Cornell Insider

a blog by the writers of the Cornell Review

Posts Tagged ‘Cornell Budget’

Random Thoughts / Diminished Posting

Posted by Oliver Renick on February 17, 2011

There’s some strange things goin on right now on which I’d like to briefly opine. I must also add that while I’ll be continuing to write for Insider, my presence on this blog will likely diminish over the course of the next few months as I personally have to re-evaluate my time commitments and priorities. My engineering advisor thinks so, too. I’m very thankful to the growing number of readers that visit Insider on a daily basis, and I hope that you will continue reading, as the site will still be updated regularly by my fellow colleagues. So, that was awkward. On with the post: here’s some things that have caught my eye this week.

Cornell International Affairs Review’s blog, Diplomacist, is off to a good start. A lot of blogs come and go, but at this point, it appears the foreign policy-focused blog has plenty of material and room to grow, the two biggest catalysts for successful blogs. Diplomacist has shown off a wide range of authors and perspectives. As many Cornell students – Daily Stun writers, Review and Progressive writers, activists, minorities – often bloviate about their hopes for “increased dialogue” on national topics, it’ll be interesting to see how they utilize the forum that Diplomacist offers. Even. If. Some posts. Have. A lot. Of sentences.

In other blog news, Brokman’s back! And pissed off about a lot of stuff.  OneCornell, the short-lived blog Andrew Brokman ’11 began last fall largely as a megaphone for his anti-discrimination resolution, is now up-and-running again. He blames the hiatus on… the Student Assembly (mutiny!). Originally designed to be ‘Cornell’s first online newspaper,’ Brokman has since cast off the Rupert Murdoch aspirations for a more TMZ-ish approach to covering Cornell’s student governance – except picture Harvey Levin being mad as hell and unwilling to take it anymore. Whether he’s still angry about Skorton O’Neal dominating the paint on Res.44′s court, his failed presidential run, or the fact that Day Hall doesn’t want to tell him if Susan Murphy gets a paid lunch, it’s apparent he’s seeking some justice from…someone. So, to get even, he’s written about a camera-less camera bag and a guy he doesn’t like in the SA – he’s even taken some pain to get to work on Windows Movie Maker (see image) to make sure you’re not confused about who’s not happy. Cause it’s Brokman. And don’t you forget it. Brokman is a very smart guy with a lot of ideas. OneCornell has the potential to save us all from contemplating harakiri during an SA meeting by providing transparency via an inside scoop. I hope the great idea doesn’t go to waste.

In even MORE blog news, via MetaEzra, this is kinda entertaining, especially for incoming Cornellians. Even more especially if you’re into the whole ‘Big Red arrows’ scene. I would have loved to have found this during my summer before coming, as it’s one of the few regularly updated and lively first-person narrative blogs.

Not news: Cody Gault still hates Christians, but at least at this point he’s weaning his own audience of thoughtful people off of his column. Perhaps one of those ex-readers could ask him which religion isn’t based in some form of creationism?

Townies are about to shoot a lot of deer. So that’s pretty cool. Can’t wait for venison night at RPCC.

Institutional racism was enacted against the Greek community today. How do I know it was racist? “There wasn’t much publicity about the intention to cut these courses,” said the President of Hellenic Students Association to the Daily Sun today. So obviously David Skorton hates Greek people. This community of small students (minority?) will now find it considerably more difficult to immerse themselves in Greek culture, literature, anthropology, and music, according to Jeffrey Rusten, director of Department of Classics. As a mature response, Rusten promptly penned a poisonous letter signed by Poseidon himself to the Sun and quit his position, then took it back! Ahaaa, nah, he didn’t. He basically just said funding cuts suck. Associate Dean of Fraternity Affairs Travis Apgar quickly showed support for the funding cut, saying “we’re not here to advocate for a dry campus or a dry Greek language, we’re just trying to be safe.” Fraternity members then rebutted, saying the study of Greek would just be pushed into unsafe areas like dorms and Collegetown.

Nelly for Slope Day? Ya, I guess he made a song recently.

Posted in Campus Insiders, Miscellaneous | Tagged: , , | 1 Comment »

Skorton on Cuomo’s Budget Cuts: ‘Real and Adverse’

Posted by Oliver Renick on February 4, 2011

President David Skorton spoke about the State of New York’s academic budget cuts yesterday, saying the University will play its role to help the state regain its financial footing.

“We are prepared to do our part for the good of our state,” said Skorton in a press release. “The cuts necessitated by the budget proposal will have a real and adverse impact on independent and public higher education.”

Cornell, the only partially state-owned Ivy League school, will see a further decrease in the state funding it receives over the next year. Governor Cuomo plans to lower the state’s expenditures on higher education as part of an effort to reduce the state’s deficit to $58.1 billion by the end of the year. The proposed budget would lower Cornell’s funding by 10 percent, or $13 million, resulting in an overall 28 percent – or $46 million – decrease over the past four years.

“Cornellians are prepared to do our part in putting New York’s financial situation back on track, but such sacrifices will put significant pressure on the university’s responsibilities to educate our students, and on our research and land grant activities throughout the state,” Skorton added.

Posted in Campus Insiders, National News | Tagged: , , | Leave a Comment »

University Pulls Endowment From Investigated Hedge Fund

Posted by Oliver Renick on December 17, 2010

Cornell’s $4.4 billion endowment is moving.  The University has requested redemption from hedge fund Level Global Advisors, Fox Business Network reported yesterday.

The move to withdraw the investment comes after the Greenwich, CT based hedge fund was searched and raided as part of the SEC’s ongoing insider-trading investigation that began last month.  Level Global claims that it is not a target of the Securities and Exchange Commission’s probe amid reports that one of their executives has been working as an FBI informant.

