The interview took place on October 8, 2002.
According to the business card of Robert E. Hawks, his official title at Cooper Union is the "Vice President For Business Affairs and Treasurer." Robert Hawks is not responsible for raising money. Instead, his position holds the responsibilities of managing both the distribution of money and Cooper Union's real estate holdings. Judging by both the general plans released by the administration to the general Cooper Union community and the mostly faculty-provided leaks of the details, both of these topics are of huge importance for the immediate future of this academic institution.
By now in the semester, even the freshmen and transfer students know that the Cooper Union is dangerously in the red. Mr. Hawks concedes that across-the-board belt-tightening will be a necessary part of the short-term budget allocations. Specific cost cutting measures to accommodate this reduction will be determined by the administrators of each budget, e.g. the art school's administration will determine the areas affected in the art school. When asked about the rumored end of Friday classes at the engineering school, Mr. Hawks said he did not know of such a proposal and that would be determined by Dean Baum. Mr. Hawks also stated that he had nothing to do with which staff members are replaced and which ones are not. When questioned about the cuts' effects on the school's overall mood, Mr. Hawks cited the bad economy and discounted the ramifications to an individual's experience at college.
The Cooper Union is in this predicament now because the revenue it generates has lessened in recent years in conjunction with the nation's overall economy. While an academic institution, this school's vitality is linked to the success of its investments. The endowment isn't sufficient enough to meet the yearly operating expenses. While the school seeks donations and tries to make sound investments in the stock market, compared to other colleges and universities, Cooper is disproportionately involved in real estate. While schools like Yale and Princeton saw their endowments soar due to investments (as reported in many publications), Cooper Union's was stagnant during the boom. Any gains due to the bull market went to paying off the losses caused by the real estate holdings. Other schools started off in much better shape and were structured so that they had more money available to invest.
For the current fiscal year, the operating budget deficit is $7,714,000. But the real annual deficit is closer to $10 million when capital projects are taken into account. This takes into account purchasing new computers for the labs. Mr. Hawks confirmed that the administrators of the computer centers in the Engineering School have been told not to order any new computers, indefinitely.
The financial aspect of the general strategic plan that has been floating around school for the past few years is an attempt to eliminate the chronic structural deficit. The main point on this issue is replacing the Hewitt building and Engineering building with modern structures sporting street-level commercial space. Efforts have been made to secure the support of all the necessary levels of the city planning commissions required to be involved in the process. The community does not approve. However, the locals are not the biggest obstacle.
The elephant in the room: "How can we afford to build two new buildings if we can't meet operating expenses?" Mr. Hawks says that the school is working on the fundraising aspect of that now. For instance, the $10 million Skyy Vodka donation stands to yield $7 million directly towards the biomedical facilities of the new building on the Hewitt site.
There is no backup plan. No plan B*. Changing to a tuition model (Plan C*) would solve the immediate finanial crisis. That option is not on the table, but Mr. Hawks conceded that tuition would be charged if that was the last option before being forced to shut down the school (Plan D*). Unchanging economic and budgetary conditions would force that to happen within two years, but the future is not all gloom and doom.
The development of the parking lot on Astor Place - the one with the porn across from the cube - stands to benefit the school at the conclusion of a deal expected to be reached at the end of this calendar year. Mr. Hawks refused to reveal the nature of the deal. The upperclassmen and the staff no doubt recall the uproar over the failed Ian Schrager hotel proposal. To the school's credit, the surrounding community is hostile to any form of change that involves the construction of local tall buildings.
At the end of October, Robert Hawks plans to give an oral presentation regarding the school's finances to the Joint Student Council.
In light of that event, the Pioneer encourages students to discuss their concerns with their student council representatives - and / or - send a letter to the editor to be published in next month's issue. If motivated to share an opinion or to take a stand, use the resources at hand.
*Note: Lettered designation of plans is entirely a method of communication utilized by the Pioneer and does not reflect the methods of classification used by Robert Hawks or the business office. »»