The executive summary from the Council on Governmental Relations (COGR) provides an analysis of the financial landscape confronting research universities in the United States, highlighting both challenges and the need for collaborative solutions. The document underscores that research universities, despite conducting over $60 billion in annual research and development activities, are grappling with significant financial pressures. These pressures stem from constrained revenue streams—including diminishing state appropriations for public institutions, stagnating or competitive grant funding, and fluctuating private contributions and tuition. Of particular note is the decline in state funding for public research universities, which dropped from 31% to 17% of revenue between 2001 and 2012, forcing institutions to reconsider service levels and program viability.
Furthermore, the summary details the complex funding environment for university-based research, where the federal government remains the principal sponsor, but its share of support has recently decreased to less than 60%. This reduction, combined with capped indirect cost reimbursements and sponsor-imposed funding limitations, means universities are increasingly required to cover substantial unreimbursed research costs out of their own budgets—amounting to over $13 billion as of 2012. The report emphasizes that these financial trends jeopardize not only the sustainability of current research capacity but also the historically productive partnership between the federal government and research universities. COGR ultimately calls for renewed collaboration among stakeholders to ensure the continued vitality and global competitiveness of the nation’s research enterprise.