No charges have been made against Level Global, and it is unclear how much of Cornell’s endowment was invested into the hedge fund.  Cornell’s endowment rose nearly 13% this past fiscal year, a bigger increase than all but two other Ivy League schools.

Cornell University officials chose not to comment.

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Cornell’s CIO 2nd-Lowest Earner in Ivy League

Posted by Oliver Renick on September 13, 2010

As pointed out in today’s correction in the Daily Sun, Cornell’s ex-Chief Investment Officer received a $420,000 bonus in the 2008 tax year, meaning the ‘incentive compensation’ was presumably awarded to reflect the 19.9% endowment increase under James Walsh in 2007.

Walsh’s total income – including deferred payments – of $871,680 was indeed as the Stun originally put it, “far from the highest among university financial managers.”  In fact, among the other Ivy League schools, Walsh’s salary ranked second-to-lowest, higher than only Dartmouth’s.  Cornell does not have as massive of an endowment as schools like Harvard or Yale, so it is expected that those schools’ head investment officers would have numerically higher salaries.

However, even if one takes into account each school’s total endowment, Walsh’s income still lies at the bottom of the pool.  According to a Forbes article which lists Ivy League endowment changes from fiscal year 2009 (highlighting the drop in funds from 2008-2009), Cornell’s endowment fell 26.4% – as originally stated in the Sun article – from $5.4 bil to $4 bil.  A simple calculation will show that Walsh’s salary from the year before – 2008 – is .016% of that total original sum of $5.4 bil.  This percentage is higher than only Harvard, whose gargantuan endowment of $36.7 bil renders it quite unreasonable to match such a percentage.  Harvard’s top CIO earned .0076% of the endowment, Columbia’s .046%, and Brown’s received .033% of the endowment.

In general, it shouldn’t come as a surprise to anyone that these ‘administrators’ are making such huge chunks of change.  After all, these are finance and banker pros that are drawn away from Wall Street to manage massive funds – if it weren’t for the golden lure of big bonuses and pay rates, these guys would be managing hedge funds, like Walsh is now.  And seeing as how he was practically the lowest paid of his peers, perhaps his career choices are quite in order.

In 2006, at least six of Harvard’s top investment officers made more than $5 million, and their compensation packages have been as high as $35 million. However, Harvard’s endowment is five times as large as Cornell’s, so a straight one-to-one comparison is not quite apt.But it is the underlying philosophy of this bonus that is perhaps the most troubling. After the endowment took a 26 percent hit in 2009, the University began a process of “reimagining” itself. This process centered on Cornell’s attempt to reevaluate its operating practices in all areas such that it could still be a world-class institution while running on a smaller budget. Cornell’s strategy needs to align with its vision, but Walsh’s outlandish bonus contradicts the core principles of the “reimagining” process. Wealth does not determine the quality or prestige of an institution. Rather, that is determined by its academic programs, research and students it produces. To cut back on departments such as Math and Theater, Film, and Dance in order to budget compensation bonuses is unethical and detrimental to Cornell’s quality as an institute of higher education.The explanation that the bonus falls in line with certain “industry benchmarks” is a poor excuse. If Cornell hopes to maintain its prestige while operating under tighter budget constraints, it will need to stop subscribing to the status quo. It will need to forget a mindset in which these sorts of bonuses are normal, and arrive at a far more sustainable standard for compensation. 

Clarification: This editorial relied on incorrect information in the Aug. 31 news story originally titled “As Endowment Plummeted, Chief Investment Officer Received $400K Bonus.” The story erroneously reported that Chief Investment Officer James Walsh received $420,000 in “bonus and incentive compensation” in fiscal year 2009 (July 1, 2008 through June 30, 2009), the same period during which the University’s endowment lost about 26 percent of its value. In fact, this incentive bonus was paid to Walsh during calendar year 2008 and reported on the University’s 990 tax form as such. Although the University’s endowment lost about 27 percent of its value in the last six months of calendar year 2008, Walsh’s incentive payment in calendar year 2008 was based exclusively on his performance during calendar year 2007, according to Anne Snell, director of compensation services.

This editorial relied on incorrect information to reach conclusions about the propriety of Walsh’s compensation, and regrets the error.

Reader Discussion (1 comment)

September 1, 2010 – 7:49am 

Randy Wayne (not verified) says:

I hope Reimagining Cornell is not considering giving faculty annual bonuses that would double our income–whether we succeed in our mission or not. I would much rather see any potential discretionary spending targeted to teaching programs and in keeping the cost of tuition from rising so quickly. Call me old-fashioned.

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Monday Reading Madness #36

Posted by Cornell Insider Staff on February 14, 2010

- A disappointing weekend for Cornell sports, with both hockey and basketball going 1-1.

Still #1 in Ivy Basketball.

- Elie has a cool illustrated post on Cornell Law School selectivity.

- The “New Budget Model” via METAezra.

- Did anyone run into ‘Deadheads’ over the weekend?

- Cornell women’s ice hockey standout Rebecca Johnston had three assists in Canada’s 18-0 rout of Slovakia at the Vancouver Olympics.

- A Cornell senior wins a Churchill Scholarship.

- Maybe I’m just not that good at game theory, but this does not seem like a dominance solvable game.

- More on drinking psychology.

- The Economist leader discusses the new threats to the global economy.

- GMU Law Professor Ilya Somin has an interesting op-ed on political ignorance.

- Krauthammer discusses Russia’s approaching monopoly on rides into space.

Posted in Campus Insiders, National News | Tagged: , , , , , | Leave a Comment »

 
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