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USA Today
27-06-2025
- Business
- USA Today
MSU has a $4.4 billion endowment. Why that can't help its budget problems
EAST LANSING — Michigan State University, which is navigating a financial crisis at the same time some state Republican legislators would like to see taxpayers' contributions to the university slashed, has a $4.4 billion endowment. MSU and the University of Michigan, which has a much larger endowment of $19.2 billion, stand alone among Michigan's 15 public universities in having massive piles of cash stashed in endowments. But those endowments are of little help to the current financial crisis, MSU officials said, and calls from the GOP to target MSU and U-M for deep cuts to state tax revenue sharing are just the latest criticisms of the two largest public universities in Michigan stockpiling cash. MSU President Kevin Guskiewicz has committed, over the next two years, to cutting general fund spending by 9%, a result of an ongoing budget deficit he said became evident about two years ago. At the same time, MSU and other research universities face the risk of losing federal research funding as President Donald Trump's administration slashes federal spending. And Michigan House Republicans in their initial higher education funding proposal this year wanted any institutions with an endowment between $1 billion and $5 billion to lose 50% of their state appropriation, and those with an endowment above $10 billion to lose 75% of state funding, which would then be redistributed to Michigan's other smaller public universities. Rep. Matt Maddock, R-Milford, said the intention was to make cuts to the "woke" universities and give it to the "not woke" universities or the "less woke" universities The only two universities impacted would have been MSU and U-M, although the line was removed in the proposal that passed the House. House Appropriations Chair Ann Bollin, R-Brighton Township, did not respond to multiple requests for comment from the State Journal. What can MSU do with its endowment? A lot, according to school officials, but there are many limitations on how that money is spent. Here's what we know: What endowments can't do Lawmakers and advocacy groups have over the years called for more scrutiny on university endowments amid complaints over rising tuition and other colleges costs, arguing MSU and U-M don't do enough to keep costs for students and families down. But endowments can't be spent on just anything, and come with strict rules. Endowments can't be used to fill in gaps from state appropriation losses or cover other university costs, MSU Vice President for University Communications Emily Guerrant said in an email to the State Journal. This money is largely made up of individual contributions, with the "vast majority" of them being earmarked for specific purposes like student scholarships, faculty fellowships, and athletics, said Dan Hurley, chief executive officer of the Michigan Association of State Universities. But those individual contributions aren't immediately used for the purpose the donor requested. Instead, they are invested so the original amount remains preserved. Then, any earnings made off the investment are used for the specific purpose the donor requested. For example, if an alum donated $500,000 to a specific college within MSU to pay for a scholarship or scholarships, the $500,000 would be invested. Any future earnings from that investment would then go to fund the scholarship or scholarships into the future. What does MSU's endowment look like MSU's endowment is made up of more than 4,250 gifts, Guerrant said. Endowed funds are a minimum of $50,000 payable over five years, through a future gift, a bequest or from an estate. Over the past five years at MSU, the endowment has provided more than $1.13 billion from investment income to directly support the university's operating budget, university reporting from October shows. Currently, the university's plan for spending endowment funds is limited to 4.8% of the total portfolio value, or about $211 million. The endowment cannot be used to fill the current financial gaps that MSU is addressing through budget cuts because the money is contractually obligated to go to where the donor intended, Guerrant said. The university believed the appropriate way to handle the budget issues were cuts across the board, Guerrant said. "There's not a specific endowment fund we could tap into for something like (Infrastructure Planning and Facilities," she said. What universities can do Universities set the spending rate on their endowments. In December, MSU raised its rate from 4.4% to 4.8%. U-M's rate is currently 4.5%, set in 2010, which was a decrease from the 5% set in 1995. Universities can, however, interpret broad categories of donations to use them for specific purposes. For example, MSU recently decided to dedicate endowment funds initially made for advancing university strategic initiatives to support research funding after federal cuts to university research funding. "Michigan State University is committing $5 million per year over the next three years from a restricted endowment fund designated for advancing university strategic initiatives," Guskiewicz said during the April Board of Trustees meeting. "In this moment, few initiatives are more strategic — or more essential — than sustaining our research enterprise and protecting educational opportunities for our students." Contact Sarah Atwood at satwood@ Follow her on X @sarahmatwood.
