FAYETTEVILLE – The University of Arkansas’ chancellor says his first year in charge went smoothly considering the nation’s economic downturn and a dispute over tuition rates for the children of illegal immigrants.

Others say an increase in the university’s endowment during G. David Gearhart’s first year has been a big reason that’s the case.

“It seems like I got the job and the whole world started falling apart,” Gearhart told The Morning News newspaper of Springdale. “Given the economic situation, I’d say it’s actually been a smooth first year overall.”

Alan Sugg, the president of the university system, called the $859 million endowment a “lifesaver.” The endowment was built up over several years in a campaign led by Gearhart, who formerly worked as the university’s top fundraiser.

“That’s really kept us from being a lot further down the economic tubes,” Sugg said.

Two events led to some controversy during the past year, including a failed university bid to buy the Fayetteville High School campus and a dispute over whether students without proper citizenship or immigration paperwork should pay in-state or out-of-state tuition rates.

The local school district wanted $59 million for the high school but the university offered $50 million. The university now will use the money to fix other buildings.

“I think somebody was really smiling on our decision not to buy the high school,” Gearhart said. “We would have been scraping to afford it as the economy made it harder to sell bonds, and now we’ve got money available to take on some critical deferred projects.”

Gearhart said he was also pleased to see a deal worked out to help students whose parents couldn’t prove their citizenship. Gov. Mike Beebe had said last year such students shouldn’t receive tuition breaks awarded to state residents; private donors kicked in money to help about 20 students caught in the debate.

“I think we did the right thing supporting those kids like that. They’re certainly valuable students,” Gearhart said.

Gearhart graduated from Fayetteville High School in 1970. Before becoming chancellor, he was Arkansas’ vice chancellor for university advancement after holding similar posts at Westminster College in Fulton, Mo., his alma mater; Hendrix College in Conway; and Penn State in State College, Pa.