Tag Archives: Higher Education

The Diversity Staff at the University of Michigan Is Nearly 100 Full-Time Employees, by Jon Militimore

The bureaucrats have taken over higher education. From Jon Militimore at intellectualtakeout.org:

There are various reasons for surging education costs, but the primary one is the expansion of university administration in recent decades.

Year after year, media note and sometimes bemoan the ballooning cost of higher education.

College Tuitiion Increase Chart

There is no doubt that the human costs of this rise are severe: Some 44 million Americans currently carry nearly $1.5 trillion in student loan debt, and the delinquency rate is 11 percent.

There are various reasons for surging costs, but the primary one is the remarkable expansion of university administration in recent decades. As Paul Campos, a law professor at the University of Colorado, wrote in the New York Times a few years ago:

“According to the Department of Education data, administrative positions at colleges and universities grew by 60 percent between 1993 and 2009, which Bloomberg reported was 10 times the rate of growth of tenured faculty positions.

Even more strikingly, an analysis by a professor at California Polytechnic University, Pomona, found that, while the total number of full-time faculty members in the C.S.U. system grew from 11,614 to 12,019 between 1975 and 2008, the total number of administrators grew from 3,800 to 12,183 — a 221 percent increase.”

Universities are large and require administrators to function, of course. The problem is there seems to be no end to the expansion. This point was recently illustrated by Mark Perry, an economics professor at the University of Michigan-Flint.

Perry, who also is a scholar at the American Enterprise Institute, used the University of Michigan as an example to highlight the rise of “diversicrats” (diversity bureaucrats) on today’s campuses. The numbers are astonishing.

1. The University of Michigan currently employs a diversity staff of nearly 100 (93) full-time diversity administrators, officers, directors, vice-provosts, deans, consultants, specialists, investigators, managers, executive assistants, administrative assistants, analysts, and coordinators.

2. More than one-quarter (26) of these “diversicrats” earn annual salaries of more than $100,000, and the total payroll for this small army is $8.4 million. When you add to cash salaries an estimated 32.45% for UM’s very generous fringe benefit package for the average employee in this group (retirement, health care, dental insurance, life insurance, long-term disability, paid leave, paid vacation, social security, unemployment insurance, Medicare, etc.) the total employee compensation for this group tops $11 million per year. And of course that doesn’t count the cost of office space, telephones, computers and printers, printing, postage, programs, training, or travel expenses.

To continue reading: The Diversity Staff at the University of Michigan Is Nearly 100 Full-Time Employees

ESPN and the Bursting of the Sports Bubble, by William L. Anderson

This article manages to tie in sports, higher education, and economics in an interesting and provocative fashion. From William L. Anderson at mises.org:

When the cable TV sports giant ESPN announced 100 layoffs recently, including letting go a number of high-profile broadcasters, a lot of people took notice, and well they should: things no longer are business as usual in sports broadcasting, and we are not even at the beginning of the end, and maybe not even the end of the beginning.

Like the slow crashing of the retail sector as online purchase firms like Amazon begin their domination, we are seeing a sea change in sports broadcasting and that is going to mean big changes are down the road not only for ESPN, but for all of the sports entities that depend upon the huge payouts that ESPN provides. To put it mildly, a lot of people are about to see their lives change drastically as consumer choices drive sports broadcasting in a new direction.

Enough with the superlatives. What is happening with ESPN, and why is it important? As Clay Travis of the sports website Outkick the Coverage has been writing for more than a year, the main ESPN business plan, the one that brings in the most revenues to the firm, is doomed to near-extinction, and there is nothing ESPN can do about it. Writes Travis:

In the past five years ESPN has lost 11,346,000 subscribers according to Nielsen data.

If you combine that with ESPN2 and ESPNU subscriber losses this means that ESPN has lost over a billion dollars in cable and satellite revenue just in the past five years, an average of $200 million each year. That total of a billion dollars hits ESPN in the pocketbook not just on a yearly basis, but for every year going forward.

It’s gone forever.

Since it began to grow in popularity in the late 1970s, cable (and later, satellite) television has offered its customers coverage with “bundles,” that is different payments allow cable subscribers to expand their viewership as payments increase. For example, a “basic” cable subscription would allow the customers to view, say, 15 channels including the ABC-CBS-NBC-PBS lineup plus other channels such as CNN or Fox. A higher-tier subscription would add other channels, including ESPN and its associated channels and others such as The Food Channel or assorted movie channels.

To continue reading: ESPN and the Bursting of the Sports Bubble