UC must cut budget for 5 years to balance books
Since "all
options are on the table" it is only a matter of time before the
outdated retirement system is updated to a modern defined contribution
program.
https://www.washingtonpost.com/national/higher-education/chancellor-uc-berkeley-faces-deficit-difficult-decisions/2016/02/10/387b64f2-d010-11e5-90d3-34c2c42653ac_story.html
16 comments:
Dirks is a lying jacksss. 30% of undergraduates now at Cal are non residents. Denying almost 13000 Californians in the last 10 years. They must cut their damn exessive costs. All of the tuition increase in the past 20 years can be attributed to the hiring of administrators. FIRE rid of 25% of these. Reduce the salary of the other 75%. Problem solved.
Dirks simply misses the opportunity, Cal need not be an excellent, elite University for a few rich meritorious non residents. Far better it be inexpensive, merely adequate and overflowing instructing qualified California residents. Elite is overrated, that's for $tanford, Claremont, USC and Cal Tech. Berkeley's promise is to the masses. It did its job better when it taught lots of residents well enough, rather than visiting wunderkinds with brilliance. Cal should follow Cal Poly's lead. Lower tuition, excellent instuction, 95% residents. Cal for Californians.
Cal
1973
Fire administrators and almost everyone wins.
I stopped donating until Cal lowers its tuition and admits 95% residents again. Until then, Cal Poly Mustangs!
The governor, the legislature, alumni and California taxpayers have told UC Regents they are not happy with their choices.
All schools that serve primarily residents got the necessary increases. All except belligerent UC.
Dirks is supposedly a smart guy, clearing $600,000 k per year with benefits. Put that well compensated talent to work thete Chumley.
The tuition of 60 residents is neede to pay his total compensation. Eliminate 2 vice regents and admit 120 more residents.
JC and state college is the smart path.
...at least until UC finds its way again... Until then $UC to CSU, JC and K- 12, instead, that better serve California.
..and lest we forget, California wisely stopping the twin boondoggles of high speed rail and the giant Delta tunnels would free up tens of billions per yesr for wiser public investment.
UCRS pension contributions will strangle classroom instuction indefinitely. Promising something that they couldn't afford is the fatal blunder of most democracies.
Ray Dalio explains it most elegantly. Beyond ordinary business cycles, over long periods governments and institutions accumulate unsustainable debt. When it occurs, deleveraging is painful and dangerous.
Will California deleverage (default on) its pension obligation in your lifetime?
It's not a UC pension problem, although the same looneys who "privatized" the national labs will claim this on ideological grounds. It's a lot simpler than that - UCB is spending more and more on staff, and taking in less from students. The article is about UCB.
With negative government bond rates soon becoming the norm and pensions required to hold large bond position (along with some stocks), it won't be long now until all remaining pension in America go bust. Pensions need to make an annual return of about 7% to survive over the long term. That's going to be impossible to achieve in the future.
If you think the middle class is angry now, just wait until the remaining pensions go bankrupt and the government responds to the next financial crisis by seizing a percentage of your bank account funds and parts of your 401k. Look what happened to the people in Cypress about 3 years ago to get a picture of where things could be headed.
Fed rates and the national debt: Why rates might stay low
http://www.pgpf.org/analysis/higher-interest-rates-will-raise-interest-costs-on-the-national-debt
With negative government bond rates soon becoming the norm...
February 12, 2016 at 6:38 PM
You obviously do not understand what you are reading about "negative rates." That has nothing to do with any interest rates for public or commercial paper. Try to get a grip.
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