University Credit Rating Lowered
A week before the beginning of classes in August, Standard & Poor’s lowered the university’s credit rating from A- to BBB+ due to the Medical Center’s worsening financial state. Despite the downgrade, Standard & Poor’s said that they considered the outlook to be “stable.” The university had maintained its A- rating in the past due to strong student enrollment and a recently completed $1 billion capital campaign. Analysts for Standard & Poor’s, however, determined that Georgetown would not have enough money in the event of a financial crisis. In fiscal year 2003, the university had a $20 million deficit and outstanding debt of $670 million.
Georgetown Ranking Slides
Georgetown also saw a decline in its ranking in U.S. News and World Report’s annual college rankings for the first time in two years, falling from 23rd to a 25th-place tie with the University of California, Los Angeles. This year marks the 17th consecutive year that Georgetown has ranked among the top 25 national universities in the survey. The university also received recognition for its study abroad programs and its four-year graduation rate of 90 percent – the third best in the nation. The ranking formula used by U.S. News and World Report takes into account a variety of factors, including graduation rates, financial resources and alumni giving.
Village C Room Catches Fire
On August 31, a candle burning too close to curtains in a room on the eighth floor of Village C East started a fire. Though no students were injured in the incident, firefighters evacuated approximately 750 residents in Village C East and West for nearly two hours. The fire did not spread outside of the room but the D.C. Fire Department found the room to be uninhabitable with an estimated $5,000 in damages. A fire and arson investigation unit later declared that the fire had been an accident.
MSB Building Construction Begins
The McDonough School of Business announced the first week of September that it had reached its $62 million fundraising goal for the construction of the first stage of its new building. Later in the month, the university’s Board of Directors approved funding for designs for road and utility realignment around the future construction site. The university planned to raise an additional $20.5 million by September 2005 for the project. The MSB also introduced Reena Aggarwal as interim dean, replacing Professor John Mayo, who had served as interim dean since 2002. The search continues for a permanent dean.
Med Center Hit With Layoffs
Georgetown University Medical Center laid off 65 staff and non-tenured faculty over the summer in an effort to reduce a growing budget deficit. The deficit hit a peak of $83 million in 1999, prompting the sale of the hospital to MedStar Health in 2000 as well as the university’s Restaging Plan, which the Board of Directors approved in 2001 with the goal of achieving a balanced budget by 2007. The Board agreed to the layoffs in December 2003 when it became clear that the Medical Center would not achieve its fiscal goal for fiscal year 2004. University President John J. DeGioia said that the Medical Center has lost $333 million since fiscal year 1995.
Powell Defends President
Secretary of State Colin Powell defended the Bush administration’s war on terror led and affirmed the United States’ transatlantic ties with Europe in a Sept. 10 speech in Gaston Hall. The speech came a day before the third anniversary of the Sept. 11, 2001, terrorist attacks. Powell praised U.S. efforts in Iraq and Afghanistan, which led to the ousting what he said were formerly oppressive regimes. He also stressed the need for the United States and Europe to restructure diplomatic relationships in light of societal changes since the end of the Cold War.
OIP Considers Mid East Programs
The Office of International Programs said that it was considering a final decision on study abroad programs in Lebanon at the American University of Beirut and Universite Saint-Joseph. Lucienne Jugant, overseas advisor to the North Africa and the iddle East programs at OIP’s division of overseas studies, said that the program was being considered for fall 2005. OIP was monitoring political tensions and stability in the Middle Eastern nation.
Study: Faculty Donates to Democrats
Georgetown faculty and staff have overwhelmingly donated to Democratic-affiliated candidates and groups, according to data from the Federal Election Commission, which reports identifying information of donors who give over $200 in political contributions to federal campaigns. As of mid-September, university employees had donated $77,615 to then-presidential candidate Sen. John Kerry (D-Mass.) while contributing only $3,000 to Republican candidates and groups. Since 2002, Georgetown faculty, administrators and non-teaching staff have donated a total of $112,550 to Democratic groups and $11,325 to Republican groups.