Follow the Money For GT

[GTNavyNuke]

Often we have talked about how the GTAA (Athletic Association) gets little help from GT / GTAA for donation support.

I know for a fact that in the GT Alumni Association, our local network is not allowed to talk to donors to GT Alumni Association. The reason given was that the GTAA doesn't want the local networks to move in and alienate the donors with multiple requests.

So this year, my wife and I got "invited" to have lunch with some GTAA people coming through the area. Of course they wanted to have lunch with us since we are such great people. We declined since we are not ready to bequest money to GT ..... but damn they did a great job.

From the latest GT Philanthropy magazine, GT received a record $244.8M last fiscal year in gifts and commitments. And they received $129M in actual gifts and payments last fiscal year (I guess bequests make up the difference).

That is some serious money. So when we ***** about Peterson not really worrying about football and the GT Athletic Association, follow the money. Looking at these donations, I'm thinking my small potential bequest (after my kids are fully established) would better go to the GT Athletic Association, they sure need it more.

As a side note, I've often thought that GT should go private like Stanford to give us much more control. These donations are a lot more than the State of Georgia now gives us aren't they?

 

[LibertyTurns]

As a side note, I've often thought that GT should go private like Stanford to give us much more control. These donations are a lot more than the State of Georgia now gives us aren't they?

Does anyone really think that the state of Georgia would allow their #1 cash cow to go private and bankrupt the University System of Georgia? Correct me if I'm wrong but this is all a big scam to take from the rich (GT) to give to the poor (Ugag, etc). GT generates the revenue and the robin hooders redistribute the wealth. GT's rich folk restore the coffers of GT through private gifts, endowments, etc so that the bastards that are screwing us can take the "state of Georgia" money and funnel it off to pay for leisure studies, art & recreation, etc at our little sister's school because those jack wads couldn't survive on their own merits. They may be a bunch of despicable corrupt rednecks, but I don't believe they're that dumb as to let us go private.

 

[Gtyellowjackets]

I've always thought that if we'd gone private in the late 70s we could have ended up like Emory (not good). Probably would have added a lot of liberal arts majors and catered to the entitled snowflake crowd. Or maybe we would have been smarter and played it like MIT. That would have been OK.

 

[GTNavyNuke]

Does anyone really think that the state of Georgia would allow their #1 cash cow to go private and bankrupt the University System of Georgia? Correct me if I'm wrong but this is all a big scam to take from the rich (GT) to give to the poor (Ugag, etc). GT generates the revenue and the robin hooders redistribute the wealth. GT's rich folk restore the coffers of GT through private gifts, endowments, etc so that the bastards that are screwing us can take the "state of Georgia" money and funnel it off to pay for leisure studies, art & recreation, etc at our little sister's school because those jack wads couldn't survive on their own merits. They may be a bunch of despicable corrupt rednecks, but I don't believe they're that dumb as to let us go private.

I don't know that we are much of a cash cow on the direct side of the accounting. By that I mean that I think from the last financial report I took apart two years ago GT still provides the University System limited net funds (~$50M???) on a yearly basis. But I don't know if the System skims some percentage off of our grant money. If they do, it would be a large net flow of funds from GT to the System.

It's just that my opinion is that the restrictions we have on how GT operates are not worth the advantages. If we were private, we would be able to have all student admissions be on a merit basis and not have to accommodate the 60% or so from Georgia. Our academic reputation would be even better. Plus we'd have the freedom of setting our own curriculum without having to get BOR approval.

We agree on one thing. We won't be allowed to go private even if Peterson decided to commit professional suicide and try.

My wife and I haven't donated to GT Alumni Association this year. We talked and think that we are going to contribute our small yearly amount (about .0008% of last years actual GT contributions) to the GT Athletic Association.

 

[Jacket0323]

Let's agree to give directly to the Athletic Association. Once the Admin notices a shift in monetary flow, maybe just maybe, they will make a more concerted effort to help athletics.

 

[Supersizethatorder-mutt]

I give annually to the Alumni Fund, but I give much more annually to the Athletic Fund, plus season tickets for football

 

[iceeater1969]

I give annually to the Alumni Fund, but I give much more annually to the Athletic Fund, plus season tickets for football

ditto to the small alumni and much bigger to gtaa PLUS I give another bump designated 100% for football recruiting.

At the acc dinner and orange bowl dinner I was really turned off by the gt alum folks. I asked how the 14 season was affecting donations and found things were great. Asked if the admin and alum were woking on coordinating efforts to improve gt football recruiting. No interest.

