Georgetown’s endowment size recently moved up three spots to 73rd in the country, but the university will come under increased scrutiny as Congress steps up oversight of university spending nationwide. The 2007 endowment study by the National Association of College and University Business Officers ranks Georgetown’s endowment 73rd in the nation, totaling $1,059,343. The study also notes a 26.9 percent increase from the end of fiscal year 2006 to the end of fiscal year 2007. Only five universities ahead of Georgetown had a greater percentage growth over this period. On Thursday, Sen. Max Baucus (D-Mont.) and Sen. Charles Grassley (R-Iowa) sent a detailed letter to 136 universities whose endowments had assets of at least $500 million by June 30, 2007, requesting information not only about endowment spending, but also financial aid policies and tuition increases over the past decade. The letter asks universities several questions, but they are legally required to respond. The senators’ letter asks certain universities to account for why they spend less than 5 percent of their endowment annually. A bill under consideration in the Senate would require universities to meet this level of spending each year. “What the Senators are proposing is not how much money goes to financial aid, but how the university is spending from its endowment,” Scott Fleming, assistant to the president for federal relations, said. “There has been discussion of a 5 percent spend out for universities because [a] section of the tax code requires non-profit organizations, like the Red Cross, to expend 5 percent of their money raised in funding each year,” he said. According to Fleming, Georgetown spends 6 percent of its endowment. “We currently spend 6 percent of our assets on operating costs. Eighty-five percent of Georgetown student aid comes from [this] current operating budget,” Fleming said. He added that these efforts from the two senators offer an opportunity to better evaluate the university’s endowment. “I think it’s very encouraging that the senators are proceeding by asking questions because then they can make informed decisions about what to do, and two, it will enable Georgetown and other universities to clarify information about how their endowments function and how that impacts their costs,” he said. “For example, the value of a university’s endowment fluctuates over time, not just because of successes in fundraising, but because a lot of it is invested. … Looking at an average endowment over a five-year period would help to adjust to reflect these fluctuations.” – Daniel Hind contributed to this report. The article “Georgetown Questioned by Congress on Endowment Spending” (THE HOYA, Jan. 29, 2008, A5) incorrectly stated that the university’s investment office declined to comment on Georgetown’s endowment growth. The Office of Advancement declined to comment.