Harvard's is the nation's largest university endowment and provides about a third of the (annual) operating (budget). Faust said the school is looking at ways to cut spending and will review (compensation) costs, which account for nearly half of the budget.
Harvard also is reviewing its (ambitious) expansion program, including plans announced early last year to expand across the Charles River from its Cambridge (campus) into Allson, she said.
"We will need to plan and act in ways that reflect that reality, to assure that we (continue) to advance our (priorities) for teaching, research and service," she said.
The school intends to (implement) initiatives to make education affordable to students from low- and middle-income families, and will ensure that those with income below $60,000 will pay nothing to send children to Harvard College. Those earning up to $180,000 can expect to pay no more than about 10 percent of their income, she said.
Harvard's efforts to address the economic (downturn) mirror what is happening elsewhere in the country, including other Ivy League schools. While wealthy schools can (fare) better in a downturn, they are also seen as vulnerable to (prolonged) market (slumps) because they tend to fund a greater portion of their budget from their endowment.