee

d-ba

sed

awar

ds in

Sch

edul

e 9.

3 Inc

lude

s su

ppor

t fro

m th

e St

anfo

rd F

und.


SCHEDULE 9

UN

DER

GR

AD

UA

TE

NEE

D-B

ASE

D F

INA

NC

IAL

AID

Proj

ecte

d 20

17/1

8 St

uden

t B

udge

t N

eeds

and

Sou

rces

, In

clud

ing

Pare

ntal

and

Stu

dent

Con

trib

utio

ns 1

[IN

TH

OU

SAN

DS

OF

DO

LLA

RS]

2016

/17

TO 2

017/

18

2011

/12

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

CHAN

GE

AC

TUAL

S AC

TUAL

S AC

TUAL

S AC

TUAL

S AC

TUAL

S

PROJ

ECTE

D BU

DGET

AM

OUNT

PE

RCEN

T

Nee

ds

Tu

ition

, Roo

m &

Boa

rd

177,

792

17

9,49

1

178,

519

18

4,17

9

186,

455

19

3,51

6

199,

667

6,

151

3.

2%

Bo

oks

and

Pers

onal

Exp

ense

s 17

,755

17

,820

17

,535

18

,134

18

,061

18

,573

19

,041

46

8

2.5%

Tr

avel

2,

638

2,

641

2,

599

2,

635

2,

662

2,

740

2,

792

51

1.

9%

Tota

l Stu

dent

Exp

ense

s 19

8,18

4

199,

952

19

8,65

2

204,

948

20

7,17

8

214,

830

22

1,50

0

6,67

0

3.1%

Sour

ces

To

tal F

amily

Con

trib

utio

n (I

nclu

des

pare

nt

co

ntrib

utio

n fo

r aid

ed s

tude

nts,

sel

f-he

lp,

su

mm

er s

avin

gs, a

sset

s, e

tc.)

56

,580

58

,415

58

,585

59

,861

57

,777

58

,964

59

,450

48

6

0.8%

En

dow

men

t Inc

ome 2

71,8

33

74,9

95

81,4

42

86,9

21

95,1

73

100,

285

10

5,07

2

4,78

7

4.8%

Ex

pend

able

Gift

s 1,

276

1,

211

1,

765

2,

550

2,

798

2,

779

2,

415

(

364)

-1

3.1%

St

anfo

rd F

und/

Pres

iden

t’s F

unds

38

,131

25

,852

18

,288

18

,460

18

,498

17

,673

17

,572

(1

01)

-0.6

%

Fe

dera

l Gra

nts

6,00

3

5,64

3

5,51

1

5,76

5

5,77

7

5,50

0

5,48

3

(17)

-0

.3%

C

alifo

rnia

Sta

te S

chol

arsh

ips

3,58

7

3,40

8

3,29

0

3,23

8

2,66

5

2,50

0

2,36

8

(132

) -5

.3%

O

utsi

de A

war

ds

5,31

2

5,12

3

4,78

2

5,20

6

5,72

5

5,27

3

5,30

9

36

0.7%

D

epar

tmen

t Sou

rces

1,

198

1,

745

1,

433

1,

081

1,

396

1,

131

1,

137

6

0.

5%

U

nres

tric

ted

Fund

s 14

,264

23

,558

23

,555

21

,866

17

,368

20

,726

22

,694

1,

968

9.

5%

Tota

l Sou

rces

19

8,18

4

199,

952

19

8,65

2

204,

948

20

7,17

8

214,

830

22

1,50

0

2,01

0

3.1%

Num

ber o

f Stu

dent

s on

Nee

d-Ba

sed

Aid

3,

464

3,

417

3,

278

3,

254

3,

196

3,

195

3,

185

(1

0)

-0.3

%

1 In

this

tabl

e, s

ourc

es o

f aid

oth

er th

an th

e fa

mily

con

trib

utio

n in

clud

e on

ly a

id a

war

ded

to s

tude

nts

who

are

rece

ivin

g sc

hola

rshi

p ai

d

from

Sta

nfor

d. T

hus,

the

sum

of t

he a

mou

nts

for s

chol

arsh

ips

and

gran

ts w

ill n

ot e

qual

the

figur

es in

Sch

edul

e 8.

