Tuesday, March 9, 2010

Living in Fantasyland

Victor Davis Hanson dissects the mind-set of those on the receiving end of California largesse:

Fantasyland
I am looking over a pile of form letters and going over emails of anguish, all decrying the cuts in state government. Indeed, I just got my regular alumnus email note from the UC system — outraged over the destruction of the university through massive budget cuts. Of course, there is very little self-reflection in all of this furor. Not one of these notices suggests, “There is no money left. It does not grow on trees. Look in the mirror.”

You, the Greedy — Not Us, the Anointed

No, nothing is much said about the gargantuan number of UC administrators, their pay, the percentage of administrative costs in the budget, the number of non-academic employees serving in the system, or any explanation why the rate of annual increase in the university budget has consistently over the years exceeded the rate of inflation — in many years at twice the rate of inflation. Taxes climb; guaranteed federal loans that pay tuition expand; state borrowing increases; standards decline; admissions increase; life is good — so why worry?

“They” did it!
Instead the modus operandi is to cite students turned away, classes canceled, programs slashed — never any sense that the first cuts should be vice chancellors, associate provosts, assistants to the president, and other top echelon administrators — absences in many cases that would not affect the quality of instruction. Slash UC administrators by 50%, make all UC professors teach 2 classes per semester (those at CSU teach 4), cut out “support” personnel in various centers, end tenure — and at least some of the crisis would ease.
From my 21 years in the CSU system, I can attest that most of the “centers for…” and “assistants to” and “offices of” could easily be terminated. Both UC and CSU have vastly increased the percentage of non-academic, non-teaching expenditures in their budgets — the expanding number of non-instructional employees subsidized by both increased taxes and the exploitive use of part-time and graduate student instructors, who teach at well less than half the pay of normal faculty and now at some campuses account for nearly 40% of the total offered units. (Remember that the next time a tenured professor rails about pay inequity at Wal-Mart).

Protests everywhere…
In general now, University of California students are furious with tuition raises, rioting even at Berkeley. Teachers are angry about cutbacks. State employee unions blast the airways with ads complaining about a scarcity of funds.

So bear with me with a bit.
The cost to attend a University of California flagship campus — room, board, and tuition — is about a third of what is charged by a private, comparable institution in California like Stanford or USC — roughly some $15-20,000 in total costs versus around $50,000 per year. Public higher education is a good deal, in other words.

California public school teachers make on average the highest salaries in the United States, several thousands higher than those in Massachusetts or Connecticut, and about $20,000 more a year than in a place like Maine or Kansas. On average, government employees, state and federal, nationwide make about 50% more (in salary, pension, and benefits) than their counterparts in the private sector. I realize that if one reaches the very top of private enterprise, one can make more than a high-earning state or federal bureaucrat; but, in general, across the spectrum, it is far preferable to work for government, besides the job security, higher pension, and better working conditions.

I won’t quote all the statistics, but again, in general, California employees make considerably more on average than other state employees elsewhere.  The result is that the current furious state employee is, in essence, saying, “All you lower-paid and unemployed taxpayers, now you better listen up: you must pay more taxes, even  beyond the current highest rate in the nation, so that I, the far better paid and pensioned employee than you, can continue unquestioned in my current, far more important job.”

No more juice to squeeze…
On the tax side, California has the highest income tax rates in the country. Its gasoline and sales taxes are also the steepest. Prop 13 limitations keep  the rates of property taxes competitive with other states, but the assessments on property are so high in California that often homeowners pay almost the same as many with lower real rates elsewhere. Some 3,500 Californians, mostly on the higher end of the income spectrum, are believed to be leaving per week, mostly fleeing to low or no-income-tax states. I assume their thinking is something like, “I can save $20,000 a year in taxes and my children won’t be going to public schools that score 46-48th in national rankings of the states in math and science.”

Barking at the moon
I have talked with a few students and employees over the last year and I think the angst behind the protests runs something like this. In sum, apparently state employees, teachers, and students believe that there is either (a) a “stash” of money somewhere that is unspent and could easily ease their pain (e.g.,” they” have all sorts of money and are lying to us about its undisclosed location); (b) we could raise income, sales, and gas taxes to even more record highs and encourage perhaps 4,000 a week to leave in consequence (e.g., why do some need BMWs or private planes when “we” need cheaper tuition?); (c) the 1% who pay about 50% of the state income tax burden could easily pay 80-90% of it (e.g., I get along on $50,000, so why can’t someone who makes $300,000 give $250,000 of it to meet “our” needs?); (d) we could renounce our debts to state bond holders (if they have excess cash to buy bonds, why are they so greedy not to give “us” some of it?) and use the savings for more subsidies, entitlements, and salaries (without my job at the DMV, prison, school (fill in the blanks), the rest of you could not survive.)

Note lost in the present “I accuse” acrimony (cf. Greece) is any serious, concrete plan of how to make up the budget shortfall. Completely absent is any recognition that we are the highest taxed state populace in the country, and yet have some of the most dismal infrastructure and schools to show for it. And that is logical, not a paradox.

The rest here.

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