A new study of 842 colleges and universities shows that their endowments lost about $58 billion last year.
That represents a 19 percent drop in the collective endowments, which total $306 billion. Interestingly, endowment spending by the average school actually increased last year, from 4.3 percent to 4.4 percent. To make matters worse, 60 percent of the schools reported a decrease in gifts and donations. Plus probably all of them received less money from the federal and (especially) state governments.
My employer, the U. of Delaware, saw a 25 percent endowment drop, to a neat $1 billion. We are also being squeezed by Delaware legislators, and, needless to say, rising costs.
Even as we speak, the faculty union, the American Association of University Professors (AAUP), is commencing negotiations on our next contract. Somehow I don’t thing we will be looking at double-digit raises.