</p>
<p>Earlier this week I wrote to the on-campus Vassar community about the Colleges current financial situation. Today, I am writing to you, our alumnae/i. It will come as no surprise that the current global economic uncertainties are having a direct effect on the College’s own financial situation. The endowment the source of approximately one-third of Vassar’s operating support ended the most recent academic year on June 30 at $845 million, up 0.5% for the year. This return exceeded our benchmarks as well as the returns of many other colleges, but was not the 8.5% average return for which we had originally budgeted at the beginning of 2008. Since then the endowment has seen declines in line with market conditions. We are fortunate to have a significant endowment, which supports our spending in normal times and protects us in times of uncertainty, but we must also act to protect that endowment for the future.</p>
<p>During the recent meeting of the Board of Trustees, we agreed that the College should plan for negative returns on investments this fiscal year, and we are taking steps to control current operating expenses and adjust plans for next years operating budget. In light of the current economic uncertainty, we also agreed to develop contingency plans for managing the College in the next few years that do not rely on significant increases in the amount being drawn from the endowment. </p>
<p>There was an equally strong consensus about the need to protect our priorities as we consider our responses to the current economic challenges. These priorities include need-blind admissions and meeting the full financial need of our students for all four years, competitive compensation for our faculty and staff, and continuing to address the needs of our beautiful but aging physical plant. We must try to protect these as we consider our responses to the current economic challenges, and I am working closely with the Colleges senior staff and faculty leadership to control expenditures this year and in future budgets.</p>
<p>In keeping with the values that we all associate with Vassar, we will seek to be sensitive to those in our community most affected by the current economic uncertainties, including many of our students whose families may be experiencing significant economic challenges. </p>
<p>I am confident that we have the ability to manage the current challenges facing us in ways that will leave us stronger in the future. Our aim is to make sure that the changes we make now will be consistent with preserving and strengthening the most important core values of the Vassar community, including:</p>
<p>An exciting academic program that is not only strong in the humanities, social sciences and natural sciences, but also in multidisciplinary programs;</p>
<p>A talented and diverse student body;</p>
<p>A faculty and staff dedicated to the educational mission of the College;</p>
<p>A sense of community and common purpose among our faculty, students, staff, administration, Board of Trustees and alumnae/i;</p>
<p>Strong connections between Vassar and its immediate and extended communities; and</p>
<p>Stewardship of the beautiful physical environment that is Vassars home.
I know that the current economic condition must also be affecting many of you. I hope that all is well. I also know that I am grateful for the good will and ongoing support Vassar receives from its dedicated alumnae/i body. Thank you for all that you do for your alma mater. </p>
<p>Sincerely,</p>
<p>Catharine Hill, President
Vassar College