Reuters
02-06-2025
- Business
- Reuters
Michigan State hires J Batt as athletic director
June 2 - Michigan State announced the hiring of J Batt as the Spartans' new athletic director on Monday. Batt has held that same position at Georgia Tech since 2022 after serving as deputy AD at Alabama (2017-22) and associate AD at East Carolina (2013-17). "J has an impressive record at several Power 5 schools and an impeccable reputation as a strong and innovative leader," school president Kevin Guskiewicz said. "He will bring experience, excitement and a commitment to elevating Spartan athletics to the next level. We are thrilled to have J join our leadership team at Michigan State." Batt's tenure in East Lansing will begin the week of June 16, following confirmation by the board of trustees at its June 13 meeting. Batt, 43, will receive a six-year contract worth more than $1.5 million annually and a buyout of more than $1 million, according to The Detroit News. "This is truly an amazing opportunity to lead an outstanding, tradition-rich and passionate program, and I am grateful to President Guskiewicz and the Board of Trustees for the opportunity," Batt said. "Working together, in alignment with university leadership, the full athletics department and an enthusiastic fan base, we can take the positive momentum already happening at MSU and reach new levels of success as we move into the next era of intercollegiate athletics. My family and I look forward to joining the Michigan State and East Lansing communities." Spartans men's basketball coach and current co-interim AD Tom Izzo praised the hiring. "This is a key moment in the history of Michigan State Athletics," Izzo said. "With J Batt's hiring, President Kevin Guskiewicz has found the right person to lead our department as college athletics continues to evolve. J has displayed tremendous innovation as a leader and has a proven track record of revenue generation. We are excited to welcome J and his family to Michigan State." Batt replaces Alan Haller, who was relieved of his duties on May 1 after less than four years in the position. --Field Level Media
CBS News
02-06-2025
- Business
- CBS News
Michigan State University names J Batt as new athletic director
Michigan State University on Monday named J Batt as its new vice president and director of intercollegiate athletics. Batt has served as the vice president and director of athletics at Georgia Tech since 2022. He replaces Alan Haller, who announced on May 1 that he was leaving the university. "J has an impressive record at several Power 5 schools and an impeccable reputation as a strong and innovative leader," said MSU President Kevin M. Guskiewicz in a news release. "He will bring experience, excitement and a commitment to elevating Spartan athletics to the next level. We are thrilled to have J join our leadership team at Michigan State." MSU's Board of Trustees will vote on Batt's contract and appointment at its June 13 meeting. Batt will start the week of June 16. "This is truly an amazing opportunity to lead an outstanding, tradition-rich and passionate program, and I am grateful to President Guskiewicz and the Board of Trustees for the opportunity," Batt said. "Working together, in alignment with university leadership, the full athletics department and an enthusiastic fan base, we can take the positive momentum already happening at MSU and reach new levels of success as we move into the next era of intercollegiate athletics. My family and I look forward to joining the Michigan State and East Lansing communities." During Batt's tenure with Georgia Tech's athletic department, the school has broken records for athletic fundraising, achieved a 94% graduation rate and renovated and built several athletic facilities. Georgia Tech's football team also earned back-to-back bowl berths for the first time since 2013-14 and made its first appearance in the Associated Press Top 25 poll in nine years. Batt also serves on the House Settlement Implementation Committee and is chair of the College Football Hall of Fame. "This is a key moment in the history of Michigan State Athletics," said men's basketball head coach and current co-interim director of athletics Tom Izzo. "With J Batt's hiring, President Kevin Guskiewicz has found the right person to lead our department as college athletics continues to evolve. J has displayed tremendous innovation as a leader and has a proven track record of revenue generation. We are excited to welcome J and his family to Michigan State." Before his time at Georgia Tech, Batt served as executive deputy director of athletics, chief operating officer and chief revenue officer for the University of Alabama from 2017-22. He also held roles at East Carolina University, the University of Maryland, James Madison University, William & Mary and the University of North Carolina. Batt earned a bachelor's degree in journalism and mass communications and a master's degree in sports administration from North Carolina, where he was a member of the 2001 NCAA championship men's soccer squad.
