The School received new endowment payout projections last week that reflect the market difficulties of the past several months. For much of the past decade, endowment growth rates have exceeded expense inflation rates, and the extra funding coming from this spread has been available to support incremental activities in your department or program. The UBO is projecting the opposite situation for the next three years: that endowment growth will be less than expense rate growth, creating a widening funding gap. We write to alert you to these new projections so that you may begin factoring them into your financial forecasts and upcoming year budget. To make this situation more concrete, we’re placing an Excel workbook that calculates projected amounts of the annual funding gap in a new Endowment Income Projection subfolder in the Non-Salary View folder of the Finance Repository.
