CAMBRIDGE, Mass. (AP) -- The stock market has been good to universities the past few years. It's been especially good to Harvard, which boasts the nation's largest endowment.
Harvard announced Wednesday that it is increasing by at least 20 percent the amount of money it takes from its endowment and puts toward the university's annual operating budget.That's a sizable leap for any university, but with an endowment hovering near $13 billion, it translates into a $95 million yearly budget boost for Harvard.
When it comes to university endowments, Harvard is in a league of its own. And when it shifts how it uses its endowment funds, other schools may listen.
"One reason we're investing as much is because it really costs that much to stay excellent," said Harvard President Neil Rudenstine.
The additional money for the 1999-2000 school year will contribute to the university's undergraduate and eight professional schools, and will be used to recruit new teachers, lower class size, improve technology, and preserve threatened library books.
About $9 million will go toward financial aid for needy students. The increase, however, won't mean any reduction in tuition, Rudenstine said, which runs $31,132 a year in tuition, room, board, books and other fees.