 

[New Old Guy]

FWIW, Tech is gradually "going private" as the amount of State funding goes down -- year after year after year. Most folks don't really think of it this way, but as the % of GT funding provided by the State declines toward zero, doesn't that make us more and more "private"? Of course it's not that simple.

There is a lot of logic in Tech becoming private. We are not much like the dozens of other members of the State system, all of which compete for limited and ever declining funds. However that step (going private) would be difficult to accomplish, complicated and highly charged politically. Among the many issues: what happens to all the facilities used by GT but owned by the BOR? Many/most of these buildings were paid for by Tech donors, but were deeded to the BOR upon completion.

At some point the State could just decide that they wish to eliminate the funding of GT altogether. If that were to happen we might have the opportunity to negotiate a transaction to make us fully private, but I don't see that in the foreseeable future. Furthermore, although the Tech endowment is many times bigger than any other BOR controlled entity, our funds are still not sufficient to go it alone, IMO.

So going private is a nice goal (or dream), but getting there would be a challenge, and sustaining our current level of excellence would require some innovative funding.

 

[forensicbuzz]

we could never afford to purchase the property. The GT campus is one of the highest valued property the State of Georgia owns.

 

[GTNavyNuke]

Does anyone "know" whether the net cash flow goes to BOR or to GT?

Also, the land is a big problem. I was going to bring up the Episcopal / Anglican church divorce going on and the land problems. But I said enough that I don't know enough about already.

 

[GTFLETCH]

As Georgia State Grows, makes a to of sense for GT to go private!!

 

[ATL1]

A private GT would double probably more like triple its tuition.

 

[RLR]

A private GT would double probably more like triple its tuition.

Assuming, of course, that interest rates don't rise rapidly and the current federal student loan system doesn't go bust. Once private schools lose the ability to attract any student who wants to come and can only target those with a big enough trust fund or credit to attend, it won't be fun to be Emory.

Law schools and medical schools are already facing serious financial threats. Law schools because enrollment is down and there's no undergrad support (and it's a scam). Medical school is down for more complex reasons but basically they are losing the benefits of a lot of private money and research money that is now being rerouted to more efficient units.

Being public has probably helped GT the past decade. It's one hell of a value, relative to what private schools costs. . . even though yeah state funding as a percentage of expenditure is wayyyyyyyyyy down since like 2001. thanks older generation for underfunding your health care entitlements . But no, seriously. all the money that used to go to education has already been sucked out to pay for health care. nothing left to suck. and we're still dangerously underfunded.

There's a few exceptions, but most elite private schools are not positioned well for the future. The liberal arts schools saw the rise of technology and the university as the driver of the economy a long time ago. And, theology, poetry, and all the other majors we make fun of realized this a long time ago. They rigged the game for the intra school governing rules in the 70s. Tenure, university governance, all that. Stanford is the most obvious exception. Their tenure guidelines are maybe 1 page long. I think yale's are 200 pages.

Moreover, most private schools (John Hopkins, MIT, a few others excluded) have relied solely on their huge endowments. which have grown at like idk 20% returns the past few years . . . idk. I'm so depressed i dont want to go into details but the macro economy has never been this scary IMO. these endowments will be hit hard if assets prices tumble. It could be in 2 months. it could be in 6 years. But unless we design and implement a radically new economic model, the only other option seems to be war... put it this way - I never thought universal income would ever seriously be considered in my lifetime. I know thinks there's a small chance it actually may. Because there really arent any other options.

Point being, GT may have benefitted from being public all these years. I hate on GA conservatives on a lot of issues, but in terms of fiscal responsibility and giving us some financial flexibility, I tip my hat and eat my crow. I've actually thought that GT is a top 5 school in the nation for the past 5 or so years. I still do. (read the formula for US News. It's a joke). GT and Atlanta are one of the few places where economic growth even seem like a possibility. We're very good at being public but with private units to increase efficiency. Emory will not be able to survive without GT. you can't just build our assets overnight. GT was built for the 21st century in the 19th century. I love our school, even though our sports teams can be rubbish. I love the alumni. Ya'll are some jolly good fellows.

Read about the Big South data hub. This type of economic arrangement is the only hope for the future of the U.S. economy. And if people realize this and we transform the economy before it's too late, GT is a top 5 school, IMO.

