Process for Endowment Spending
Setting the Annual Endowment Spending Rate
As part of the annual budget planning process, the Administration presents the proposed endowment spending rate to the Trustee Budget Committee for approval.
When approved, the spending rate is used for planning the University operating budget for the fiscal year that will begin on September 1 of each year.The approved spending rate for Fiscal Year 2008-2009 is $8.54 per unit held in the University's long-term pool.
The calculation of the Fiscal Year 2008-2009 spending rate is outlined below.
| Market Element Calculation | |
| 12-month average market value (see calculation) | $ 221.22 |
| Target Spending Rate: | x 4.35% |
| Market Element Weight: | x 30% |
| ---------- | |
| $ 2.89 |
| Spending Element Calculation | |
| FY2008 Spending Per Unit | $ 7.80 |
| Factor for Inflation (CPI=1.97%) plus Budget Growth (1.5%): | x 103.47% |
| Spending Element Weight: | x 70% |
| ---------- | |
| $ 5.65 |
Total FY2009 Spending Rate ($2.89 + $5.65) = $8.54 per unit
Change from FY2008: 9.49%
| Month | Year | Market Value |
| November | 2006 | $204.67 |
| December | 2006 | $206.63 |
| January | 2007 | $207.30 |
| February | 2007 | $211.22 |
| March | 2007 | $215.69 |
| April | 2007 | $220.33 |
| May | 2007 | $227.30 |
| June | 2007 | $228.20 |
| July | 2007 | $229.49 |
| August | 2007 | $229.89 |
| September | 2007 | $233.70 |
| October | 2007 | $240.27 |
| 12-month average | $221.22 | |
Note: The decision on the FY 2010 endowment payout guidelines is anticipated following a meeting of the Trustee Budget Committee in February.