Sunday, April 4, 2010

State universities tap student fees for unintended projects - latimes.com

State universities tap student fees for unintended projects - latimes.com

State universities tap student fees for unintended projects

UCLA is using some student money for Pauley Pavilion; Cal State Sacramento is using such money to cover a bad investment.

Reporting from Sacramento - While California universities have faced round after round of crippling budget cuts and protests against increased fees have flared on campuses, administrators have tapped funds meant for classrooms and students to cover some extraordinary costs: losses on ill-timed real estate deals, loans to high-ranking officials and an ambitious construction project.

Experts say the moves, made without wide student knowledge or public oversight, show that administrators have put aggressive business plans ahead of the teaching mission. When things go wrong, they're dipping into student fees, scholarship funds and money meant for classes to pick up the tab.

"It's almost like they kind of lose sight of the core purpose of what they're there to do, and get excited by the opportunity to speculate with other people's money," said Steve Boilard, director of higher education for the state's nonpartisan Legislative Analyst's Office.

At UCLA, student fees are being used to save a plan to renovate Pauley Pavilion, home of the school's legendary basketball team.

In 2006, administrators launched a campaign to raise $100 million from private contributors to pay for the $185-million upgrade, which includes cushier seats, a high-definition scoreboard and expanded locker rooms. But when the fundraising effort fell victim to the recession, administrators changed the finance plan to include $25 million from student fees.

"Students really weren't involved in the process, beyond maybe some rubber-stamp committee," said UCLA Student Regent Jesse Bernal. "I don't think they know enough about it."

Most of the student money, $15 million, will come from fees approved by a student referendum in