The President of Marshall University says he wants the Legislature to give Marshall’s Board of Governors more investment authority.
Dr. Stephen Kopp says the money the returns on additional investments would generate is needed in today’s tight budget times.
“As we’re looking at an almost 9% reduction in state appropriations, we’re looking at every opportunity that we can to be become more self reliant, self sufficient,” Dr. Kopp said on Wednesday’s MetroNews Talkline.
In 2005, the Legislature authorized the Boards of Governors for both Marshall University and West Virginia University to make investments as part of a trial program. Kopp says Marshall’s investment amount was limited to $18 million while WVU’s amount was greater than that.
Since then, Kopp says the returns from a diversified, conservative portfolio have been coming in at a sound rate that is actually 500 times more than the returns on the investments the state makes through the Treasurer’s Office.
Kopp says, because of that, he would like to see Marshall authorized to invest up to $60 million. “That doesn’t mean we’re going to invest $60 million, but the idea, basically, is that we can try to maximize returns on investments within the prudence of the Board of Governors.”
He says West Virginia University officials have expressed interest, to him, in the same kind of additional investment authorization as the higher education budgets get tighter and tighter.
“When we’re looking at the size of these reductions, these are very significant reductions. What it really is tantamount to is cost shifting. We’re moving from state support at public universities, increasingly, to more privately funded higher education,” Dr. Kopp said.
“That impact is on the students and their families and we want to do everything we can to try to mitigate that.”
Wednesday was Marshall University Day at the State Capitol where the 2013 Regular Legislative Session continues.