University-wide budget reduction guidelines for FAS units

To: FAS Department and Program Chairs, Lead Administrators, Operations Managers, and Chair's Assistants
Cc: FAS Dean's Office; FAS Steering

Dear Chairs, Lead Administrators, Operations Managers, and Chair's Assistants,

As President McInnis wrote earlier this month, recent federal action will cost the university $280 million in endowment income in the first year the increased endowment tax takes effect. This is in addition to the effects of other federal actions, such as cuts in student loans and Medicaid. The university has implemented a 5% reduction to non-salary annual budgets effective immediately. We are still awaiting further information on how this and other recent decisions at the federal level will shape our budgets in fiscal year 2026 and beyond, but for now, we do know that we need to cut 5% from the department and program non-salary budgets requested for FY26.

As we await further guidance, and as you begin planning activities for the coming academic year, all FAS units must consider ways to reduce spending from all funding sources.

We ask that you please observe the following guidance:

1. Overnight stays: Overnight stays for retreats, conferences, meetings, trainings, and visiting guests should be limited to the shortest number of nights possible based on the schedule of the event. This guidance applies to Yale faculty and staff using university funds to attend out-of-town events and to guests visiting the Yale campus under your unit's sponsorship.
2. Limit alcohol at events to wine and beer only.
3. Parties and social events: adhere to a per capita limit of $100.
   1. While modest gatherings for employee recognition and years of service are allowed, try to combine these events to recognize multiple individuals at one time to reduce costs.
   2. Holiday gatherings are allowed, but expenses should be reviewed in order to identify possible cost savings.
   3. Reminder: University funds cannot be used to sponsor events or purchase gifts for recognition of birthdays, Administrative Professionals' Day, baby showers, and similar occasions.
4. Limits to business/group meals:
   1. A maximum of $125 per capita for business and recruitment meals is permitted, per University Policy 3302.1 Business Meals, Entertainment, and Other Social Events. Exceptions to the business meal limit of $125 per capita will not be granted.
   2. At business and recruitment meals hosted at restaurants, other forms of alcohol in addition to beer and wine are permitted. However, as per capita cost will be strictly enforced, please choose lower-cost options.
   3. A maximum of $75 per capita is permitted for receptions/buffet style meals.
   4. A maximum of $20 per capita is permitted for lunches. Lower cost options should be chosen where possible (e.g. pizza). Lunch meals should be limited to business meetings that could not be scheduled at other times.
5. Cell phones for staff: Individual staff who currently have FAS-sponsored cell phones will continue to be provided with cell phone service while they are employed by the FAS. New employees and employees transferring into an FAS unit will NOT be provided with an FAS-sponsored cell phone and will NOT be approved for a monthly supplement to offset any cell phone costs.

This guidance provides a framework for identifying initial ways to reduce costs. Departments and programs should also review their planned events and identify those which can continue with reduced budgets. In addition, please keep in mind that, given the 90-day hiring pause, staff resources necessary to facilitate events may be limited. Please also be aware that we are working closely with Deans Lewis and Cooley in Yale College and GSAS, respectively, to ensure that spending guidance is similar across the three units and our funding sources.

As we receive further guidance on the impact of the endowment tax, rate caps, or other federal actions that have financial implications for the university, we will share more information with you.

We are grateful for your leadership during what is likely to be a challenging academic year. Thank you for all that you do to support our students and faculty and to advance our academic mission, particularly during uncertain times.

Please reach out with any questions.

Thank you,

Steven and Mary

Steven Wilkinson
Dean
Faculty of Arts and Sciences

Mary Magri
Senior Director, Finance and Administration
FAS, GSAS, and Yale College