Uh oh, $ 28.5 Million Deficit? | Page 2 | The Boneyard

Uh oh, $ 28.5 Million Deficit?

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Exit 4 said:
Sounds like its time to raise tuition 7%. Underfunded pensions (and generous pensions) are the legacy of coy leadership over the past 30 years regardless of political affiliation. I'm glad to see they are beginning to tackle the issue. The burden will likely be similar next year, so look for that tuition to rise. If we are going to give out generous benefits, it costs money.
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The article clearly states that the state shifted the burden to the schools.
 
Carl Spackler said:
Ok folks -

please find in this document, where a hit like this to UCONN - was unexpected?

please find reference in this document to athletic department revenue.

http://www.finance.uconn.edu/BOT/6.26.13/Slides.pdf


This is a non-issue for athletics.
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You are so easily fooled

The $1 billion budget is not fungible.

The vast majority of it is dedicated. Look at research alone in the range of $200-300 million. Then the hospital. Put those together, and what do you have?

$10 million is a huge amount of money for a university like UConn.
 
Palatine said:
Democrats and unions. Maybe they can do for UConn what they did for Detroit.
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Yes, because the quality of life is sooo much better in right-to-work states.
 
Palatine said:
Democrats and unions. Maybe they can do for UConn what they did for Detroit.
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Lame.

The school owes its existence to socialism.

The Rent exists because of socialism, and don't tell me UTC donated the land, UTC feeds off of the Federal Government.

You must have hated the UCONN 2000 project, all that spending of taxpayer money.

Extreme right wingers should root for a private school, like Syracuse.
 
junglehusky said:
Yes, because the quality of life is sooo much better in right-to-work states.
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Say what you want about the south (right to work states), nobody retires and moves up north.

I grew up with a lot of people from CT who have moved to FL, TX, NC, GA, and SC. They love the quality of life and aren't ever moving back to CT.

CT is aging, has one of the worst brain drains in the country, and has a shrinking middle class due to the college grads leaving the state. When the largest employer in the state, is the state, you're doing it wrong.
 
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metsfan2323 said:
Lame.

The school owes its existence to socialism.

The Rent exists because of socialism, and don't tell me UTC donated the land, UTC feeds off of the Federal Government.

You must have hated the UCONN 200o project, all that spending of taxpayer money.

Extreme right wingers should root for a private school, like Syracuse.
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You obviously don't what understand socialism is. If this is what UConn professors are passing off as socialism, it's no wonder the useful idiots are multiplying exponentially on college campuses.
 
Susan hired McKinsey a while back to come up with restructuring ideas. They came forth with a lot of good ones. But she and her deans did not execute. (intentional play on words) This is her first real black eye IMO and shows that she has not completely reined in the asylum yet.
 
upstater said:
You are so easily fooled

The $1 billion budget is not fungible.

The vast majority of it is dedicated. Look at research alone in the range of $200-300 million. Then the hospital. Put those together, and what do you have?

$10 million is a huge amount of money for a university like UConn.
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I know this. $10 mill in unallocated cash is a huge amount of money for anyone, any institution.

The concept here, is that the athletic department is going to get hurt somehow by UCONN draining out reserves to balance next year's budget based on pension funding, and I don't think so. The school is going to get hurt before the athletic department, and that's where I think rumrunner?'s point was - if the athletic department is feeling anything, the academics tend to get restless.

Unless the state is directly providing revenue to the athletic department, and not funneled through the university (and I don't know if this is case or not) the argument centers on how much actual cash flow year to year in actuality, not just accounting on paper, actually flows from the university structure outside athletics, into the athletic department and is counted as athletic department revenue in the athletic budgets. I don't know what that is, and I'm sure it's closely guarded bit of budget information.

University general funds. University tuition and fees. Scholarship funds., etc. etc.......there are lots of ways to hide, and find money on paper, that have nothing to do with actual cash flow.

I think that Herbst's pushing for spending is going get looked at a lot more critically from here on out though, because this thing, is an actual cash flow, not a paper trail of investments and returns. It's nice to have a cash reserve fund for hiccups and bumps in the road, whether it be a few hundred dollars for a family of four stuck away in an account somewhere earning interest and growing, and used only in case of emergency, while you contribute to it a little bit regularly, or 70 million stuck away for a state university somewhere, earening interest, and growing and used only in case of emergency, while you contribute to it a little bit regularly.

