Politicians Eyeing Those Supersized University Endowments
Senator Orrin Hatch of Utah and Representatives Kevin Brady of Texas and Peter Roskam of Illinois wrote a letter on February 8 to the presidents of 56 private colleges and universities, who all hold endowments of more than $1 billion. In the letter, the Republican committee chairmen wrote, “Despite these large and growing endowments, many colleges and universities have raised tuition far in excess of inflation” and said they want to hear officials explain to their committees “how colleges and universities are using endowment assets to fulfill their charitable and educational purposes.” The presidents have until April 1 to reply. It will be interesting to see how many defend against the letter’s implication that they don’t properly use their endowments as they keep increasing tuition. Of course, the politicians don’t just want to satisfy their intellectual curiosity; they’re looking for a justification to change the law.