The Truthful Financial Acre Of The Uc System
Tuesday, May 6, 2025
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If y'all desire to know the truth close the University of California’s finances, at that topographic point is no amend document than the latterly released (11/19/2009) Moody’s bond rating for the UC system. First of all, it must hold upwards pointed out that this study was released on the same solar daytime that the Regents voted to increment pupil fees 32%, as well as equally the UC Santa Cruz Professor Bob Meister has shown , the expansion of the pinnacle earners inward the UC arrangement has been supported past times the combination of increased pupil fees as well as the diversification of revenue streams. In 2008, at that topographic point were over 3,600 people inward the arrangement that made over $200,000, as well as the full compensation for the people earning inward a higher house 200K increased 80% inward only 2 years (from $640 meg to $1 billion). Although Moody’s does non touching the topic of compensation inward its report, it does let on how the UC produces as well as hides its profits: “We aspect the University to sustain favorable operating performance across the System, driven past times highly diversified revenues as well as a focus on operational efficiencies. UC had generated an average operating margin exceeding 4% through FY2007. Beginning inward FY2008, the University was required to study expenses associated amongst its post-retirement healthcare hit goodness plans leading to ascension operating deficits based on Moody's approach to calculating world academy operating margins. In FY2008, the margin was negative 3.1% amongst the deficit ascension to 6.1% inward FY2009. Operating cash menstruation margin, adjusting for the non-cash component subdivision of the post-retirement wellness expenses, was 11% as well as 9% respectively.” The translation of this disputation is that field on the books it looks similar the UC is losing money, 1 time nosotros exclude the retiree healthcare accounting requirement, the UC has been averaging a 10% profits margin. I would add together that inward 2008, the pinnacle 2% of the UC earners made 10% of the full compensation.
With this construct clean mouth of financial health, nosotros come across why the UC does non stimulate got a budget crisis, as well as how it has used the full general economical downturn equally an excuse to funnel coin into the profit-making sectors, which results inward the increased compensation of a little minority of workers at the expense of everyone else. We equally good come across hither why the UC wants to increment pupil fees inward guild to accept on to a greater extent than debt then it tin leave of absence on to expand as well as grow. The combination of increased profits as well as augmented debt turns the UC into a giant hedge fund that reduces the pay for the bulk of the employees equally it pushes coin to the top. I am sad to say it, but to a greater extent than nation coin volition non fix this problem.
With this construct clean mouth of financial health, nosotros come across why the UC does non stimulate got a budget crisis, as well as how it has used the full general economical downturn equally an excuse to funnel coin into the profit-making sectors, which results inward the increased compensation of a little minority of workers at the expense of everyone else. We equally good come across hither why the UC wants to increment pupil fees inward guild to accept on to a greater extent than debt then it tin leave of absence on to expand as well as grow. The combination of increased profits as well as augmented debt turns the UC into a giant hedge fund that reduces the pay for the bulk of the employees equally it pushes coin to the top. I am sad to say it, but to a greater extent than nation coin volition non fix this problem.