Well the question becomes obvious - if revenues are going up but we still need endowment earnings to cover the gap every year, why are expenses going up? Why not keep the expenses static? Why do expenses rise 5-7% every year?
because costs of staff, faculty, maintenance supplies, materials, contractors,....whatever is in the ops budget goes up.
The gap that the endowment has to cover is also hopefully decreasing but to be honest I have not looked in the last several years because I don't really care that much anymore.
But outside of this year with all the crazy - the cost of acquiring new faculty has been higher than ever before because of the demand across the country for professors. And when you have more kids - you need more faculty.
Plus the cost to maintain a new building is higher than to maintain the old one - which is counter intuitive until you realize the new buildings are much nicer than the old ones and thus cost more to maintain properly.