Posted on 01/16/2015 1:02:35 PM PST by ThethoughtsofGreg
Time and time again, California proves itself to be a what-not-to-do handbook for states looking to responsibly balance their budgets. This reputation was clearly on display by the University of California Board of Regents’ decision to increase the cost of tuition by 25 percent over the next five years.
The increased tuition won’t be going to make improvements for students but rather will almost certainly go directly into funding for UC’s underfunded and mismanaged pension system.
The University of California Retirement Plan (UCRP) is facing a major shortfall. In making sure that it is funded adequately enough to pay current retirees while investing retirement money for current employees to be paid out once they retire, UCRP comes up $8 billion shy.
Like the broader California Public Employees Retirement System (CALPERS) and California State Teachers Retirement System (CALSTRS), which handle the retirement funds of most state employees and K-12 teachers respectively, the root cause of funding issues for UCRP is due to an outdated form of pensions that is common among the vast majority of states governments and municipalities.
(Excerpt) Read more at americanlegislator.org ...
Why don’t these things ever “force” a spending cut, or a pension cut. Just because some liberal hack university administrator or CA politician promises unrealistic pensions doesn’t mean that it has to be honored. That’s insanity.
To gain traction, this kind of analysis has to come from a source that cannot be so easily dismissed as being partisan.
Insanity?
It is unions
It is California
And you thought tuition was going up because universities spend too much money on socialist indoctrination and diversity training.
I’ve lost the reference, but a while back there was data posted here on the huge number of Cal public employees making over 100 grand per year on retirement, and quite a few over 200 grand.
It’s a feedback loop: pay public employees a lot of money, they contribute to Democrats, who get elected and vote to pay public employees a lot of money.
Sock it to the students.
Just don’t ask the faculty to pay more to finance their own retirement.
Ain’t California’s UC state system wonderful?
You can check out but you can never leave.
FMCDH(BITS)
This is why.
A) (this one isn't really important enough to dwell upon) Squander pension funds through mismanagement.
B) SAVE THE PENSION FUNDS by increasing tuition.
C) OFFER EASY STUDENT LOANS and federal grants to students.
D) FORGIVE STUDENT DEBT (because who can afford to pay that back anyway - it's just not fair.
E) DEMOCRATS SAVE THE DAY again, and again, and again.
F) Democrats get (re-)elected because of their humanitarian gestures.
G) (Hey, do you think we are actually going to EVER pay back the national debt?)
H) (fail) - WIN - WIN - WIN - WIN - WIN - (fail).
AND the citizen of California underwrite the costs of the UC and CSU systems. WHERE IS ALL THE MONEY GOING? To the Democrats in donations?
Cut the salaries of those running the schools.
Have them fly coach.
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