Showing posts with label Unrestricted Tuition Fountain. Show all posts
Showing posts with label Unrestricted Tuition Fountain. Show all posts

Saturday, May 12, 2012

Protest, Policing, and the UC Regents' Committee on Finance

The UC Regents are having another meeting on May 16, and tuition hikes are once again on the table. According to the budget report [pdf] to the Committee on Finance, the Regents will discuss the possibility of raising tuition and fees by 6 percent for the fall 2012 semester as well as an additional, mid-year tuition hike "in the range of double digits" for spring 2013 if Governor Brown's tax proposal doesn't pass in November. Chris Newfield's analysis of the budget scenarios is a must read here.

But there's something on the Committee on Finance's agenda that appears at first glance to be strangely out of place. Nestled between discussions of expenditure rates for the general endowment pool and plans for the formation of a captive insurance agency, we find Discussion Item F7, titled "Update regarding Report to the President on Response to Protest on University of California Campuses."

This is a reference, of course, to the Robinson-Edley Report [pdf], which was released in draft form last week to great media fanfare. The text of the discussion item [pdf] for the Regents' meeting is more or less the Executive Summary of the report. Writing at the request of UC President Mark Yudof in the wake of the November 9 police riot at UC Berkeley, General Counsel Charles Robinson and Dean Christopher Edley were charged with generating a set of best policing practices for UC campuses to use in dealing with future protests. The infamous pepper-spraying incident at UC Davis the following week only intensified the report's urgency. Over the course of 50 recommendations (although the version for the Regents' meeting appears to contain only 48 -- it's not clear which two recommendations have been removed), it suggests that the issue at hand is essentially one of free speech. As the Executive Summary states,
This Report is premised on the belief that free expression, robust discourse, and vigorous debate over ideas and principles are essential to the mission of our University. The goal of this Report is to identify practices that will facilitate such expression — while also protecting the health and safety of our students, faculty, staff, police, and the general public. (1)
Joshua Clover has recently shown how the frame of rights and free speech represents a fundamental misrecognition about what is happening on UC campuses and around the world. According to this understanding, the sequence of events goes something like this: students protest, then police respond. Perhaps the police respond a little too hard, arresting a few too many protesters, using a little too much pepper spray. So the administration steps in and formulates a new set of policing practices to ensure that in the future this kind of excessive force isn't deployed. Here, the issue at hand is one of demarcating the limits of protest as speech, of regulating the proper relations between protesters and police.

In fact, as Clover points out, the sequence of events is very different. It begins not with students arbitrarily protesting, but with the administration developing and implementing austerity policies across the UC system -- raising tuition, cutting classes, firing workers, increasing out-of-state admissions, and so on, austerity's myriad manifestations within the particular context of the post-crisis university. These struggles are not rhetorical but material; they are about how the university is run, about what, under the technocratic directives of the UC administration, the university is coming to be. By displacing these struggles onto the terrain of speech, we unwittingly let the administration off the hook: "One suspects there will be some payouts to injured students, and that a cop or two will be pastured. And the matter will be tentatively resolved, despite the economic content remaining entirely unaddressed; thus, the administration wins by 'losing.'"

This is precisely what the Robinson-Edley report does. Without going into too much detail, it's worth looking at an example. One thing that jumps out in the report is the extent to which the authors see the problem as rooted at least in part in students' ignorance: "We also were struck by a more fundamental information gap," write the authors. "[M]ost members of our community know very little about our campus police departments" (23). Apparently, this is not for lack of opportunity. "At UC Santa Cruz, for example, the police department offers a quarter-long course titled 'Citizen Police Academy,' for up to twenty-five students, faculty, and staff. Class members gain a deep familiarity with the campus police department. In addition, on some of our campuses, the police make presentations at new student orientations. But these existing opportunities for students and other members of the University community to educate themselves about their campus police departments apparently have not satisfied the community’s desire for information" (24). Predictably, the report goes on to recommend more such classes, more opportunities for students to "become acquainted with the campus police agency" as well as "with the applicable rules for campus protest -- including rights and responsibilities, triggers for an administration or police response, the response option framework, and alternate modes for engaging with authorities" (26).