THere's nothing wrong with drawing from a reserve account to get through bumps and valleys in the road - I don't care about that - I'm more concerned with how they intend to balance the budget in the future, and on top of it, pay back the kitty.

I don't know how you can justify raising tuition again, more than what's already been done and planned. Cuts are going to have to be made.
 
FWIW - I'm a public school product from kindergarten through my degrees. I don't agree at all with that Ayn Rand crap.
 
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freescooter said:
The elimination of pensions has been one of the worst public policy debacles of the past 25 years. And it will ultimately have huge negative consequences. Oddly it grew out of a good idea, giving people without access to pensions an opportunity to save for retirement. The finacial meltdown demonstrated how difficult the impact could be, with people seeing IRAs and 401k's losing 40% of their value at times. Fortunately, that occurred before the baby boomers started retiring in droves. Something similar happens in the next decade and it will be disasterous.
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Wrong and wrong. Having companies/governments bear all of the risk of pensions is why many are going out of business. The 401k benefits the employer by taking the risk off of their books. It benefits the employee because they are now free to take whatever job they want. 30 years ago employees were beholden to their employer or risk losing their pension. I can take my 401k to any company I want. Plus I have an asset that I can leave to my heirs. People need to take responsibility for themselves because the government isn't equipped to take care of everyone. Also anyone that saw their 401k drop 40% also saw it recover over the next two years or so.
 
WingU-Conn said:
Say what you want about the south (right to work states), nobody retires and moves up north.

I grew up with a lot of people from CT who have moved to FL, TX, NC, GA, and SC. They love the quality of life and aren't ever moving back to CT.

CT is aging, has one of the worst brain drains in the country, and has a shrinking middle class due to the college grads leaving the state. When the largest employer in the state, is the state, you're doing it wrong.
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Don't forget TN. I know two couples who have moved in the area midway between Knoxville and Nashville. It has become a big retirement area. Low taxes too.
 
mattp said:
Wrong and wrong. Having companies/governments bear all of the risk of pensions is why many are going out of business. The 401k benefits the employer by taking the risk off of their books. It benefits the employee because they are now free to take whatever job they want. 30 years ago employees were beholden to their employer or risk losing their pension. I can take my 401k to any company I want. Plus I have an asset that I can leave to my heirs. People need to take responsibility for themselves because the government isn't equipped to take care of everyone. Also anyone that saw their 401k drop 40% also saw it recover over the next two years or so.
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The fact that there will be almost no 25 year with one firm employees in the future is why a pension has become a moot point for them. The new employee is conditioned to go for the highest bidder on a regular basis. There is more to that than just money. There no longer is any job security. Companies move work off-shore or hire off-shore contractors to staff the jobs here. No loyalty from the employer means none from the employee. Everyone goes for the short term bucks. It is a bad situation. Big time brain drains.
 
Skiblets said:
Susan hired McKinsey a while back to come up with restructuring ideas. They came forth with a lot of good ones. But she and her deans did not execute. (intentional play on words) This is her first real black eye IMO and shows that she has not completely reined in the asylum yet.
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It's like moving a glacier.
 
upstater said:
The article clearly states that the state shifted the burden to the schools.
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not sure your point....all i am saying is this is just the beginning and its the right thing. push the burden back to the students.
 
junglehusky said:
Yes, because the quality of life is sooo much better in right-to-work states.
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fair point....lets see where everything stands in another ten years. the unfunded liabilities in many of the northern - union states is reaching that tipping point we have seen coming for a while now....when the obligation to fund past retirement and medical promises begins to truly drown and limit the ability of the government and present tax payer to meet current needs. I am cheering for CT and the north, but its going to be tough sledding. We've got smart people...but many continue to move elsewhere when they become job creators.
 
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freescooter said:
Right. My comment was really dealing with the idea that the state should move away from defined benefits pensions. While I agree that "everyone is doing it" i also think, and there is some research backing this up, that the move away from pensions to IRAs was a bad policy, and will have negative long term consequences. Whether the state should contribute to bad policy is a legitimate subject of debate.
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love to see pensions stay, but its pretty well demonstarted that if we are going to have open borders for commerce and a generally a free flowing gloabl economy ,pensions arent possible but for one class of worker - government workers - because of that natural monopolistic nature of their services and funded source - tax payers. every private enterprise has to deal with start ups who dont offer pensions and off shoring at various capacities which also dont have pensions and therefore, as much as they would like to have them, they really cant. the few that are left dont offer them to young people.
 
