Breaking: CMC Endowment Drops 28-29% in Fall 2008
President Gann will be updating the community shortly on the effects of the financial crisis on Claremont McKenna College. In the briefing, she will state that CMC's endowment took roughly a 28 to 29 percent hit between July and December 2008. "We're assuming a 30% drop," Gann stated. "This really starts effecting your budget two years from now, rather than right this minute. But because of the way our spending rule works, it smooths out bad quarters over twelve total quarters. It gives you time to put everything in motion to absorb such a big loss."
Such motions were generally outlined in Gann's November report, which included the suspension of certain faculty searches. While no current building projects will be directly effected-- the Kravis Center is on schedule, the tennis center will open and the Eastern lands will be purchased-- the administration doesn't plan on embarking on any new projects in the near future.
The Campaign for Claremont McKenna will likely have a slow year, with many donors saying they will pledge at the end of the campaign, which is four years from now. The campaign's major gifts from Day, Kravis, Crown and Roberts will all be paid out as planned.
Colleges and universities across the board have witnessed similar misfortunes, with losses in fiscal year 2008 averaging between 25-30%.