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Age Trumps Youth in UC Tuition Dispute

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Posted on Nov 24, 2009
Berkeley protest
Flickr/James Buck

“UC Me Now”: Student protesters at UC Berkeley on Nov. 21 make their thoughts known about the 32 percent tuition hike.

By Yasha Levine

In recent days, students have been rallying and barricading themselves inside buildings on University of California campuses to protest a 32 percent hike in tuition fees. Last Wednesday and Thursday, scuffles broke out between police and student protesters on UC campuses around the state, with dozens of students arrested and a few roughed up by eager cops. The protesters’ mood was combative, and they were boiling with anger that three days of protests had had little visible impact. But the students would be even angrier if they knew that the tuition increase, instead of funding essential services, was going toward securing cushy pensions for baby boomer university employees to the tune of $340 million a year.

Here’s the lead of a Nov. 19 news bulletin from the San Francisco Chronicle:

Rage at UC fee hike in L.A., Berkeley protests

LOS ANGELES—The UC regents are expected to put the final seal today on a hefty 32 percent tuition increase as students resume the protests that shut down their board meeting three times Wednesday and required campus police in riot gear to maintain calm.

Students, furious at the increase that will bring their yearly fees above $10,000 for the first time, rushed the UCLA building where the regents were meeting, throwing food, sticks and vinegar-soaked red bandannas meant to look like blood.

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The students are right to be enraged. This must be the worst time for such a jarring surge in tuition, occurring along with news that real unemployment had reached levels unseen since the Great Depression. Many students say they will now need to get a second job in order to pay their way through school—that is, if they can manage to find one in this almost nonexistent job market. And the tuition increase means adding even more to the student debt that many will be paying off for the remainder of their lives. For a few, the situation is so dire that the fee increase might force them to drop out.

The kids are bewildered and skittish about their future, but there is a group of people in California living a lifestyle that’s as pleasant as can be: pensioners. While students pay more and get less of an educational bang for their buck, retired UC employees are enjoying ridiculously plush pension payments, and they are guaranteed to receive the same amount each month, no matter how little money the universities have or how much students will have to shell out in order to fund their golf getaways.

UC officials say they had no choice but to raise tuition to close a massive $500 million budget hole, but they remain vague on how that money is going to be distributed. That’s because they are ignoring the big, wrinkly elephant in the room: California’s pension funds and the highly questionable, high-risk investment strategies that tanked them.

Here’s a fun pension fund fact: Two of the top five highest California pensions are being paid out to former UCLA professors. One of them, Joaquin Fuster, makes $24,712.99 a month, or $296,555.88 a year. The other, John Schlag, gets $21,300.04 every month, or $255,600.48 per year.

The biggest reason for UC’s 32 percent tuition increase is staring right at you. Without it, the university can’t possibly keep paying out pensions to smug university retirees, who are guaranteed to receive them year in, year out despite the fact that their retirement fund is sliding into insolvency.

The UC retirement fund lost 30 percent of its value—$16 billion—since 2007. The pension plan, which pays out more than $1.5 billion a year to its 500,000 retirees, had been self-sufficient while the market soared through the boom years, with its investments providing a comfortable return to keep the machine going and the pension funds high. To keep it self-sufficient, UC’s fund managers had to get increasingly cockier, buying into more and more highly profitable, high-risk bets. That approach, of course, came crashing down in 2007. Now, in order to keep making payments on its obligations for the foreseeable future, the university system has to start depositing its own cash into the fund. In other words, the pension fund is collapsing and the university needs to bail it out with money taken out of tuition fees. This hasn’t happened in nearly two decades. It seems an economic crash was a contingency the UC didn’t plan for. And now students are paying for somebody else’s mistakes.

In 2010, the university will start depositing $360 million a year into the pension fund, increasing the deposit amount by about $100 million a year, according to the San Francisco Chronicle:

The University of California’s huge and once very healthy retirement fund lost a third of its worth in 2008, shedding about $16 billion in value primarily because investments plummeted due to the recession.

That could spell more bad news for many UC employees, who, beginning next year, will have to contribute 2 percent of their salaries to the pension plan. It also spells trouble for the UC system, which in April 2010 will begin contributing 4 percent of its roughly $9 billion payroll to the pension fund and a greater percentage in future years.

The question is, where will the increasingly cash-strapped UC system get all those hundreds of millions of dollars? Well, the 32 percent tuition hike—which is expected to bring in an additional $500 million in revenue—surely will help.

Student protesters may think they are simply battling a wasteful, callous government bureaucracy that is more concerned about bailing out Wall Street banks than supporting a frivolous thing like education. But really the fight is about something much more basic and widespread: It is a fight between the young and the old, between California’s baby boomer pensioners and everyone under 49. So far, the older set is winning, and the fleecing is bound to continue.

UC President Mark Yudof told the Associated Press that he could not guarantee that tuition would not be increased again next year if California did not come through with nearly $1 billion in aid. “I can’t make any ... promises,” he said, which means that UC students can expect another massive increase because California isn’t going to valiantly rush to anyone’s economic rescue anytime soon. The Golden State has lost its Midas touch. It has a laundry list of economic catastrophes to work through, including the $50 billion hole in its pension fund that it is looking to plug with a taxpayer bailout. In the words of a key economics adviser to Gov. Arnold Schwarzenegger, that means “less money for the University of California.”

So there you have it; that’s the way the game is rigged these days. It has been known by many different names—generational theft, wealth transfer, financial vampirism—but whatever you call it, California’s old are stealing from the young. And they seem to have no qualms about it. Baby boomers have taken everything their Greatest Generation parents fought for—public universities, Medicare, pensions and unions—and are leaving nothing for their children and grandchildren. Students aren’t being fleeced just by Wall Street con men, but by Grandma and Grandpa as well. It’s a realization that’s bound to make many young people downright uncomfortable. 

Yasha Levine is a freelance journalist and editor of eXiled Online. You can contact him at levine@exiledonline.com.

 


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By Anarcissie, December 11, 2009 at 3:42 pm #

Presumably the students attend a bourgeois institution because they have bourgeois values, in this case, a desire to get an advantageous situation reasonably well up in the hierarchy of the community in which they live and work.  That is, they’re playing the capitalist game and they want to play the capitalist game.  My suggestion below is a suggestion of how they might play the game without being taken to the cleaners to quite the degree currently proposed.  If they don’t want to play the game they’re playing then they should quit playing it.

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By Sheraton, December 10, 2009 at 6:21 pm #
(Unregistered commenter)

California continues to be ruled by the Republicans.  There was a period of three years when it was ruled by the Democrats.  The Democrats during that three year period took their marching orders from the Republicans.

The problem is not socialism, which California has never had.  It is capitalism.  The electricity rates when up to $300 monthly for a while for most homes because the energy companies gouged the people (CAPITALISM).  The tuition is going up because of private investments (CAPITALISM).  Organized crime is capitalistic and it has received much of the tuition money.  Why do students have to pay for organized crimes projects?  Isn’t capitalism pulling in enough money for the mob?

I join those calling for an investigation of where the money goes.

