Jarrell is a spokesman for the boards of the Hershey School and the Hershey Trust Co.
At the Board level, we carefully analyzed the additional costs and determined that these initiatives are consistent with our mission. The School Trust, with $12 billion dollars in assets, is performing at exceedingly high levels of performance and success.
We refer to the $800 million as the Income Fund as it is accumulated but unspent income. As you know, the 1909 Deed of Trust limits us to spending only income. Because we cannot charge tuition, it is essential that we have reserves set aside. What you refer to as a rainy day fund is exactly that. In the event of significant decline in net investment income, we have three years' worth of School budget set aside that precludes us from having to send kids home in the event of a decline in income.
The Boards are satisfied that the asset portfolio is being managed in a responsible manner, which is consistent with the requirements of the 1909 Hershey Deed of Trust, to provide the School with sustaining financial resources in perpetuity.
We are satisfied that the School, under the managerial direction of Peter Gurt, is concentrating on making these two initiatives successful, as well as making sure the ongoing academic programs remain successful.
The Boards will consider additional strategies concerning school growth and services at an appropriate time.