Financial Plan - Cornell University Division of Budget & Planning

Operating plan – DetailsMedical CollegeRevenues and Transfers InRevenues for the Joan and Sanford I. Weill MedicalCollege and Graduate School of Medical Sciences areprojected at $1.043 billion, an increase of 4.6 percentover the forecast for 2007-08.• Tuition and fees are budgeted at $23.2 million, anincrease of $2.3 million, or 11.2 percent, fromthe forecast. Medical College tuition will increase6.5 percent, from $39,180 to $41,730, for firstandsecond-year students. Tuition for third- andfourth-year students will grow 5 percent, to$37,240. Tuition for the Graduate School of MedicalSciences will increase 3 percent, to $26,872.A slight increase in student enrollments is alsoprojected. (See Appendix C, page 62.)• Restricted gifts are expected to total $62.1 millionin 2008-09, a slight decrease from the forecast.The planned amount includes annual gift contributionsand anticipated gifts to support newfaculty and programs as part of the Strategic Plansfor Research and Advancing the Clinical Mission.• Direct costs of grants and contracts for sponsoredprograms are expected to total $115.8 million, a3.1 percent growth over the 2007-08 forecast, duemainly to the recently announced Clinical TranslationalScience Award. Recoveries for facilitiesand administrative costs (F&A) from sponsoredprograms are projected to increase 2.8 percentdue to growth in direct costs. The on-campus federalF&A rate is expected to remain at 68 percent.• Revenues from the Physician Organization (PO)are projected at $495.2 million, a $22.9 millionincrease from the 2007-08 forecast, and incorporatesexpected growth in receipt volume in severalclinical initiatives introduced as components ofthe Strategic Plan and continued growth in establishedpractices and various specialty divisions.• Administrative, training, and supervisory servicespurchased by the New York Presbyterian Hospital(NYPH) are expected to total $86.2 million,$1.7 million greater than the 2007-08 forecast.These services include hospital-service costs andsupervision and training of NYPH residents.• Funding from the Qatar Foundation to operate theWeill Medical School in Qatar is expected to grow$6.9 million in 2008-09, reaching $78.5 million.This funding level anticipates a planned growth infaculty and support staff.Expenditures and Transfers OutNet expenditures are planned at $1.029 billion, an increaseof 4.5 percent, or $44 million, over the forecastfor 2007-08.• Academic department expenditures, including thePhysician Organization, are planned to increase3.7 percent, to $790.9 million. This growth willbe due mainly to: (a) a 4.1 percent increase inPhysician Organization expenditures, includingStrategic Plan programs; (b) a 2 percent growth inthe costs related to administrative, training, andsupervisory functions provided to NYPH; and (c) a3 percent increase in sponsored programs costs.• Administrative and support costs are expectedto grow 5.7 percent, or $4.7 million, from the2007-08 forecast. These costs include operatingexpenditures for student services, academic, andadministrative support units. Administrative andsupport costs for the Medical College in Qatarwill increase 16.4 percent, to $78.5 million, asgrowth is anticipated in faculty and staff whosupport the program in Qatar and that the fullamount budgeted in 2008-09 will be expended.• Physical plant costs are expected to increase 8.2percent, to $56.9 million, reflecting growth in newfacility costs for off-site locations at 61 st Street, 67 thStreet, and 575 Lexington Avenue. A significantamount of the incremental space is to accommodatethe planned Biomedical Research Building.The plan also includes new borrowings for theexpansion of the “E” building and renovations ofRARC sites in the “S” and Main Buildings.Transfers out to plant reserves, which are planned at$2.6 million, represent funding for capital acquisitionsand renovations by the Physician Organization.Net from OperationsThis plan will produce an $11.5 million net from operations,which will be held in current fund balances.Included in this net is a projected deficit of $1.4million in Housing and Ancillary Operations, whichwill be funded by future revenues.42