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By mandinka, November 30, 2009 at 12:49 am #

dear harrison, CA has been ruled by democratic house and senate for 40 years and its their socialist philosophy and over regulation of industry that has caused jobs and business to flee. Will jobs come back to CA not until the dems and their regulations are gone

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By frank, November 29, 2009 at 9:05 pm #
(Unregistered commenter)

So obvious,NO? Divide and Conquer. Old against the young. Pardon me while I go and yell at my stroke impaired mother.  I’ll show that bitch she must stop taking advantage of her children

Report this

By Anarcissie, November 29, 2009 at 1:21 pm #

A: ‘My political hopes are, indeed, a long shot.  But yours are impossible, and therefore truly utopian, because they’re self-contradictory.  Government is antithetical to honesty because it involves some having power over others.  Possession of truth, knowledge of true facts, is advantageous: it gives power to the possessor.  Therefore, those who take power over others must deny them knowledge if they can.  And this is exactly what we observe.’

Ardee: ‘Amazingly short sighted , perhaps even desperate. The power of good govt is the power of the people, thus not abusive. The power of our current form of government is the power of money, a very powerful yet rectifiable situation. Excepting to Anarcissie who consistently refuses to grant wisdom to the people.’

“The people” being a collection of human beings, I see no reason why they might not be abusive, or would be necessarily wise.  The present power of money grows directly from the choices made by the people, as they are, in daily life, as it is.  Democratic forms do not appear to contain any magic guaranteed to make people good or wise.

A: ‘You cannot honestly take power over another person because you know, or ought to know, that the other is your equal.’

ardee: ‘Who, but an anarchist would posit that government is the taking of power, when it is the granting thereof. My every rebuttal has noted that we are in need of reformation of our system of government precisely because we have ceded our own power to the select few.’

You can’t give something without first making it or taking it.  In the case of political power, making and taking are the same thing: subordinating the desires and interests of others to one’s own desires and interests, generally through force or fraud or, in the most common case, both.

ardee:
‘My worthy opponent in this debate refuses to consider such reforms and has never, to my knowledge, spoken to what comes after the destruction of the government he so despises.’

On the contrary, I have given a lot of thought to such questions as how to effect a transition from coercive to non-coercive societies, although the general lack of interest in such questions does not encourage one to go into detail.  See http://www.1freeworld.org/anaprax1.htm for one example, anyway.

I don’t see much point in contemplating the general reform of bourgeois institutions, since I think they’re hopelessly tainted by coercion—he who touches pitch and all that.  However, I have often suggested short-term, particular reforms which accord with my prejudices.  For instance, in this conversation I suggested that instead of marching around with signs and being ignored by the UC administration, or occupying buildings and getting busted, the students take a walk for awhile, that is, engage in a buyers’ strike or boycott.  If any substantial number of students joined it, I think it would be quite effective.  The students could use the time and money thus freed to put together alternative, temporary institutions of learning, or engage in other forms of constructive or at least amusing behavior.  That’s a reform, not a revolution, and far less coercive and confrontational than seizing buildings and getting beaten and hauled off by the cops.  Of course the proper strategy is something for the students to work out, but that would be my initial suggestion—one to which, as I recall, you responded rather negatively.

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By ardee, November 29, 2009 at 9:38 am #

Beating a dead horse…at least the meat will be tenderized.

My political hopes are, indeed, a long shot.  But yours are impossible, and therefore truly utopian, because they’re self-contradictory.  Government is antithetical to honesty because it involves some having power over others.  Possession of truth, knowledge of true facts, is advantageous: it gives power to the possessor.  Therefore, those who take power over others must deny them knowledge if they can.  And this is exactly what we observe.

Amazingly short sighted , perhaps even desperate. The power of good govt is the power of the people, thus not abusive. The power of our current form of government is the power of money, a very powerful yet rectifiable situation. Excepting to Anarcissie who consistently refuses to grant wisdom to the people.

You cannot honestly take power over another person because you know, or ought to know, that the other is your equal.

Who, but an anarchist would posit that government is the taking of power, when it is the granting thereof. My every rebuttal has noted that we are in need of reformation of our system of government precisely because we have ceded our own power to the select few. My worthy opponent in this debate refuses to consider such reforms and has never, to my knowledge, spoken to what comes after the destruction of the government he so despises.

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By Harrison, November 29, 2009 at 1:19 am #
(Unregistered commenter)

mandinka, you obviously know nothing about California.  Since 1982, California has been run by Republican governors except for a brief period when Gray Davis was governor and got blamed for what Pete Wilson did.

In California, private industry rules and millions of the elderly, the immigrants, and young are eating out of trash cans and sleeping where they can.  There are no jobs in California and people who have worked for thirty years are being laid off with no pensions.

The only hope of saving the state is through the UC system.  The increase in tuition to pay for the privatization of the university will end any chance of upward mobility for the vast majority of residents.

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By mandinka, November 29, 2009 at 1:04 am #

as usual boyardee, is unable to refute facts just spout his normal communist left philosophy. hardee har har, the folks in CA have voted again and again about increasing taxes. What don’t you and the legislature get that they prefer to keep the fruits of their labor and until spending is brought under control nothing is going to happen. Time to start charging illegals out of country tuition let mexico make up the difference. Sam e fro healthcare, food stamps and of course sanctuary cities that aggravate the situation. The legislature should just shut San Fran off from any state aid

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By Anarcissie, November 28, 2009 at 11:19 pm #

truedigger3, November 28 at 8:17 pm:
‘That mandinka is nothing but a another heritage foundation/Wall St. TROLL.

Looks too low-rent for Wall Street to me.  Archie Bunker stuff—maybe it’s supposed to be funny?

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By truedigger3, November 28, 2009 at 8:17 pm #

That mandinka is nothing but a another heritage foundation/Wall St.TROLL.
He is repeating the same bullshit that have been answered over and over before in this thread.
As usual and expected from him and his ilk, not a word about the effect of the obscene tax cuts for the corporations and the super-wealthy and the effect of Wall St. fraud and Shenanigans on California and UC budget and their investment funds which were decimated.

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By Anarcissie, November 28, 2009 at 7:54 pm #

A: ‘You are the utopian, not I.  But onward….’

ardee, November 28 at 3:42 pm:
‘Onward or downward? I posit that civilization depends upon governments being responsive to the people while you posit that govt is really unnecessary and unrestrained, inevitably bad. So who again is the Utopian?

I think it far more pie in the sky thinking to believe govt unnecessary than to think we are capable of creating honest governance.’

My political hopes are, indeed, a long shot.  But yours are impossible, and therefore truly utopian, because they’re self-contradictory.  Government is antithetical to honesty because it involves some having power over others.  Possession of truth, knowledge of true facts, is advantageous: it gives power to the possessor.  Therefore, those who take power over others must deny them knowledge if they can.  And this is exactly what we observe.

You cannot honestly take power over another person because you know, or ought to know, that the other is your equal.

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By D, November 28, 2009 at 7:10 pm #
(Unregistered commenter)

I am a student about to transfer into the UC system as
a Junior and am truly afraid I will not be able to
complete my education because of financial issues.

I come from a well off middle class family and never
thought I would find myself in this situation. Because
of my middle class status I most likely will not
qualify for financial aid.

I feel powerless.

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By ardee, November 28, 2009 at 7:06 pm #

mandinka, November 28 at 6:53 pm

If anyone can find a shred of truth , or even sanity in this post I would appreciate it being pointed out.

