Let's save for the University

Colleges & Universities A-Z Washington University in St. Louis
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<p>From St. Louis Business Journal, by Kelsey Volkmann:</p>

<pre><code> Washington U. to trim costs further
</code></pre>

<p>By June, Washington University’s endowment will have dropped 30 percent to $3.8 billion from the previous year, Chancellor Mark Wrighton said in his state of the university address Thursday.</p>

<p>The value of the university’s endowment has already tumbled 25 percent to approximately $4.07 billion, down from $5.42 billion on June 30.</p>

<p>The drop, combined with lower increases in tuition and greater financial aid needs among students, has the university expecting a $20 million to $25 million fiscal 2011 budget deficit for its Danforth campus.</p>

<p>To that end, Wrighton called on the university community Thursday to submit suggestions for additional ways to cut costs.</p>

<p>“We have to be realistic about our future and plan for restraint,” he said.</p>

<p>The university has already delayed capital projects, eliminated central office jobs and reduced compensation for its administrators, including Wrighton’s own salary.</p>

<p>Any additional ideas for trimming costs can be submitted to the university here.(<a href="http://aisweb.wustl.edu/Chancellor/suggestion.nsf/tell-us?OpenForm%5B/url%5D"&gt;http://aisweb.wustl.edu/Chancellor/suggestion.nsf/tell-us?OpenForm&lt;/a&gt;)&lt;/p>

<p>Some suggestions already submitted include expanding energy conservation and cutting back on printing, Wrighton said.</p>

<p>Washington University is one of the largest employers in St. Louis with more than 12,000 workers.</p>

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<p>wow that really sucks. maybe next year they should aim to boost the size of the freshman class by another few hundred students. converting lights to CFLs might be a little expensive now but in the long run they’ll save a lot of money, if they haven’t converted yet. Leaving thermostats and airconditioning at normal temps can also help reduce energy.</p>

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<p>OK, I know this is way oversimplified and all, but just to kind of make a point…</p>

<p>They are eliminating people’s jobs in a very tough economy, while at a $22.5MM per year deficit with the current value of the endowment of $3.8B, they could still operate for about 170 years. And I think they can count on the value of the endowment recovering to some degree at least. There is nothing wrong with being prudent of course, and running a university is like running a for profit business in many ways, but in many others it is not. I would like to know if, in previous years, they operated at or above break-even, and this deficit is mostly due to students needing more aid. If so, that is also likely temporary, and given the cushion they have it seems like they could wait a bit to see if things recover in the next year or so. And nooob is right, there are other things they can do besides eliminate jobs. I will give credit to Mark Wrighton, the university president, though. He took a 10% pay cut. Not that he isn’t still making a lot, but it is a big job and he has obviously done well, despite this deficit.</p>

<p>Freezing salaries and hiring, other cost saving measures I can see. It just bothers me that they eliminate jobs when they have a sizable cushion like that. While the main purpose of endowments might not be as “rainy day” accounts, I see no reason it can’t be used like that for a short time when it would have little impact percentage wise (0.6%) on the value of the endowment, and would make a huge difference in these people’s lives.</p>

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<p>Actually, I listened to his whole address live yesterday and he was very good at explaining the deficit and how it is requiring them to reduce expenses. The amount of money they can spend for the operating budget from the endowment has been set by the Board of Trustees based on a moving five year average of the endowment. That number is something over which Chancellor Wrighton and the administration in Brookings Hall has no control. He is given a set amount of money by the Board and that is what he must use to run the university. And unfortunately that amount of money is going to go down so everyone must figure out how to deal with the situation. In answering one of the questions, Chancellor Wrighton suggested that most job “eliminations” have primarily been due to projects or grants that have ended, or people leaving positions that then are not refilled if they are not deemed essential. He stressed how they have tried not to eliminate necessary staffing and how the belt tightening is more difficult on the Danforth Campus. Personally I am not ecstatic having my salary frozen for next year, but if that helps save the jobs of myself and others on campus it is something I believe most of us are willing to endure. Hopefully for the following year we may get some increase, but I will not be holding my breath. But with my D starting here as a freshman next fall, it is not like I am going anywhere!</p>

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<p>wudude - Thanks for the details and clarifications. I guess the board could free up some money, but oh well. It is good at least that mostly people are not just being let go. That just would have seemed wrong. But I do understand that there are operating guidelines that are prudent and must be followed.</p>

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<p>This is a great thread - thanks everyone.</p>

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<p>Today’s Student Life has their version. ([Student</a> Life - Wrighton, admins discuss WU finances before Edison crowd](<a href=“http://www.studlife.com/news/wrighton-admins-discuss-wu-finances-before-edison-crowd-1.1732213]Student”>http://www.studlife.com/news/wrighton-admins-discuss-wu-finances-before-edison-crowd-1.1732213))</p>