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Paying for Some Guy’s Luxury Seat

University students are young, inexperienced. And they’re not going to be at your university for long. You can take advantage of them.

You can take advantage of them because they’re unlikely to have the time or inclination to understand the workings of your school’s complex organization.

Take student fees. They’re kind of an abstraction, aren’t they? Students pay tuition, and then on top of that of course they have these fees…

But what are they for, exactly? How many universities really break down the numbers?

UD‘s grateful to Elizabeth, a reader, for alerting her to this article

http://www.latimes.com/news/local/la-me-student-funds4-2010apr04,0,2506603.story?track=rss

in the LA Times about various abuses of student fees at some public universities in California. Here’s one of three examples:

At UCLA, student fees are being used to save a plan to renovate Pauley Pavilion, home of the school’s legendary basketball team.

In 2006, administrators launched a campaign to raise $100 million from private contributors to pay for the $185-million upgrade, which includes cushier seats, a high-definition scoreboard and expanded locker rooms. But when the fundraising effort fell victim to the recession, administrators changed the finance plan to include $25 million from student fees.

“Students really weren’t involved in the process, beyond maybe some rubber-stamp committee,” said UCLA Student Regent Jesse Bernal. “I don’t think they know enough about it.”

Most of the student money, $15 million, will come from fees approved by a student referendum in 2000 to maintain two older campus buildings that house gyms and student centers. The remaining $10 million had been set aside for seismic repair of student facilities.

Using that money to renovate the arena “seems like a strange priority,” said long-time UCLA fundraiser Richard Bergman, who originally chaired the Pauley Pavilion campaign. He said he was summarily dismissed last year after complaining about several aspects of the project, including the dip into student pockets.

… Bergman said that when money got tight, administrators should have scaled back their ambitions.

Steve Olsen, UCLA’s chief operating officer, acknowledged that the referendum approving the fee included nothing about Pauley Pavilion.

… Few students will be able to afford a good view at the renovated Pauley, where seats between the baskets are expected to cost more than Lakers tickets, Berman said. Season tickets will require a one-time fee in the tens of thousands of dollars….

Margaret Soltan, April 4, 2010 9:52PM
Posted in: the university

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3 Responses to “Paying for Some Guy’s Luxury Seat”

  1. david foster Says:

    Maybe there need to be amplified financial disclosure requirements for universities, to wit: A document of no more than 10 pages, in a standardized format, that shows the flow of funds in a way that people without an accounting background can understand. How much came from student fees, from tuitions, from tax funding, from contributions, from athletic ticket sales, etc…and how much went to professors salaries, how much to administrative salaries, how much to edifice construction & maintenance, how much to athletics, etc? I’m picturing a fold-out page with “sources of funds” on the left side and “uses of funds” on the right, with lines in between showing the flows.

    Universities presidents could be required to certify the accuracy of this financial statement under penalty of severe prison terms, as is now the case with executives of public companies.

  2. GTWMA Says:

    That’s not a bad idea, David. But, the Sarbanes-Oxley rules that came in on the heels of Enron didn’t prevent Lehmann or others from engaging in pretty interesting practices. The rules are only as effective as the enforcement. And, as the Bear Stearns case shows, the enforcement has some pretty challenging issues in making cases.

    But, the rules would be a start, at least.

  3. theprofessor Says:

    What amazes me is how easily student “leaders” are rolled by academic administrations. There is more fight in a road-killed rabbit than most of them.

    It would be good to have more standardized reporting, but as my dear old dad used to say, figures don’t lie, but liars do figure. My experience is that the administration can make any program appear to be losing money regardless of how much it brings in, and it can eliminate or at least minimize the losses in ones it wants to support.

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