The modest increase is well below inflation for hospitals. Endowment The Treasurer of the Regents invests endowment and similar funds. The GEP portfolio is designed to promote capital growth in line with or in excess of the rate of inflation, along with steady increases of income. The HIP portfolio is designed to produce a relatively high and stable level of current income. From 1958 through 1997-98, the procedure had been to generate payments to the endowed activities based only on income generated.
Income is defined as dividends, interest, rents, royalties and the like.
For 1999-2000, The Regents will be asked to approve a payout rate of at least 4.35 percent, which if market conditions remain essentially the same could yield an increase of approximately 15 percent. These funds will be available for expenditure in 2000-01. The amounts shown in the Endowment category on the Income and Funds available schedule at the end of this section represent the expenditure of the payout distributed on endowments and similar funds. Endowments require that the principal be invested in perpetuity with the income or approved payout used in accordance with terms stipulated by donors or determined by The Regents. 9 million in 2000-01.