Planning for financial constraint
The continuing uncertainty about the length and depth of the economic downturn makes accurate predictions impossible. However, we must take action now to plan for a protracted period of financial constraint, while at the same time remaining flexible for a future in which the economy may improve or worsen.
Taking all these factors into account, we can reasonably anticipate the need to decrease spending by about 10-15% over the next two to three years. In the current budget planning cycle for FY10, we will plan for a base budget reduction of 5%. Future years will undoubtedly require additional cuts by all units. As all of you who manage budgets know, achieving a base budget reduction of this magnitude is a very serious exercise; we will tackle it together, through a careful three-year implementation plan, beginning with a number of practical short-term actions.
Susan Hockfield, Presidente do MIT
Letter to the Community on MIT Finances