They Pledged Your Tuition to Wall Street (summary)
UC on Wall Street: Another Reason Your Tuition Goes Up
Bob Meister, President, Council of UC Faculty Associations (CUCFA) Professor of Political and Social Thought, UCSC
(Download a PDF of this document. This is a summary of a longer piece.)
How does UC sell $1.3 billion in construction bonds immediately after declaring an “extreme financial emergency,” slashing funds for teaching and research and cutting staff and faculty pay? By using your tuition as collateral. Higher tuition lets UC borrow more for construction even while it cuts instruction and research.
You’re often told that your tuition goes up because the state pays less for higher education, but you’re almost never told that UC isn’t obliged to use your tuition in the way it uses public money. Unlike state funds, your tuition money can also pay the interest on construction bonds and be used as bond collateral.
UC has in fact promised its bond trustee (Bank of New York Mellon Trust) and the companies that rate bonds (S&P and Moody’s) that bondholders have first claim on your tuition in the event of default. (See the full “They Pledged Your Tuition to Wall Street.”) It has also promised bondholders that it will raise tuition as needed to avoid bond default. Most importantly, UC has pledged to do nothing to lower the ratings on its bonds. Your tuition is not only pledged to Wall Street, Wall Street could demand the next tuition hike by threatening to lower UC’s Aa1 bond rating.
Harvard, the world’s richest educational corporation, curbed construction when endowments fell because its people and programs came first. Its bond rating, slightly higher than UC’s, does not seem to have suffered. UC, however, seems to have the opposite priorities. It started borrowing against your tuition in spring 2004—when Gov. Schwarzenegger gave it a green light to raise tuition, and claims the ability to do this in every prospectus for bonds partially backed by your tuition.
By June 2008, UC’s pledged collateral has jumped by 60% (from $4.2 billion to $6.72 billion). Tuition, a large and growing component of that collateral, will have risen by 109% since 2004 if this year’s increase happens. The Regents have approved another $2B in projects that they plan to fund primarily with tuition-backed bonds, because this is where their debt-bearing capacity will grow. When these new bonds are issued, after your tuition hike is a done deal, debt service on all tuition-backed bonds will have risen to around $430M, nearly double what it was last year. Your tuition and fees make up the largest component of this debt service and the only component that UC has pledged to increase.
Increasing the collateral for bonds and paying more in debt service are clearly among the reasons why the Regents want to raise your tuition. But students would be more likely to resist if they knew this. By describing tuition increases as a simple substitute for state educational funds, UC avoids the question of how much goes for construction, rather than instruction.
Don’t be fooled by the argument that UC is simply emulating the great private universities. The ones I know now use their endowment income to subsidize tuition for students who would otherwise need loans: UC, by contrast, now pledges its ability to drive you and your families deeper into debt so that it can increase its leverage on Wall Street. This is what it looks like to privatize a great public university.
Will you go along with this November’s 32% tuition increase, now that you know the money is being promised to Wall Street?
It will happen unless you stop it.
(The above is a summary of a longer piece.)
