October 7, 2009

Page 1

THE INDEPENDENT DAILY AT DUKE UNIVERSITY'

The Chronicle

WEDNESDAY, OCTOBER 7, 2009

ONE HUNDRED AND FIFTH YEAR, ISSUE 32

WWW.DUKECHRONKLE.COM

BOX briefed on cost-cutting measures Fin. report Board OKs 50-year carbon neutrality plan, supports Keohane ‘K4’study reveals toll by

Emmeline Zhao the chronicle

The Board of Trustees met this weekend to hear updates on the University’s financial situation and learn about efforts to improve campus. At their first meeting of the academic year, Board members heard from the Duke University Man-

agement Company about the University’s investments and strategies going forward. The Trustees also approved the Duke Administrative Reform Team’s work to curb spending through administrative cuts and operational reductions. Given the current economic situation, the Board is confident in DUMAC’s performance, said Chair and Democratic state Sen. Dan Blue, Law ’73. ‘You look at the financial indicators weekly, daily, monthly and how they show that there is some financial recovery, but we’re

not out of the woods on this,” Blue said.

DUMAC’s presentation to the Trustees confirmed the University’s need to cut $125 millionfrom its budget over three years, Blue said. Despite the endowment’s 24.3 percent investment loss in the last fiscal year, Blue cited the endowment’s 10 percent average annual return over the last ten years as a sign of strong long-term performance. He added that DUMAC projects the endowment’s SEE TRUSTEES ON PAGE

of recession Endowments other investments lose big ,

by

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Election 26 DUKE g|| gf| VA. TECH 34 sees low Hokies air out Blue Devils turnout by

Julius Jones

THE CHRONICLE

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Dismal turnout characterized Durham’s 2009 municipal primary elections Tuesday with only 4.3 percent of registered voters cast-

ing their ballots. The vote narrowed down the three city council candidates for Ward 1 and five candidates for Ward 2 to two in each race. Each pair of candidates will face off in the general election Nov. 3. Mayor Pro Tempore Cora ColeMcFadden, who represents Ward 1 on the council, and 2Tyear-old Donald Hughes will face off in the general election after receiving 69.3 percent and 17.6 percent of the vote, respectively, according to preliminaryresults compiled by the Durham County Board of Elections. Ward 2 City Council Member Howard Clement received 60.1 percent of the vote in Tuesday’s primary and will face political newcomer Matt Drew, a Libertarian, who finished second with 12.5 percent of the vote. “It’s pathetic,” said City Council Member Eugene Brown describing the low turnout and noting that there were only two races on the ballot “One answer is that people are . satisfied with the status quo and they expect die incumbents to win again.” At the George Watts Montessori Magnet School polling station, voter participation as of 3:30 p.m. had reached 50 out of2,936 active registered voters in the precinct, which includes East Campus. Audrey Mitchell, who has been SEE ELECTION ON PAGE 14

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CHRONI

Freshman wide receiver ConnerVernon lost the ball, and nearly his helmet, in Duke's eight-point defeatagainst No. 6Virginia Tech Saturday. The loss was the Blue Devils' eighth straight in the series. SEE STORIES PAGE 10-11.

Zachary Tracer THE CHRONICLE

Ending six straight years of rapid growth, the University’s investments dropped sharply in the past fiscal year, according to Duke’s most recent financial statement, presented to the Board analvsis ofTrustees Friday. Although the contours ofthe endowment’s 27.5-percenl drop and the University’s efforts to cut $125 million from the budget have been known for several months, the 2008-2009 Financial Statements provide the clearest picture to date of the recession’s effects on Duke’s financial situation. According to the unreleased document obtained by The Chronicle, which covers die period from July 1, 2008 to June 30, 2009, the University’s net assets decreased 29.1 percent from more than $8.6 billion to more than $6.1 billion, largely because of investment losses. The statement will be released publicly online in about a week. The statement reported that the endowment and other investments provided 18 percent of the University’s $1.91 billion in revenue, or income, in the 2009 fiscal year—about the same proportion as tuitionand fees. Just under halfof Duke’s revenue came from grants and contracts, and another 5 percent was provided by donations. +

SEE ENDOWMENT ON PAGE 4

Sanford reaches goal with trustees s3Mgift by

Emmeline Zhao THE CHRONICLE

David Rubenstein, Trinity ’7O and a member ofthe Board of Trustees, pledged last week to donate $3 million to the Sanford School of Public Policy, pushing the school past its $4O million fundraising goal, President Richard Brodhead confirmed Sunday. The school, which transitionedfrom an institute to a school July 1,was more than $2 million short of its October benchmark goal two weeks ago. Rubenstem’s donation came in time for Sanford’s inaugural weekend and just after his $lO million gift to the Lincoln Center for the Performing Arts in New York City last week. “It wasn’t clear that we would beable to [reach

ontheRECORD "There are no moral victories at Duke, regardless of what anybody's opinion is." —Head coach David Cutdiffe on keeping the score dose Saturday. See story page 10.

the fundraising goal,] but at the end, there was a spurt,” Brodhead said. “Rubenstein has been a very strong supporter in the past, and has already made a contribution in the past, but made this extra one to bring us to the finish line.” Rubenstein, who was a student at Sanford, was ranked 123rd in Forbes’ list of the 400 wealthiest Americans of2009, published Sept. 30. The magazine estimates Rubenstein’s net worth at $2.5 billion. Rubenstein is the co-founder of The Carlyle Group, a global private equity firm, and is also Sanford’s single largest benefactor. He is the namesake for Rubenstein Hall, Sanford’s sister building on Towerview Drive—which he funded—and has made numerous other

donations to the school. Despite reaching its $4O million goal this month, Sanford will continue to raise money toward its final goal of$65 million—the number University administrators originally set as Sanford’s threshold for becoming a school, Sanford Dean Bruce Kuniholm said. Money raised so far will fund new professors, speakers and internships, among other positions and programs, Kuniholm added. “Our priorities have been financial aid, internships and endowment to support faculty,” he said. “We have a strategic vision, but it’s all oriented toward transforming student lives and all the things we raise money for contribute to that goal.”

Global Business Federal Reserve Bank of Dallas CEO emphasizes the importance of going global in the recovering economy, PAGE 3

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