Endowment on the rise, trustees say

Greeted by the news of recovering endowment and Health System funds, about 30 of the University Trustees met on Friday. In meetings of the Facilities and Campus Planning and Budget and Finance Committees, the Trustees also discussed future plans for the development of the Life Sciences Quad and additions to recreation and exercise facilities. Friday morning's meetings culminated in an executive meeting for all trustees in the afternoon. According to the financial report submitted to the board by Vice President for Finance Craig Carnaroli, the endowment rose 1.6 percent through the end of October -- part of Fiscal Year 2001. In the previous fiscal year, the endowment had dropped 1.8 percent while many of Penn's peer institutions watched their endowments skyrocket. Excluding the University of Pennsylvania Health System, the endowment stood at $2.7 billion on October 31, an increase of $128 million from the same time last year. With these recent gains, the University's endowment recovered roughly 90 percent of its FY 2000 loss. And the Health System also posted encouraging improvements for FY 2001 through the end of October. The Health Services component of UPHS had an increase in net assets of $16 million. In total, until the end of October, Health Services revenue exceeded expenses by $18.2 million -- leaving the financially beleaguered Health System looking to turn a profit for the first time in several years. Over the 1998 and 1999 fiscal years, the Health System lost a total of over $300 million, but has been gradually recovering since. In addition to finances, the trustees discussed several multi-million dollar additions to Penn's campus. Among the largest of these projects is the new $57 million Life Sciences Quad, which is to be built between University Avenue and the botanical gardens. The two-phase construction project will begin next year. The new facility will provide a total of over 200,000 square feet of wet laboratories, greenhouses, office space and classrooms. The trustees also looked to increase recreational space on campus, responding to repeated student demand. The board announced plans to begin a $22 million addition to Gimbel Gymnasium, dubbed the David S. Pottruck Health and Fitness Center. The new facility will be a four-story addition to Gimbel, filling in the area between the gym and the parking garage on the corner of 38th and Walnut streets. University President Judith Rodin noted that, if the new facility still does not adequately satisfy the need for exercise space, the University is considering additional facilities. "We're hot on the idea of a field house," Rodin said. A $3.5 million renovation was also approved for the Carriage House, located near 40th and Spruce streets. The building will house the Lesbian Gay Bisexual Transgender Center. The board also discussed the possibility of acquiring three blocks of industrial land east of campus to the Schuylkill River in an effort to close the gap between Penn and Center City.