Spending Policy

Effective Date: 01/01/2004
Last Updated: 04/06/2010

Spending policy is determined annually based on the preceding calendar year by multiplying (80% x ((1+CPI) x prior year spending amount)) + (20% x (4% x Current Endowment Market Value)).  CPI (Consumer Price Index) is limited to a 0% minimum and a 6% maximum.  The spending calculation will be performed after the market adjustments are made for the calendar year end quarter (or after the month of December).  The amount calculated will establish the spending budget for the next fiscal year which begins on July 1.  On an individual fund basis, each individual fund must be invested for one full year before a spending budget is calculated.  It is understood that the total return basis for calculating spending is sanctioned by the Uniform Prudent Management of Institutional Funds Act (UPMIFA), under which guidelines the Institution is permitted to spend an amount in excess of the current yield (interest and dividends earned), including realized or unrealized appreciation.