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By mandinka, November 28, 2009 at 6:53 pm #

Why the protests?? CA have the socialist governmental structure brought on by years of Democratic rule. The retirement system for any/all state employees is better than any golden parachute in the private sector. Coupled that with a job for life mentality and annual raises gov’t in CA isn’t cool its utopia.
The only suckers out there are the taxpayers, even illegal aliens get to eat from the trough. So if your a student and plan on working in the private sector get use to the yearly communist life style. The government there will give you an allowance based on what they think you need and they will take the majority of your incomes.
Besides if you got to keep your money you would just waste it

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By ardee, November 28, 2009 at 3:42 pm #

You are the utopian, not I.  But onward….

Onward or downward? I posit that civilization depends upon governments being responsive to the people while you posit that govt is really unnecessary and unrestrained, inevitably bad. So who again is the Utopian?

I think it far more pie in the sky thinking to believe govt unnecessary than to think we are capable of creating honest governance.

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By lichen, November 28, 2009 at 12:53 am #

I believe in a guaranteed, livable retirement for all people over 60, and that college education should be free for all citizens through phd.  There is something of a generation war at work—since the rich UC regents are all older non-students who don’t give a damn about the young people being priced out of a college degree.  It is those free market ideologues chanting for privatization and poverty-creation measures, in California and elsewhere that are the problem, majorly.

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By Ruth, November 27, 2009 at 10:22 pm #
(Unregistered commenter)

Gerard, you are right about making this a generational thing. It is not the elderly who are stealing the money from the young.  Often, young are hoping to protect the rights and savings of the elderly, who are giving up a lot to help put their own grandkids through college.  Due to the economy, whole families are suffering because of the tuition increases.

The priorities in our society and in the universities are messed up.  It’s really the rich against the middle class.  It should be administrators, not teachers who are cut.  Teachers should be added. 

The UCs are offering less education at a higher price in an economy where students and their families can barely afford to survive.

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By Rob P, November 27, 2009 at 6:16 pm #
(Unregistered commenter)

How much are we on the hook for to pay for public pensions? The source of funds to pay pensions are taxes, investment earnings and student fees. What is the present value of an annuity that pays x dollars for y years, assuming inflation is z, and investment earnings are w?

I will exclude health care costs that are growing at simply unsustainable rates.

To illustrate how much we are on the hook for, I have assumed 3% inflation over the next 30 years, and investment earnings of 7%. Student and taxpayer costs will be more than shown if inflation exceeds 3% or investments are less than 7%.

The table below shows that to pay out $27,876 for 10 years requires $226,000, or $379,000 to pay out for 20 years, or $482K for 30 years. I used the odd value of $27,876 as this is the MAXIMUM social security pay out, even if that person had the highest wages continuously for 45 years. (currently $109K/yr)

Annual 10 years, 20 years, 30 years
$27,876, $226K, $379K, $482K
$50K, $405K, $680K, $865K
$75K, $608K, $1,019K, $1,297K
$100K, $811K, $1,359K, $1,729K.

That’s right, when a professor retires with a $100K pension, someone is on the hook for $1,729,000, compared with a social security recipient’s burden of $482,000.

Pensions were designed to get older people out of the workforce to create employment opportunities for the young and politically, sometimes militantly restless. They were also designed when “work” was labor intensive and most people would work to age 65 and die by age 67. People would contribute for 45 years, and only receive benefits for 2 years. ($52,876 burden)

People live longer now, often to age 80 or 90, increasing the cost burden due to more years in retirement. Longevity has increased because of medical technology and the transition of the nature of work from labor intensive work(farming, manufacturing, construction) to knowledge work(Professors, accountants, etc.)

The other major factor is the number of retired people will increase dramatically during the next 20 years. For the past 60 years, there have been 3 people over 60 for every 10 people aged 20 to 59. During the next 20 years, this will change to have 5 people over 60, for every 10 people aged 20 to 59.

Solutions? Create low cost, high value lifestyles for seniors on college campuses. Not much different from sending military to college after WWII. Create an environment where seniors feel secure, know they will have food, clothing, shelter, energy, independence, opportunities for social engagement and ways to contribute to society. How? Build safe, smaller footprint, efficient housing on campuses, with less demanding transportation requirements(walk, bike, bus, ride share), more efficient food distribution methods. Re-educate them for “starting over careers” to allow social/economic contribution for a longer than expected life, in today’s needs, not yesterdays.  Make personal health required, put them on nutritional diets and exercise programs. Have them contribute through inter-generational classrooms, adding life experiences to academic programs. Make it so the grand children will be proud and happy to visit grandma and grandpa on campus.

To clarify (low cost), I mean all living expenses should be equal to the amount that a person receives in social security benefits. Something less than $27,876.

If older people knew this, they would not fight so desperately take from future generations.

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By gerard, November 27, 2009 at 5:00 pm #

“California’s old are stealing from the young ...”
It’s that kind of generalizing that I objected to early on in this chain.
  Most of California’s “old” are living on modest social security and have done or are doing what they can to help younger people, in school or out.
  Far too many older people are living in substandard quarters somewhere, eking out a minimum or depending on charities, many in poor heath without adequate insurance.  A relatively few, perhaps retired retired from military or corporate administration, have more than enough—if they didn’t lose it on Wall Street.
  If generations are pitted against each other, it creates just one more split in an already dysfunctional society.  People need to be brought together to cooperate.  They are easy victims when they are separated.
Generalizing is the most dangerous and most over-used tactic in propaganda.

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By Anarcissie, November 27, 2009 at 4:57 pm #

ardee, November 26 at 2:41 pm:
‘Anarcissie, November 26 at 12:37 pm

Anti-government and anti-education too…chaos and ignorance isn’t much of a Utopian vision I think.’

You are the utopian, not I.  But onward….

Just a government is not synonymous with social order—governments often cause a great deal of social conflict—so it is an error to suppose that education is equivalent to knowledge, intelligence, understanding or competence.  The education industry quite often tries to limit or reduce these things.

However, I didn’t suggest that UC students abandon education.  After all, most of them need jobs and the education industry stands as the grim gatekeeper to middle-class jobs.  Overthrowing it will require more than my one-liners, or even a revolutionary moment among the UC student body.  No, I merely suggested a buyers’ strike.  As I said, the students can take a few months or a year off from the rat-race ramp and stop paying tuition.  Even a poor downtrodden minority can sometimes break the institutions of the rich, as the Montgomery bus boycott showed.  I believe even the credible threat of such a boycott would considerably modify the behavior of the UC administration.  There!  I’ve said it all twice.  I hope some UC students are reading this.

Incidentally, talking of buyers’ strikes, remember that Black Friday is also Buy Nothing Day.  Celebrate by staying home!

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By Alphysicist, November 26, 2009 at 11:11 pm #

truedigger3

I agree that the American (and other western) middle class was systematically destroyed.  (In Eastern Europe, the alliance of the ex-communist political elites with Western interference is doing the maximum so that no middle class has the chance of forming.)  I think political elites today see the middle class as a danger, perhaps because they are an obstacle to profit centralization, or perhaps because they have leisure time to think free and are not sufficiently under control. 

I think the immigration is an example of how the middle class was destroyed, I would also mention modern feminism, which came about to suppress wages and decrease worker bargaining power (perhaps functioning families were also a place where discussions could take place, which were out of centralised control).

