Benefits are a significant portion of faculty and staff members’ overall compensation. Health benefits for active employees and retirement-related benefits for former employees account for 89.5% of fringe benefit costs.
Expenses in this year’s operating budget, net of internal revenue, amount to $4.2 billion; expenses excluding internal revenue are $5.247 billion, as depicted here. Salaries and benefits account for 51% of our total operating costs. (See the following chart for a detailed view of benefit expenses.)
Each of Yale’s schools relies on a different combination of funding sources. In the School of Medicine, just 7% of the budget comes from endowment; in the School of Music, that figure is 90%. Overall, revenue from tuition covers just 10% of Yale’s costs each year.
Under Yale’s policies, budget revenue from the endowment in any given year is calculated based on spending from two years prior. Spending from the endowment in FY18 totaled $1.281 billion, of which 76% was designated for a specific purpose.
Yale’s endowment accounts for the largest share (34%) of our $4.278 billion budget for the current fiscal year. Clinical revenues in the School of Medicine provide 27%, and income from grants and contracts contributes 19%.