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Message from Louis Katz
April 23, 2012
The university's executive vice president and treasurer discusses anticipated tuition revenue and financial strategy.
The Hatchet’s April 19 story, “University prepares for tuition slowdown,” erroneously stated that the university is anticipating a plateau in tuition revenue. In fact, the university is forecasting that tuition revenue will grow year over year by 6 percent.
While the Foggy Bottom and Mount Vernon campuses are subject to caps, the university is able to grow tuition revenues elsewhere, including off-campus, online and study abroad programs, among others. The university also has other sources of revenue, including investments, research grants, rental income and fundraising.
Market conditions have created the opportunity for George Washington to add to its liquidity at historically low interest rates. This is not to finance immediate needs. Rather, the university’s already strong financial position is further enhanced by this strategic borrowing, giving the university flexibility and options in paying for future capital needs on its own terms. Indeed, one reason the university has been able to weather the financial crisis much better than many other institutions is that we have had adequate liquidity.
This prudent management of our resources has allowed us to avoid the kind of draconian choices faced by many of our peers.
It is critical that the university community understands that this strategy is based on a position of strength and that the university is poised for continued growth in the future.
Executive Vice President and Treasurer
The George Washington University