What impact will the decreased endowment have on the budget?
While endowment distribution does lag behind the actual real-time fluctuations in endowment value due to the smoothing features in the distribution calculations, a drop in endowment value will decrease the distributions for operations. Units will be affected by endowment payout in that the values of both their support from the GIB and also the distributions from their designated endowed funds will fluctuate with the approved rate, which will reflect endowment performance. As a result, units are focusing on reducing expenses now since payout is expected to be lower in the future.