2 End

owm

ent i

ncom

e in

clud

es re

serv

e fu

nds

and

spec

ifica

lly in

vest

ed fu

nds.


SCHEDULE 10

MAJORS WITH THE LARGEST NUMBER OF BACCALAUREATE DEGREES CONFERRED 12006/07 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 Office1 This table includes the 20 degrees in which the most undergraduate degrees were awarded in 2015/16.


SCHEDULE 11

STUDENTS HOUSED ON CAMPUS1997/98 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 Office1 Students who are in overseas programs are not included.


TOTAL PROFESSORIAL FACULTY1982/83 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.

SCHEDULE 12


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.


SCHEDULE 14

NUMBER OF NON-TEACHING EMPLOYEES 1As of December 15 Each Year2008 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 Office1 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.


SCHEDULE 15FR

ING

E B

ENEF

ITS

DET

AIL

1

2008

/09

thro

ugh

2015

/16

[IN

TH

OU

SAN

DS

OF

DO

LLA

RS]

Act

ual

Frin

ge B

enefi

ts P

rogr

am

2008

/09

2009

/10

2010

/11

2011

/12

2012

/13

2013

/14

2014

/15

2015

/16

Reti

rem

ent P

rogr

ams

Uni

vers

ity R

etire

men

t 97

,748

99

,373

10

4,40

7

110,

754

11

8,04

5

129,

246

13

7,72

6

146,

085

So

cial

Sec

urity

92

,586

93

,704

97

,920

10

5,09

4

112,

378

11

9,45

8

125,

968

13

4,53

8

Fa

culty

Ear

ly R

etire

men

t 7,

501

24

,931

1,

301

3,

322

4,

048

3,

749

4,

836

6,

098

St

anfo

rd R

etire

men

t

Ann

uity

Pla

n/O

ther

2 36

4

468

33

2

10,6

13

4,99

4

219

29

1

391

Tota

l Ret

irem

ent P

rogr

ams

198,

199

21

8,47

6

203,

960

22

9,78

3

239,

466

25

2,67

2

268,

822

28

7,11

2

Insu

ranc

e Pr

ogra

ms

Med

ical

Insu

ranc

e 95

,611

10

1,06

0

110,

018

13

0,42

4

135,

834

15

4,66

5

177,

837

18

5,06

8

Re

tirem

ent M

edic

al

16,5

83

14,2

45

22,7

10

26,2

84

19,7

48

18,6

64

16,9

86

18,1

20

W

orke

r’s C

omp/

LTD

/

Une

mpl

oym

ent I

nsur

ance

20

,338

16

,969

15

,740

19

,499

23

,556

27

,529

25

,869

22

,810

D

enta

l Ins

uran

ce

12,1

50

12,5

92

12,8

17

13,5

52

13,2

14

12,9

76

12,4

27

12,7

84

G

roup

Life

Insu

ranc

e/O

ther

14

,761

15

,382

15

,431

20

,829

17

,772

20

,716

22

,355

22

,840

Tota

l Ins

uran

ce P

rogr

ams

159,

443

16

0,24

8

176,

716

21

0,58

8

210,

124

23

4,55

0

255,

475

26

1,62

3

Mis

cella

neou

s Pr

ogra

ms

Seve

ranc

e Pa

y 16

,189

2,

948

6,

096

7,

387

7,

910

14

,461

8,

018

13

,162

Sa

bbat

ical

Lea

ve

15,6

89

14,1

87

14,3

60

14,8

10

17,9

15

20,0

52

19,6

22

21,4

12

O

ther

13

,012

12

,064

12

,489

13

,637

15

,556

17

,294

18

,722

19

,523

Tota

l Mis

cella

neou

s Pr

ogra

ms

44,8

90

29,1

99

32,9

45

35,8

34

41,3

81

51,8

07

46,3

61

54,0

97

Tota

l Fri

nge

Bene

fits

Prog

ram

s 40

2,53

2

407,

923

41

3,62

1

476,

205

49

0,97

1

539,

029

57

0,65

7

602,

832

Car

ry-f

orw

ard/

Adj

ustm

ent

from

Prio

r Yea

r(s)

