Market losses lead to cutback in jobs at UNE School’s endowment down 15%

BIDDEFORD – The University of New England says investment losses that have shrunk its endowment are forcing the elimination of as many as 20 jobs.

The school, which is attempting to cut $1 million from its budget, plans to cut 10 employees by Friday.

Department heads still are making final what jobs will be eliminated, but no faculty positions will be affected, school officials said. The layoffs will range from service to mid-management level jobs. The rest will be accomplished through a hiring freeze.

Steve Price, UNE spokesman, said the school’s enrollments are the strongest ever, but the endowment underperformed so the school had to find a way to reduce its budget.

The school’s endowment, which reached $20 million last year, has lost about 15 percent of its value in the past year, said Ed Legg, vice president for university relations.

UNE is not alone. As the market slumped during the past two years, private colleges and high schools have joined the ranks of millions of people whose investment portfolios have lost massive amounts of money.

The endowments at other private schools in Maine also have taken hits this year, but none has reported plans for layoffs. Colby College’s endowment dropped by 8.7 percent to $322.6 million, Bates College’s fell 9.5 percent to $159.7 million and Bowdoin College’s dropped 6 percent to $430.6 million.

UNE, created in 1978 through the merger of St. Francis College and the New England College of Osteopathic Medicine, has been one of the state’s fastest-growing educational institutions.

Since its merger with Westbrook College in 1996, enrollment on the Portland campus has tripled, aided by the $10.5 million UNE spent at the campus to update facilities and dorms. UNE’s total enrollment is 2,710, including Westbrook.