What I suspect is going on is that the UC is basically laundering its money by placing funds from many different sources, including student fees and state funds, into its investment accounts. By using this structure, the system is able to hide its unrestricted funds and to redirect money from its investment accounts into its chosen priorities, which is mostly increasing the compensation of the star administrators, faculty, and coaches. The end result of this process is that the UC declares that it is broke, while it raises record revenue and redistributes income from the poorest students and workers to the wealthiest employees.
Thursday, January 14, 2010
By now we've all seen Bob Meister's work documenting the UC administration's use of student tuition -- and the promise of future tuition increases -- as collateral for construction bonds. But what about the rest of the budget? Here, Bob Samuels takes a close look back at the notes from the Regents' meeting on November 18, 2009: