Harvard's deficit soars to $34 million

Harvard's deficit soars to $34 million
Pedestrians walk through a gate on the campus of Harvard University in Cambridge, Mass. (AP Photo/Elise Amendola)
BOSTON (AP) - Harvard University finance officials are pledging to manage costs better and pursue innovative revenue strategies after its deficit soared to $34 million in the most recent fiscal year, compared to a $7.9 million shortfall the previous year.

A financial report released Friday says the school saw revenues jump 5 percent to $4.2 billion, due largely to the increased annual distribution from its hefty $32.7 billion endowment.

Revenue also was bolstered by a 17 percent increase in gifts for current use, from $289 million in the previous fiscal year to $339 million in the most recent year.

Operating expenses for the nation's oldest school rose 6 percent to $4.2 billion. Benefits, wages and other compensation expenses accounted for about half of expenses.