Several prestigious US universities are cutting back on expenses following endowment losses. University endowments declined 24% in the second half of 2008, according to the Commonfund Institute. The endowment for Harvard University, the richest US university, contributed 35% of the school’s annual revenue last fiscal year, but lost 30% of its value in fiscal 2009. To reduce spending, the school plans to limit construction and has cut staff. Yale University’s cutbacks include a hold on $2 billion in construction projects and plans for $100–$150 million in additional cost reductions. Yale expects its endowment, which contributed 44% to the school’s annual spending last fiscal year, to show no growth this fiscal year. Princeton University also forecasts no growth for its endowment this year. The University of California expects a 20% decline in funding this year. Standard & Poor’s and Moody’s downgraded Dartmouth College and the California Institute of Technology.

Source: Bloomberg