The UM System's chief budget officer, Nikki Krawitz, says the four UM campuses already are doing enough to keep costs down in a fiscally prudent way.
'We spend a lot on financial aid and we work hard to ensure that students have access and affordability,' she
said. 'The challenge is that there is a big difference between the University of Missouri
, which has a $1 billion endowment which covers four campuses, and Harvard or Yale
, which may have $20-, $30- or $40 billion endowments and a lot fewer students.'Krawitz
said the university's policy of not paying out more than 106 percent of the previous year's endowment payout is meant to smooth out the use of the endowment with market fluctuations and protect 'intergenerational equity,' or the ability of the endowment to help future students.
increase the use of its endowment?
In a word, ‘no.' By Congress' calculations, the university averages around 4 percent payout per year, but Krawitz
said it's more appropriate to use the average market value of the endowment over three years, not one year.
Last year the university spent $4.7 million in fees to investment managers, who are overseen by Krawitz
said in an era of decreased state funding, endowed professorships and other resources take the place of funds that would otherwise come from the state.