Category Archives: Finance

The money that makes academe tick.

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Berkeley Suspends Its ‘Global Campus’ Because of Budget Deficit

The University of California at Berkeley has indefinitely suspended its proposed “global campus” because of its budget deficit, the East Bay Times reported on Friday, even though the Berkeley chancellor said earlier this year that the project would be off-limits to budget cuts.

The chancellor, Nicholas B. Dirks, said in an open letter to the campus in February that although Berkeley was considering cuts to close a $150-million deficit, the planned global campus would be “entirely supported by …

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Berkeley Paid to Improve Image of Soon-to-Be-Ex-Chancellor

The University of California at Berkeley paid consultants more than $200,000 over the past year to raise the profile of the chancellor, Nicholas B. Dirks, who announced on Tuesday that he would resign.

The revelation, made by the San Francisco Chronicle, has echoes of a controversy that recently helped to topple the chancellor on the Davis campus, Linda P.B. Katehi.

Berkeley entered into a yearlong contract with the firm Williamsworks and a subcontractor on July 1, 2015. Among the goals, as stat…

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3 Prominent Universities Are Sued by Employees Over Retirement Plans

[Updated (8/10/2016, 11:00 a.m.) with responses from MIT and Yale.]

Yale University, New York University, and the Massachusetts Institute of Technology are being sued by employees who accuse the institutions of allowing them to be charged excessive fees on their retirement savings, The New York Times reported on Tuesday. The workers are seeking class-action status in the lawsuits.

Their complaints allege that the universities, which each have retirement plans with more than $3 billion in assets,…

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Community College’s Board Member to Resign After Weeks of Pressure

[Updated (8/7/2016, 10:41 a.m.) with the board's acceptance of the former chairman's resignation.]

A member of the Board of Governors of Metropolitan Community College, in Omaha, will resign following threats by the federal government to withhold student aid from the college if he stayed on the board, the Omaha World-Herald reported.

Fred Conley initially refused to resign last week, saying that instead he would depart from the board at the end of his term, in December. He gave up his post as ch…

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As a College Faces Loss of Funds, Its Board Chair Refuses to Resign

The chairman of the Board of Governors of Metropolitan Community College, in Omaha, has been under pressure to step down because of a legal situation that threatens the college’s ability to receive federal student aid. On Monday the chairman, Fred Conley, rejected calls for his resignation, saying he would instead serve the remainder of his term, through December, but not seek re-election, reports the Omaha World-Herald.

The legal situation arose after the U.S. Department of Housing and Urban De…

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U. of Michigan Board Chair Withdraws $3-Million Gift Over Naming Concerns

The University of Michigan’s board chairman has withdrawn a $3-million pledge to fund the construction of a new building over concerns that it would not keep the name of the building it is replacing, the only structure on the Ann Arbor campus that’s named for an African-American, the Detroit Free Press reported.

Mark Bernstein, the chairman, and his wife, Rachel Bendit, announced in April that they would help finance the $10-million building, which is slated to open in 2018. The building would …

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Citing Cost Concern, Wright State Pulls Out as Host of Presidential Debate

Wright State University is pulling out as host of the first presidential debate, between the presumptive party nominees Hillary Clinton and Donald J. Trump, the Dayton Daily News reports. In announcing his decision, the university’s president, David R. Hopkins, said he had been motivated by concerns over cost and safety.

University officials had estimated the cost of holding the event, scheduled for September 26 on the campus’s Nutter Center, to be as much as $8 million, $3.5 million of which it…

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Embattled Dowling College to Close After All

Administrators at Dowling College, a small liberal-arts institution on New York’s Long Island, have announced that it will shut down for good after a protracted attempt to stay afloat, the Long Island Press reported on Friday.

Dowling initially announced its closing at the end of May, but administrators then attempted to stave off closure by negotiating an agreement with Global University Systems, a company that provides capital to higher-education institutions and strengthens their internation…

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New Mexico State U. Will Eliminate 126 Positions to Close Budget Gap

New Mexico State University’s main campus, in Las Cruces, plans to cut 126 positions — 37 of which are filled — as part of efforts to mitigate a budget shortfall of $12.1 million, the La Cruces Sun-News reported. Of the 37 existing jobs to be eliminated, three are faculty posts and the rest are staff positions, according to CBS4 News.

In a memorandum to the campus, Garrey E. Carruthers, chancellor of the New Mexico State University system, wrote that the past few months had posed “serious financ…

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U.S. Investigates Bridgepoint Over Its Use of Federal Student Aid

Bridgepoint Education Inc., the for-profit owner of Ashford University, is under investigation by the U.S. Department of Justice over claims that it “may have misstated Title IV refund revenue or overstated revenue associated with private secondary loan programs,” according to a corporate filing on Tuesday.

According to Bridgepoint, the inquiry concerns whether the company violated the federal 90/10 rule, which prohibits colleges from receiving more than 90 percent of their revenue through feder…