Gov. Freudenthal considers freezing college matching funds

Posted 5/12/09

The governor's office wants to know what gifts might be made soon because Freudenthal doesn't want to discourage any giving, Boswell said.

Shelby Wetzel, director of the Northwest College Foundation, said Boswell assured her the proposed freeze …

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Gov. Freudenthal considers freezing college matching funds

Posted

Gov. Dave Freudenthal is likely to freeze money in a state fund that matches financial gifts to the University of Wyoming and the state's community colleges.That's according to the governor's chief of staff, Chris Boswell, who gave the news to the community college presidents and UW President Tom Buchanan in an e-mail last month.

The governor's office wants to know what gifts might be made soon because Freudenthal doesn't want to discourage any giving, Boswell said.

Shelby Wetzel, director of the Northwest College Foundation, said Boswell assured her the proposed freeze would not affect matching money for donations already committed by people who are giving money over time through payment plans.

“Those funds will be protected,” she said.

Still, Wetzel said, putting a freeze on uncommitted matching funds previously set aside for college endowments could put a damper on the NWC Foundation's continuing fundraising efforts.

“They're looking at not allowing us to take on any new gift commitments to qualify for matching funds,” she said.

The state's endowment-matching program for community colleges “has been huge to us,” she said. “Donors want to double their money.”

Wetzel said she's heard the governor is targeting colleges which, unlike Northwest, haven't taken full advantage of the endowment-matching program and still are sitting on large sums of untapped matching money.

The university has nearly $28 million in total uncommitted endowment fund balances, according to State Treasurer Joe Meyer.

Of that, $16.5 million is in the University of Wyoming Foundation Endowment. Another $6.8 is available in the Academic Facilities Account and $4 million is the uncommitted balance in the university's athletics fund.

The uncommitted balances for the seven community colleges total $34 million for the 2005, 2007 and 2009 budget years.

“That's what I'm told the governor is getting at, to use it to help cover the shortfall,” Wetzel said.

The freeze is one of many measures being considered ahead of an expected $300-million state deficit. The expected shortfall is a result of low natural-gas prices.

Freudenthal has asked state agencies to prepare budget cuts of 5 to 10 percent.

“The question was, ‘Are there monies in some of these accounts that are not likely to be used in the near future, and could they be considered as the governor looks at the fiscal year 2010 budget?'” Boswell said.

To answer that question, the Northwest College Foundation Board is drafting a letter to the governor.

“We're trying to communicate that we have continued plans in the works, giving opportunities whereby we could still use the funds that are available to the great benefit of the college and its students,” Wetzel said.

Boswell said no decision has been made whether a hold will be placed on the money.

“If the endowments were to go away, they would still get gifts. But the match is a carrot,” he said.

Wetzel said the matching program is an important incentive to attract charitable giving at Northwest College.

“In this down economy, having access to matching funds might be the part to make people continue charitable giving. Otherwise, they might just tend to hold onto their funds and wait to see what will happen.”

The Associated Press contributed to this report

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