According to a story by the Associated Press, Carnegie Mellon is feeling the recession. CMU’s endowment investments dropped in value about 30 percent, and preparing for the long-term effects of this drop, the University froze salaries and hiring, and put capital projects on hold.
This is definitely troubling. I suppose we’re just starting to see the long-reaching effects of the recession, but I didn’t think it would be this devastating for educational institutions. I’m not sure if other educational institutions are feeling this – I’m sure some without gigantic endowments will be feeling it quite a bit. I wonder how institutions like MIT, Harvard, Columbia and NYU are faring? There’s typically an increase in NIH funding for education and research under a Democratic presidency, but Barack Obama has some tough choices to make if he’s going to get the economy back in shape, and hopefully keeping the NIH budget won’t suffer because of that.
I suppose we’ll see. Hopefully we won’t see any educational institutions going out of business without getting the bailout treatment the industrial and financial sectors are getting.