<p>If you look at state budgets, over the past couple decades, the money that used to be spent on public colleges has shifted to Medicaid and other medical assistance programs.</p>
<p>bclintonk: How much do these institute and special programs directors make?</p>
<p>
</p>
<p>^ Salaries depend on the school and the nature of the program. Research centers and institutes are often headed by regular faculty who may or may not get additional compensation for directing the program. Other special programs are headed by non-faculty administrators. I’m not suggesting that individual salaries are out of line—some could be, but I just have no way of knowing that. </p>
<p>I am suggesting that collectively, the proliferation of centers, institutes, offices, and special programs represents very substantial growth in college and university payrolls. At every college and university I’m aware of, administrative costs–mostly the cost of non-faculty administrative staff–have exploded over the last 3 decades, even as faculty salaries remained pretty stagnant. The result is that faculty salaries represent a declining percentage of college and university payrolls, and a declining percentage of college and university budgets.</p>
<p>The other thing about all these special programs is that, once created, they rarely go away. And so they build up over time, like barnacles on a ship’s hull.</p>
<p>As the following Washington Monthly story indicates, 40 years ago America’s colleges and universities employed far more professors than administrative personnel-- about 450,000 faculty were supported by 270,000 administrators and administrative staff. By 2005, the number of full-time equivalent faculty had grown to 650,000, consistent with growth in the number of college students over that period. But the number of administrators and “other professionals” grew to about 760,000, now outnumbering the faculty.</p>
<p>[The</a> Washington Monthly - The Magazine - Administrators Ate My Tuition](<a href=“http://www.washingtonmonthly.com/magazine/septemberoctober_2011/features/administrators_ate_my_tuition031641.php]The”>http://www.washingtonmonthly.com/magazine/septemberoctober_2011/features/administrators_ate_my_tuition031641.php)</p>
<p><a href=“http://www.preqin.com/docs/press/Buyout_Funds_Still_Hold_72%25_of_Companies_Purchased_in_2006.pdf[/url]”>http://www.preqin.com/docs/press/Buyout_Funds_Still_Hold_72%25_of_Companies_Purchased_in_2006.pdf</a></p>
<p>If the GP’s could have sold these dogs by now they would have. How these 06-07 buyouts turn out will have major impact on endowments.</p>
<p>Also prisons. In Wisconsin prisons now get more money than the UW System.</p>
<p>Based on my conversations with a professor at Cornell, I think that Cornell is actually being proactive in dealing with the problem over the past few years.</p>
<p>I’m pretty sure that they had significant internal cuts before their decision with respect to this aid reduction.</p>
<p>Largely ignored in any discussion about salaries: health care benefits.</p>
<p>[Princeton</a> Endowment Expected to Rise Less Than 5% in Year - Businessweek](<a href=“Bloomberg - Are you a robot?”>Bloomberg - Are you a robot?)</p>
<p>Was expecting more like a decline of 5%-be interesting to see the details and just how successful they have been in exiting PE like they claim.</p>
<p>^^^ Hopefully Bernanke just fixed that problem with his trusty old printing press …</p>
<p>[Harvard</a> endowment investment returns more subdued than previous two fiscal years | Harvard Magazine](<a href=“http://harvardmagazine.com/2012/09/harvard-investment-returns-more-subdued]Harvard”>http://harvardmagazine.com/2012/09/harvard-investment-returns-more-subdued)</p>
<p>[MIT</a> releases endowment figures for 2012 - MIT News Office](<a href=“http://web.mit.edu/newsoffice/2012/institute-endowment-figures-0914.html]MIT”>MIT releases endowment figures for 2012 | MIT News | Massachusetts Institute of Technology)</p>
<p>[MIT</a> releases endowment figures for 2011 - MIT News Office](<a href=“http://web.mit.edu/newsoffice/2011/endowment-0926.html]MIT”>MIT releases endowment figures for 2011 | MIT News | Massachusetts Institute of Technology)</p>
<p>Ok, MIT press release says endowment up 8% to $10.3B. Same press release last year says endowment $9.9B. I guess it takes an MIT graduate to figure out how that amounts to 8%. I guess they do some serious rounding at MIT.</p>
<p>The $10.3 B is the curent value of the endowment NET of the $500M distribution used to fund operations.</p>
<p>[Amherst</a> College Debt Cut by S&P as Top-Rated Schools Dwindle - Bloomberg](<a href=“Bloomberg - Are you a robot?”>Bloomberg - Are you a robot?)</p>
<p>S&P beginning to hammer colleges for issuing too much debt while having their endowment tied up in illiquid, hard to value alternative investments. Not much changed in 4 years.</p>
<p>[UPenn’s</a> endowment gains 1.6 pct in fiscal 2012 | Reuters](<a href=“http://www.reuters.com/article/2012/09/21/pennsylvania-endowment-idUSL1E8KLI5020120921?type=marketsNews]UPenn’s”>http://www.reuters.com/article/2012/09/21/pennsylvania-endowment-idUSL1E8KLI5020120921?type=marketsNews)</p>
<p>Thanx to Penn for reporting endowment increase not investment return. Sounds like Penn is awfully appreciative that their alternative asset managers are “reporting” gains. Not returning much cash but they are doing a heckofa job with their reporting.</p>
<p>Sm74, thanks for the links. </p>
<p>Amherst’s borrowing cost on new debt is still going to be very, very low.</p>
<p>[Moody’s</a> assigns Aaa rating to Amherst College’s (MA) $100.5 million Taxable Bonds, Series 2012A and affirms Aaa and Aaa/VMIG 1 ratings; the outlook is negative](<a href=“Moody's - credit ratings, research, and data for global capital markets”>Moody's - credit ratings, research, and data for global capital markets)</p>
<p>Moodys details some of the issues Amherst faces. One is that too much of their debt is short-term variable rate. Big problem if the rate environment changes</p>
<p>[Harvard</a> endowment dips slightly; overseas investments hammered | Reuters](<a href=“http://www.reuters.com/article/2012/09/26/harvard-endowment-idUSL1E8KQG2M20120926?type=marketsNews]Harvard”>http://www.reuters.com/article/2012/09/26/harvard-endowment-idUSL1E8KQG2M20120926?type=marketsNews)</p>
<p>Actually the value of the Harvard endowment went from $32B to $30.7B.</p>
<p>[Harvard</a> endowment declines to $30.7 billion, investment return flat | Harvard Magazine](<a href=“http://harvardmagazine.com/2012/09/harvard-endowment-declines-to-30-7-billion]Harvard”>http://harvardmagazine.com/2012/09/harvard-endowment-declines-to-30-7-billion)</p>
<p>More thorough explanation</p>
<p>the fact we middle class land up having kids 400K in debt is besides the point… this whole thing is so horrible.</p>
<p>400K–for what??</p>