Tuesday, March 20, 2012

Cal State University Executive Pay Scandal

There's talk at my college of heavy layoffs for classified employees. I'll know more soon, and no doubt we'll be seeing reports in the local news. Meanwhile, the Long Beach Business Journal has this: "City College Faces $3.5 Million in Mid-Year Unexpected Cuts: The New Fiscal Year Could Result In Another $9.8 Million In Reductions." One of the things that's always interesting is to notice how the layoffs and cuts in services hit those on the lower end of the hierarchy. For example, I don't hear a lot about sacrifices at the top levels of administration. But the college is gutting summer school offerings, so that hits instructors and students. The top-heavy executive class is still chugging away. More on that later.

Until then, check out this editorial at the Long Beach Press-Telegram, "A lesson not learned -- Cal State trustees flunk test on presidential pay":
A couple of months ago, it looked as if the California State University trustees' remedial lessons in public relations were paying off. Now, it's obvious they still don't get it.

Responding to the outcry over the San Diego State president's huge raise, the public university system's board of trustees approved a policy in January that limits executives' base pay to 10 percent more than their predecessors' salaries.

The move drew cheers all around. Critics in the state Legislature backed off. Students, tired of paying higher and higher fees while campus presidents got higher and higher pay, might even have begun to think university leaders were sensitive to their plight.

But now there's this.

Meeting in Long Beach this week, the CSU trustees are scheduled to consider proposals to give 10 percent salary hikes to two new campus presidents.

Mildred Garcia, appointed president of Cal State Fullerton, would receive $324,500 in base pay (10 percent more than predecessor Milton Gordon made, and also 10 percent more than she got when she ran Cal State Dominguez Hills). Garcia also would receive housing at Fullerton's official presidential residence and a $12,000-a-year car allowance.

Leroy Morishita, the new president of Cal State East Bay, would receive $303,660 (10 percent more than predecessor Mohammad Qayoumi made, and 10 percent more than his own salary as interim president). Morishita also could count on allowances of $60,000 a year for housing and $12,000 for a car.

In other words, having set that 10 percent limit on raises, the people who run CSU are determined to wring every penny out of it.

Do they realize 10 percent is a ceiling, not a requirement?
 More at the link.

Now remember: I'm at community college and the editorial is talking about the Cal State system. But public taxpayer money is funding all of this, so it's worth highlighting the mindset of the bureaucratic mandarins.

PREVIOUSLY: "Budget Cuts Force 'Rationing' at California Community Colleges," and, "Realities of Higher Education in California."