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D.C. Area Budgets Mostly Unshaken By Credit Crisis
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Manju Ganeriwala, Virginia's deputy secretary of finance, said the portfolios are diverse and are likely to endure the storm that has forced the collapse of once-mighty Wall Street institutions.
But, she added: "If those five banks become 50 next week, it's going to be of great concern."
The economic crisis is also touching universities, both public and private.
Yoke San Reynolds, vice president and chief financial officer for the University of Virginia, said they are feeling the impact with some of their long-term bonds used for construction. She said she is concerned about interest rates, "at least in the short run, because the market is so skittish."
Reynolds said Lehman Brothers, which filed for bankruptcy protection Monday, is the university's agent for $82 million in variable-rate bonds. The school had started working with another investment bank and had to speed that up, she said.
The University System of Maryland, bracing for state budget cuts because of lower tax revenue, announced a hiring freeze this week.
At Trinity Washington University, officials are developing contingency plans and worrying about donors pulling back.
"Is there an impact this minute? No," said, Patricia McGuire, the university's president. "We're doing just fine at Trinity. But we have cautious eyes everywhere."
Staff writers Jenna Johnson, Susan Kinzie, Katherine Shaver and Sandhya Somashekhar contributed to this report.
