Colleges take different tacks for handling recession - Business Courier of Cincinnati:

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Next year, however, appears murkier. Moody’s Global Public U.S. Finance estimatede in a Nov. 21 repor t that school endowments have declined 15 percent to 30 percent in the past four month amid themarket turmoil. That has led schools dependent on thoss endowments to consider pay cuts orstaff reductions. Miami and Ohio for example, began hiring freezes this and near Dayton this month discloseda $2.8 millionn shortfall. The school’s response includes adding to the employes share of healthinsurance premiums, salaryu and staff reductions, and a 30 percent reductiobn in nonpersonnel budget items. Gov.
Ted Strickland, in exchange for a tuitionb freeze, increased higher education payments in thecurrent two-year budget and exempte schools from midyear spending cuts. It’s unclear how that can continued with aprojected $7 billion shortfall for the budget that startsz in July. “We’re still trying to prepare fora best-casd scenario and a worst-case scenario,” said Rebecca Vazquez-Skillings, assistant vice president of budget planning and analysis for Ohio Declines in investment income required paring $8 millioh from this year’s budget for the Athens she said, but public colleges are approachin the end of the tuition freeze “We still have to be aware of the goal of she said.
Ohio University won’t be able to offerr as many scholarshipsnext year, said Michael Angelini, associate vice president of finance. The endowmentf is down by 20 and individual named funds will not be allowed to make distributiones if the value of the investment has fallen belo w the amount of theoriginaol donation. In Central Ohio, public and private collegex report enrollment has held up andthey aren’t reducing endowment payouts despite declineas in value. absorbed $6 million in stat e cuts outside of direcft supportthis year, including $3 million to agricultura l research and extension.
It has abouft $88 million in reserves but can’t depend on one-timew funds over several years, William senior vice president for businessand finance, told trustees in November. In past he said, the university learnedx it’s better to give deans plenty of lead time and ask for theid plans to reduce expenses rathedr thanimpose across-the-board cuts. stands out. The two-year schoo l has a $3.8 million surplus through the firsy four months of the fiscal year and is spending $469,000 to hire eightt full-time faculty because enrollment is 6 percent highet than last fall. Even interest income rose due toconservativee investing.
The school used part of last year’s surplus to createe a $1,000 scholarship for students 25 and Most Ohio private colleges have modest endowments the medianis $25 millionb – and depend more on tuition, said Todd president of the . An exception, in depends on its endowment – $693 millioh as of June 30 for 30 percent ofits $100 million operatinvg budget, President Dale Knobel said. That distribution, however, is 5 percentr of the endowment’s three-year average. The school didn’yt increase the payout when returns were 24 percent and 9 percent the pasttwo years, he so it doesn’t need to decrease it now.
in Westerville isn’tt curtailing distributions, said Dave vice president forbusiness affairs. Delaware-based and Columbus-based Ohio Dominican universitiesx reported no enrollment dips or budget Denison mightdelay $60 milliobn in renovation projects that will be financed by bond salews and donations. “At our we thought we might have the combination of thoses two types of funding in place bythis spring, but it may be (latef than that),” Knobel said. , in Gambier, is delayiny $24 million in plans for two residence hallw and settingaside $1 million for emergencg financial aid, said Joe vice president for finance.
“It makes sensr to preserve capital whereveryou can,” he