Global crisis costs local colleges $225m.

Construction projects dependent on donors likely be halted, and top university administrators could face pay cuts.

By
February 17, 2009 09:44
1 minute read.
Global crisis costs local colleges $225m.

Kinneret College 248.88. (photo credit: Abe Selig )

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

The global financial crisis has cost Israeli universities and colleges about $225 million in lost revenues, raising the likelihood of cutbacks, according to a new study by the group that oversees funding to institutions of higher learning. Council for Higher Education spokesman Yuval Lidor said the figure was the preliminary assessment of a committee set up to examine the impact of falling financial markets and the collapse of US financier Bernard Madoff's investment fund. "The final figure could be even higher," he said. Lidor said the committee would present the Treasury with its recommendations for facing the crisis at the beginning of March. Haaretz reported Monday that the Madoff collapse alone had cost higher educational institutions about $50m. Madoff had a number of wealthy Jewish philanthropists among his clients and their losses have translated into smaller or canceled donations to a number of Israeli institutions. In addition, some institutions invested directly in his fund. Madoff was arrested December 11 after allegedly telling investigators he lost as much as $50 billion in client money in a giant pyramid scam. Haaretz said Israeli universities had invested money for their research and development programs in the capital markets and the falling value of those investments was likely to have serious budgetary consequences for them. Lidor said the losses would not cause any of Israel's six universities to collapse, and he did not expect research projects or scholarships to be affected. But he said construction projects dependent on donors would likely be halted, and top university administrators could face pay cuts. Tel Aviv University, for instance, recently cut the salaries of its directors by 5 percent, he said. Israel's higher-education system is one of the country's proudest accomplishments, producing world-class experts in science, medicine, economics and other fields. But years of budget cuts, relatively low salaries for top professors and resistance to reform have resulted in a dramatic drop in the number of fulltime academic positions over the years. This has led to a dangerous brain drain that experts warn could tarnish the system for generations to come. *

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS