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Syracuse University does not plan to use unrestricted endowment funds to make up for revenue lost due to the coronavirus pandemic, a university spokesperson said Friday.

SU lost $35 million as of April 20, according to university officials. Most of the university’s $1.4 billion endowment funds are restricted and must be used for designated purposes, said Sarah Scalese, senior associate vice president for communications, in a statement.

University endowments are composed of donated money and assets to be invested. Under endowment law, universities can only use funds for the purposes donors choose, such as scholarships, endowed faculty positions and academic programs.

Some of the university’s endowment isn’t designated for a specific purpose. SU has no plans to use those unrestricted funds to recoup general revenue loss, Scalese said. If needed, SU will use funds allocated toward financial aid to support students the pandemic has affected financially, she said.

“The university has an obligation to future generations to preserve and grow our endowment as it provides a guaranteed source of funds to support the academic mission, student financial aid and exceptional faculty long into the future,” Scalese said.

The university has received $9.9 million in federal funding to mitigate the financial impact of COVID-19. The Coronavirus Aid, Relief and Economic Security Act, passed in April, earmarked $12.5 billion for the federal government to disperse among more than 5,000 colleges and universities. At least $4.9 million of SU’s funding must be allocated toward emergency financial aid grants for students.

SU announced May 12 it would increase tuition costs by 3.9% for the 2020-2021 academic year. After the increase, seniors will pay $50,700 in tuition and all other undergraduates will pay $54,270.

Here is Scalese’s statement in full:

“Syracuse University has implemented several measures to limit the financial impact of the COVID-19 pandemic on our students and their families. These actions include refunding room and board to students, continuing to pay student employees (despite limited opportunities to carry out job functions remotely), offering parking credits to students, providing laptops and financial support for internet access to students who otherwise could not continue their studies and providing transportation support for students who couldn’t afford to travel home once residential instruction was suspended.

The University has no plans to use unrestricted endowment funds to make up for general revenue loss. The University will, if necessary, use restricted funds designated for student financial aid to support our students. The University however is required under endowment law to maintain any donor created endowment funds to exist in perpetuity. The vast majority of the University’s endowment is restricted which means funds have been designated by the original donors to be used for specifically designated purposes, such as scholarships, endowed faculty positions or academic programs. The University has an obligation to future generations to preserve and grow our endowment as it provides a guaranteed source of funds to support the academic mission, student financial aid and exceptional faculty long into the future.”

Asst. Copy Editor Austin Lamb contributed reporting to this story. 

Published on May 30, 2020 at 3:12 pm

Contact Chris: cjhippen@syr.edu