On the other hand the manufacturing issue has one other side to it: industry the way it was then, and the way it is now, was and is unsustainable due to its adverse effects on the environment.  This was not obvious during the 50s.  If our world was somehow more rational much of what is manufactured would not be, as the goods do not serve real needs. This is sometimes obvious, sometimes hidden: for example nowadays it is hard to get a simple bicycle in stores (with maybe one or three gears).  One has to buy the twenty-something gear mountain bike with other extra features added.  And many of our products are full of unnecessary extras.

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By Ruth, November 26, 2009 at 7:18 pm #
(Unregistered commenter)

The problem is not teaching salaries, except that those have been cut or eliminated in the layoffs. 

The problem is the the high-priced administrative salaries.  There is no freeze on hiring administrators and administrators are making over half a million a year.

The other problem is that none of the tuition is being used for education.  As I mentioned before, the problem is that the Regents want to privatize and stop educating.

http://patrickhenrythinktank.org/resolutions.html#saveuc
Resolution to Save Education in California

Whereas, the top students in California and elsewhere are eligible to attend the University of California, unlike private universities that allow students with much lower grade point averages to buy their way in or use their family name to gain admission, and

Whereas, the University of California system is receiving more money from the state and federal government, donations and other sources than ever before, including when the tuition was close to free and there were enough teachers to make class sizes small, and because the purpose of educational funds should be education and the use of funds going to the colleges should be to pay the teaching staff and then cut the tuition rates first and later for all other purposes, and

Whereas, the University of California reportedly has squandered most of its money on purposes other than education, such as gambling on toxic assets and real estate, paying off wall street bankers and executives with lucrative administrative positions and other purposes and instead of stopping this misuse of funds, the University of California Board of Regents has voted to make the cost of a University of California education unaffordable for the vast majority of California’s top students, such that few but the wealthiest students will be able to attend.

Therefore, be it resolved, that the Patrick Henry Democratic Club of America calls for the elimination of undergraduate tuition at the University of California, for the re-hiring of all teachers laid off for financial reasons, for the elimination of the majority of administrative positions, and for the full reimbursement of the educational and pension funds by administrators and/or regents or their agents who have used university funds to gamble on toxic investments and real estate.

Therefore, be it further resolved, that the Patrick Henry Democratic Club of America calls for a criminal investigation to be launched by the office of Attorney General Jerry Brown into the apparent misuse of University of California funds for purposes other than education.

Passed November 23, 2009


http://www.democracynow.org/2009/11/20/students

http://www.indymedia.org/fr/2009/11/931436.shtml

http://mrzine.monthlyreview.org/meister211109.html

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By insultant, November 26, 2009 at 6:47 pm #

The University of California system, surrounding the 32% student fee increases, has generated numerous protests on a number of campuses.  The story is being debated by the mainstream press as well as laymen commentary in the typical left-right paradigm fashion and Yasha Levine has written one of very few articles that starts people on a path of discovery as to what is at the root of the problems.

If the statement “As California Goes, So Goes the Country” is true, then this is more than likely the same scenario that faces many other State University systems nationwide in the near future.

1.Many billions in assets have been lost by the UC Regents through risky “alternative investment” vehicles as well as a heavy investment in real estate deals.  Approx. 20B in asset contraction from 2007 to the present according to their annual report.  It would be interesting to find out how much the of the current amount held and shown as assets are derivative based.
2.The State of California only supplies the UC system with 15% of their total funding.  The state cut 20% of this 15% which is being explained by the UC President as the cause for the fee increase.  This simply cannot be true once the whole financial picture is studied.

3.The UC system has received or is pegged to receive in excess of 700M in federal stimulus money.

4.There are over 3000 people in the UC system making in excess of $200k/yr with many making well over $1M.
5.The current chair of the UC Regents is Russell Gould, former Senior Vice President of Wachovia Bank and has been previously employed by various securities trading firms.

It is becoming clearer that there are many intriguing facets as to what is really going on with higher education throughout the country tied directly to the real estate and finance markets.  It would present some serious discussion as to the future of these institutions and how far they have strayed from their core function of higher learning and research. 

Have they become merely plutocracies meant to profit a small group at the expense of providing affordable education as chartered? 

One would have to wonder when as an example; at the same time they drastically reduce classes and services to students they are able to make a 200 million dollar loan to the State of California at a very high interest rate and sell $1.3 billion in construction bonds immediately after declaring an “extreme financial emergency”.

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By truedigger3, November 26, 2009 at 6:46 pm #

Re:T-Neck, November 26 at 2:49 pm

The problem of high tuition fees stems not from high pensions for professors, although the figures mentioned in the article might be exaggeration or special cases.
Maybe those two professors brought tens of millions of dollars to the university from grants and endowments or had important patents that is bringing the university anual hefty royalties.
The real adversary to the students is the obscene tax cuts for the super wealthy and corporations that resulted in less funding for education.
Also another source for the students’ problem is Wall St. Shenanigans and fraud that wrecked the economy and the state and the university investment funds.
Why don’t you protest the obscene bonuses to to Wall St. banksters and fraudsters.
Some hedge fund managers carted home in a single year about one billion dollars each just for shuffling paper destroying people lives.
Why don’t you protest the corporations who took their tax cuts and instead of investing here at home they are building plants in foreign countries and exporting those students jobs.
If the pension and overhead is REALLY excessive, then it should be reformed but that is not the real problem facing the students right now and will make a very little difference in the tuition fees.
I am not a professor and I don’t have friends or relatives who are professors.

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By T-Neck, November 26, 2009 at 2:49 pm #
(Unregistered commenter)

Ha!  Hilarious to see all the people lining up in the comments to decry this article.  They are the same type who can’t wait to line up and be screwed over by the powers that be.  Kudos to Lavine for calling it like it is.

And one twit is even aghast that the author would go so far as to *gasp* NAME the people getting the biggest pensions!  Dammit, they SHOULD be named.  These protesters should be handing out maps to their houses.

Yes, these students should be protesting in front of the HOUSES of Fuster and Schlag.  These men are making more PER MONTH than most of these students will make in a year, IF they are lucky enough to find some minimum wage job to slave away at once they receive their worthless piece of paper - er, I mean: valuable college degree.

And at least those two thieves were professors!  They may, at some point, have actually been involved in teaching something to somebody!  How many worthless administrators, who did absolutely NOTHING which had anything to do with educating anybody, are sitting on maybe a mere 10k a month in pension?  How many deans, vice presidents, provosts, etc. etc., who never dealt directly with a student in their entire career?  They should be picketing outside of those houses, too!

Of course, it is still too early for any of that.  These kids keep getting fed the line that recovery is just around the corner - they can’t have a police record, after all.  So they will continue to grumble and get shafted for another year or two.  Some may even graduate and emerge, clutching their insanely expensive diploma, to find that there are absolutely no jobs available at ANY salary.  Then, hopefully, they will have some retiree parents to move back in with.  If not, well, they might decide to do something other than carry some signs around.

The next few years will be interesting…

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By ardee, November 26, 2009 at 2:41 pm #

Anarcissie, November 26 at 12:37 pm

Anti-government and anti-education too…chaos and ignorance isn’t much of a Utopian vision I think.

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By Bob L., November 26, 2009 at 2:08 pm #
(Unregistered commenter)

The article is right on the money.  Excessive pensions are indeed one of the factors (there are, of course,  others) that are currently sinking countless entities, from universities to municipalities, and the author is just trying to alert his readers that this factor exists.  There’s an article by a UC alumnus in yesterday’s issue of the San Francisco Chronicle that mentions the same problem in a different setting (“Time for real budget reform”).  According to some of the more intolerant commentators on this blog, that author must also be a liar and a hater of old people.