The objective is to transform struggles over privatization into a sort of choreographed dance between students and police, to minimize or obscure the work of the administration, and to avoid at all cost any disturbance of the material operations of the university. Despite the much-hyped statement in the Executive Summary that administrators and police will have to stop thinking primarily in terms of "the maintenance of order and adherence to rules and regulations," this order is ultimately upheld as fundamental. In response to concerns that arose from the UC Davis pepper-spraying incident, the report recommends not that pepper-spray should be eliminated but that "event response team’s guidelines, should specify that administrators will not authorize any physical police response against protesters non-aggressively linking arms unless the protesters were significantly interfering with the academic mission of the campus" (37). In the end, order must be maintained, the restructuring of the university must continue unabated.

* * *

Why, then, are protest and policing a concern of the UC Regents' Committee on Finance? No doubt some of the recommendations in the Robinson-Edley report will require some appropriation of funds to implement -- mainly the hiring and training of police officers (Recommendation Group 4) and the surveillance and monitoring of protest actions (Recommendation Group 7). But these will be minor expenses and anyway have little to do with UC finances at large. This apparently unlikely arrangement must be read as an acknowledgment, on the part of the UC's top managers, of what campus protests are really about. They know that the only thing standing in the way of their austerity policies, of their ever accelerating and increasingly desperate attempts to tie the university to the financial markets, student tuition, and debt, are the students and workers -- and occasionally faculty -- standing in their way, literally using their bodies to keep the machine from operating.

It could not be otherwise. At the UC today, protest and policing are inextricably a question of finance.

Tuesday, May 8, 2012

UC Considering Another Round of Tuition Hikes [Updated]

More tuition hikes are on the horizon:
University of California students could face significantly higher tuition if the state doesn't increase funding and voters don't approve the governor's tax initiative.

University officials are considering a plan to raise tuition by 6 percent this fall if the state doesn't increase funding by $125 million for 2012-13.

Administrators say the 10-campus system would need to consider a mid-year tuition increase in the "range of double digits" or make drastic campus cuts if voters don't pass Gov. Jerry Brown's tax plan in November.

The tuition plans were outlined in an agenda for a UC Board of Regents meeting that was posted online Monday.

Board members are scheduled to discuss various tuition scenarios when they meet in Sacramento on May 16. No action is expected until July.
[Update Wednesday 6/9 4:43pm]: Chris Newfield analyzes some of the possible tuition scenarios here:
The document identifies a current year shortfall of $847M, and a $1 billion shortfall next year -- even assuming the Governor's small January revenue increases and further efficiency savings. Existing budget parameters build in further cuts in what we cannot cut without irreparable harm. Cutting the uncuttable is what we do at UC -- now on an annual basis. This document shows that we will be doing it again next year, even though we can't.

The Governor's May Revise may buy out the tuition increase that you haven't heard about, defined here as 6% for next year.

In Scenario A, in which good revenue numbers come in, the state provides an additional $125.4 M to avoid this increase. As the UCLA FA blog has pointed out, receipts are actually behind projections. This increases the likelihood of Scenario B, which is the 6% increase. Looming in the background is the unidentified Scenario C, in which revenues are behind, the November tax increases fail, UC is subject to a further $200 M cut, and that tuition increase is doubled to at least the low double digits. 12% would bring the base tuition to about $13,700 next year, plus the "Student Services Fee" of $972, and campus fees -- check out the many fees! -- that would bring tuition to about $17,000 for in state students.

Friday, February 24, 2012

Another Round of UC Construction Bonds Backed By Tuition Hikes


The Daily Cal reports:
The California State Treasurer’s Office sold $860 million worth of University of California 100-year bonds, which will be used to fund capital projects at the university, to 70 large investors Tuesday.

The money raised from the sale of the bonds — which mature over the course of a century and pay about 4.9 percent semiannual interest rates in May and November — will be used for long-term UC capital projects approved by the UC Board of Regents, according to UC spokesperson Dianne Klein. The bonds will also fund individual capital projects at UC Berkeley, UC San Diego and UCLA, including a portion of the repair of Memorial Stadium, according to Klein.

(...)

