University endowment down 30 percent, further difficulties expected

| Director of New Media

Despite some indicators that the global economy is gaining strength, Washington University’s financial situation has not improved since April, according to an e-mail sent by Chancellor Mark Wrighton Wednesday afternoon.

Although the University took several cost saving measures over the summer, it continues to face an annual shortfall of about $30 million per year through the 2011 fiscal year and beyond.

The most significant source of trouble for the University’s finances is the continued decline of the endowment. As of June 30, 2009 the market value of the endowment, about $4.2 billion, is down by 30% from its peak value of two years ago.

“This downturn is very significant and has resulted in a decrease in endowment payout of $9 million,” Wrighton wrote. “We anticipate additional years of lowered payout, and are planning for another $9 million decrease in FY11.”

This is a breaking news update. Continue to check for more information.

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