Exit 4 said:
fair point....lets see where everything stands in another ten years. the unfunded liabilities in many of the northern - union states is reaching that tipping point we have seen coming for a while now....when the obligation to fund past retirement and medical promises begins to truly drown and limit the ability of the government and present tax payer to meet current needs. I am cheering for CT and the north, but its going to be tough sledding. We've got smart people...but many continue to move elsewhere when they become job creators.
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As the old cliche goes, socialism is a great system until you run out of people to tax.
 
freescooter said:
Right. My comment was really dealing with the idea that the state should move away from defined benefits pensions. While I agree that "everyone is doing it" i also think, and there is some research backing this up, that the move away from pensions to IRAs was a bad policy, and will have negative long term consequences. Whether the state should contribute to bad policy is a legitimate subject of debate.
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The pensions are going to fail also. At least when 401ks fail, the owner knows he was partly at fault; and he also knows how much he has throughout, so he can begin saving up or conserving money earlier. When pensions fail the pensioner is helpless, and surprised. The human effects of pension failures will be far worse than those of 401k failures.
 
First- People that make as much as UConn professors and doctors at the Health Center don't need pensions. They should get a retirement fund contribution from the State and manage their own retirements.

Second- these same high paid employees as well as all other UConn employees get free tuition for their kids to go to UConn. This benefit should be taxed by the IRS at the least and discontinued ASAP. The rest of the schmucks that work and pay or help pay for their kids education will now be asked to donate to the University to help with their spending problem.

Third- UConn leads the Nation in spending on Adminitrative positions. Enough said! Susan your move!
 
Public employee unions (including the education unions) have raped the system and taxpayers in concert with their political cronies. Government workers are now paid more than private workers and have lifetime pension benefits that the average private worker doesn't. First step is freeze pensions and all new retirement plans are contribution based like the rest of us. It's sickening what has been done, and there is no end to the crushing tax burdens that have left the state stagnant for over 20 years. Worst thing that ever happened was the income tax which was promised to solve inconsistent revenue and was used as a ticket to spend more and more.
 
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Exit 4 said:
not sure your point....all i am saying is this is just the beginning and its the right thing. push the burden back to the students.
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You can't plan for it. That was my point.
 
WingU-Conn said:
Say what you want about the south (right to work states), nobody retires and moves up north.

I grew up with a lot of people from CT who have moved to FL, TX, NC, GA, and SC. They love the quality of life and aren't ever moving back to CT.

CT is aging, has one of the worst brain drains in the country, and has a shrinking middle class due to the college grads leaving the state. When the largest employer in the state, is the state, you're doing it wrong.
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Of course, why would they want to pay(get taxed) for services they no longer need like educating their kids? you gravitate to a warmer, less densly populated, lower tax, lower service state. Then it becomes the thing that was left behind.
 
UConn is generally regarded as the best public in New England?

A quick look at us and our neighbors' in-state tuition and fees, R&B);
UConn 24k
UMass 24k
URI 24k
UVM 26k
UNH 27k (tuition increase 23 staight years, avg 9% last 4)
UMaine 23k
We seem to be inline with other surrounding schools like PSU, Rutgers, Delaware. Maryland seems like a bargain at 20k.
 
Jimdish255 said:
I'm sure the Walton family and the Koch brothers will continue to do great things for working families.
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Absolutely they will, by employing people. Thank goodness. I wish I had the courage and energy to build a business and create employment, its not easy, most fail.

And the Dems have plenty of big wig donors who operate 'evil' corporations; its nearly a wash at this point.

Lastly, if you truly despise Walmart for what it represents to the left, then I hope you are following through with all your economic decisions, by shopping with mom & pop stores, avoiding chain restaruants, buying a union made car (careful, many of the US assembled foreign cars are in non union plants or very weak union plants), shopping at union grocers or local food stores (A&P is union for instance), etc. Of all of these, the best way to support your union/american brothers/sisters is to buy an american car as it is the second greatest use of your income to your housing expense.
 
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