Other Nonoperating Activities The University’s other nonoperating activities, net appreciation or depreciation in the fair value of investments, are noncash transactions and, therefore, are not available to support operating expenses. Net appreciation (depreciation) in fair value of investments (in millions of dollars) 2008
($192)
2007 2006
$949 $315
In 2008, the University recognized net depreciation in the fair value of investments of $192 million compared to net appreciation of $949 million during 2007 and $315 million in 2006. Equity markets suffered losses in 2008, partially offset by an increase in the fair value of certain securities in the fixed-income portfolios. Conversely, in 2007 and 2006, equity markets delivered substantial gains, although as short-term interest rates rose over these two years the fair value of securities in the fixed-income portfolios declined.
Other Changes in Net Assets Similar to other nonoperating activities discussed above, other changes in net assets are also not available to support the University’s operating expenses in the current year. State capital appropriations and capital gifts and grants may only be used for the purchase or construction of the specified capital asset. Only income earned from gifts of permanent endowments is available in future years to support the specified program. State capital appropriations (in millions of dollars) 2008
$394
2007 2006
$293 $220
The University’s enrollment growth requires new facilities, in addition to continuing needs for renewal, modernization and seismic correction of existing facilities. Capital appropriations from the state of California increased by $101 million in 2008 and increased by $73 million in 2007. Capital appropriations are from bond measures approved by the California voters. Capital gifts and grants, net (in millions of dollars) 2008
$245
2007 2006
$217 $167
Capital gifts and grants increased by $28 million in 2008 and by $50 million in 2007. Private capital gifts increased in 2008, offsetting reductions from federal and state sources. Significant Federal Emergency Management Agency (FEMA) grants, primarily for the replacement hospitals at UCLA, declined in 2008 as the projects approached completion. Grants from FEMA decreased by $26 million in 2008 after increasing by $7 million in 2007. In 2007, the University received $30 million from the state for capital requirements to support patient care for children.
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