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Pres. Kim Describes The Mess We’re In

Money Down the Drain.jpgPresident Kim has been scrupulously non-judgmental in describing the incompetence of the adminstration of he who must not be named. Of course, Kim has been right to do so; there is no profit in casting blame. But to his credit, our new leader has also not flinched from telling the truth about the last/lost decade — even if he has chosen to do so somewhat obliquely.

Regarding the structural deficit that has driven the current wave of cost cutting, Kim was clear about the source of the problem in his public presentation about the budget on Janury 15 (listen from 19:33-20:12):

“And the point is, it’s a structural problem. It keeps recurring unless we reduce expenditures or have new sources of revenues. It wouldn’t be a gift of $100 million that we are looking for, it would be a gift of $2BN we’re looking for. If someone were willing to give us a gift of $2Bn, that will generate $100M per year, then we’re ok.”

Translation: Our financial woes only stem in part from the $836M decline in the endowment in 2009. The real source of our financial problem is that the Wright Adminstration was spending money as if the endowment were more than a billion dollars higher than it actually was at its peak.

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