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By Anarcissie, November 26, 2009 at 12:37 pm #

If prices (tuition payments) are too high, what the buyers (students) need to do is stop buying.  Carrying signs around won’t do anything, but a buyers’ strike will.  Unthinkable, because school is critical to your brilliant career?  Come on, step off the rat race ramp for a year.  You can always get back on, and while you’ve got some free time off from your future as a wage slave and debtor, you can do something worthwhile.

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By truedigger3, November 26, 2009 at 11:16 am #

Alphysicist wrote:

“Another issue is the problem of unemployment.  The reality is: there are not enough jobs for everyone.”
_____________________________________________________

I think the unemployment problemstem largely from two factors: outsourcing jobs and illegal immigration.
In addition to the good manufacturing jobs with living wages and benefits that have been outsourced, now many professional and semi-professional jobs are being outsourced like engineering, programming, accounting, .
scribing medical reports and even reading X-ray etc etc.
The oft repeated claim that illegal immigrants just only take the jobs nobody want is a big lie.
First, if you pay people enough they will take anyjob.
Second, illegal immigrants are taking all kind of jobs, especiall the good jobs in construction and what is left of manufacturing jobs and the trade jobs from electricians, plumbers, mechanics etc etc because they work for much less pay and that put a down ward pressure on wages and benefits and is decimating the unions and their bargaining power.
The above two mentioned problems are very serious problems and has to be addressed seriously or the result will be the gradual disappearance of the middle class in this country.

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By Alphysicist, November 26, 2009 at 8:11 am #

I agree with those commentators who say that this article tries to pit the young generation against the old one.  It is rather demagogic.  But it’s not uncommon to hear this mantra: I recently read “Stiffed” by Susan Faludi, and every chapter in there ends with this conclusion.

On the university issue: yes there are problems with the tenure system, and tenured professors are usually mere managers who don’t do the work, and often don’t like teaching.  I think the dislike of teaching can sometimes be understandable: in many universities students expect teachers to bend over backwards for them. 

One thing that should also enter the discussion is that the University system itself has become a BUBBLE.  Roughly the 60s brought a change in the university system.  The former system, which had its roots in the Middle Ages, was geared towards studying, describing, and investigating the nature of reality through the intellectual means available (naturally this was imperfect, and biased in various ways depending on the time and place).  The modern university is a tool to implement pre-designed social transformation (using tax money taken from those whose children are to be transformed).  Aside from the ethically suspicious implications of such a setup, one also has to note, that ideology takes precedence, and the institutions become self-serving.

Another issue is the problem of unemployment.  The reality is: there are not enough jobs for everyone.  Moreover, in our corporate dominated world, few jobs really serve the benefit of the or at least a community.  It is thus better for our elites to keep the youth in universities where this problem is hidden from them for some years.  From 20 up to 30 students do a BA/MA, then maybe 5-10 more years some do a Ph. D. (most universities tell entering students that they do not have to decide on a major early, they can wait: of course then it takes more years, and they make more money), and when they come out they, unless they are priviliged to enter the tenure system, they face unemployment.  More importantly they used their most important/energetic years to study something that is usually of limited use, and they are too old to organize civil wars, which would be the means for positive social transformation.  So part of the role of the universities is to prevent uprisings, civil wars, etc., which the youth would probably undertake, if they saw through the system early enough.

A real problem with this is also, that their most creative years are often wasted.  Many people who could stay in their immediate environment, perhaps become good craftsman, go to study (often something of limited use, or with ideological bias), and their talents are not realized as beneficially as they could be.

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By BULL, November 26, 2009 at 2:15 am #
(Unregistered commenter)

Quoting from NABNYC’s comment ... “But are the problems in the state being caused by pensions?  No.  That’s ridiculous.  Are there a few people who receive absurd pensions?  You bet.  I’d start with W and Cheney.  In fact most of the people from the Bush administration should be indicted, convicted, and lose all their benefits.  But this silly focus on two people from the U.C. who, for reasons unknown to us (such as maybe they developed a patented product and their payments reflect that) are receiving a hefty pension.  Most retired people do not even get enough money to live on.”

NABNYC is CLEARLY a Civil Servant (riding this gravy train) and his comment is this “classic” diversionary tactic.  This issue is not that a few (such as the two in this article) get very high pensions, it’s that at EVERY income level the Civil Servant’s pension is 2-4 times greater than a similarly situated Private Sector worker….. with that 2-4 multiple rising to 4-6 time for policemen and firemen.

Thier goal (short of ADDITIONAL increases) is never to give anything up and to divert attention to miscelaneous irrelavent issues.

The SINGULAR issue that needs to be addressed IMMEDIATELY is a reduction in their pensions & benefits ... or we’re all be broke supporting 50-55 years old Civil Servant retirees while we (the Private Sector ) works till 75.

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By Wayne, November 26, 2009 at 1:38 am #
(Unregistered commenter)

This is indeed ridiculous. Instead of preparing for a new period of austerity and modest living, everyone—from UC officials to Wall St. CEOs—is trying game the system for as much as they can for as long as they can. The problem is, the boom times are no more; not that they should they come back. It was all an illusion, and these nice pension deals that assumed a perpetual boom are a mistake.

The next big wave is going to come from the California Publice Employees Retirement System (CalPERS). If you think this story is crazy, wait until you see what’s coming. It can’t be sustained.

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By gerard, November 26, 2009 at 1:21 am #

To all you good but absolutely crazy people

        HAPPY THANKSGIVING!

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By antispin, November 26, 2009 at 12:43 am #

NABNYC: Right on.

Cyrena: Great! UC used to be great too, and still is very good, but the Regents are more concerned with their investment portfolios and patents than with teaching students. Please don’t use “homeland” - too loaded!

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By Don Emilio, November 25, 2009 at 11:26 pm #
(Unregistered commenter)

It is always sad to see presumably informed op-ed writers play the generations war card. I guess, but don’t know, that Mr Levine is factually correct about the amounts of the retirement funds recived by the two cases he cites, but, as a UC retiree, I have never met any other UC retiree taking home any where near that amount.

More importantly, as is necessary whenever the generations war becomes the explanation for bad economic news, op-ed writers resorting to it must ignore the basic social contract that current retirees entered into at the inception of their employment, i.e., if one is willing to spend her/his productive years earning far less than one’s peers with comparable educations, there will be a modest, but assured pension after retirement. Thus, it appears that Mr Levine thinks UC faculty should not only work for less, but should subsidize current University costs by giving up some portion of their pensions.

There are two simple facts that negate Mr Levine’s “greedy geezer” hypothesis. The first is that the State, through its elected officials, is no longer willing to support higher education at the levels it did in the past. The second is that the recklessness of the investment bankers who got to play with other people’s money has resulted in enormous losses for every public and private retirement plan throughout the world. Oh, one third fact, mentioned in a previous comment, is that the University’s contrbution to the retirement fund comes from a different cost center that is unrelated to the instructional cost center.

All of that said, it is lamentable that the Regents did not find some better way to address the budget crisis. There can be no doubt that incresing student fees will deprive many otherwise deserving young people from attending UC.

