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.)
online casinos in ontario australia, free clip art of gambling (Earl) spins or no deposit
bonus and united statesn online slots real money, or best
usa poker apps
bet united states online secret of casino delfino (Candida) bonus, best canada online pokies and online poker united
statesn express, or no wagering casino uk
legal Gambling on Website
sites in australia, how to memorize united statesn roulette wheel and jackpot casino australia,
or top online pokies nz
australian online casino apps, 888 casino rewards code bonus 2021
– Aundrea, canada promo
code and dollar 5 deposit online casino australia, or real
poker online australia
free slots united states, web gambling usa and free bonus no deposit uk slots, or what online
gambling is legal in united states
Here is my blog; macau casinos (Ann)
australian online casino apps, online bingo slots uk and real money liar’s dice gambling rules online united
states, or free spins no deposit on registration nz
mid united states casinos, united statesn original slot machine game and gambling
times usa, or new thunder valley casino atm (Hollie) canada
online poker that takes united statesn express, united kingdom online
casino free bonus no deposit required and roulette
australia rules, or gambling facts australia
Feel free to surf to my web page; superball
keno hack (Gladys)
online casino legal united states, bitcoin gambling united kingdom and
omak casino – Marsha
– gananoque ontario canada, or dragon link online pokies canada
deposito minimo 5 euros casinos
Look into my web-site … el casino salteras [malinavill.Hu]
usa usd 200 no deposit bonus 200 free chip no deposit bonus codes 2021 australia (Aleisha) spins
2021, united statesn original slot machine game and casino gananoque ontario canada, or online bingo usa promotions
is gambling legal in australia, online casino pokies australia and
play pokies online canada, or feather falls casino promotions, Geneva, in milwausaee wi
best gambling game sites uk, new online casino canada no
deposit and Indian Casinos Cheat At Blackjack
in saskatchewan united states, or best casino cities in united kingdom
australian real money pokies online, free money
online casino canada and hausaos dojo slot online real money no deposit bonus, or new zealandn eagle free slots
Also visit my webpage costa rica gambling regulation, Billy,
kasyna online lublin
Look into my website – kasyno klarna szybka wypłata (Veola)
giochi d’azzardo Roulette con moltiplicatore carte napoletane
free australian pokies wheres the gold, gambling northeast usa and online gambling market share uk, or
usa rivers casino app promo code no deposit bonus
Hola! I’ve been following your web site for a while now and finally got the bravery
to go ahead and give you a shout out from Humble Tx!
Just wanted to say keep up the great job!
Also visit my web page :: blackjack practice free
mejores juegos de tragamonedas Casino
casino sin descargar ni registrarse
hacienda premio casino palermo ruleta – Mathias,
casinos en madrid este
my web page … casino con giros gratis de bienvenida,
Clement,
blackjack bonus overzicht
diemen
new zealandn online casinos pokies, biggest Is Ajax Downs Casino Open Today in ontario united
kingdom and new zealand gambling sites, or pokerstars blackjack australia
jackpot Quanti Tipi Di Slot Esistono questa sera
I have read so many posts regarding the blogger lovers except this paragraph is truly a nice paragraph, keep it up.
xnxx
free bingo united kingdom, top usa casino sites and roulette australia rules, or best uk casino offers
Also visit my web-site: blackjackinfo (Charis)
casinò vicino a me
Here is my website :: migliore slot online [Halina]
casino vklad přes litecoin – houstonianhousewifediaries.nl – s
bonusem 100%
quali numeri escono più spesso alla roulette
Feel free to surf to my website; Bang gioco carte
gambling costs in australia, 2021 online casino In gulf shores new zealand and bingo united states no deposit bonus,
or play online pokies usa
uk poker tour, best payout online crown casino accommodation voucher
(vla2.softec.vip) usa and usa slot festival, or new zealandn online pokies min $5 deposit
casinos australia no deposit bonus, uk online slots
sites and Type Of Casino Games List no deposit bonus codes canada
2021, or real money slots new united states
online gambling sites in the usa, united kingdom no deposit signup bonus casino and are there casinos
in montreal united kingdom, or paypal online casino uk
Stop by my webpage; gamblers anonymous south africa; Austin,
top casino in canada for real money, casino sites usa no deposit bonus and australian poker machine online, or bet online casino uk
Also visit my web-site :: excalibur 5 dollar blackjack, Consuelo,
que edad puedo entrar al maquinas de casino que mas
pagan (Shay)
top 10 play baccarat online live free [Mohamed] casino sites usa, do you
have to pay taxes on gambling winnings in australia and new usa casinos free spins,
or new zealand real money slots
native united statesn gambling rights, slot payback info united states and turtle creek
casino age to get in (Rosalina) apps
real money australia, or free spins goukos quest
giochi d’azzardo moderni
Feel free to surf to my blog … gioco dei dadi regole,
Latrice,
eventi ca’ noghera casinò
Stop by my web site – european roulette Giocaretech
gambling legal in canada, new zealandn roulette
table and arcade slot machines for sale uk, or slot machine sales
uk
Feel free to surf to my homepage: tarzan casino game online
una giocata alla roulette
Look at my site; burraco online; Bernd,
nel gioco della roulette i numeri vanno da 0 a 36
Take a look at my blog post :: macchine videogioco (pavproconsulting.Com)
casino gratis para pc, Concepcion, de juego torrequebrada sa
play online poker united states, gousaos quest free spins no deposit and united kingdom
friendly online poker sites, or new casino uk
Here is my page :: ukraine gambling website
slot da 1 centesimo
Stop by my web page bingo digitale
la roulette
Visit my page: high Five Casino slots
quanto paga la roulette americana
Here is my web site … blackjack Vincita
poker tournaments 2021 united states, best online casinos new zealand and value of casino chips (Jerrod) apps
for real money australia, or casino in australia near detroit
Hello to all, since I am truly keen of reading this blog’s post to be updated regularly.
It consists of nice stuff.
Ahaa, its good discussion on the topic of this paragraph here at this weblog, I have read all
that, so now me also commenting here.