"While debt soars to $17 billion, University of California considers new policy on borrowing"
“I think that’s still the major vulnerability for UC,” said Regent Russ Gould, a partner at a financial services firm who serves on the regents’ new Finance and Capital Strategies Committee."
"Charlie Eaton, a former graduate student at UC Berkeley and now a Stanford research fellow, was the lead author of the Oxford journal article on the role of financing in higher education. UC began borrowing in earnest in the mid-2000s, he said, as part of a growth strategy recommended by advisers from the now-defunct financial services firm Lehman Brothers.
Eaton argues the university used up its debt capacity too quickly and didn’t spend enough of the money on projects needed to expand its enrollment — now a key priority for the state.
“We borrowed too much when interest rates were too high, and not enough borrowing was channeled to increase enrollment,” Eaton said. “If we hadn’t loaded up on debt for some of the wrong things prior to 2008, we’d have more capacity to borrow now.”"
(Tuition hikes? Hotels? Hospitals? Don't forget University of California Posts 3.4% Investment Loss in Endowment http://www.bloomberg.com/news/articles/2016-09-09/university-of-california-posts-3-4-investment-loss-in-endowment)
“The increased debt is tolerable as long as the university shows corresponding growth in revenue,” said Thomas L. Harnisch, director of state relations and policy analysis at the American Association of State Colleges and Universities
- Richard Blum (AGAIN!)
- Wm. De La Pena
- Gareth Elliott
- George Kieffer
- Sherry Lansing (AGAIN!)
- Monica Lozano (AGAIN!)
- Hadi Makarechian
- Eloy Ortiz Oakley
- Norman Pattiz (AGAIN!)
- John A. Pérez
- Bonnie Reiss
- Richard Sherman
- Bruce Varner
- Charlene Zettel
- Marcela Ramirez
- UC Regents Committees
- Staff Advisors, Faculty Reps, Designates
- Ex Officio UC Regents
- UC Alumni Regents
"If the University were a business, it would likely be the largest corporation in California."
"If The University Were A Business, It Would Likely Be The Largest Corporation In California"-Regents Minutes (2010)