CBS News
02-06-2025
- Business
- CBS News
Michigan State president advises board to hire Georgia Tech's J Batt as athletic director, AP source says
Michigan State University President Kevin Guskiewicz is recommending the school's board of trustees hire J Batt as athletic director, a person familiar with the situation told the Associated Press. The person spoke to AP on condition of anonymity Sunday because the president's hopes of hiring the Georgia Tech athletic director had not been announced. Michigan State is expected to announce Batt is Guskiewicz's pick as soon as Monday, the person said. With the help of Hall of Fame basketball coach Tom Izzo and Deputy Athletic Director Jennifer Smith, the school has been searching for an athletic director for a month. MSU announced last month that Alan Haller would be leaving the position. His last day as athletic director was May 11. Batt has been Georgia Tech's athletic director since the fall of 2022. He hired football coach Brent Key, who has led the program to consecutive winning seasons after a string of four losing seasons in a row. He also hired Damon Stoudamire to coach the basketball team and the former NBA player was .500 last season in his second year. Previously, Batt was executive deputy athletics director at Alabama and served as chief operating officer and chief revenue officer in the athletic department. Batt is regarded as a strong fundraiser, an asset for any athletic department in this era of college athletics. He guided the launch of a 10-year, $600 million fundraising campaign to benefit Crimson Tide athletics. He helped raise $78.2 million for athletics in his first fiscal year at Georgia Tech to surpass the previous single-year mark by more than 40%. At Michigan State, his top priorities will be to raise money and help the football program win — perhaps in that order. Universities will be allowed to share up to $20.5 million in revenue with athletes next year. Direct payments will be in addition to third-party name, image and likeness deals facilitated by school-affiliated collectives. Under Haller, the Spartans won Big Ten championships in men's basketball, women's soccer, women's gymnastics, men's hockey and women's cross country. In 2024, MSU student-athletes recorded the highest cumulative GPA in athletic department history with a 3.4324. Michigan State, though, has had three straight losing seasons in football. The Spartans were 5-7 overall and 3-6 in the Big Ten in coach Jonathan Smith's first year and expectations for them are modest in his second season. Haller, a Lansing, Michigan, native, was appointed vice president and director of intercollegiate athletics in September 2021. Note: The above video first aired on May 1, 2025.
Fox Sports
01-06-2025
- Business
- Fox Sports
Michigan State president advises board to hire Georgia Tech AD J Batt
Michigan State University President Kevin Guskiewicz is recommending the school's board of trustees hire J Batt as athletic director, according to a person familiar with the situation. The person spoke to The Associated Press on condition of anonymity Sunday because the president's hopes of hiring the Georgia Tech athletic director had not been announced. Michigan State is expected to announce Batt as Guskiewicz's pick as soon as Monday, the person said. With the help of Hall of Fame basketball coach Tom Izzo, the school has been searching for an athletic director for a month. Alan Haller's last day as athletic director was May 11. Batt has been Georgia Tech's athletic director since the fall of 2022. He hired football coach Brent Key, who has led the program to consecutive winning seasons after a string of four losing seasons in a row. He also hired Damon Stoudamire to coach the basketball team and the former NBA player was .500 last season in his second year. Previously, Batt was executive deputy athletics director at Alabama and served as chief operating officer and chief revenue officer in the athletic department. Batt is regarded as a strong fundraiser, an asset for any athletic department in this era of college athletics. He guided the launch of a 10-year, $600 million fundraising campaign to benefit Crimson Tide athletics. He helped raise $78.2 million for athletics in his first fiscal year at Georgia Tech to surpass the previous single-year mark by more than 40%. At Michigan State, his top priorities will be to raise money and help the football program win — perhaps in that order. Universities will be allowed to share up to $20.5 million in revenue with athletes next year. Direct payments will be in addition to third-party name, image and likeness deals facilitated by school-affiliated collectives. Under Haller, the Spartans won Big Ten championships in men's basketball, women's soccer, women's gymnastics, men's hockey and women's cross country. Michigan State, though, has had three straight losing seasons in football. The Spartans were 5-7 overall and 3-6 in the Big Ten in coach Jonathan Smith's first year and expectations for them are modest in his second season. Reporting by The Associated Press. Want great stories delivered right to your inbox? Create or log in to your FOX Sports account, follow leagues, teams and players to receive a personalized newsletter daily ! FOLLOW Follow your favorites to personalize your FOX Sports experience College Football Michigan State Spartans Big Ten recommended Get more from College Football Follow your favorites to get information about games, news and more
