Endowment, grad employment rate defy recession

The University of Richmond's endowment is out-performing other colleges and 2009 graduates are having little trouble finding jobs despite the bleak economy, according to university officials.

Hossein Sadid, vice president for business and finance, said that at the end of the 2009 fiscal year on June 30, the university's endowment was down 14 percent, but he added that the figure was a positive result compared to other universities.

"I'm not aware of any other endowment in the country that can claim that performance," Sadid said.

The university had also scored very well on recent tests administered by the Department of Education - tests which determine the financial stability of institutions participating in the Title IV federal student financial assistance programs, Sadid said. He added that he was extremely pleased with where the university was financially.

Richmond 2009 graduates are also seeing better-than-expected success in the job market, said Leslie Stevenson, director of the Career Development Center.

Stevenson said that despite high unemployment rates and a lack of active recruiting from businesses, 2009 graduates were having the same success at finding jobs as 2007 and 2008 graduates. Though the CDC was still compiling the final numbers, to be released in January 2010, Stevenson said that this was an encouraging sign for current seniors ready to hit the job market.

"The big message our office wants to get out to students is that there are still job opportunities, even in a recession," Stevenson said. "But, students might have to work harder or start earlier to uncover those opportunities."

One-on-one career advising meetings increased 20 percent from 2007-08 to 2008-09, Stevenson said, adding that she attributed the increase to students being more aware of needing to fine-tune their career plans, as well as a greater investment from the university in terms of resources, staff and programs. Stevenson urged students to master the essentials, including developing career plans early and finding different ways to network with employers, in order to maximize their potential in the job market.

Despite recent graduates' success and general optimism about the financial state of the university, Sadid acknowledged that further economic turmoil could still hurt the endowment, which supports 29 percent of the university's operations. He added, however, that universities had proven to be "extraordinarily stable institutions," and that the market downturn wouldn't have the impact that it had had on the automobile industry.

Sadid said that the recent national trend showed a decline in the growth rate for tuition fees during the next few years, and he hoped the university would follow a similar trend, with future costs leveling off and not growing at the same pace as the last few years.

On-campus construction projects are also expected to see few economic problems during the next few years, said John Hoogakker, associate vice president for facilities.

Hoogakker said that the university's strong financial position was a major reason for the ongoing success of such projects, including First Market Stadium, the Carole Weinstein International Center and Queally Hall.

"We're utilizing some tax exempt bond financing and have attracted some very attractive rates due to our strong financial position," Hoogakker wrote in an e-mail. "This is a great time for UR to build."

Hoogakker said that construction was ahead of schedule and, more importantly, under budget, because the recession had reduced construction prices.

The football stadium and International Center will be completed in August 2010, Hoogakker said. Queally Hall is scheduled to be finished in December 2010.

Contact staff writer Stephen O'Hara at stephen.ohara@richmond.edu