In a memo written to "Members of Our University Community", Penn President Amy Gutmann yesterday addressed the University's place in the current precarious economic market, a move met by nonchalant student reactions.
Writing that the note was prompted because "the state of the economy is on everyone's mind," Gutmann detailed Penn's current financial situation, including the ongoing capital campaign, Penn's commitment to no-loan financial aid to undergraduates and the recent dip in the size of Penn's endowment.
The idea for a letter from the President addressing the financial statement had been percolating for about a week, Executive Vice President Craig Carnaroli said.
"We felt [the letter] was the right thing to do to provide a sense of calm," he said.
He added that no specific event triggered the decision to write the letter.
Gutmann also detailed the extent of Penn's involvement with the CommonFund, a short-term investment fund frozen earlier this month by Wachovia, Penn's money manager. The University, which at one time had $250,000,000 in the account, had only $100,000 in the fund when its trustees froze it.
While she stressed that "by every major measure, [Penn] is stronger than ever before in our history" she also cautioned that "the premium on prioritizing wisely and judiciously is even greater in times such as these" and asked that Penn staff "work closely with colleagues and managers . to assess their spending and to manage their resources in protection and pursuit of Penn's highest priorities."
The letter was e-mailed to all Penn students, faculty, and staff, as well to the Trustees and Overseers. It was posted on Penn's Web site and on the Penn Digest Web site, and a link will be posted on the Penn Alumni Web site.
On Friday, Penn also released a statement reaffirming its commitment to loan-free undergraduate financial aid in the current economic climate.
"Prospective Penn undergraduate students can be assured of our commitment to a loan-free education," Gutmann said in that news release.
In spite of Gutmann's e-mail, students did not seem concerned about Penn's financial position.
"I do feel confident in the resources that Gutmann has massed during her short stay at Penn," Wharton sophomore Yana Boubnova said.
Sending the e-mail "was the right thing to do, but I had confidence anyway," Wharton sophomore Adam Thompson added.
- Staff writer Lara Seligman contributed reporting to this article.
