Challenges
1. Changing Economic Landscape
Boston University’s financial position is sound. In response to the decline in capital markets in September of 2008, President Brown made a series of prudent, early adjustments in anticipation of a prolonged period of economic weakness. Slightly decreased budgets, modest reduction in administrative positions (primarily through attrition), and initiatives to improve operational efficiency freed resources for increased undergraduate financial aid and ensured that the University could continue to generate annual surpluses, last year topping $100 million for the second consecutive year on an overall operating budget of approximately $2 billion. Ironically, because the University’s endowment has historically been comparatively modest (currently standing at approximately $1 billion), the University was not overly dependent on endowment income.
The pursuit of the priorities described in the University’s strategic plan continues in earnest against the backdrop of greater economic uncertainty, but with a more concentrated focus on securing philanthropic support.
2. Competition
As a major, urban research institution, Boston University competes for faculty, students, and research or charitable dollars in a crowded and competitive sector. The University must strive constantly to improve the quality of its academic programs, student services, and scholarly and research portfolios. The University’s advantages are significant and growing, but the market position the University occupies is not a place for the timid or the complacent. The Provost must recognize, appreciate, and lead the response to the challenges of not only keeping pace, but gaining ground.
3. Increasing Complexity of the Research and Regulatory Environment
A major research university with a medical campus and other advanced research programs (many of which are federally funded) is subject to a varied and complex collection of regulatory regimes. To ensure ongoing, competitive, and successful operations, the Office of the Provost must lead in the implementation of systems for financial and regulatory research compliance.
4. Infrastructure
In 1971, Boston University had 5.4 million square feet of space (gross) on 46.5 acres of land. Today, the University has 15.4 million square feet of space on 134 acres. This skyward and horizontal growth reflects a conscious effort to create a campus, by means of opportunistic and strategic acquisitions—and construction of high-rise facilities. The University’s capital plan provides for additional construction and renovation, including major changes in municipal traffic patterns. Nonetheless, an enduring challenge for Boston University is that both the Charles River and Medical campuses are bounded by highways and densely populated neighborhoods. New acquisitions and construction projects must be undertaken with respect for neighbors and complicated urban zoning requirements. The University’s advantage of urban location comes at the price of significant cost and complexity in space management. The University Provost plays the key role in defining academic space priorities and allocating both space and financial resources to outfit laboratories and other research/instructional spaces.