(1

0,84

1)

985

14

,096

(4

,220

) (8

,160

) (2

,654

) (2

,849

) 13

,214

Tota

l Wit

h C

arry

-for

war

d/A

djus

tmen

t 39

1,69

1

408,

908

42

7,71

7

471,

985

48

2,81

1

536,

375

56

7,80

8

616,

046

Wei

ghte

d A

vera

ge F

ringe

Ben

efits

Rat

e 26

.8%

27

.7%

27

.2%

28

.2%

27

.1%

28

.4%

28

.3%

28

.5%

Not

e:1

The

frin

ge ra

te a

t the

bot

tom

of t

he ta

ble

is th

e w

eigh

ted

aver

age

of th

e fo

ur d

istin

ct fr

inge

rate

s th

at a

re c

harg

ed to

(1

) re

gula

r ben

efits

-elig

ible

em

ploy

ees,

whi

ch in

clud

es a

ll fa

culty

and

sta

ff w

ith c

ontin

uing

app

oint

men

ts o

f hal

f-tim

e or

mor

e;

(2)

post

doct

oral

sch

olar

s; (

3) c

asua

l or t

empo

rary

em

ploy

ees;

and

(4)

grad

uate

teac

hing

and

rese

arch

ass

ista

nts.

2 The

Sta

nfor

d Re

tirem

ent A

nnui

ty P

lan

had

a $1

0.5

mill

ion

rese

rve

cont

ribut

ion

in 2

011

/12

due

to u

nder

fund

ed p

ensi

on o

blig

atio

ns.


SCHEDULE 16

SPONSORED RESEARCH EXPENSE BY AGENCY AND FUND SOURCE 12009/10 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.


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.


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.


SCHEDULE 19

ENDOWMENT MARKET VALUE AND MERGED POOL RATE OF RETURN2001/02 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 Report1 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.


SCHEDULE 20

EXP

END

AB

LE F

UN

D B

ALA

NC

ES A

T Y

EAR

-EN

D20

07/0

8 th

roug

h 20

17/2

018

[IN

MIL

LIO

NS

OF

DO

LLA

RS]

2007

/08

TO

2017

/18

PROJ

ECTE

D PL

AN

COM

POUN

D

2007

/08

2008

/09

2009

/10

2010

/11

2011

/12

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

CHAN

GES

Aca

dem

ic U

nits

Gra

duat

e Sc

hool

of B

usin

ess

64.0

67

.0

82.2

65

.7

79.0

95

.0

91.4

76

.1

68.1

92

.6

85.7

3.

0%

Scho

ol o

f Ear

th, E

nerg

y &

En

viro

nmen

tal S

cien

ces

30.5

37

.9

42.3

46

.8

48.2

50

.0

54.2

60

.2

58.6

52

.9

48.9

4.

8%

Gra

duat

e Sc

hool

of E

duca

tion

25.1

32

.2

35.5

38

.5

38.1

37

.4

42.0

45

.0

53.6

54

.7

54.7

8.

1%

Scho

ol o

f Eng

inee

ring

184.

6

199.

7

202.

5

219.

5

232.

8

250.

4

261.

7

256.

1

275.

6

267.

8

271.

6

3.9%

Scho

ol o

f Hum

aniti

es &

Sci

ence

s 20

6.4

24

5.8

26

4.3

28

4.3

28

5.1

27

8.8

25

5.3

26

7.0

29

5.4

29

3.0

30

5.4

4.

0%

Scho

ol o

f Law

25

.3

19.1

20

.1

21.6

21

.9

21.6

24

.1

24.2

34

.7

23.7

23

.8

-0.6

%

Scho

ol o

f Med

icin

e 44

3.7

47

7.4

52

3.1

57

2.5

61

2.9

76

9.4

84

6.7

99

9.2

1,

119.

3

1,21

9.3

1,

307.

5

11.6

%

VP

and

Dea

n of

Res

earc

h 10

5.1

10

8.2

11

1.2

11

8.6

13

3.3

14

1.4

16

3.6

18

3.7

19

4.2

21

8.7

22

5.1

7.

