<p>I a letter released on December 16, 2008, Yale President Richard C. Levin reported that Yale's endowment has shrunk by an estimated 25%.</p>
<p>Budget</a> Letter</p>
<p>Levin noted that since endowment income represents 44% of Yale's $2.7 billion operating budget, some cuts would be necessary, but he pledged to maintain Yale's current financial aid policies and commitments. But because the endowment payout is calculated based on a 3-year moving average of endowment assets, the full impact won't be felt until the 2013-14 budget year, when this year's $100 million shortfall is expected to grow to $300 million unless market conditions improve markedly.. Immediate budget control measures include:</p>
<ul>
<li>controls on new faculty hires</li>
<li>caps on faculty salary increases</li>
<li>reductions in non-faculty staff, primarily through attrition </li>
<li>deferral of building renovations and new construction projects until market conditions improve.</li>
</ul>