Response to Carol Quillen - November 20, 2009
I will reply to two factual points:
I used a standard definition of leverage,
assets divided by equity. On June 30, 2009 Rice had
$3990M in investments and $726M in debt, implying equity of $3264M
and leverage ratio of 1.22:1.00.
This is what my leverage figure of 120% referred to. Instead of
computing financial equity as investments minus debt, one could compute it
as net assets minus property and equipment. The result is essentially the
Rice 2009 Financial Statement.)
A recent refrain by the Rice Administration is that
faculty also objected to the establishment of the Shepherd School
and the Jones School. No doubt, the establishment of these schools
was accompanied by a vigorous debate, but the introduction of the
new degree programs was approved by the Rice faculty. For example,
Minutes of the Faculty, April 28, 1975, where the five-year program
leading to the Bachelor's of Music and the Master's of Music degrees was
approved in first reading by the faculty with only a single negative vote.
Minutes of the Faculty, February 22, 1977, where the program for
the Master of Business and Public Management degree was approved in
second reading by the faculty unanimously.
In contast, the discussion of the proposed Rice-BCM merger has so
far been silent on whether the Rice faculty will be asked to
approved the degrees granted by Rice's medical school, once BCM
becomes part of Rice.