The Gang That Can't Count Straight: Responding To Uc's Responses
Saturday, May 11, 2024
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In reply to my Huffington Post article, “How Universities Became Hedge Funds,” Peter Taylor, CFO of the UC Budget called into enquiry my enquiry together with about of my claims. Taylor’s offset electrical load is that I misrepresented President Yudof’s explanation of why the UC arrangement lent the Earth $200 1000000 inwards the summertime of 2009 afterward the Earth cutting the university’s budget past times $600 million: However, if you lot await at the video of Yudof’s explanation of the deal, he says precisely what I indicated. Moreover, Taylor supports my claim that the academy would rather pass on structure rather than instruction past times stressing how the UC lent the coin together with hence it could drib dead on alongside several novel edifice projects: “UC did loan $200 1000000 to the Earth of California, but what Samuels failed to tell was that the Earth had stopped funding vital majuscule projects at 8 UC campuses, facilities essential to the UC education, enquiry together with populace service mission. The Earth spent that coin on xviii projects on UC campuses, including cutting-edge telemedicine facilities that volition allow medical professionals at hospitals to serve patients inwards rural together with piteous communities.”
The adjacent primal os of controversy is my claim that the UC lost $23 billion inwards its endowment together with pension funds. Taylor responds inwards the next way: “It’s laughable to compare UC endowment investments to elite person schools such every bit Harvard together with Yale, whose endowments – together with losses – dwarf UC’s. While it’s truthful that everyone lost coin inwards the global financial meltdown, the University of California lost several per centum points less than Harvard or Yale. Our investment property resources allotment was real different, together with much to a greater extent than conservative. Even inwards the best of times our highly restricted endowment adds simply 1 percent ($214 million) to our yearly operating income.” However, inwards my article, I wrote nearly the “pension together with investment portfolios,” together with if nosotros await at UC’s ain audited statements from September xxx 2007 together with info/COI_IAG_Perf_Summary_3-09.pdf">March 31 2009, nosotros meet that the consolidated assets went from $74.6 billion to $51 billion. Moreover, if nosotros await at the endowment performance inwards 2008, nosotros every bit good uncovering that the UC has been underperforming inwards comparing to almost all of the other major universities. In fact, Charles Schwartz has shown that since the administration of the pension investments was outsourced inwards 2000, the UC has performed far worse than Calpers together with Calstirs, the ii largest didactics pension funds inwards the state.
While Taylor claims that my article lacks facts, together with I should await at the UC’s budget documents, I convey shown that Taylor’s role continues to issue simulated information. For instance, inwards Yudof’s missive of the alphabet outlining the ask for a furlough plan, it is clear that he misrepresented the truthful financial condition of the university: “For the electrical current financial year, the Governor’s revised budget proposes a combination of former together with permanent State funding reductions totaling $816.6 million, $640 1000000 of which is offset past times the resources allotment of federal economical stimulus monies (American Recovery together with Reinvestment Act [ARRA]).The remaining shortfall inwards FY 2008-09 of $176.1 1000000 is partially offset past times the 7% pupil fee increment inwards that year, leaving a internet reduction for FY 2008-09 of $77.4 million.” This claim that the UC lost $176 1000000 inwards 2008-09 was used to justify reducing everyone’s salaries through the furlough plan, but if nosotros await at UC’s ain audited financial statements, nosotros uncovering that inwards 2008-09, they UC’s resources allotment from the Earth increased past times over $300 1000000 (Page 52 of the annual financial statement).
The furlough missive of the alphabet contained many like misleading representations: “While the lately approved 9.3% pupil fee increment for FY 2009-10 volition generate, internet of financial aid, $125.9 1000000 inwards revenues to offset the $619.3 1000000 reduction, the internet State funding shortfall of $493.4 1000000 for FY 2009-10 coupled alongside the $77.4 1000000 shortfall inwards FY 2008-09 requires immediate arrangement broad together with campus actions.” The offset affair to right is the notion that in that place was a $77.4 1000000 shortfall inwards 2008-09. The truth is that the UC got $3.2 billion from the Earth inwards 2008-09, together with the academy every bit good generated an additional $100 1000000 from the initial fee increase. What this fit every bit good does non include is the toll savings from reducing pupil enrolments past times 2,300; moreover, the 2009-10 decrease inwards Earth funding was offset inwards component subdivision past times an additional fee increment of $126 million, together with the add-on of to a greater extent than federal recovery money.
