Harvard’s FAS faces a $350M deficit: Here’s why the budget crisis runs so deep

Harvard University’s Faculty of Arts and Sciences (FAS) is facing an estimated structural deficit of approximately $350 million, a financial shortfall that will require significant changes to its long-term budget. The deficit, announced by FAS Dean Hopi E. Hoekstra in an email to faculty and staff, represents about 20 per cent of the faculty’s annual operating budget, according to The Harvard Crimson . In her message, Hoekstra said the deficit reflected a rise in operating costs, an increase in the federal endowment tax, and uncertainty over future US federal funding. The dean added that the financial imbalance leaves the FAS with little capacity to absorb shocks or make strategic investments in academic priorities, The Harvard Crimson reported. Rising costs and federal funding p