364 The History of Wake Forest
disappointments with the University’s contribution to health insurance for the com-
The budgeted contribution by the University of $5.7 million with its matched
employee premium contribution of $3.8 million is $800,000 short of the cost
of maintaining our current health insurance plan for next year. . . . To maintain
the current health insurance plan, we request that the University contribute
60 percent of the total costs, rather than just 60 percent of the premium costs.
That would require a contribution of $6.2 million, which represents an increase
in $500,000 over the current budget.
Before this letter, however, President Hearn had sent a memo to Reynolda Campus
faculty and staff on April 2 notifying them that, for each of the past two years, the
loss on the endowment had averaged 9.6 percent, and the University was entering a
period of austerity. He said that despite cost cuts and freezes worth $2.1 million in
savings, intended to prioritize “salary increases and essential programs and services,”
he was asking “budget unit directors to make further reductions, totaling $1 million
in the fiscal year 2004 budget.” In a July 26 memo to vice presidents, he wrote: “Given
the uncertain economic environment, I am asking John Anderson to initiate contin-
gency planning in the event that we face a worsening revenue situation.”
On April 4, the Board of Trustees approved a total budget of $749 million for
the 2003–2004 fiscal year. It included $511 million for Wake Forest Health Sciences
and $238 million for the Reynolda Campus. Full-time undergraduate tuition was
increased 7 percent to $26,490 from the 2002–2003 tuition of $24,750.
G. Eugene Boyce (Law ’54) and the law firm of Womble Carlyle Sandridge &
Rice established the Judge Donald L. Smith Professorship for Studies in Constitu-
tional and Public Law. The Class of 1997 established the Matthew James Alexander
Memorial Fund, which provided need-based funds to a student who wished to follow
Matt’s dream and study in the Dijon program in France. Matt was killed on July 17,
1996, when TWA flight 800 crashed off the coast of Long Island, New York.
Nazlia Alimohammadi and Anna Clark