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Wall Street fallout hurts Kent State Investment portfolio suffers $43 million loss

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November 6, 2008

By Dave O'Brien
Record-Courier staff writer
Faced with the fallout from the recent Wall Street financial crisis and the possibility of shrinking state support for higher education, Kent State University is watching and waiting for the other shoe to drop.
From Sept. 1 to Oct. 13, KSU's investment portfolio slipped from a worth of $314 million to $271 million, a 14 percent loss President Lester Lefton said this week.
In a presentation to KSU's Faculty Senate, Lefton blamed KSU's tight financial situation on volatile financial markets and tightening student loans, among other reasons. This still shouldn't cause panic, Lefton said, because KSU's portfolio performed better than the overall market.
The university's investment output helps it with its budget, even as the state may see yet a third budget cut this year. Gov. Ted Strickland already has pledged millions in cuts to state programs.
The coming year will "severely test Gov. Strickland's commitment to higher education," Lefton said, and could include tuition increases up to 5 percent after a two-year tuition freeze.
"We have no idea if we'll be allowed to increase our tuition," he said. "We have no idea if we'll have our budget cut."
Currently, support is determined using the student count on the 15th day of the fall semester. The state may move from what Lefton and faculty refer to as "butts in seats" counting to determine state support to outcome-based assessments.
This may change to incorporate a count of students receiving passing grades, A through D, at the close of each semester. Doctoral program funding may take into consideration external sources of funding, the quality of research and the kinds and numbers of degrees awarded.
Faculty senator Tom Sosnowski, a history professor at KSU's Stark Campus and 32-year veteran of higher education, said he was "taken aback by counting students" who get grades A to D, and that professors might be asked to "push failing students to a D."
He also said it reminded him of his teaching fellowship days when male students would come in and tell him "If you fail me, I'm going to Vietnam."
Lefton compared higher education funding in Ohio to the American automotive industry ignoring and not challenging its Japanese counterparts in the 1970s and 1980s. The industry didn't act aggressively, didn't challenge the Japanese, didn't build smart, quality, fuel-efficient vehicles and wasn't forward-thinking.
"We're not going to be able to cut our way to excellence, ladies and gentlemen," Lefton told faculty senators. "If we don't invest when times are difficult we are assigning ourselves to a low place on the totem pole," he said.




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 3 Total Comments
3.
    Posted by Rob Anderson November 6, 2008
And then there's Kiplinger.com's newest ranking:

"Stroll the Grounds Of Our Top Schools
Take virtual walking tours of our five best, plus the No. 1 value for out-of-state students.
No. 1 University of North Carolina
No. 2 University of Florida
No. 3 University of Virginia
No. 4 University of Georgia
No. 5 College of William and Mary
No. 1 Out-of-State: SUNY Binghamton"

Um...yes folks...there were, a few Ohio public universtiies not named K.S.U. or U. of A., that made the Top 100: The O.S.U.(27) and the University of Miami-Ohio(48).

Say...I wonder if their administrative-policy-wonks stay in $1800 per night 5-star hotels during their working vacations?

2.
    Posted by Concerned Resident November 6, 2008
If I were President Lester Lefton I would right a nasty letter to Frank, Dodd and Reed and the Democratic Congress about the mess they have put this stock market in and tell them thanks for our $43 Million Dollar Loss.

1.
    Posted by DoWhatsRight November 6, 2008
Well I hope it comes back and bites them on the butt. The Socialist professors over there all supported Obama. They told everyone how great Change was. After slowing going up the last few days, the stock market drops 400 points right after Obama is elected. These guys are suppose to be smart. Don't they listen to own teaching. If you raise taxes business cuts back on jobs in order to have the money to pay the tax. Obama said he will raise taxes, and business is getting prepared for it. Our only hope is that Obama will get some guys that understands real life and they will tell him not to raise the taxes. Maybe, if he is half as smart as he thinks he is he will listen. If he doesn't no one will have a job, and we all can go on welfare. Oh. With no one working, who will pay the tax to support the welfare programs?

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