It appears the out of control spending situation surrounding the University of Louisville Foundation is finally coming under some control.
In a Tuesday meeting, the controversial (and often secretive) “deferred compensation” arrangements made under the prior administration and which favored several administrators – costing the foundation over 20 million dollars -- were officially terminated by the new Foundation board. And in a further attempt to return the Foundation endowment to solid financial ground, the board also voted to cut at least 13 million dollars from its annual support to the University for the next fiscal year.
While they’re sure to cause short-term pain in many quarters, these moves come as welcome news, since the long-term health of the endowment is essential to the University’s mission. And it appears this new board will have little tolerance for the kinds of convoluted manipulations that seem to have been par for the course for the former board for way too long.
Because of this, it’s important that Interim U of L President Dr. Greg Postel get as much support as possible over the coming months. It’ll be his job to implement what are sure to be many unpopular belt tightening policies to adapt to this new financial reality, and it’s critical that everyone keep in mind that the mess he’ll be tasked with cleaning up isn’t one of his own making.
It’s a good start. Now, let’s keep it going.
I’m Bill Lamb and that’s my Point of View.
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