So the University is part of an effort to change Massachusetts Law so that it can draw more money out of its endowment. Currently the law doesn’t allow Brandeis (and other Universities) to draw the principal out of its endowment, only the interest. Brandeis is a young University, founded in 1948, so we have a lot of principal compared to interest, and are therefore badly hurt by the current law.

For a good primer and analysis of the current situation, check out Loki’s previous post on the subject or this Portfolio blog post.

Bernstein-Marcus (aka the Brandeis Administration) has presented the need to close the Rose as driven by Mass. Law that didn’t allow them to draw from the endowment. However, they’ve lately said that even if UPMIFA was passed (and they could draw from the principal of the endowment) they might still close the Rose.

In other words, Brandeis said that they were forced to close the Rose due to Mass Law, but refuses to say that they’ll save the Rose if that law were changed according to their needs.

Now that Brandeis is trying to change the law, Jehuda must put out a public statement saying that if the effort is successful, we’ll save the Rose. To do otherwise would be to say that a temporary dip in the endowment is worse than permanently closing an essential part of the Brandeis character.

Comments are closed.