Trustees gather to discuss U. finances

The Board of Trustees opened their winter meeting yesterday, with several key committees gathering to discuss campus development, the University budget and consolidating the various University communications departments. And financially, Penn appears to be in much better shape than its performance last Fiscal Year would have anticipated. According to a report submitted to the Budget and Finance Committee by Vice President for Finance and University Treasurer Craig Carnaroli, Penn's endowment is up $116.5 million since June 30th. The increase came from both donations to the endowment and improved market performance. Penn's endowment was down 1.8 percent last year, while many of its peer institutions saw their endowments soar after payoffs on their heavy investments in the now-faltering technology sector. In addition, the Health Services portion of the University of Pennsylvania Health System is still showing signs of recovery, with an income -- outside of gifts and donations -- of $17.8 million thus far in Fiscal Year 2001. The Health System lost more than $300 million in FY 1998 and 1999. And today, a final decision about selling all or parts of the Health System to outside buyers may be announced. The External Affairs Committee, chaired by Trustee and 1967 College graduate Andrea Mitchell, welcomed Lori Doyle, Penn's new director of communication, to the job. Doyle, who has served in her current position for two weeks, enumerated several goals for her department, including bringing Penn's several public relations offices under her central leadership. "If there's a sensitive issue, it's sometimes dangerous to have several departments figuring out what the University's position is and coordinating it," she said, explaining the need for central leadership. Vice President Steve Schutt, who recently announced that he would be leaving this summer to become the president of Lake Forest University, echoed Doyle's emphasis on the need for a coordinated communications policy. "I think there is a lot of room for improvement in this area," Schutt said. The external affairs committee also discussed the position that Penn should take in regards to the repeal of the estate tax, also known as the inheritance tax. And while everyone was in agreement that Penn should remain neutral on the issue, some debated the pros and cons of the tax. Chris Browne, Trustee and 1969 College graduate, said that charities would be hurt by the continuation of the tax. "I think charities would benefit from a repeal," Browne said. Browne added that this was because the wealthy will give more money to charities if they do not have to pay taxes. "I don't think you can understand the psychology of someone who's rich unless you are," Browne said in defense of his view. Trustee Leonard Lauder, Wharton Class of '54 graduate and supporter of the estate tax, agreed that Penn should take no position on the issue. Finally, the Facilities and Campus Planning Committee met yesterday to discuss issues such as fire safety, rebuilding the South Street Bridge and the ongoing renovations to the Graduate School of Education. And the committee discussed restructuring the Woodland intersection near the School of Veterinary Medicine, an intersection which committee chair and Wharton Class of '61 alumnus William Mack called "a maze." Daily Pennsylvanian reporter Steve Brauntuch contributed to this article.