As for real estate, I think we have some talented people pulling strings for us. Nanotech building, i believe, required us getting a state constitutional amendment passed. We bought up alot of property on spring street from like 14th to north w/o anyone knowing. The crumm and foster building never had a chance. And I believe we've done well buying up westside properties. actually i haven't heard much news their. . . the cynic in me tells me that this means that people bought up properties and are now rent seeking. I doubt GT will play that game. So, with the beltline coming through the westside and new falcons stadium, i'm guessing that we will see "public interest" enforcement against "slum landlords" and probably a quick little war on drugs and gangs. seize up the properties we can with eminent domain. use the short bad news cycle to drive prices low. buy up more. then drop the hammer. some major, multi use, neighborhood redevelopment project. something massive with too much money and too many people getting money that no one looks closely. then boom. you've got it all. . . idk if that's what's going on. idk if that would be or good or bad thing. I just know that's what I would do. And no one in this city knows anything about how **** works. (not yall but just like ppl reading the AJC). Atlanta is pretty much an anarchist's playground.

 

[4shotB]

Moreover, most private schools (John Hopkins, MIT, a few others excluded) have relied solely on their huge endowments. which have grown at like idk 20% returns the past few years . . . idk. I'm so depressed i dont want to go into details but the macro economy has never been this scary IMO. these endowments will be hit hard if assets prices tumble. It could be in 2 months. it could be in 6 years. But unless we design and implement a radically new economic model, the only other option seems to be war... put it this way - I never thought universal income would ever seriously be considered in my lifetime. I know thinks there's a small chance it actually may. Because there really arent any other options.

.

RLR, thanks dude. just 5 minutes ago all I worried about was the U's Dline. Now I am worried about the apocalypse, another great depression, my 401K evaporating AND the U's Dline. All this right in the middle of what was a pretty good cocktail hour.

 

[GTNavyNuke]

........ I'm so depressed i dont want to go into details but the macro economy has never been this scary IMO. these endowments will be hit hard if assets prices tumble. It could be in 2 months. it could be in 6 years. But unless we design and implement a radically new economic model, the only other option seems to be war... put it this way - I never thought universal income would ever seriously be considered in my lifetime. I know thinks there's a small chance it actually may. Because there really arent any other options.........

Just think, due to the central banks stealing people's savings in broad daylight via interest rates near zero and inflation targeted at 2%, there are really no safe places. I wouldn't call what we have a new economic model but more stealing from the future. And negative interest rates???? Pllleeeeaaaaasssseeeeeee, the only question is when the person holding the instrument takes a loss, not if.

For something with lots of facts, you can look at this. http://www.hussmanfunds.com/wmc/wmc160926.htm
But don't worry, in the last 130 years the implied 10 year future returns of the equity market macro environment has been worse. In the Great Depression. Will it happen again? Of course not, this time is different. (tic)

The last few years have been very tough on endowment funds with many having negative returns this year. Going forward ..... ?????

 

[GTNavyNuke]

..... going forward? With the first presidential debate ........

 

[iceeater1969]

RLR
Thanks for info on nanotech building and other property acquisition.

I remember your post last offseason about emory and gt being a good educational partnership.

Do you know about the puppet science building near 5 and the tech hotel?
What is that about?
.

 

[MtownJacket]

Assuming, of course, that interest rates don't rise rapidly and the current federal student loan system doesn't go bust. Once private schools lose the ability to attract any student who wants to come and can only target those with a big enough trust fund or credit to attend, it won't be fun to be Emory.

Law schools and medical schools are already facing serious financial threats. Law schools because enrollment is down and there's no undergrad support (and it's a scam). Medical school is down for more complex reasons but basically they are losing the benefits of a lot of private money and research money that is now being rerouted to more efficient units.

Emory will be fine when the higher education bubble bursts. The quality of incoming students might take a hit, but they will be okay economically. However, schools like Mercer, Berry, etc might fold when students realize that a degree in women's studies isn't worth anywhere near $300,000.

 

[RLR]

Emory will be fine when the higher education bubble bursts. The quality of incoming students might take a hit, but they will be okay economically. However, schools like Mercer, Berry, etc might fold when students realize that a degree in women's studies isn't worth anywhere near $300,000.