UC bond sales are part of standard operating procedure and take place a handful of times each year, but this sale was unprecedented because of its 100-year maturation period combined with the large value of the sale, according to Tom Dresslar, director of communications at the treasury.

The 100-year bonds were designed to appeal to institutional investors, including insurance companies, hedge funds, banks and pension funds, whose interests span multiple generations, according to Klein.
The university is the real world. One positive effect of these bond sales is that they reveal -- if there were still any doubt -- the many and intimate ways in which the UC is tied to the world of Wall Street finance. These ties are the result of a series of conscious decisions made by UC administrators and the Regents to transform the university into a profit-oriented, revenue-generating institution. State funding has decreased, but the shift toward this privatized model, in which the university increasingly generates unrestricted revenues through student tuition hikes (themselves backed by student loans) on one hand and the exploitation of workers on the other, is not, or not only the result -- it is also a cause.

The Daily Cal article unexpectedly pulls a Meister and does a good job of outlining the economics of UC bonds by going back to a 2009 sale of $1.05 billion in construction bonds:
In August 2009, the UC announced that proceeds from approximately $1.05 billion in federal stimulus “Build America Bonds” sold to the public would help fund about 70 capital projects on all ten UC campuses.

In a press release following the 2009 bond sale, Moody’s, a ratings agency, explained the appeal of UC bonds in a shaky economy, since the university has the ability to raise its revenue by increasing student tuition despite state budget cuts.

“In-state tuition has increased dramatically,” the press release stated. “And the out-of-state market remains a comparatively untapped resource that could provide additional growth in tuition revenue should State funding be cut further.”
But they don't look as carefully at the bond report for the current sale, rated AA+ by Fitch. The first thing that becomes apparent is just how happy the bond raters are with the UC's financial managers:
WEAKENED STATE FUNDING: Recent reductions in state appropriations, and the potential for additional cuts through the intermediate term, are mitigated by UC's limited reliance on state operating support. Timely measures consistently taken by UC's 26-member regents and highly experienced management team during times of state fiscal stress provides further rating stability.
As Bob Samuels has been arguing for years, the UC gets its "marching orders" from the bond raters. Fitch is down with the UC's "highly experienced management team" because they've done exactly what Fitch wanted them to do. As students and workers at the UC, however, we aren't so happy with their tenure because we viscerally understand that we're the ones getting screwed. The university is being run for them, not for us.

The other thing that's useful about these bond reports is their honesty. They tell us what the UC administration is really thinking about doing, without funneling it first through an (admittedly flawed) public relations machine. Again, Fitch is happy with the UC's plans for dealing with the likelihood of future budget cuts from the state. In fact, Fitch thinks these budget cuts are a good thing because they increase the university's "operating autonomy." What this means essentially is less restrictions on what the UC can do with its revenue -- while state funds are restricted, meant to cover the university's instructional costs, private funds are not, and can be used for anything from capital projects to paying debt service on previous construction bonds. Fitch tells it like it is:
Appropriations declined a total of $750 million to about $2.27 billion for fiscal 2012, including a mid-year $100 million cut resulting from the state's ongoing revenue shortfall. UC took numerous steps over the past few years to offset the loss in state funds, including significant student fee increases, staff reductions and other cost savings initiatives. On a combined basis, these measures have enabled UC to close about 26% of the total fiscal 2012 budget gap (approximately $1.1 billion).

While the governor's fiscal 2013 budget proposal, currently under review by the state legislature, recommends no further cuts to UC, Fitch believes that state funding for higher education will face continued pressure going forward. The budget proposal is dependent upon various revenue generating ballot measures subject to voter approval. Should these measures fail to gain approval in November, the proposal calls for a $200 million appropriation cut to UC effective Jan. 1, 2013.

The university's management team continues to explore various options to offset reduced state aid, including working with the state on a potential multi-year funding agreement which would provide UC longer term stability in state support in exchange for increased operating autonomy. Options being considered under this agreement include specified general fund increases through fiscal 2016; an increase in the state's share of employee retirement plan contributions, both subject to voter approval of the above-mentioned ballot measures; and more regular, less dramatic increases in tuition.

