This morning, Chancellor Wrighton sent out a letter to the WU community. It started out innocuous - about the Thanksgiving holiday and the importance of sharing if you are able.

Then he suckerpunched us in the back of the head.

Some highlights:

* Since July 1, the value of the endowment has declined approximately 25%.

* What the University has to balance: the decline in the value of our endowment, coupled with leveling of research support, constraint on the rate of tuition growth, uncertain prospects for philanthropic support, pressures on healthcare costs, and the prospect of increased needs for
financial aid

* For all faculty and staff, in the 2010 fiscal year the University will not be able to sustain past levels of salary increases, and is are planning lower increases in compensation this year.

* Chancellor Wrighton will implement a reduction of his own salary by 5% effective January 1, 2009 and another 5% reduction effective July 1, 2009. School Deans and Vice Chancellors have volunteered to have no increase in their compensation in the year ahead.

* New staff additions in the administration will be very limited and require considerable additional justification.

* "It is also important for us to scale back, eliminate, or delay capital projects. For example, planned renovation and expansion of Mallinckrodt Center at a cost of over $20 million will be delayed indefinitely. The redevelopment of the South 40 will be slowed."

[Guess that means the Gargoyle won't have to move their shows!!]

In true Mark Wrighton style, he ended the "Honey - we're broke..." e-mail on a positive note:

"As uncertain as these days are, I remind everyone of the great year we are having: we welcomed a world-class group of students this fall; a tremendous group of new faculty joined us this year; we rejoice in the successes of our continuing faculty like Mary Jo Bang, Professor of English, who won the 2008 National Book Critics Circle Award in poetry; we launched the Institute for Public Health; we dedicated Harry and Susan Seigle Hall; we opened the Danforth University Center; we hosted the Vice Presidential Debate; faculty, students and staff contributed to establishing that water exists on the surface of Mars; and faculty, students, and research staff in the School of Medicine have reported path-breaking research to understand, through genome sequencing, the origins of cancer. Let us work together to continue to enjoy national and world leadership in education, research, and service as one of America's finest research university communities."

This comes as a shock to many students. It is, however, a good (albeit unfortunate) reminder that even the "WashU Bubble" is not safe or immune to issues plaguing the rest of the country. Hopefully students won't be very affected (besides longer construction time) and hopfully the University won't lose any good faculty or staff if they have to do more paycuts. Also, implementing more thrifty financial habits now may last into the future, increasing the University's money (and stopping the decrease of tuition)!!

We can only dream...