Hey University Presidents- Talking to You Now
Thinking we might have an idea for you
This morning’s Wall Street Journal carried an article about how university endowments will be seeing major tax hikes if the current budget bill (HR 1, or Big Beautiful Bill) passes, similar to those affecting private foundations. Seeing the 1.4% excise tax increase to over 21% for some schools will be a significant jump.
If the bill happens, and the battle is a lost cause, how about a solution we are looking at for investing outside your university and into underserved communities? How about helping fund disaster recovery? Lean into the desire from Congress to tax and raise revenue, but say, “fine, we want something in return.” What do you want in return? How about Opportunity Zone treatment similar to what we are suggesting for private foundations on that excise tax? You have a window. You can be integrated with broader initiatives.
Cal Tech, for instance, you were mentioned in the article. Here’s an idea. Take the tax treatment, and help us get the disaster area declared in Altadena Opportunity Zone eligible, and invest heavily in rebuilding the Economic Base as we laid out. You are already operating NASA’s Jet Propulsion Laboratory (JPL), let’s public/private partnership what an aerospace cluster could look like. There are ways to get there. Mr. President, I am here if you want to chat.
USC, the other major institution in LA with a massive endowment, imagine if you could work to rebuild around downtown and east? In fact, I was thinking this AM on my drive to work out about what the university really is anymore. Is it an educational institution? Yes. But, there is talk of it being so much more. Here is your chance to make it more. Invest. Drive innovation. Truly make that difference. Support your governments locally. Use your funds to build economically in a way which could be a double bottom line for the institution and community. See where it can take you. Also, if you are looking for adjunct faculty in the Public Policy School, totally interested in teaching a class (shameless plug I know).
Private universities, you have these huge endowments. You have tremendous research. You have commercialization capabilities. Use the funds to drive those innovations. Don’t talk about it. I know it has been said before. Do it. Get the tax treatment to do it. Be the engine. Be more than education- be an institution. This is the Congress to get those types of things done, so go for it.
I know, I just said words that scare people. Innovation at a large bureaucracy? Yikes. I am dreaming I know. Educational institutions teaching our leaders how to be innovative, solve problems, and go to the unknown, but they are fighting to maintain what is theirs. The brightest minds, but change is too much to make opportune. Hmm…
The world is changing. The Game is changing. The needs of society and government are changing. It is time to change with them. We need the classical education, that much has not changed. The ability to think and reason are critical. I would not be here without such an education (thank you Queen’s).
That fundamental mission of education remains. I would never know how to write if I did not get that education (though there are many who would say I still have grammatical errors…so thank you, at least you know these posts are not ChatGPT). Just take the mission and think differently. These changes are not threats. They are opportunities. They open the door to so much more. Be there. Do it. Drive the communities you serve and more. Lead. Maybe the endowments will even grow as a result.
Do not reflexively say “no.” You tell us to be curious, to unlock the possibilities, to attend your school to think differently. You get where I am going. Instead, reflexively say, “what if.” Isn’t that what we were taught in those classrooms? Isn’t that what you show on those commercials during football games? Imagine the possibilities. Just do it. See what happens.