UC continues to benefit from one of the most diverse revenue streams in higher education, and Fitch notes positively its low and declining reliance on state aid as a revenue source (12.1% in fiscal 2011). The university's other significant funding sources include revenue derived from the operation of its five medical centers (27.1%), grants and contracts generated by its substantial sponsored research activities (24.5%), and student-generated revenues, including tuition, fees, and auxiliary receipts (16.6%).
Straight from Wall Street to the UC: another round of construction bonds, another set of marching orders.

Sunday, December 4, 2011

From "Pepper spray nation"

Original post by Paul Rosenberg here.

"Behind the headline-grabbing brutality of the pepper-spray video lies a decades-long story of the gradual privatisation of California's public college and university system - even as resources shifted to building a massive prison system instead. On the one hand, students face skyrocketing tuition costs - up more than 1,000 per cent in just over two decades, if current plans go forward - while tax increases on the wealthy are anathema.

[...]

Exhibit A on the latter point is UC Davis Chancellor Linda Katehi, on whose orders the riot police were deployed. Katehi is both a member of the 1% and an overt supporter of police repression on campus. Although she has tried to disavow any responsibility for the pepper spraying of students, it has quickly emerged that she was a co-author of a report used to justify the recent repeal of a 1974 law, banning the police from Greek universities. That law was passed following the overthrow of a military junta. The repeal came just in time, earlier this year, to help suppress Greek protests against the imposition of harsh austerity measures.

As for her economic status, Katehi was hired in 2009 at $400,000 per year plus substantial benefits. That's the same base pay as the American President, and well more than double the pay of California's governor, who makes less than $175,000. Katehi holds numerous patents and her husband also teaches at UC Davis - more than enough to place her solidly in the 1%. Her salary represented a massive 27 per cent increase over the pay for the previous chancellor - the very same year that student fees were being hiked by 32 per cent, while classes were being cut. The reasoning was... well, it's not reasoning, really. It's just how things are done within the 1% - a procedure based on comparing pay for the heads of various different colleges, public and private, including Johns Hopkins, Yale and the University of Chicago.

[...]

Now UC Davis is a very good school, but even UC Berkeley isn't Yale. It's not so much a question of educational quality - it's a question of founding mission and purpose... which are not very well served by the sorts of people sitting on the Board of Regents, none of whom has a distinctive educational background. The UC system is part of a three-tiered college system - universities, state colleges and community colleges - that according to California's 1960 Education Master Plan is supposed to provide affordable higher education to every high school graduate in the state who wants a public college education. Indeed, technically, it's supposed to be tuition-free. But student "fees" now make a mockery of that. The 32 per cent fee increase mentioned above was just a tiny fraction of the enormous fee increases since 1992 - roughly 1/16 of the 534 per cent total increase in dollars through 2009 - or 1/10 of the total when adjusted for inflation. It's now even higher, and current plans would jack that increase up to more than 1,200 per cent over 1992 levels in just the next few years.

Fee hikes haven't been smooth. They've skyrocketed in stages as public funding from California's state budget has plunged in a series of successive budget crises. But the dynamics are more complicated than first meets the eye, as UC Santa Cruz politics professor Bob Meister explained back in 2009. There are actually incentives for university officials to welcome state budget cuts, explained Meister, President of the Council of UC Faculty Associations. State budget money comes with strings attached, prioritising education. But money from student, ironically, has no such restrictions, and hence is perfect for empire-building, he explained.

"How does UC sell $1.3bn in construction bonds immediately after declaring an 'extreme financial emergency,' slashing funds for teaching and research and cutting staff and faculty pay? By using your tuition as collateral," Meister wrote online at KeepCaliforniasPromise.org. "Higher tuition lets UC borrow more for construction even while it cuts instruction and research." And this is only the beginning, he explained.

"UC's most recent (post-"emergency") construction bonds are just the beginning of a long-term (10-15 year) plan to borrow very much more against very much higher tuition in order to fund individual projects that no longer have to be approved by the state or paid for out of each project's own revenue."

In short, rather than the university existing to serve the students, it's the other way round. From the Board of Regents' point of view, the students are - above all else - a revenue stream to secure Wall Street funding. Hardly a surprise, really, when you consider the makeup of the Board."