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By cyrena, November 25, 2009 at 10:27 pm #

By G.Anderson, November 25 at 3:36 pm
“…When jobs left the state, real estate became the only way for anyone to make money, so the state cashed in just like everyone else. But now that real estate will no longer be an endless source of income for everyone, the state is desperate - bankrupcy is looming on the horizon….”

Wow G. Anderson…as usual, your posts hit it all right at the heart of the reality. You took the words out of my mouth.  Good to know you’re still on top of it.

In respect to the real estate crash, that’s what really did it for California and Californians who believed they could live forever on profits from their real estate. In fact, for many who were never ‘born into’ any kind of wealth, it has become the substitute for ‘trust funds’. At my UC campus, we have a lot of ‘trust fund’ babies, but now that the real estate market has crashed, we can clearly see the difference between those who were ‘born into’ the wealth (ie the real trust fund babies) and those who created a façade of wealth based on the artificially inflated real estate market. When that crash came, (long before it had been officially declared as a so-called ‘recession’) a whole lot of folks have been doing the equivalent of jumping out of high-rises just like those folks were after the stock market crash that brought on the Great Depression.

Meantime, the faux rich aren’t sending their kids to the Ivy Leagues anymore, when they can do it a whole lot cheaper at a UC campus. That leaves us public education people (who could never afford the Ivy Leagues) out in the cold, and unable to even provide a PUBLIC University education to our current and next generations.  From where I’m sitting, it’s pretty stupid to out-price something that is so critical to the public welfare in terms of an educated population.

But yep, bankruptcy is clearly on the horizon. Didn’t New York go bankrupt several years back? What did they do to dig out of it. (Just curious, not even sure it was New York state or the City of New York)

I don’t doubt that students who DO have an opportunity or the means - will choose to attend schools elsewhere. But of course that breaks my heart as well, because I’m very proud of the UC system here in my homeland.

Still, with everybody else bailing out, I would most likely advise students to do the same.

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By Mr :), November 25, 2009 at 9:50 pm #
(Unregistered commenter)

pays out more than $1.5 billion a year to its 500,000 retirees

Is that $3,000 per retiree?

Is health care in there? 

FWIW, Prichard, Al stopped paying its retirees a few weeks ago.

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By NABNYC, November 25, 2009 at 9:27 pm #
(Unregistered commenter)

What a ridiculous post this is—telling young people that the reason our economy is failing (and we are therefore unable or unwilling to fund education) is because retired people just get too much money in pensions.  How absurd. 

The reason our economy is failing is because the government has entered into “free” trade agreements and adopted absurd monetary policies, in addition to engaging in needless wars of aggression on behalf of the oil corporations.  Our treasury has been looted.  Not to mention the fact that the star-struck morons in California elected a movie-star to be governor, and all he did was contribute to the destruction of the state and occasionally pose in a Speedo.

California has a lot of problems.  Many of them have been caused by the “free” trade agreements which led to the loss of millions of jobs from the state.  Many of the problems have been caused by the federal government allowing tens of millions of illegal immigrants to be trucked up by coyotes to take the building trades jobs at 1/3 of what Americans were paid.  Not only did this increase unemployment in the state and decrease wages, it also led to $100 million/year being sent out of the state to Mexico, and not being spent in California. 

We have a monetary policy adopted by Greenspan which caused real estate to triple in cost, making it unaffordable to most people without funny financing, and now the entire market has collapsed and the state is covered with empty and abandoned housing tracts, unemployed people, and no tax base whatsoever.

But are the problems in the state being caused by pensions?  No.  That’s ridiculous.  Are there a few people who receive absurd pensions?  You bet.  I’d start with W and Cheney.  In fact most of the people from the Bush administration should be indicted, convicted, and lose all their benefits.  But this silly focus on two people from the U.C. who, for reasons unknown to us (such as maybe they developed a patented product and their payments reflect that) are receiving a hefty pension.  Most retired people do not even get enough money to live on.

As far as public education, I favor public funding.  Let’s talk about that.  How should it be funded?  Raise taxes on the rich people.  Why do we have tax cuts for the rich, wars of aggression conducted on behalf of the oil corporations, the expansion of empire at the same time we have a collapse of everything in our country?  We have these policies because our national politicians take bribes and receive kick-backs from the corporations, and this country is not run for the benefit of the citizens.

So let’s not be so silly as to send hoardes of angry students out to the homes of a few old retired people seeking vengeance.  The analysis in this article is so silly, skewed and short-sighted that it almost reads like something from Fox News.

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By M. Mac, November 25, 2009 at 6:48 pm #
(Unregistered commenter)

This article seems for the most part a wind-bag.  It reeks of assumptions and I’d expect more from this site.  I’m sorry, but these two examples are from the top 5 pensions in the richest state (5th richest economic entity on the world).  Let’s be reasonable.  Retirement pensions are good for society.  They’re not the problem.  Greed is the problem and always has been with America.  It’s our darkest shadow.  Every writer seems to forget the this rich state gets its ass kicked by not only its own scandals but by the major corrupt players in corporate America.  Enron, any one?  Does everyone remember how many billions of dollars Enron cost California and its tax=payers when it gambled with its energy?  Such short memories we have.  Well, I can forgive that. In this age its a new scandal and sign of an imploding America every week.  Nevertheless, the article needs some work.  We all deserve retirement money. Point your finger somewhere else.  (I’m 34, so no special interest here)

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By Tough Love, November 25, 2009 at 5:11 pm #
(Unregistered commenter)

The article and all of these comments are interesting, but NONE addresses the ROOT CAUSE of the problem ...

That root cause is excessive pension formulas and overly generous benefits (both while employed and while retired).  The NECESSARY solution, (for ALL Civil Servants) is a significant reduction in the pension formula applicable to FUTURE years of service for CURRENT (not just NEW) employees.

An ballot initative currently being discussed would ONLY reduce the pension for NEW employees.  We are broke NOW, and changing it only for NEW employees will save NOTHING for 20-30 years until they retire.

Also, since the current pension formula is excessively generous and “unsustainable” (using the words of Ron Seeling, CA’s chief actuary) why should we allow the continued bleeding (of fund from taxpayers) caused by CURRENT employee pension excesses ?

Lastly, its way past time to end or SIGNIFICANTLY reduce retiree healthcare.  TAXPAYERS (NOT the Civil Servants themselves) pay for this ... yet they do NOT get it for from THEIR employment.  This MUST be addressed immediately as well as pension reductions.

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By MM, November 25, 2009 at 4:07 pm #
(Unregistered commenter)

This article must be a satire on journalism.  The UCRP is not paid out of student fees.  And the people whose contributions are going up for it are the faculty and staff who will be contributing more out of their salaries on top of the furloughs that they now suffer from.  The real scandal of the Retirement system is the way in which the investment of the funds was taken out of the hands of in-house people and placed in the hands of external agents who gambled with other people’s money and lost.

And just for the record.  UCRP pays out a percentage of what your salary was—most people in the system aren’t making anywhere near the numbers the author cites so the examples are basically a red herring.

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By ForeignAffairs, November 25, 2009 at 3:46 pm #
(Unregistered commenter)

Forget about throwing themselves at the mercy of the UC Regents or the legislature; If the student fee increase protesters want to be more effective, I would suggest that they launch and gather signatures for a ballot initiative worded as follows:

“Limit UC student fee increases to no more than twice the lesser of any increase (as % of respective income) of corporate or personal income taxes in the same calendar year.” 

For example, since corporate income taxes did not increase at all this year, student fees would likewise not be eligible for any increase whatsoever.  If the minimal quarter percent increase in personal income tax had been shared by both corporate and personal income taxpayers then, per this proposal, student fees would have been eligible for a half percent increase as percent of average student income. 

This fee structure would send a message that students are willing to pitch in triple whatever burden everyone else is sharing.  But this formula also emphasizes the fact that a well-educated population adds value for everyone, which is why it’s not smart nor reasonable to try to balance budget on the backs of students who might typically earn only about $7,000 a year.

For a student income of $7000, a $2500 increase amounts to a 36% tax increase.  State employee furlough days amount to an 18% tax increase.  Contrast that with a zero percent increase in corporate income taxes.

This would not be a taxpayer revolt, it would simply be a vote for more even-handed apportionment, a vote to defend public education in California, and a repudiation of the bully politics of heavily taxing the weakest groups, such as students and educators, just so lawmakers can boast that they allegedly didn’t raise taxes.

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By G.Anderson, November 25, 2009 at 3:36 pm #

This is in a nutshell, the epitome of what’s wrong with California. Where the state finds it expediant to screw people over in the process of making a buck. To say this is penny wise but pound foolish would not go far enough.

When jobs left the state, real estate became the only way for anyone to make money, so the state cashed in just like everyone else. But now that real estate will no longer be an endless source of income for everyone, the state is desperate - bankrupcy is looming on the horizon.

Students have been added to a long list of victims of the state’s lack of sound finanical policies, along with teachers, home owners, non custodial parents, the disabled, state workers, truck drivers, etc.

Of course, students aren’t happy about this state of affairs, and at least they have the guts to get up and do something about it. The bulk of the states victims seem too dazed and confused to organize.

Since Califonia, is down there at the bottom of education list anyway, where numbers cease to mean anything but bad, it’s quite likely that the flight from the state by those that have the means will accelerate. Now this will include students, some of whom may have options to attend schools in other states.

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By Ruth, November 25, 2009 at 3:08 pm #
(Unregistered commenter)

The Patrick Henry Democratic Club of America is very concerned about the apparent misuse of funds by the Regents and has called for an investigation by Jerry Brown’s office. 

As teachers are being laid off, Wall Street Executives are being hired at extremely high salaries.  Reportedly, absolutely none of the tuition money is going to education.  It has all been pledged as collateral for construction bonds that have nothing to do with education.  One of the CSU professors has reported that some of the money has gone to organized crime.

It is important to ask why there is no hiring freeze on high priced non-teaching personnel while teaching personnel are being laid off or reduced in salary?

Article after article describes this as part of a scheme to privatize the universities.

Students should not be asked to pay off the $23 billion in gambling debts of those running the UC system.  That money should be reimbursed by those who gambled it away.

With all this in mind, most UC students would pay zero in tuition at Harvard and other Ivy League Universities as those universities are financing
students with family incomes less than $100,000. 

Many UC students gave up full-rides at other universities in the belief that the UC Regents would not try to scalp them to benefit private interests.

The UC System has more money this year than ever before.  It has more money than when the tuition was $200 or less a semester. 

The UC System needs to re-prioritize education.  If it did, the tuition would drop to zero and teachers would be re-hired while the Wall Street executives would be given their pink slips.

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By P. T., November 25, 2009 at 2:58 pm #

This dustup goes all the way back to Proposition 13.  With wages stagnant, California voters have rebelled against what they regard as being asked to finance public services for immigrants (legal and illegal).

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By A Warren, November 25, 2009 at 2:01 pm #
(Unregistered commenter)

Taking extreme examples to prove gin up emotional support for an issue is intellectually dishonest and results in throwing out the baby with the bathwater.

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By Rachel Klein, November 25, 2009 at 1:47 pm #
(Unregistered commenter)

This is an extraordinarily misleading article, worthy of Fox.  Fee hikes are an outrage, but the fault lies squarely with Prop. 13 and the starvation of California’s public sector, including K-12. The majority of faculty at UC campuses are committed teachers who, after decades of service to the university, earn less than half the bloated salaries mentioned in the “article.”  Like all workers, faculty are entitled to decent pensions.  Unfortunately, bad decisions by the Regents (in particular the 2001 shift of the entire UC pension to an expensive management company that had close ties to powerful California Republicans) the fund has declined precipitously relative to Calpirs and other funds.  Faculty contributions(on top of substantial pay cuts) as well as likely cuts in medical benefits will be making up the shortfall.  If you want to make a case for generational conflict, you can point to the tension between older faculty who benefited from the golden era of California higher education, and younger faculty who, like students, are being screwed.  That said, the generational argument is shallow and destructive.

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By Rob P, November 25, 2009 at 1:23 pm #
(Unregistered commenter)

Predictably, a majority of those making comments here
disagree with the author. Unfortunately, discussing
pension reform is political suicide as shown in a
World Bank slideshow, here.
http://siteresources.worldbank.org/INTPENSIONS/Resour
ces/395443-1142535808399/2329423-
1170369479400/Pensions_in_Aging_Societies_Galasso.pdf

The facts are, however, that the U.S. is aging,
living longer and social support costs are increasing
rapidly, especially for health care. This is an
underlying reason for the health care debate.

The percentage of those over 65, to those of working
age(20-64)has been stable at 30% for the past 60
years. However, this will grow from 30% to 50% during
the next 20 years. Who will pay the higher per capita
cost for a larger portion of the population in
retirement? Another group that aggregates news on
this topic, is http://www.pensiontsunami.com/

The solution, of course, is to reduce the social
retirement cost burden. We look at health care,
because that is a government/tax payer expense.

However, the real issues, that are political suicide,
will be for housing and transportation for older
people, that make up 65% of living expenses. Less
than 20% of baby boomers will be able to pay these
costs. Some argue that Grandma should move in with
their children.

Another solution? Build low cost, energy efficient,
smaller apartments/condos in urban areas with public
transportation, health care and more efficient food
delivery systems. Offer plenty of diversified and
noble activities so “save the world”, including
options to work longer, although in a less intense
way.

If older people see a low cost, but highly engaging
retirement, they will be less likely to try and get
the next generation to pay as much for it.

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By grumpynyker, November 25, 2009 at 1:08 pm #
(Unregistered commenter)

Golly,

If these pampered little darlings want $$ for their miseducation, sign up at their local military recruiting office.  Then, if they survive with little episodes of PTSD, go to college.

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By Bronwen Rowlands, November 25, 2009 at 10:54 am #
(Unregistered commenter)

Uh, no.  I’m very disappointed in Truthdig for publishing this puerile rant.  It’s bristling with errors, not to mention just plain stupid.

“Scuffles broke out”?  Is that what you call it when a 6’4” cop punches your 5’2” teenaged daughter in the gut, utterly unprovoked?

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By truedigger3, November 25, 2009 at 10:06 am #

This is a very misleading devious article, that a person expects to read in WSJournal, but not in “progressive” truthdig.
The real reason for the students plight, is not the claimed high professors’ pensions, but the obscene tax cuts for the super wealthy and corporations that has been going on for almost two decades that resulted in less and less money for public education from both the State and the Federal government and couple that with Wall Street banksters and fraudsters shenanigans and fraud that in addition to devastating the national economy and budget, it also devastated the pension and endowment funds at the time when they were badly needed.
Since 1993 California State budget lost about $180 billion due to tax cuts and just since Feb. 2009 the budget lost additional $2 billions due to more tax cuts for corporations.