9%

VP

for

Und

ergr

adua

te E

duca

tion

17.3

19

.9

22.0

22

.1

22.8

20

.3

20.2

20

.3

21.5

20

.7

19.6

1.

3%

VP

for

Gra

duat

e Ed

ucat

ion

28.4

39

.1

45.1

46

.2

49.8

49

.7

56.3

56

.2

54.6

52

.0

49.6

5.

7%

VP

for

Teac

hing

and

Lea

rnin

g 1

0.3

2.

7

9.3

10

.0

9.5

Hoo

ver

Inst

itutio

n 35

.5

35.2

38

.7

40.2

38

.6

34.7

41

.5

66.8

45

.9

42.3

38

.9

0.9%

Uni

vers

ity L

ibra

ries

10

.5

17.5

21

.6

18.4

14

.6

14.2

7.

0

8.7

12

.1

12.4

12

.9

2.1%

Tota

l Aca

dem

ic U

nits

(ex

clud

ing

SLA

C)

1,17

6.4

1,

299.

0

1,40

8.6

1,

494.

4

1,57

7.1

1,

762.

9

1,86

4.3

2,

066.

2

2,24

2.9

2,

360.

1

2,45

3.3

11.6

%

1 V

P fo

r Tea

chin

g an

d Le

arni

ng w

as c

reat

ed in

20

12/1

3. P

rece

ding

its

ince

ptio

n, a

ll ac

tivity

was

cap

ture

d w

ithin

the

Offi

ces

of th

e Pr

esid

ent a

nd P

rovo

st.


SCHEDULE 21

ACADEMIC UNIT EXPENDABLE FUND BALANCESBy Level of Control2013/14 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.


SCHEDULE 22C

ON

SOLI

DA

TED

BU

DG

ET F

OR

OP

ERA

TIO

NS

HIS

TO

RY

[IN

MIL

LIO

NS

OF

DO

LLA

RS]

20

10/1

1 to

201

7/18

20

10/1

1 20

11/1

2 20

12/1

3 20

13/1

4 20

14/1

5 20

15/1

6 20

16/1

7 20

17/1

8 C

ompo

und

A

ctua

ls

Act

uals

A

ctua

ls

Act

uals

A

ctua

ls

Act

uals

Pr

ojec

tion

Plan

A

nnua

l Gro

wth

Reve

nues

Und

ergr

adua

te P

rogr

ams

28

5.6

2

98.1

3

11.0

3

17.4

3

30.9

3

42.3

3

56.7

3

69.2

3.

7%

G

radu

ate

Prog

ram

s

274.

8

287

.2

297

.0

313

.8

329

.0

340

.5

360

.1

373

.7

4.5%

Room

and

Boa

rd

127

.8

135

.9

144

.8

151

.3

164

.3

174

.1

186

.5

194

.5

6.2%

St

uden

t Inc

ome

6

88.2

7

21.2

7

52.9

7

82.5

8

24.2

8

57.0

9

03.4

9

37.4

4.

5%

Dire

ct C

osts

- U

nive

rsity

6

50.3

6

39.3

6

56.8

6

69.7

7

16.7

7

53.6

7

78.8

8

06.8

3.

1%

In

dire

ct C

osts

2

25.5

2

26.4

2

25.5

2

27.7

2

42.6

2

51.4

2

66.8

2

78.0

3.

0%

Uni

vers

ity S

pons

ored

Res

earc

h

875

.8

865

.7

882

.3

897

.3

959

.2

1,0

05.0

1

,045

.6

1,0

84.8

3.

1%

SL

AC

Spo

nsor

ed R

esea

rch

366

.4

368

.0

350

.9

369

.3

430

.4

447

.8

644

.2

559

.4

6.2%

H

ealth

Car

e Se

rvic

es

558

.7

600

.5

714

.8

778

.2

957

.9

1,0

33.9

1

,122

.8

1,2

53.2

12

.2%

G

ifts

In S

uppo

rt o

f Ope

ratio

ns

163

.7

177

.8

180

.7

211

.8

233

.3

250

.8

251

.0

251

.0

6.3%

N

et A

sset

s Re

leas

ed F

rom

Res

tric

tions

1

06.1

1

10.0

1

77.7

1

30.2

1

56.9

1

40.3

1

40.2

1

40.2

4.

