Harvard Business School (HBS) will also hold open some staff vacancies in an attempt to downsize staffing in areas of the school experiencing less demand, according to HBS Dean of Finances Donella M. Rapier. It will also try to hold next year’s spending at this year’s level and will fund less fewer projects than it historically has.

The central administration projects growth of 5.9 percent on its entire budget, while the President and Provost’s funds will increase by 10.4 percent. Berman said the presidential growth is primarily due to the new office of the University ombudsperson, while central administration growth is fueled by that and the need for staff to support new administrative systems.

She pointed to the new emphasis on bulk-buying programs—a measure recommended by a McKinsey study released last year—as one way the central administration is helping to cut costs across the University. The study found that the University could save up to $100 million a year through its combined purchasing power.

And in December, Summers put into effect a new policy aimed at stemming the proliferation of costly, and at times extraneous, University research centers.

Capital Concern

While careful fiscal management will help Harvard muddle through the current downturn, its ambitious plans will require skeptical donors to open their checkbooks during lean times.

Two schools are in the midst of major capital campaigns.

HLS will announce the public phase of its $400 million capital campaign on June 14.

Planners hope to announce over $100 million already raised at the kickoff, according to Michael A. Armini, HLS director of communications.

HBS is conducting a $500 million capital campaign that went public last September with about $250 million. The school has currently raised $347 million and hopes to conclude in 2005, Rapier said.

And late last year, University administrators were talking about the possibility of a targeted University-wide fund drive, aimed at supporting some of Summers’ top priorities.

On the whole, fundraising is down, but there have been some bright spots.

DEAS has raised $6 million in the last month alone, Narayanamurti said.

“When I first came here it was much easier,” he said. “In this climate, we’re doing extremely well.”

Pagett said giving to GSE has risen.

And KSG has actually exceeded fundraising expectations, and will probably hit a target 88 percent higher than last year’s, according to Newman.

—Staff writer Stephen M. Marks can be reached at marks@fas.harvard.edu