They get yearly distributions |
YUP. Experience in nonprofit world where indirect is often 10 to 15 percent...that does not cover overhead (building, heat, plowing, administrative infrastructure (eg HR, finance, compliance, legal, etc). And we're used to operating bare bones, nothing fancy or wasteful. People have no idea about things. Lots of pain coming. |
This is for all of you who have zero clue how to run universities and endowments, nor know anything about grants.
Points 1+2 are wrt grants. 1. Direct costs (ex: 250k): goes to the lab to pay for science (chemicals, reagents, test tubes, plastics, animals, petri dishes, etc) and scientist salaries (maybe or maybe not the professor’s salary though, some or even all of that might be covered by their teaching department. Or not, in hospitals it might all come from direct costs). 2. indirect costs: a percent that goes to the university to pay for things like: lab space, water, gas, freezers, electricity, veterinary care, chemical waste disposal, radiation safety etc). Indirects are a % ON TOP OF the direct costs, and vary by location (as space, gas, power, labor vary by location). So if the uni charges 30% indirects on 250k is 250k to the lab, that’s 75k to the university. So if you have 100 labs each with on avg two 250k grants and a 30% indirects rate, the university gets 15 million in indirects. Now if you cut indirects to 15% without warning, you now have a 7.5 million budget shortfall happen overnight, and stretch onwards for the foreseeable future. Take it from the endowment you say! Ah but since this now an annual expense, we must have sufficient endowment for this for all future years going forward! A rule of thumb is you need 25X more endowment than your annual expense, so that drawing out a stable 4% a year leaves the value unchanged assuming 2-3% inflation and 6-7% growth. So we need 188M/yr in endowment. Situation is even worse if the indirect rate is higher. If you’re at 60% (close to what most Ivies pay) you now need to close a 22.5M shortfall, so you just need about $600M endowed. Even more worse if you’re big. A place like Harvard or Penn or Hopkins with a few hundred labs and a high indirect rate would need to devote a cool 1-3 BILLION to cover the new policy. PER YEAR. It’s not that Harvard et al can’t “survive” without indirects, it’s just that they can’t support research activities to the same level on a 15% rate. The practical effect of this would be a massive reduction in research activities at nearly every institution. R.I.P. USA university rankings. |
Thank you for that detailed explanation. |
This is such a disaster and and it doesn't help anyone. What is the best way to respond to try to preserve science research? |
This is a mechanism to force universities to gut all the pointless soft social science and dubious "STEM" affiliated research looking at DEI metrics in whatever science field first. Universities will have to decide what to prioritize. I'm not too worried. |
i can tell you hopkins is doing medical research first and foremost. they arent doing much of those soft social science bs |
wont make a difference posting on a dc site |
There will be lawsuits. And this isn’t only a blue state issue. Plenty of star research schools are in red states: University of Texas-MD Anderson, Baylor College of Medicine, Case Western, Duke, Vanderbilt……. |
“I don’t understand something” does not mean it makes no sense. PP was pretty clear. |
You should be worried There is no finesse to this and control has been given to those whose best interest doesn't lie in science research or they would talk the nonsense they do. But they are right. You won't know what you are missing, since you aren't worried. |
Motivated reasoning is an amazing thing. You’re welcome to think social science research is worthless, but you need to confront that they’re going after all health/medicine/science research here. This is a blunt instrument designed to decimate all scientific research. There is no nuance, no targeting certain types of research that you consider illegitimate. It’s everything, across the board. |
That is entirely up to the funder as to what costs will be allowable. Some RFPs allow personnel costs only if that person is directly involved in the deliverable costs. If you go to grants.gov and download an RFP and application instructions, these things are spelled out in enormous detail. Some of the application packages are 80 pages long. That’s the level of detail an institution has to respond to in securing funding. |
Working for industry- no guardrails, not protection for human subjects, no oversight at all, really. This is a horrible day for anyone working in NIH funded clinical trials. |
Call your Senator and Rep. |