From the President
In mid-October, I wrote to members of the Trinity campus community, the
Trustees, and the National Alumni Board a letter describing the effect the then
national-becoming-global financial and economic meltdown was having on the
University. I also outlined what we anticipated in the near and intermediate
term and our possible responses. Drawing on that letter, let me repeat several
key points it contains.
First, as prudence would dictate, we have monitored developments closely,
examined in painstaking detail projectable effects on Trinity (including some
that heretofore we would have classified as “unimaginable”) of the
deteriorating fiscal and economic climate, and brainstormed a range of
scenarios involving a host of varying assumptions. We have, in short, done our
homework. And having done it, we remain acutely aware of the vagaries of what
more and more appears to be uncertain and unprecedented circumstances. Our
strategies to respond to these circumstances must be correspondingly dynamic
and contingent.
As I write this, I have before me a deep stack of letters, memoranda, news
articles, and the like. Each announces and explains the extraordinary steps to
be taken by individual colleges and universities. The list includes both public
and private, and runs the gamut from schools already financially hard pressed
to the most wealthy and prestigious in the land: hiring freezes, cancellation
of searches, in a few instances actual layoffs, salary freezes, operating
budget cuts, delay or cancellation of capital projects, and so on.
University endowments have lost value, some in staggering amounts. Trinity is
down far less than most (about 15%). But as I reported in October, the
University is strong and well positioned in every respect. I foresee no
eventualities that will reduce our commitment to financial aid (in fact we have
increased it midyear to support current students whose families are being
affected by the economy, and we anticipate increasing it again for next
academic year). And as I put it several months ago, “It is difficult to
anticipate developments that would necessitate any alterations in this year’s
budget or operations. Next year’s budget is still six or seven months from
final formulation, so events might still affect it; but because enrollments (tuition
and fee revenue is about 62% of income) are unlikely to be affected severely,
and because our spending policy for the endowment is based on a flat percentage
(a conservative 4.5%) of the rolling 12 quarter average of its market value,
Trinity’s FY 2009-10 budget is unlikely to reflect the austerity that will be
the norm at many other colleges and universities.”
More distant (several years in the future) circumstances are ever more
problematic and virtually impossible to envisage with much certainty. However,
building on our present strength with appropriate caution and discipline will
mean we will do well in both comparative and absolute terms, justifying
continuing optimism. We will reach the campaign’s goal on time, the success of
which helps undergird today’s Trinity and Trinity’s tomorrow. We have a
wonderful opportunity in this economy to hire especially gifted people. Capital
projects will go forward in a more cost competitive environment. Given our
status in the academic market place, we will attract (and be able to support)
the finest of students. And academic initiatives, such as the Interdisciplinary
Science Education through Research you will read about in these pages, will
advance the quality and recognition of a Trinity education.
Happy New Year, Trinity.
Editor’s Note: As we went to press, Dr. Brazil announced his retirement effective January 2010. Read more>>