The Harvard Crimson - Volume CXLVI, No. 111

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The Harvard Crimson The University Daily, Est. 1873  | Volume CXLVI, No. 111  |  Cambridge, Massachusetts  |  friday, October 25, 2019

editorial PAGE 6

news PAGE 4

sports PAGE 8

The University must reflect and clarify the role of athletics at Harvard.

The Institute of Politics hosted a talk on financial regulation.

Football will take on Ancient Eight rival Princeton this weekend.

Univ. Posts $298 Million Surplus By Luke W. Vrostos and Cindy H. Zhang

Fiscal Year 2019 Sources of Operating Revenue Faculty of Arts and Sciences

Fiscal Year 2019 University Revenue Sources

Crimson Staff Writers

Harvard had a University-wide surplus of $298 million in fiscal year 2019, up from $196 million in 2018, according to Harvard’s annual financial report released Thursday. University revenues rose to $5.5 billion, a 6 percent increase, according to the report. The largest source of University revenue was distributions from Harvard’s more than $40 billion endowment, which made up 35 percent of total revenue. Tuition, at 22 percent of revenue, and research grants, at 17 percent, were the next-largest revenue sources. Increased demand for executive and continuing education programs bolstered general tuition revenues in 2019, according to the report. Executive and continuing education programs, representing 9 percent of the University’s revenues, have been consistently profitable and saw a 12 percent increase in net income this fiscal year. These programs are offered at nine of Harvard’s 12 schools, including Harvard Business School and Harvard Kennedy School. Expenses also edged up in fiscal year 2019 to $5.2 billion, a 4 percent increase. By far the

Divest Meets with Bacow and Lee By Kevin R. chen Crimson Staff Writer

­

43%

50% From Endowment Income

From Philantropy

Other - 7% Philantropy - 43%

Gifts for Current Use - 7%

Other - 18%

Endowment Income - 50%

Education/Tuition - 22%

Student Income - 23%

Research - 17%

Sponsored Support - 13%

Madison A. Shirazi—Contributing Designer

University’s largest expense was employee salaries, wages, and benefits at half the total value. University President Lawrence S. Bacow wrote in the report that, while the University is in good financial condition, it faces challenges several challenges from Washington, D.C. — from the endowment tax to fluctuating research spending. “Uncertainty in federal research funding and the damaging tax on college and university endowments in the Tax Cuts and Jobs Act also have the po-

Colleges Report Misconduct Rates

tential to hinder Harvard’s ability to grow investments in financial aid, teaching, and research across campus,” he wrote. Though the endowment tax guidelines have not been finalized by the United States Treasury, the tax went into effect for the first time this fiscal year. University estimates put the additional burden of the endowment tax at $49.8 million for fiscal year 2019. The implications of this tax on operations, however, remain uncertain, according to the report. “This new burden is approx-

imately equal to 1% of revenues, or viewed in the context of maintaining affordability, less money is now available for University to maintain financial aid, which totaled $193 million for undergraduates this past year,” the report reads. The report also focused heavily on Harvard’s advanced planning for a period of economic downturn. It highlights several measures that University leaders have asked each school to prepare, including

See Surplus Page 5

Five members of Divest Harvard met with University President Lawrence S. Bacow and Senior Corporation Fellow William F. Lee ’72 Wednesday to discuss their demands for the University to divest its more than $40 billion endowment from fossil fuels. Wednesday’s meeting comes as the campaign has escalated their activism in recent years. Their current demands include complete fossil fuel divestment by Earth Day 2020 and a commitment to reinvest those funds more sustainably. “We’re here because we care about this university,” wrote Ilana A. Cohen ’22 in a statement Divest Harvard issued Thursday. “We take that deadline of Earth Day 2020 very seriously. There’s a moral and financial imperative [to divest], and the case for divestment has been made.” In addition to Bacow and Lee, Harvard Management Company’s Managing Director for Sustainable Investing Kathryn I. Murtagh attended the meeting. Lee — who leads the Harvard Corporation, the University’s highest governing body — re-

33.5%

Harvard

By JAMES S. BIKALES and RUOQI ZHANG

33%

Crimson Staff Writer

26.7%

MIT Stanford

33%

Yale

39%

10%

20%

30%

40%

50%

Percent of Female Respondents

Students Who Understand School’s Definition of Sexual Harassment Brown

Heath P. Tarbert, chairman and chief executive of the U.S. Commodity Futures Trading Commission, gives a lecture on financial regulation at the Institute of Politics Thursday. Jenny M. Lu—Crimson photographer

