Wednesday, August 24, 2016

At UC Berkeley "The full debate between privatization and its costs never happened. "

Includes:
Rebenching is not Berkeley's problem. So if the public system isn't sinking Berkeley, what is?

That would be a combination of public cuts, already mentioned, new costs incurred by campuses, and new costs that UCOP or the state has pushed onto the campuses in recent years. The new costs that UC campuses haven’t incurred themselves include:
  • Normal cost inflation.  VC Wilton estimated this as historically 3-4% per year, meaning the UCOP “deal” on state increases  (4% per year for a few years) is essentially a zero gain.
  • Capital projects.  The state has largely withdrawn from campus development.   
  • Pension contributions (up from zero to 14% of payroll since 2010).
  • Increased employer health care costs, including retiree health care.
  • Central administration, aka UCOP,  which is now funded via campus taxes to the tune of something close to 15% of state funding.
  • Subsidies for UCSF (a $130 million premium in enrollment-based allocations (Appendix A row J * row M)
There are also campus-based structural costs, particularly the practice of covering a large share of research costs (19% at Berkeley) with institutional funds. 

And,

This is in large part because of the managerial decisionism I won't discuss here, and also because, as Jacques Lacan would have expected, denial was an important part of the disclosure.  Wilton Part 1 disclosed budget strategy failure.  Wilton Part 2hid it in plain sight.  While former Chancellor Robert Birgeneau was a true believer who could effortlessly suture the contradiction, Chancellor Dirks was perhaps unsettled by the double message that UC Berkeley’s administration has been broadcasting for a decade: we must privatize; we are more public than ever. Were this so, he would naturally seem indecisive, as though he “embrace[d] ambiguity.”   In fact, privatization is ambiguous.  It wants private money, especially high net tuition, and to keep its public subsidies, and to keep its public-mission image. 

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