Iie dIidIgan &xilj
Ann Arbor, Michigan
Monday, December 8, 2008
"U' endowment falls 20 to 30 percent
S Economic downturn in investment value disappear in a
matter of months.
has caused billions The decline means the Univer-
sity of Michigan's endowment, val-
in losses for colleges ued at approximately $7.6 billion as
of June 30, could have lost between
By ANDY KROLL $1.52 billion and $2.28 billion in
Daily News Editor value in a span of just over five
months. The last time the endow-
The University's endowment has ment reported an annual loss in
lost an estimated 20 to 30 percent of investment returns was the 2002
its value since the start of the fiscal fiscal year, when the fund lost 6.59
year that began July 1, a University percent of its value.
spokeswoman said Friday. For the 2007 fiscal year, the
That makes the University of University's endowment ranked
Michigan the latest in a string of eighth among all American uni-
colleges to see billions of dollars versities and second among public
universities in total value, accord-
ing to data from the National Asso-
ciation of College and University
Business Officers. But the coun-
try's economic downturn has hit
most of these endowments hard in
the last year.
Harvard University President
Drew Faust announced last week
that the university's $36.9 billion
endowment - the largest in the
country - has lost 22 percent, or
about $8 billion, since the end of the
last fiscal year. And in November,
the University of California sys-
tem announced a $1 billion loss to
its endowment in the four months
since the end of the 2008 fiscal
University of Michigan spokes-
woman Kelly Cunningham said
that although the endowment's
estimated losses were similar to
those seen at other colleges and
universities, the effect of the losses
on the endowment payout - or the
percentage of the endowment that
the University actually spends each
year - would be less than other
schools because the University's
policy for determining the payout
uses a rolling seven-year average
market value for the endowment.
See ENDOWMENT, Page 3A
WALL STREET STRUGGLES HIT STATE STREET
With the economy in recession, college investments have plunged in value. The Univer-
sity's endowment is estimated to have lost up to $2.4 billion in the past five months.
at between $5.32
and $6.05 billion.
University of University o
P4 tN ear
SOURCE: HARVARD UNIVERSITY,5UNIVERSITYOF CALIFORNIA, UNIVERSITY OF MICHIGAN
AUTO INDUSTRY BAILOUT
draft aid plan
Levin says proposal
for $15 billion loan
By THOMAS CHAN
Democrats on Capitol Hill
worked overtime this weekend to
draft a proposal to loan $15 billion
to Detroit's automakers. Execu-
tives told Congress last week
that without the funds, there'd be
bankruptcies in the industry by
the end ofthe year.
"I think they're very close to a
deal, I'm very confident there will
be a deal, and that will happen
within 24 hours," said Sen. Carl
Levin (D-Mich.) on a Fox News
CEOs of General Motors Corp.,
Ford Motor Company and Chrysler
to lobbyforabout $34 billionin fed-
eral loans. GM CEO Rick Wagoner
and Chrysler's Robert Nardellisaid
their companies would soon be
insolvent without the funds.
In Thursday's and Friday's
heatings, lawmakers pressed the
Big Three executives on their
plans to restructure their compa-
nies. Many said they worried that
that even after receiving a bailout,
the automakers would ask for addi-
tional funds in future months.
The new package follows a
concession on Friday from House
Speaker Nancy Pelosi (D-Calif.),
who agreed to pull money cur-
rently allocated to a $25 billion
fund intended to help automak-
ers build lower-emission vehicles.
She originallywanted touse funds
from the Troubled Asset Relief
Program, the $700 billion plan
aimed at helping keep big banks
from failing. Movement on the
plan reached a standstill when
Republicans refused to tap into
See BAILOUT, Page 7A
WHAT A RUSH!
Football season's over, but this weekend was
a boost for Michigan athletics. The basketball
team showed its rebuilding efforts are paying
off by beating No. 4 Duke at Crisler Arena.
Meanwhile, the volleyball team staged two
comebacks to advance to the Sweet Sixteen
and the hockey team scored 11 goals en route
to a sweep of archrival Michigan State..
For more, see SportsMonday, inside.
(FROM TOP) MAX COLLNS/Daily, BRITNEY MCINTOSH/Kentucky Kernel, ZACHARY MEISNER/Daly
(TOP) Michigan fans stormed the court after the Wolverines' 81-73 win over the Duke men's basket-
ball team. (MIDDLE) The volleyball team celebrates its five-set upset of St. Louis in the second round
of the NCAA Tournament. (BOTTOM) The hockey team swept Michigan State this weekend.
new Ross building
is inessSchool's classroomsanda brand new gym,
all in the same building.
w home to open On Saturday the Business
School hosted a reception and
next month preview of its new building. The
building will officially open next
BENJAMIN S. CHASE month, in time for the start of the
Daily Staff Reporter 2009 winter semester.
t semester students in the structure on the corner of Hill
School of Business will be Street and Tappan Avenue was
ivy of their peers, and not completed with the help of a $100
cause they getfree business million donation from New York-
Business School students based real estate developer Ste-
ave access to cutting-edge See BUSINESS SCHOOL, Page 3A
IMPLE M EmNtToING PROPOSAL 1d
Patients to wait months more for medical marijuana
State hopes to have
rules for pot permits
in effect by April
By ELAINE LAFAY
The Michigan Medical Marijua-
na Act went into effect last week,
but patients hoping to immediately
take advantage of the new law will
have to wait.
Patients are more likely to see the
effects of the legislation in April,
said James McCurtis, spokesman
for the Michigan Department of
The act, which was passed as
Proposal 1 or the Michigan ballot
in November, allows patients to
use, buy and grow marijuana for
Dec. 4, the day the proposal
was implemented, marked the
beginning of a deliberation period
regarding the law's enforcement.
Legislators have 120 days to fine-
tune the proposal's rules and regu-
Even a doctor's note won't be
enough to protect patients if they
try to use marijuana medicinally
between now and then.
Michigan residents will need
signed documentation from a phy-
sician before they can apply to the
program that verifies they're suf-
fering from one of the ailments out-
lined in the act.
After that, the Department of
Community Health will have 15
days to accept or deny the request.
If it chooses to accept the case, it
will issue the patient an identifica-
The department is drafting reg-
ulations that will be available to
the public online by Dec. 15. The
regulations will address aspects of
enforcement not specified in the
act, like how marijuana will be
disposed if the patient dies, cost
of application to the program and
explanations of legal terms in the
McCurtis said the department
will hold a public hearing about
the regulations sometime in early
to mid-January to hear opinions on
how to best implement the act.
The State Office of Administra-
tive Hearings and Rules will then
examine the proposed regulations.
Once it signs off on the rules, they
will go through the Legislative Ser-
See MARIJUANA, Page 3A
Students wander the new Business School building during a preview Saturday
afternoon. The facility, on the corner of Hill and Tappan, is 270,000 square feet.
WEATHER HI: 35
TOMORROW LO: 27
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