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06-08-2009 WVU Foundation announces cost-cutting measures in wake of recession The West Virginia University Foundation announced today (June 8) cost-cutting measures aimed at addressing a projected budget shortfall for fiscal year 2009-2010 caused by the economic slowdown. Under the plan, salaries of full-time Foundation employees will be reduced by 4.6% effective July 1. About 65 employees will be impacted. "Nearly every private foundation across the country that supports higher education has been negatively impacted by the recession, and we are no different," said R. Wayne King, WVU Foundation president and CEO. "We have spent weeks looking at ways to trim operational expenses as we put together our budget for the coming fiscal year, while trying to keep the impact on personnel at a minimum. We've also done this while keeping in mind the importance of our ability to fulfill our mission of providing support to WVU." Also as part of the plan to reduce expenses, six unfilled full-time positions will remain vacant and some health-related benefits will be trimmed. The $8.5 million budget for the coming year, approved by the Foundation's Board of Directors, provides for a reduction in operating expenses of over 13% or $1.3 million with the reductions shared equally between personnel and non-personnel costs. Reductions in non-personnel expenses include travel, professional development, supplies, printing, mailing and contracted services. For the period July 1, 2008 to Dec. 31, 2008, the value of the Foundation's endowed investment pool declined 22.3%. A large part of the Foundation's operating revenues is derived from fees associated with endowment and other investment management services. "We will certainly be keeping a close eye on market conditions as we move through the fiscal year," King said. "I'm optimistic there will be a sustained turnaround, and we'll be able to revisit these cost-cutting measures. But for now, we believe sound fiscal management calls for us to make these changes." The WVU Foundation, chartered in 1954, is a private non-profit corporation that generates, receives and administers private gifts for the benefit of West Virginia University. |
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