1%

Endo

wm

ent I

ncom

e

783

.4

861

.7

921

.7

984

.7

1,0

65.5

1

,147

.5

1,1

76.9

1

,243

.4

6.8%

Oth

er In

vest

men

t Inc

ome

1

51.7

1

60.6

1

18.3

2

32.1

2

22.6

2

58.0

1

72.2

2

75.8

8.

9%

Inve

stm

ent I

ncom

e

935

.1

1,0

22.3

1

,040

.0

1,2

16.8

1

,288

.1

1,4

05.6

1

,349

.1

1,5

19.2

7.

2%

Sp

ecia

l Pro

gram

Fee

s an

d O

ther

Inco

me

3

81.3

4

37.0

4

73.6

5

07.1

5

16.0

5

40.0

5

08.4

5

16.2

4.

4%

Tota

l Rev

enue

s

4,0

75.3

4

,302

.5

4,5

72.9

4

,893

.5

5,3

66.0

5

,680

.4

5,9

64.6

6

,261

.4

6.3%

Exp

ense

s

C

ompe

nsat

ion

2

,205

.1

2,3

64.1

2

,516

.5

2,6

65.3

2

,881

.5

3,1

22.8

3

,359

.2

3,6

21.5

7.

3%

Fina

ncia

l Aid

2

30.4

2

40.6

2

42.5

2

48.8

2

60.5

2

69.5

2

86.0

2

98.2

3.

8%

Inte

rnal

Deb

t Ser

vice

1

59.2

1

41.8

1

61.8

1

72.7

1

98.6

1

85.2

1

99.1

1

99.3

3.

3%

Oth

er O

pera

ting

Expe

nse

1

,139

.6

1,2

04.6

1

,238

.8

1,3

81.6

1

,525

.0

1,5

41.0

1

,780

.7

1,7

34.2

6.

2%

Tota

l Exp

ense

s

3,7

34.3

3

,951

.2

4,1

59.6

4

,468

.3

4,8

65.6

5

,118

.5

5,6

25.0

5

,853

.3

6.6%

Ope

rati

ng R

esul

ts

341

.0

351

.3

413

.2

425

.1

500

.4

561

.9

339

.6

408

.1

2.6%

Tran

sfer

s

Tran

sfer

s fr

om (

to)

Endo

wm

ent P

rinci

pal

(15

0.4)

(

88.6

) (

117.

4)

(11

2.5)

(

110.

7)

(12

5.6)

(

119.

2)

(11

0.2)

Tr

ansf

ers

from

(to

) Pl

ant

(44

.8)

(17

2.1)

(

154.

3)

(23

5.5)

(

165.

2)

(25

4.6)

(

98.5

) (

162.

0)

Oth

er In

tern

al T

rans

fers

3

7.2

1

0.7

4

2.2

4

0.1

3

4.3

3

3.9

3

0.6

2

9.4

Tota

l Tra

nsfe

rs

(158

.0)

(24

9.9)

(

229.

5)

(30

7.8)

(

241.

6)

(34

6.2)

(

187.

1)

(24

2.8)

Chan

ge in

Fun

d Ba

lanc

es

183

.0

101

.4

183

.8

117

.3

258

.8

215

.7

152

.5

165

.4

Begi

nnin

g Fu

nd B

alan

ce

2,1

46.1

2

,329

.1

2,4

30.5

2

,614

.2

2,7

31.5

2

,990

.3

3,2

05.9

3

,358

.4

6.6%

Endi

ng F

und

Bala

nce

2,3

29.1

2

,430

.5

2,6

14.2

2

,731

.5

2,9

90.3

3

,205

.9

3,3

58.4

3

,523

.8

6.1%


Design & Production: Pat Brito, Design & Print Services

Cover Photo: Tamer Shabani, © by Stanford University

Printed on recycled paper, using soy ink and

chemical free processing.

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