The New Hampshire Attorney General's office said Friday that allegations from this summer that Dartmouth College trustees steered the college's investments toward their own firms did not merit further investigation and that the office had found no evidence of wrongdoing. An anonymous letter to the office earlier this year alleged that at least 10 Dartmouth alumni who sat on its board of trustees and investment board had made investments that were good for them but bad for the institution's long-term financial health. "Based on the unsupported nature of the allegations in the Complaint, the content of the Responses, and our review of the college's most recent financial statement," the office wrote in a letter to the college's general counsel Friday, "we find no basis to conclude Dartmouth's Trustees have violated state law by engaging in related party transactions involving the investment of a portion of Dartmouth's endowment."
“The Attorney General’s finding that these anonymous and baseless allegations are without merit speaks to the rigor of Dartmouth’s policy and practice," the college said in a statement. "As we have said previously, Dartmouth meets or exceeds all the requirements of New Hampshire law with regard to its endowment investments and for investments with firms managed by trustees or Investment Committee members.”
Faculty and staff members at Indiana University at Bloomington are signing petitions and protesting the idea of a long-term lease by the university of its parking facilities, the Associated Press reported. Ohio State University recently signed a deal to lease its parking facilities for 50 years -- earning Ohio State $483 million. Indiana officials want a similar deal, but employees say that they fear a loss of jobs and less control over the fees charged to those who park there.
Private colleges increased their tuition by an average of 3.9 percent in 2012-13, the smallest rise in four decades, the National Association of Independent Colleges and Universities announced Thursday. The association said its survey, which included responses from 445 of its 960 members, also found that the average institution's financial aid budget rose by 6.2 percent. The data come at a time of heightened pressure from politicians and the public for colleges to keep their charges within reach of students and families.
Moody's Investors Service said Monday that the weak return on Harvard University's $30.7 billion endowment, which the university announced last week had shrunk 0.05 percent in the 2012 fiscal year, is a bad sign for endowment-dependent universities. The rating agency said the results probably won't affect Harvard's rating, but are likely to lead the institution and others to rethink their dependence on endowments. "Based on highly variable investment returns over the past decade, we expect endowment-dependent institutions to make more conservative spending decisions for future fiscal years and to more fully assess their operational vulnerability to investment volatility," the agency wrote. "Budgetary models are increasingly stress tested, and management teams are adjusting to more conservative assumptions about long-term rates of return on their endowment. Many have lowered their assumed annual endowment returns to 7 percent to 8 percent, compared to the higher 9 percent to 10 percent return assumptions that were common prior to 2009."
Only a handful of private universities have announced their returns for the past fiscal year, but Moody's projects most endowments to have returns similar to Harvard's. "Most university endowments likely declined by 1 percent to 5 percent in fiscal 2012, net of new gifts, owing to weak investment performance and 4 percent to 6 percent endowment spending for the annual budget," the rating agency wrote.
A report Friday from the Lincoln Institute of Land Policy explores changes in the payments colleges, universities and other tax-exempt institutions make to municipalities in lieu of taxes, finding that they are concentrated in the Northeast and focus primarily on higher education institutions, which account for two-thirds of all payments in lieu of taxes. In recent years, as municipalities have struggled with revenue constraints, they have turned to asking local higher education institutions to contribute to the municipal budgets, a request that has sometimes led to confrontations between city leaders and higher education institutions, particularly in Pittsburgh and Providence.
Notable among the report's findings is that the majority of all money given to municipalities through PILOT agreements comes from just 10 institutions, eight of which are universities or academic medical centers: Harvard University, Yale University, Stanford University, Brown University, Boston University, Massachusetts General Hospital, Brigham & Women's Hospital, Massachusetts Institute of Technology, and Princeton University. The list suggests that municipalities target wealthy institutions, rather than those that are the biggest municipal burden or own the most land.
Harvard University's endowment is down about $1 billion in the 12 months through June, Bloomberg reported. The fund, still the largest university endowment in the world, ended up at $30.7 billion, down about 0.05 percent. Harvard, like many other universities, saw major losses the year that the recession started, but many other universities have been posting gains more recently. Harvard officials said that their losses were due to investments in publicly traded non-U.S. companies and in "emerging market" shares.
Submitted by Kevin Kiley on September 27, 2012 - 3:00am
The American Institutes of Research, the new home of the Delta Cost Project, released a report Tuesday detailing trends in college and university revenues from 2000-2010, the first of a series of four weekly reports about where colleges get money and how they spend it.
Because the data the reports are based on are two years old, many of the trends described in Wednesday's report will be familiar. Among the noteworthy findings in the report were that state appropriations have continued to decline over the decade; that per-student revenue at community colleges in 2010 was less than it was a decade ago; that net tuition revenue -- the amount colleges make from tuition after aid is subtracted -- at private institutions did not grow significantly between 2009 and 2010; and that tuition revenue exceeded state appropriations at public doctoral and masters institutions. The report also found that, in contrast to previous years, sticker prices at four-year public universities increased faster than gross tuition revenue. "This suggests that the practice of using other tuition revenue -- in particular from out-of-state students -- to mitigate tuition price increases for in-state students was no longer tenable in 2010," the report states.
Students and faculty members at Long Beach City College gathered at the college's board meeting Tuesday night to protest the planned elimination of 17 academic programs (and the likely layoff of 10 full-time faculty members), The Contra Costa Times reported. Most of the programs are in the arts or skilled trades, and those protesting said that these programs are vital for many students. College officials said that they had few options, given the severity of budget cuts in California.