There is money to give to Wall St. and its bonuses and to the super rich but nothing for the common folks and their kids’ education
After Social Security fund has been looted, now they are talking about “reforming” it by cutting benefits and delaying retirement age and saying senior citizens are getting too much!!!
It is the classic “divide and conquer” pitting students against the professors, young against the old, citizens against unions etc etc while the super-rich escape with the loot.

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By ardee, November 25, 2009 at 9:36 am #

It warms my heart to see this crap exposed by so many here at Truthdig….This piece of malicious propaganda is nothing less than an attempt to pit one generation against another, and does it clumsily and rather stupidly as well.
I wonder who this author is to merit such a waste of space.

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By C.Curtis.Dillon, November 25, 2009 at 6:38 am #

I was always struck by the disparity between tenured professors at Stanford (who often made $100K/year 30 years ago) and the remaining staff who struggled to make enough money to pay living expenses.  I saw an employees union start and grow during my years as a student for this very reason.  The university also had a very nice program to provide faculty housing at a much reduced cost.  The only pressure on faculty was to bring in research grants (which paid some of their salary).  And, of course, they had a very lucrative retirement program.

I understand the need to provide some security for a professor so he/she can do research without pressure from the university.  But I saw, all too often, professors who had essentially retired from their teaching obligations.  Very few taught undergrad courses (mostly teaching assistants did that) and they had, at most, a few graduate classes to teach each semester (with the help of RAs who acted as class mentors and graders ... my specialty for one year).  The students paid for this largess with their highest in the country tuition.

There needs to be a system that holds teachers to some standard.  A contract system might work and it would also be very good for the university.  At Stanford we had trouble getting new faculty because positions were all filled with tenured professors who weren’t doing much.  It was a real problem to get fresh blood and ideas.

The other problem with the UC system has to do with the range of the “faculty”.  I worked at the Los Alamos National Lab and was part of the retirement system because the university ran that lab along with a host of others (Livermore for instance).  Those people also benefit from the retirement system which is now broke.  Unfortunately for me, I didn’t stay long enough to be fulled vested and do not benefit from their generous payments.  It is a huge system that was probably never fully funded and is now facing the huge shortfalls that the stupid investment disaster has exposed.  I feel sorry for the students but also for the system which is basically broke.  Just another example of the disaster of creating these creaking monsters which come back to haunt everyone later.

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By ChaoticGood, November 25, 2009 at 4:08 am #

So price the kids out of an education and their parents out of healthcare, but save the Bankers and the Warriors.  That’s where the true action is anyway. Don’t be stupid, actions speak louder than words and what do you want to do.  My advice, take the blue pill and go back to sleep, you won’t remember a thing.

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By Jon, November 25, 2009 at 3:39 am #
(Unregistered commenter)

This article nails it.  At a major (I mean MAJOR) university I taught at, tenured faculty making incredibly huge incomes, with benefits, life long employment, did no teaching—-most hated teaching—-and so part time minimium wage ‘lecturers’ and ‘instructors’ were used to teach the tens of thousands of undergraduates.  This is common across the universities of the U.S.—-an elite class of tenured professors sitting ‘retired in place’ with their huge incomes and benefits, who are buffered from reality by a legion of low paid instructors, including grad students who do the research and the teaching.

And look at what tenure is:  an up front reward to a young faculty member who, once granted tenure, can coast along for 30+ years making incredible money for life until retirement without having to do anything for it.  And these faculty look after each other via their committees and associations,so that no one hardly ever loses tenure.  This retired in place faculty and the administrators who perpetuate the tenure idea for their own gain, needs to be sliced out of the university system and replaced with 5 year contracts, and annual reviews conducted by outside auditors.

The cost of tenured faculty (who become tenured administrators) is an obscenity that must be stopped to get college costs under control.  The tenured faculty could care less about undergraduate education (just ask them) and they barely care about graduate education, but remain insulated from reality, at salaries that would infuriate parents trying to afford college—-when they are actually trying to afford tenured faculty salaries, not education for their kids.

End tenure as a start.

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By Rob P, November 25, 2009 at 3:16 am #
(Unregistered commenter)

Well written.
I worry for my kids. We older folks are entitled to 2 or 3 years in retirement, not 20 or 30 years of leisure.

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By glider, November 25, 2009 at 3:02 am #

What a despicable article that is truly a reflection of how complicit our media has become as a tool of our corporate totalitarian system.  Most of the key policies of the day in this country are being decided counter to public opinion even though the media is doing its best to promote the corporate point of view.  We don’t need to further degrade our educational system by going after teacher pensions.  The real outrage is that taxpayer money is going to the corporate war machine and corporate banksters at greater than $1,000,000,000,000 per year, and not that we are compensating teachers too much.  Only in Amerika.

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By antispin, November 25, 2009 at 2:22 am #

Who is Yasha Levine and why is (s)he allowed to spout this divisive rhetoric?  Pensions are a very civilized way for society to honor and encourage hard work.  This pension-baiting only works to take the heat off the true roots of the problem here.  Try reading Consortium News for a better appraisal of what’s going on here in CA.  http://www.consortiumnews.com/2009/112309a.html

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By Celia, November 25, 2009 at 2:02 am #
(Unregistered commenter)

It’s not just pensions (gee, reminds me of the auto workers) but new administration and sports buildings, financed primarily by bonds, with tuition as collateral.

It’s all a deck of cards.  Borrow now, pay it off some other time, when someone else has to worry about it.

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By gerard, November 25, 2009 at 2:02 am #

Quote:  “Here’s a fun pension fund fact: Two of the top five highest California pensions are being paid out to former UCLA professors. One of them, Joaquin Fuster, makes $24,712.99 a month, or $296,555.88 a year. The other, John Schlag, gets $21,300.04 every month, or $255,600.48 per year.” 
  “The biggest reason for UC’s 32 percent tuition increase is staring right at you. Without it, the university can’t possibly keep paying out pensions to smug university retirees, who are guaranteed to receive them year in, year out despite the fact that their retirement fund is sliding into insolvency.”

Comment:  It’s very destructive to pit one generation against another and make like the old folks are virtually stealing from the kids (and especially use names of individual peope!

  Therefore, question 1:  Why the inflammatory tone?
  Question 2:  If the figures are honest, have the pensioners been asked to forego a certain amount of their pensions to help out?  if not, why not?     
  Question 3:  Have the rich university authorities, alumni, Board, faculty and donors been asked to set up a generous low interest fund for student loans?  If not, why not. 
  And 4: Have wealthy California corporations been asked to donate a small percent of their profits to a generous scholarship fund?  Etc. Etc.
  It would seem there are many possibilities that have not been explored—Am I wrong? Or is this just insufficient reorting?

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By jgogek, November 25, 2009 at 12:46 am #
(Unregistered commenter)

Students are aiming their anger at the wrong people. Blame instead the residents and politicians of California who refuse to raise taxes to balance the budget and instead sit by while the greatest higher education system ever (UC, CSU and community colleges) are destroyed. Students should be marching on Sacramento, not on Yudof and the Board of Regents. Read more at blog.jimgogek.com

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