Emory law and Emory med's finances are not sustainable. A few years back, there was an emory law prof who got cited in maybe in the WSJ talking about how a top 20 law school will fold in the next few years. . . I wonder who they were talking about. Law schools used to make so much $$$ that it didn't matter how you spent it. Then, enrollment fell from all highs to the lowest number of applicants in 50+ years . . . over like a 3 year period. And once you give your professors tenure and write the rules so they only have to teach 3 classes a year + paid semester sabbatical every 3 semesters, well, it makes it really hard to cut costs to deal with declining revenues. So, you just pour money from the endowment into "scholarships" to get whoever you can to come. Also, 1/2 of emory law is asian students. like, people from china who already have laws degrees but have to come to america and get an american law degree b/c our legal system is so dominant globally. none of those students get scholarships, so it's a huge source of revenue. . . international students are keeping all universities propped up right now. . . how much longer will it last? I mean, our universities are elite. And they've got time. But not much. . . I know that saudi arabia was head hunting GT profs a few years ago. like, some of our top researchers who work on things that maybe a few other people in the world could replicate. they offered 4x salary, 4x benefits, and unlimited research funding. . . obviously living in Saudi Arabia has its disadvantages, but when these profs aren't able to find research funding in the US anymore b/c the feds slash science funding to feed big pharma, you at least listen. . . we're not as stable economically as people think.

Going back to Emory med, look at who benefits the most from drug patents (hint: universities). the rise of health care costs have gone through the roof. and the reality is, doctors are expensive. i mean, i've tried hard to find a solution to this problem. But I just stop b/c pretty quick into analyzing the tradeoffs and cost, it just gets too dark. (oh. that's why the tea party idiots are so afraid of death panels). Biotech, big data, all of that is going to radically change health care. and no one is ready for it. i have no idea what will happen.

Also, people talk about emory's endowment. no one knows how much of it belongs to the university and how much of it belongs to entities that aren't emory - namely their health care affiliates. all that money is earmarked. i mean, who knows, if you spin off emory healthcare and debundle the endowment, GT's could be larger. Prob not - but no one knows.

As for NIRP, the fact they we have quasi-NIRP proves that we have solved the zero lower bound problem. it's definitely possible. capital flight is less of a threat than most economics make it out to be. because there's nowhere to go. we've purposefully built this system using game theory, IMO. it's in everyones (well, everyone who has power and money) best interest to maintain the current system. because if it goes pop, you lose way more than you gain. why the cold war never had direct confrontation. it's actually pretty brilliant, especially after a ww2 mindset. b/c it has prevented WW3. . . it's the unintended consequences that always get you, namely what happened to 3rd world countries.

The question is - what comes next. capitalism has nowhere left to go, except maybe it can co-exist with number 1. it's only scary because no one, NO ONE, has a clue. It could be awesome. It could be hell. i guess that's life.

(1) anarchism / Marxist utopia: https://www.theguardian.com/books/2015/jul/17/postcapitalism-end-of-capitalism-begun

(2) fascism - Western front moving east & keeping SE asia on lock.

(3) soft-landing - socialism / stagflation. gov't and economies lead by commissions of "intellectuals" from harvard, yale, chicago etc.

(4) trump - it's so illogical i don't even know what to say . . . his closest comparison is hitler. but trump is almost scarier than that. because hitler had a plan. and i really don't think trump has clue. he's too impulsive and vain to think about anything long term or even short term. i'm guessing this would end really really bad. & i don't see any possible upside.

But then again, what do I know? i'm just some person on the internet. I'm in my 20s. I'm a nerd - i love reading about this stuff. And i turned down a wall street job w/ a starting salary out of undergrad that ill prob never earn again in my life. I choose to go to law school instead b/c i thought i could actually fix our economy.... so ya. I'm an idiot. lol and even with a 6 figure scholarship & a perfect LSAT score, that decision will still leave me pretty much 100k in debt with interest expenses.

my point is - i'm biased. if what i write makes you depressed, stop listening to me. stop listening to everyone. just go live your life and watch GT football and be happy. because i'm prob wrong. and if i'm wrong, then most ppl you see on the news are wrong too. no one has a clue. we just like to pretend we do. the kids i went to school with our idiots. and these are kids who are about to run our banks, gov't, health care institutions, etc. . and our jobs depend on convincing you that you gotta listen to us. . . it's harder and harder to do when we're trying to bill 1k an hour for our time & won't accept any wrk for less b/c otherwise we can't pay off our debt. a bit of an exaggeration, but not by much.

Sorry for fearmongering. Go GT.

 

[Supersizethatorder-mutt]

How about leaving the BIASED political comments to a political blog and keep this one to athletics.