"Financial pressures" were one of the reasons cited for the forced resignation of the University of Virginia's first female president. The decision "stunned the campus" and even those "attuned to university politics" were caught off guard.
University Rector and CEO of a Real Estate Development firm, Ms. Helen E. Dragas noted that there was a "philosophical difference of opinion" that led to a "mutual agreement" for President Teresa Sullivan to step down on Aug. 15. Dragas continued to claim vaguely that the university faces "hard decisions on resource allocation and a higher education environment," as reported by insidenova. The actual reasons have not been disclosed.
U. Va has an endowment fund with a current market value of $5.43 billion. "Asked why Dragas cited financial pressure as a factor in the resignation given the size of the endowment, Wood said the university does not use those funds for daily operations and that the use of about 70 percent of the endowment is restricted by donors." To put it in perspective, 30 percent of the endowment fund is still well over a billion dollars. A billion dollars equals a thousand millions, but apparently that is not enough for U. Va.
Sullivan had a sweet deal; she was hired under a five-year contract with annual compensation of $680,000, including a salary of $485,000, deferred compensation of $180,000, and a car allowance of $15,000. Additionally, tuition rates have drastically surpassed the rate of inflation, as seen by this chart:
Bloated endowment funds are nothing new, with Harvard having the largest endowment fund at over 31 billion dollars, but many universities also have well over one billion dollars in their endowment funds. It is amazing that despite all of the money being hoarded by some universities, they still claim financial difficulties while paying their staff exorbitant wages.
Interestingly, over 2,000 college professors signed an Occupy Wall Street petition specifically targeting the so-called 1%. The petition read, in part, "We stand united with the 99% to take back our economy and government from the 1%." The average annual salary college professor earns an ironic $99,000.
Dragas continued, "We see no bright lights on the financial horizon as we face limits on tuition increases, an environment of declining federal support, state support that will be flat at best, and pressures on health care payors." The claim of financial pressures of the university ring hollow.
As one article stated in reference to universities,
"The business model is broken. Administrations are bloated, faculty are protected by tenure, innovation is lagging, costs are out of control and tuitions are soaring. Students and graduates have accumulated $1 trillion in student-loan debt. For the first time forever, parents, students and outside observers are questioning whether a college education is worth what you have to pay to get it."
Ms. Sullivan stated in a letter, "Although the board and I have a philosophical difference of opinion, I will always treasure having had the opportunity to work with so many gifted faculty and staff, talented students, and loyal alumni." Ms. Sullivan's severance package is being developed. Clearly, there is a disconnect from reality with many of these universities, who are doing quite well, in comparison with other industries, and yet seemingly escape the "soak the rich" rhetoric and are in fact, often actively perpetuating it themselves.
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The Boston Globe - Harvard University paid its president, Drew Gilpin Faust, $775,043, including benefits, for the 2007-08 fiscal year, her first year on the job, according to the university's annual Internal Revenue Service filing released yesterday. It was the first time Faust's salary was made public.
The amount reflects $640,000 in cash compensation, $81,304 in moving and other expenses, and $53,739 in benefits. Harvard provides its president with a home on campus in addition to her compensation.
Faust's salary falls far below what several other private college presidents in the area earn
see more - http://www.boston.com/news/education/higher/articles/2009/05/16/harvard_president_made_775k_in_first_year_on_job/
"We see no bright lights on the financial horizon as we face limits on tuition increases, an environment of declining federal support, state support that will be flat at best, and pressures on health care payors," she said.
Most likely as in other schools, the majority of costs are in salaries.
It bugs me that the federal government is getting involved in setting caps to tuition. Let a college or university charge what people will agree to pay. If the government wants to limit the amount that they'll guarantee in loans, fine. (I don't think they should be doing that either - getting involved in the loans..) But colleges should be able to charge tuition rates as they choose. If they're so expensive that no one can afford them, perhaps then they'll learn to cut costs. :)
"Clearly, there is a disconnect from reality with many of these universities, who are doing quite well, in comparison with other industries, and yet seemingly escape the "soak the rich" rhetoric and are in fact, often actively perpetuating it themselves."
Can we say E L I T E? Maybe even... communist E L I T E?
The problem with the HUGE student loan debt goes right back to the HUGE college administration bureaucracy that ballooned when the government got involved in student loans. Once the government gets involved with ANY "social remedy" those involved see "deep pockets" and an unlimited amount of never ending money. The problem with student loan debt is a result of skyrocketing tuition fees, a result of the ballooning college administrative bureaucracy. THEY are the ones who benefit under communism.
"Why is it, for example, that homeschooling is statistically more effective?"
Ah, because the "teacher" ACTUALLY cares about the student learning something. What we have now in the "schools" is indoctrination.
Oh, and I wasn't home-schooled, I just know of brilliant kids who have been.
On average, home schoolers out-perform their public school peers by 30 to 37 percentile points across all subjects.
Imagine if it were you who had the important information that needed to get out there, the information that could have saved us from what we have today.
I have about 10 articles saved on the topic "McCarthy was right." That's why I jump on it when a leftist bring up his name to prove one of their non-points. Of course he, as all human beings was flawed. And, I'm sure he got caught up in his own frenzy. And, once he got into it and after a few years, I don't doubt that even the communists fed him a few innocent names in order to discredit him. When he was saying there were at least 300 communists who had infiltrated all aspects of our government and Hollywood, in reality it was more like 3,000 communist spies. The Venona project information in this link gives you a pretty good idea of the magnitude of the problem. A couple of years ago I read some of a book that was written by the men who traveled to the former Soviet Union to scour over the archives and translate it all from the Soviet communists' view. I went into great detail as to how the spies and operatives were funded, their missions and goals. It included going through the KGB files too. That's why I never let any leftist get away with trying to say it never happened and the communists don't exist anymore. They are ignorant or they are lying.