For most Americans, the last several weeks have been difficult. From making sure your children are doing their homework in their new classrooms to trying to find those essential items at the grocery store, flour and toilet paper. Many have wondered if they will have a job to go back to on a day to day basis. We have all made sacrifices.
For our neighbors that own businesses, both large and small, some have been faced with the new reality that they are no longer able to open their doors. They are no longer able to provide for their own families. They are no longer able to provide a place for their employees to earn a paycheck.
It has helped that there has been some assistance from the government for a great many taxpayers. Unfortunately, the amount of money in the stimulus package for both individuals and businesses has only provided a small band-aid compared to the wages and revenue lost.
Then word arrived last week that a number of colleges in Maine would begin to receive sums of money to offset losses from the pandemic. Some of the colleges, among the nation’s wealthiest, are in line to collect millions of your tax dollars. Some of Maine’s most well-healed schools, those most able to weather the storm, are reportedly set collect.
The total haul for funds to colleges in the state is about $41 million. According to reporting in another newspaper the University of Maine System, including the community colleges, will receive a majority of the funds through the CARES Act, or Coronavirus Aid, Relief and Economic Security Act. Of course, these schools in the system have tens of thousands of students that are impacted by the sudden closing of each of the campus locations.
It has been reported that Bates College, Colby College, the University of New England, St. Joseph’s College and Bowdoin College are all going to receive part of that $41 million pie to offset student losses and bills incurred by the colleges due to the current pandemic.
It seems a little curious that we, the lowly citizens, are told that we must sacrifice for the common good, but where is the sacrifice among these colleges and universities? With a majority of Mainers living paycheck to paycheck under normal circumstances, the current situation has made it that much more precarious for all of us. For those of us who were fortunate to have reserves on which to draw upon even those nest eggs have been depleted.
For some of the schools in Maine that are getting CARES Act funds they have nest eggs that would blow your mind. St. Joseph’s College had an endowment in 2018 of $17 million. The University of New England had an endowment in 2018 or more than $36 million. Neither amount is shabby and certainly calls into question why, with an amount like that backing the college, that they would need the CARES Act monies.
But as those late-night ads on television say, “wait, there’s more!”
Bates College in Lewiston had, as of 2019, more than $315 million in their endowment. Colby College from up in Waterville, had an endowment that totaled more than $828 million in 2018. By far the winner of the nest egg carousel is Bowdoin College. Their endowment was reported to be more than $1.74 billion in 2019.
Yes, you read that correctly. That is $1.74 billion. I would guess, and it is only a guess, that this amount of money would rank Bowdoin as one of the wealthiest organizations in all of Maine. Perhaps even the nation. In fact, a news site ranked Bowdoin’s endowment as the 68th largest endowment in the country.
Now, I understand that the recent fluctuations in the stock market with effect these school’s endowments and available funds. A 10%, 20% or more drop could be realized, but that would still leave the schools with money left over. In the case of Bowdoin, the endowment could drop to a billion dollars.
How will they ever survive?
In a publication closer to the Bowdoin campus it was written that the campus has lost almost $7 million to date due to the virus. That is no small amount and if Bowdoin was a small business like a hair salon or a restaurant that amount of loss would cause a business to close. However, Bowdoin is not a small business.
Bowdoin’s annual operating budget is more than $175 million. Clearly, between the endowment income and the annual operating budget, there is room for Bowdoin to make some changes to their funding mechanism that does not include taking money from the government.
The money that was designated in the CARES Act should be left for those businesses that may not survive this pandemic and individuals who truly need it.
*Despite it being reported in the Bowdoin Orient and the Portland Press Herald that the colleges and universities listed above would receive the CARES Act money, an email from a Bowdoin College representative stated to me on Wednesday evening, after this piece was completed, that, “Bowdoin has not accepted any money at this point.” They have not accepted it yet. Stay tuned.
Jonathan Crimmins can be reached at j_crimmins@hotmail.com.
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