Sports, Page 6 News, Page 9
YOUR DIGITAL
BRAIN
Why Bob Stoops says he is THE UNIVERSITY OF OKLAH KLAHOMA’S I NDEPENDENT T STU TUDENT U DENT VO OICE ICE
VVOL. OL. 93 OL 93, NO NO. 71 FREE — AAdditional dditional Copies 25¢ FREE
THURSDAY, DEC. 4, 2008 © 2008 OU Publications Board
ARTS & ENTERTAINMENT Still hungry after dinner? How about after breakfast or lunch? Check out The Daily’s dish on dessert options in Norman. Page 10.
SPORTS Sooner center Courtney Paris scored her 99th double-double to lead OU to victory Wednesday over Creighton 69-49. Page 5.
Oklahoma higher education gets failing grade • National tuition and fees rise 439 percent in 25 years RYAN BRYANT The Oklahoma Daily According to a report released yesterday by the National Center for Public Policy, universities in Oklahoma are among the least affordable in the country. The report, entitled Measuring Up 2008, found that poor and working class families must devote up to 37 percent of their income to attend a public, 4-year university in Oklahoma, even with financial aid. In addition, poor and working class families in Oklahoma must devote up to 94 percent of their income to pay the net cost of an education at a private university. The study also found that financial aid for low-income
CAMPUS BRIEFS Latkes For Love Stop by Hillel, 494 Elm Ave., from 6 to 10 p.m. today for a celebration featuring the traditional Jewish potato pancakes. Cost is $7 at the door, and 100 percent of the proceeds will go to Shaare Zedek Children’s Hospital in Jerusalem.
OUDAILY.COM Interested in working or interning for The Daily? Go to OUDaily.com/jobs to fill out an application today for positions in reporting, design, photography, copy editing and more.
TODAY’S INDEX A&E 7, 9 Campus News 3 Campus Notes 9 Classifieds 8 8 Crossword
Horoscope 9 Opinion 4 Police Reports 9 Sports 5, 6 Sudoku 8
WEATHER FORECAST
TODAY
students is down. For every dollar in Pell Grant aid the state spends, only 41 cents is spent on students. On a national level, the study reports that tuition and fees saw an increase of 439 percent between 1982 and 2007, while median family income only rose by 147 percent. Stacey Zis, research associate at the center, said it is up to university and state officials to help struggling families pay for a college education. “Our study shows that in Oklahoma, higher education is very expensive for low-income families,” she said. “In order to make education affordable, either tuition and fees must come down, or financial aid must go up.” Jay Doyle, OU press secretary and special assistant to OU President David L. Boren, said OU is working to make higher education as affordable as possible by providing more financial aid than ever. “In the past four years, we have doubled the amount of scholarships we are giving students and have raised $135 million in new scholarship money,” he said.
The report also found that only 63 percent of freshmen return for their sophomore year at Oklahoma public universities, giving the state the lowest freshmen retention rate in the U.S. Doyle said that OU’s rate of freshman retention is much higher than the state average. “Our most recent freshman retention rate is at 84.5 percent, which is more than 20 points higher than the state average,” he said. The report also revealed that the state receives low benefits from higher education, because only 24 percent of adult residents in the state have bachelor’s degrees. Center president Patrick Callan said that if the state does not improve educational affordability, then an affordable college education might not be possible in the future. “With the current challenges of a competitive global economy, states need to raise the level of education of their population to help their residents compete,” he said.
The secret is out to him because he grew up in a family where there were secrets, both ones that he knew and ones that he did not. “Maybe not knowing all those secrets eventually led me to this quest,” he said. WILL HOLLAND The music video for the All The Oklahoma Daily American Rejects’ song “Dirty Little Secret,” played on a large The power of secrets was on display projector screen and the standingWednesday night for close to 800 people room-only crowd erupted into who crowded into the Molly Shi Boren cheers and applause as Warren Ballroom. Frank Warren, the founder of SECRET Continues on page 2 PostSecret, visited OU to discuss his project, in which people anonymously mail postcards containing their secrets directly to his home. Warren scans and uploads the cards online to Postsecret.blogspot.com, and he also has published four books containing the postcards he has received. He said the idea to start the project came
• PostSecret founder dishes dirt on his revealing blog
PostSecret founder Frank Warren talks to a packed crowd Wednesday night in the Oklahoma Memorial Union. Warren invited audience members to take the microphone and ask questions or share their own secrets. Amy Frost/The Daily
LOW 24° HIGH 42°
FRIDAY LOW 26° HIGH 47° Source: Oklahoma Weather Lab
Conservative investing helps OU endowments retain value in recession • Endowments depreciate in market MEREDITH SIMONS The Oklahoma Daily EDITOR’S NOTE: This is the third in a three-part series about OU’s efforts to deal with the economic crisis. Today’s article addresses the market’s impact on university endowments. While the economic crisis rattles endowment managers at universities across the country, OU officials say a conservative investment policy has helped OU’s endowment outperform the markets, as well as endowments at other universities. Harvard, the richest university in the world, announced this week that its
endowment has lost $8 billion since July 1. That was a 22 percent drop, which brought its total value to $29 billion. The amount Harvard lost is more money than OU even has. OU has lost a much smaller percentage of its endowment, which is currently doing better than the market. OU has avoided market-level losses with a conservative investment strategy that didn’t have many of OU’s assets invested in risky hedge funds or the energy sector, according to OU Foundation President Guy Patton. But doing better than the general market doesn’t mean doing well — as of Sep. 30, the value of OU’s endowment had fallen 17 percent. The market, as measured by the S&P 500, had declined by 19 percent, according to Ben Stewart, the OU Foundation’s investment direc-
OU ECONOMY
TUESDAY
WEDNESDAY
TODAY
The Daily’s threepart series
Part 1: How OU is cutting its costs
Part 2: Recession impact on donors
Part 3: The effect on endowments
tor. These numbers don’t take into account losses during the final quarter of the calendar year, which have seen some of the most dramatic drops in Wall Street history. But the leaders of the OU Foundation, the private foundation that manages most of endowment, say they are adjusting their investment policies and are confident the endowment will return to full strength. “Corrections in the market, while they don’t feel good at the moment, don’t cause panic for us,” Stewart said. “We are a very long-term investment.”
Endowments at work The OU Foundation oversees about $693 million worth of OU’s endowment which is worth more than $1 billion, Patton said. Endowed gifts are designed to fund organizations in perpetuity. Donors make initial gifts, the principle amount of which will never be spent. Instead, the money is invested in stocks, bonds and money market accounts. The goal of endowment managers is to earn at least a 6 percent return on their investments. About 1 percent is used for management-related expenses, leaving 5 percent that can be paid to the
target organization, Patton said. Under this system, a $400,000 gift could translate into a $20,000 annual payout. Depending on the type of gift, the money could be designated for a specific use, such as a certain program or faculty position, or its use could be determined by department managers. Endowment payouts, which come annually, are not dependent on an investment’s performance during a single year, Patton said. In order to insulate endowments from the swings of the market, payouts are calculated using an average of the original investment’s performance over the previous three years. As a result, OU programs’ next round of payouts will not be 17 percent lower than the previous round, although that is how much the endowment is down.
ENDOWMENTS Continues on page 2