While Taylor attacks me for non looking at the UC’s budget documents, it should survive clear past times straight off that the UC’s ain documents are highly confusing together with oft missing of import pieces of information.
The adjacent primal os of controversy is my claim that the UC lost $23 billion inwards its endowment together with pension funds. Taylor responds inwards the next way: “It’s laughable to compare UC endowment investments to elite person schools such every bit Harvard together with Yale, whose endowments – together with losses – dwarf UC’s. While it’s truthful that everyone lost coin inwards the global financial meltdown, the University of California lost several per centum points less than Harvard or Yale. Our investment property resources allotment was real different, together with much to a greater extent than conservative. Even inwards the best of times our highly restricted endowment adds simply 1 percent ($214 million) to our yearly operating income.” However, inwards my article, I wrote nearly the “pension together with investment portfolios,” together with if nosotros await at UC’s ain audited statements from September xxx 2007 together with info/COI_IAG_Perf_Summary_3-09.pdf">March 31 2009, nosotros meet that the consolidated assets went from $74.6 billion to $51 billion. Moreover, if nosotros await at the endowment performance inwards 2008, nosotros every bit good uncovering that the UC has been underperforming inwards comparing to almost all of the other major universities. In fact, Charles Schwartz has shown that since the administration of the pension investments was outsourced inwards 2000, the UC has performed far worse than Calpers together with Calstirs, the ii largest didactics pension funds inwards the state.
While Taylor claims that my article lacks facts, together with I should await at the UC’s budget documents, I convey shown that Taylor’s role continues to issue simulated information. For instance, inwards Yudof’s missive of the alphabet outlining the ask for a furlough plan, it is clear that he misrepresented the truthful financial condition of the university: “For the electrical current financial year, the Governor’s revised budget proposes a combination of former together with permanent State funding reductions totaling $816.6 million, $640 1000000 of which is offset past times the resources allotment of federal economical stimulus monies (American Recovery together with Reinvestment Act [ARRA]).The remaining shortfall inwards FY 2008-09 of $176.1 1000000 is partially offset past times the 7% pupil fee increment inwards that year, leaving a internet reduction for FY 2008-09 of $77.4 million.” This claim that the UC lost $176 1000000 inwards 2008-09 was used to justify reducing everyone’s salaries through the furlough plan, but if nosotros await at UC’s ain audited financial statements, nosotros uncovering that inwards 2008-09, they UC’s resources allotment from the Earth increased past times over $300 1000000 (Page 52 of the annual financial statement).
The furlough missive of the alphabet contained many like misleading representations: “While the lately approved 9.3% pupil fee increment for FY 2009-10 volition generate, internet of financial aid, $125.9 1000000 inwards revenues to offset the $619.3 1000000 reduction, the internet State funding shortfall of $493.4 1000000 for FY 2009-10 coupled alongside the $77.4 1000000 shortfall inwards FY 2008-09 requires immediate arrangement broad together with campus actions.” The offset affair to right is the notion that in that place was a $77.4 1000000 shortfall inwards 2008-09. The truth is that the UC got $3.2 billion from the Earth inwards 2008-09, together with the academy every bit good generated an additional $100 1000000 from the initial fee increase. What this fit every bit good does non include is the toll savings from reducing pupil enrolments past times 2,300; moreover, the 2009-10 decrease inwards Earth funding was offset inwards component subdivision past times an additional fee increment of $126 million, together with the add-on of to a greater extent than federal recovery money.
While Taylor attacks me for non looking at the UC’s budget documents, it should survive clear past times straight off that the UC’s ain documents are highly confusing together with oft missing of import pieces of information.