29%

Harvard

34%

Stanford

31%

Crimson Staff Writer

40%

20%

30%

40%

50%

Percent of Respondents Matthew J. Tyler—Crimson Designer

By SIMONE C. CHU and IRIS M. LEWIS Crimson Staff Writers

A national sexual misconduct climate survey administered to universities across the country earlier this year revealed that most schools did not see a significant change in the prevalence of sexual assault compared with incident rates four years ago, according to the results released earlier this month. The American Association of Universities survey found that among similarly sized peer institutions, Harvard’s rate of sexual misconduct tended toward average. Harvard’s prevalence rate of “nonconsensual sexual contact” for undergraduate women was within a percentage point of both Stanford’s and Brown’s. Harvard and Stanford both saw rates of roughly 33 percent, while Brown’s rate is 34 perInside this issue

Harvard Today 2

See GARBER Page 5

By Amanda Y. Su

Yale

10%

University Provost Alan M. Garber ’76 defended in a Thursday interview Harvard’s position on controversial proposals in Harvard’s negotiation process with its graduate student union. Harvard Graduate Students Union-United Auto Workers announced two weeks ago that it would hold a strike authorization vote to enable its bargaining committee to call a strike if

Prison Divestment Hosts ‘Free-Them’ Week Event

33%

MIT

See DIVEST Page 4

Garber Defends Harvard’s Position

SEE PAGE 4

Undergraduate Women Who Have Experienced Nonconsensual Sexual Contact Brown

iterated administrators’ longstanding position that Harvard does not use its endowment for political purposes, the Divest Harvard statement said. It also noted that Bacow said the University must use its scholarship to address climate change and that Murtagh told students that Harvard has various environmental, social, and corporate governance guidelines that dictate their investment strategy. University spokesperson Jonathan L. Swain wrote in an emailed statement that the administrators “appreciated” Wednesday’s conversation. “Bacow, Lee and Murtagh appreciated the thoughtful exchange of perspectives and the opportunity to continue the conversation with members of Divest Harvard,” Swain wrote. Divest Harvard spokesperson Caleb D. Schwartz ’20, an inactive Crimson editor, declined to comment on the meeting, referring The Crimson to the group’s public statement. Divest Harvard provided an account of the various issues discussed at the meeting, including students’ own experiences with climate change and the group’s demands. The count

cent. Yale’s rate is higher at 39 percent, while MIT’s is lower at 27 percent. Harvard’s prevalence of harassment also falls within a similar range as peer institutions. Its rate — 17 percent — was slightly lower than that of Stanford, Yale, and Brown; MIT reported less harassment than Harvard, at 16 percent. All of the school’s harassment rates were within eight percentage points of each other. The schools varied more in their students’ reported knowledge of their campus’s definition of sexual misconduct, but overall, reported knowledge was higher than it had been during the survey’s first iteration in 2015. Brown students reported the least confidence in their knowledge at 29 percent, though still saw an increase from 18.4 percent in 2015. Yale

See aau Page 5

News 4

Editorial 6

The Harvard Prison Divestment Campaign hosted “FreeThem Week” this week to promote prison divestment at the University through a series of seminars, office hours, and workshops. HPDC launched the week’s events by delivering a 64-page report — released last Wednesday — detailing what they say are the University’s investments in companies with ties to the prison industry to Massachusetts Hall Monday. The report estimated the University has at least $3 million invested in companies with such ties. It also demanded the University divest and disclose all endowment holdings in companies connected to the industry. On Wednesday night, students gathered at Harvard Law School for a seminar about connecting Jewish values to calls for divestment and dismantling the U.S. prison system. Participants drew parallels between contemporary prisons and the historic confinement of Jewish people as a basis for solidarity. Event organizer and gradu-

Sports 8

Law School alum Derecka Purnell and organizers for the Harvard Prison Divestment Campaign discuss prison abolition at an event Thursday evening. Amanda Y. Su—Crimson photographer

ate student Gabriel L. Schwartz said he feels that Jews had a “moral obligation” to protest racism in the prison industry. “Our faith as Jews is deeply

Today’s Forecast

wrapped up in the fate of other marginalized people in the United States,” he said. “Anti-semitism and anti-black racism are historically and con-

cLOUDY High: 63 Low: 48

currently intertwined.” The following day, Law School graduate Derecka M.

See Prisons Page 4

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