Brandeis' endowment shrank by 2.5 percent in the last fiscal year -- between July 1, 2001 and June 30, 2002 -- according to Peter French, executive vice president and chief operating officer. The University relies on income from its endowment for much of its annual operating budget. College endowments, however, are down by at least 5 percent across the country, according to a recent Boston Globe article. The relatively small decline in the university endowment, to $384.3 million, puts Brandeis in the top quartile of the nation's universities in this respect."The endowment today is around $363 million," Jeffrey Solomon, University treasurer and chief investment officer said, describing a reversal in market trends that raised it from $353.9 million in September. "We've been participating in the rally," he said. Stock market losses in September led to a 7.5 percent decline in the endowment. But, Solomon said, "We performed better than 75 percent of endowments out there."

"That was the worst quarter in the market in a long time ... you can see the volatility here," Solomon said.

Solomon attributed Brandeis' financial standing to its reliance on more conservative investment schemes. The University places less money in venture capital and more in more reliable hedge funds. "We have a highly experienced investment committee," French said.

Asked if the shrinking endowment would affect existing capital projects on campus, such as the new Lemberg Academic Center, an expansion of the Sachar International Center, French said it would not. "The trustees authorized (the building of the Lemberg Academic Center) to begin only after funds were fully raised to support its total project cost, which is about $8 million," he said.

Asked about the new dormitory being constructed near Ridgewood, French again replied positively. "The trustees authorized that project to go forward with the understanding that at least half its project cost would be gift-funded, and that 50 percent would be funded out of capital reserves," he said.

According to French, the new dormitory will cost $21 million. Over $11 million has already been pledged in gifts, and $10 million is in a reserve account that has been accumulating for four years, he said. "(The project) should not be affected by the performance of the endowment," French said.

A recent contribution of $3 million from the Abraham Shapiro Foundation, named after Board of Trustees member Robert Shapiro's father, also was donated for the renovation of the American Jewish Historical Society Building, located near the Heller School, which should aid money flow. "It will be a mixture of classrooms and offices," French said.

Funds, however, have not been designated for many changes to existing buildings on campus, such as the Usdan Student Center. "We have made absolutely no decisions about what the long-term arrangement is going to be," French said.

"Chan Krieger, the architect who did the master plan, looked at -- in a preliminary way -- a variety of possible uses for Usdan," French added.

"There will be an opportunity for student input, similar to what we did with the campus center and the new residence hall," French said, responding to student apprehension.

Asked about the temporary offices located next to Chapel's field, French responded, "it's our plan to move all those functions out of the trailers ... I hope it's all within the next 18 months, but it's going to depend on the plan we come up with for the historical society ... and what might go into Usdan, and what the cost is going to be."

Asked if the University faced a problem of donations for changes to existing buildings, French responded, "It's very difficult to raise money for renovations."

The University, however, is planning to address the existing infrastructure problems, according to French. "We've laid out a scenario over five to seven years of a renovation plan plus the addition of more beds so we can house more students," he said.

"We are very well aware of the need for more work on existing residence halls ... all of that is part of the capital campaign," he added.

"We've been spending between two and $2.5 million for capital projects related to residence halls (per year)," French said, adding that this sum is far greater than what was spent on residence hall improvements throughout much of the last decade.

French, however, cautioned that nothing is certain. "If the financial markets continue to deteriorate, there will be a negative effect on our ability to fund capital projects for which construction has not started.," he said.

Solomon, however, added, "We are in far better financial shape than we were in the mid-90s.