Category Archives: Finance

The money that makes academe tick.

by

Pair Used IRS Data-Retrieval Tool in $12-Million Scam, Indictment Says

Two men were indicted on Wednesday on 23 federal charges related to a $12-million identity-theft conspiracy that used the personal information of students applying for federal financial aid.

According to the indictment, the men, Taiwo K. Onamuti, 29, of Doraville, Ga., and Muideen A. Adebule, 49, of Indianapolis, used the Free Application for Federal Student Aid’s data-retrieval tool, which allows students to electronically fill out tax information while applying for grants and scholarships. In…

by

Does State Support Have ‘Weak’ Connection to Tuition? Association Begs to Differ

The American Association of State Colleges and Universities is arguing against the implications of a new report from the American Enterprise Institute about the relationship between state funding for higher education and rising tuition at public colleges and universities.

The report, “Pennies on the Dollar: The Surprisingly Weak Relationship Between State Subsidies and College Tuition,” says state disinvestment in higher education has played a small role in the increasing cost of tuition. And th…

by

University of California Will No Longer Pay for Regents’ Dinners and Parties

The University of California will no longer pick up the tab for dinners and parties thrown by the university’s Board of Regents, the San Francisco Chronicle reports. The change in policy came hours after a report that the university had reimbursed regents to the tune of more than $225,000 for such events since 2012.

The regents threw parties and dinners at lavish hotels, the report said, and some of them were “poorly timed.” A recent event, which cost $270 a person on May 17, was held immediatel…

by

U. of Maine Approves a Restructuring of Its Presque Isle Campus

Trustees of the University of Maine system took another step on Sunday toward streamlining operations and reducing costs by approving a reorganization of the University of Maine at Presque Isle, the Portland Press Herald reports.

The campus, like many regional public institutions across the country, has seen enrollment shrink and has struggled to close budget gaps in recent years. With about 1,300 students, Presque Isle is the second-smallest campus in the Maine system. Under the reorganization,…

by

Mills College Declares Financial Emergency and May Cut 30 to 35 Jobs

Mills College, a liberal-arts institution for women in Oakland, Calif., declared a financial emergency on Tuesday as a first step toward dealing with financial challenges, including a projected $9.1-million deficit in the coming fiscal year.

In a news release and in a statement emailed to faculty, staff, and students on Tuesday afternoon, the college described the Board of Trustees’ approval of the declaration of emergency as a step that authorizes Mills to restructure all of its expenses in p…

by

College Official Unwittingly Tells Students That It May Soon Close

An administrator at Holy Cross College, in Indiana, mistakenly sent an email to the entire student body on Friday that paints a bleak picture of the small institution’s finances and mentions its possible closure. The alarming email, and failed efforts by the college to recall it, was reported by the South Bend Tribune.

“It may be that I will spend the better part of the coming school year closing down the college,” wrote the vice president for student affairs, Kelly Jordan, in the email. “All we…

by

Purdue’s Faculty Senate Seeks to Rescind Kaplan Deal

Saying Purdue University’s purchase of Kaplan University violated “both common-sense educational practice and respect for the Purdue faculty,” the university’s Faculty Senate voted overwhelmingly on Thursday to ask Purdue’s leaders to reconsider the deal.

Following a two-hour meeting, the Senate voted, 46 to 8 with one abstention, on a resolution calling on the president and Board of Trustees “to rescind any decisions, to the degree possible, made without faculty input.” The vote came just one …

by

Purdue U. Buys Mega For-Profit Kaplan U., Plans to Turn It Into a ‘Public University’

Updated (4/27/2017, 11:53 a.m.) with news of the finalization of the purchase and more details on the deal.

Purdue University’s Board of Trustees voted on Thursday morning to buy the for-profit Kaplan University, which is a division of the Graham Holdings Company. The surprise announcement was first made in a corporate filing by the company on Thursday morning.


For in-depth analysis of the deal, see this report by Goldie Blumenstyk. For a report on the view from students and faculty members at …

by

Janet Napolitano Disputes Finding That Her Office Held $175 Million in Undisclosed Funds

The University of California’s Office of the President did not disclose $175 million in its reserve funds to the university’s Board of Regents or California’s Legislature, according to a state audit released on Tuesday. The audit’s findings were disputed by Janet Napolitano, the UC system’s president, who wrote that figures in the audit had mischaracterized the office.

The audit found that the Office of the President had spent less than it budgeted while asking for funding increases based on pre…

by

Cal State’s Growth in Hiring of Managers Exceeds Other Staff, Audit Finds

The California State University system has increased its hiring of managers at a steeper rate than its hiring of other employees over the past 10 years, according to a new state audit.

And in a report on the audit released on Thursday, the state auditor, Elaine M. Howle, wrote that the system could not sufficiently explain why it needed all the new managers, including deans, head coaches, and vice presidents, among other positions.

From the 2007-8 to the 2015-16 fiscal years, the system’s growth…