Who wants to be a millionaire? I would say all of you reading. The millionaire status is something many hope, strive, and work for until they get there and wonder what to do next. A million dollars could and would go a long way these days, especially if you multiplied it by ten. The possibilities are endless. Unfortunately those possibilities were narrowed down quite a bit when the generous Hunter J. Smith pledged $10.7 million dollars to none other than the marching band’s new recital hall. In such tough times when our endowment is looking as bad as our basketball team, we need to thank the giving alumni for their graciousness but implore them to see the areas at this University that truly need a helping hand.
Graduating from the class of ’51, Carl W. Smith’s blood has run orange and blue ever since. A lineman under the storied football coach Art Guepe, Smith had a strong penchant for donating to Virginia athletics. He and his wife, Hunter J. Smith, contributed the single largest individual monetary donation ever to the University — $23 million dollars — to expand Scott Stadium, as well as $2 million to construct the first football stadium at the University’s College of Wise in 1997. We may have needed that extra two million as their football record is a lot more impressive than ours (8-3 as opposed to 5-7). But the bucks did not stop there. Donations from the Smiths continued on to the Law, Medical and Darden Schools, the Children’s Medical Center, historic preservation and the Jefferson Scholars Program. To sneer at the crutches the Smiths have clearly placed under this University would be tasteless and ungrateful. I do, however, still believe the current donation could be better spent.
“Missing Billion: how UVa’s investment strategy worked ... until it didn’t.” “Sorry Alumni, We Gambled our Endowment and Lost it.” The headlines were hot off the press when the University reported a billion dollar loss from their endowment (nearly 20%). Right afterwards came a $10.6 million dollar budget cut from Governor Tim Kaine. J.P. Morgan’s Michael Cembalast blasted the University for investing 75 percent of its endowment in private funds and illiquid instruments; he remarked top universities’ new “fetish” for risky investments has now come to a sobering conclusion. It doesn’t take Kenneth Elzinga to know how much this hurt us. Damage control followed with Leonard W. Sandridge, Executive Vice President and Chief Operating Officer calling the declared “distress” of the system to be inaccurate and President John T. Casteen III ensuring that the University “will continue to meet 100 percent of the financial need of all our students.” The damage, however, had been done.
We may not be in Great Depression mode, but with a billion and change in losses, change will clearly have to be made. Employee bonuses were frozen for this upcoming school year, administrative cuts may be made, and reduced hours will mean an increased workload for the remaining faculty. Stressed out and overworked staff will inevitably begin a trend of unhappiness cultivated at this university, where the student satisfaction level has traditionally been sky-high. Goodbye office hours; hello, “go figure it out yourself.” But beyond questioning whether or not the Newcomb swipe-in lady will no longer call me handsome due to her bonus cut, the University’s financial aid needs should be kept in mind instead of whether or not the marching band can play in the rain.
With the current economic situation worsening, students today need more help than ever to pay for the skyrocketing cost of education. The University goes above and beyond with AccessUVa to meet all demonstrated need, but think of what a $10 million donation could mean for scholarships. If invested properly and safely, the investment could mean tuition for 50, 60 or more future students. Weighing the benefits between having that many more students who deserve yet cannot afford to be here or a very expensive, brick umbrella to protect the Marching Band shows a clear distinction in greater importance. The Marching Band is not the Wicked Witch of the West; it will survive to play another day. The prospective students, you ask? Well, they will be hearing a different fight song. Alumni should always have free reign in deciding where their money should be spent. During these tough financial times, though, when donating, aim your donation at targets that will prove much more worthy to the University. And we should do our part as well. Encouraging donations to these causes is a crucial step that needs addressed by our administration. While distress should not be aroused, neither should they downplay the recent downturns. With a renewed connection with our alumni, we can ensure so much money will not go to such little things. I certainly enjoy listening to the marching band, but want to make sure there will be enough of us around to listen to them play. That donation will be music to everyone’s ears.
Bobby Laverty is a Cavalier Daily Associate Editor. He can be reached at b.laverty@cavalierdaily.com.
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