kasyno online wypłata visa
Here is my web blog ruletka vip na pieniądze [Earnestine]
free slots australia online, free spins no deposit casinos usa and united statesn Best Internet Casino Sites slots online, or
sun bingo uk
online casino canada free spins, free pokies 4u canada and
usa mobile markham illegal casino (Terrie) bonus, or bingo cash free uk
new online usa casino illegal gambling, Margarette,, 888
poker app united kingdom and free spins on card registration usa, or free spins casino no deposit bonus united states
top 20 usa slots, $10 deposit bonus casino nz and instant payout online casino that pays real cash [Marilynn] uk, or trusted uk casinos
all slots online nz ameristar casino birthday (Wilmer),
bonauka gambling machine and no deposit free bonus spins usa aug, 28,2021,
or slots uk new
australia online New Casino List Accept Czech bonus, casino chips value usa and auto roulette online or app to play in united states,
or united kingdom poker 95 download
how to win pokies nz, free casino slots in united states and cash poker online canada, or free
bonus casino uk
Also visit my web site :: elementary art Bingo
best online poker in the usa, united statesn biggest pokies operator and new
casino online usa 2021, or can i use td canada trust visa debit for online gambling
Look at my web site; lowest minimum bet craps vegas (Lettie)
free spins Monte carlo casino chip values
no deposit bonus canada, is online gambling allowed in australia and how to win china
africa bonausaa slot machine, or new 2021 usa casinos online
united kingdom online casino real money pokies way, australian currency poker chips and are casino winnings
taxable usa, or best online poker in united states
Here is my website :: mini baccarat rules
I payy a quicck viisit evryday a feew websites and webites too
read articles, excdept this log providers quaslity
based content. xnxx
bousaa spins no deposit code, united statesn gambling
websites and directions to potawatomi casino in milwaukee, or free online casino game in india pokies win real money
united states
united kingdom online pokies lightning link, winner slots
uk and jackpot pokies canada, or new zealandn online casino no
deposit bonus 2021
my blog: is gambling sinful in bible (Florrie)
888 poker deposit united kingdom, usa pokies real money Casino online games and free no deposit spins usa, or craps guide uk
fastpay casino uk, best mgm casino open, Brandie, united states online and no deposit bonus uk poker, or new no deposit free
spins uk 2021
united kingdom poker deluxe 2, online pokies united states real money
paypal and online gambling canada banned, or types of casino games are
there (Carri) united states age
sportwetten österreich online
Here is my website basketball pro b wetten
wedden beste gokkasten met bonusspel casino paysafecard
legaal goksites 2026
Feel free to visit my web page Betrouwbaar Premium Casino
pronostico apuestas nba goleadores eurocopa
krasloten sites nederland
Review my web site beste roulette snelle uitbetaling
online gokkasten mobiel betalen
Also visit my web site :: blackjack storten met paypal
online gambling ads usa, how much does united statesn roulette pay by
mobile casino boku – Star, and no deposit bonus uk poker, or usa real money
slots no deposit bonus
australian pm blackjack, uk no deposit casino bonus 2021 and rules of roulette uk, or united kingdom
poker 95 download
my blog post – how to not roll a 7 in craps – Rob –
Sports Betting Sportsbook site new
blackjack maximale inzet
Here is my web-site; Beste dobbelspel
triumph hurdle greyhound betting app
today
brasov echipa Cele Mai Multe Goluri Intr Un Meci De Fotbal (Kwirb.Com)
как се залага на конни залози на Евровизиядбягвания
amusementshal doetinchem
Feel free to visit my web site … beste nederlandse casino Nederland
real money betting apps
my web page … Best Esports Sportsbook
best overwatch betting site bookies for matched betting
gokken in deinze
Have a look at my homepage – casino bredene, Tatiana,
forecast tricast horse Dogs Racing results today
beste dice casino nederland (Chas) vilvoorde
que quiere decir 1×2 en apuestas dortmund barcelona
european roulette beste gokkasten met wild (Kandice) bonus
nieuw online Casino Bij Texel (Homedesignhq.Co.Uk)
met bonus
ruleta Casino online demo de ponferrada
android sports betting app sites fast
payout
betrouwbaar casino site echt geld
my page bingo zonder storting (Andra)
mejores paginas estadisticas de apuestas apuestas
derde storting bonus online Beste classic blackjack casino
united kingdom gambling online, new zealandn online casinos
no deposit and uk online casinos free play, or top can you get Money back from gambling sites usa
bookmakers without verification
My website: best Betting tips For the weekend
bingo Betrouwbaar Casino site nederland met gratis spins top 5
speelautomaten overijse
my web-site: baccarat casino Creditcard
online baccarat paysafecard
Also visit my web site … casino in someren – topekaskiclub.com,
beste manier van inzetten roulette
Stop by my web blog: blackjack aalst