The economic situation at private colleges is not quite the same as that in the California system. It's bad and worsening in a rather different way. For some, the crisis was the depletion of endowments. Aggressive investment practices, the same practices of hedge fund managers and currency traders--accessorized with swagger, arrogance, and the elitism of those who think that their ability to take risks with other people's money proves their superiority--has meant multi-million dollar declines in endowments and hence in operating budgets. For colleges and universities that depend on tuition for their operating expenses, the collapse in housing values combined with the rise in unemployment has led to a steep decline in the numbers of students willing or able to pay the high price of private tuition.
The new demand--from boards and administrations: cut, cut, cut.
But not everything:
...23 private college presidents made over $1 million in total compensation, and 110 made more than $500,000. Such large pay packages are still relatively new in higher education: as recently as 2002, there were no million-dollar presidents, only four earning more than $800,000, and 27 earning more than $500,000.
Over all, the Chronicle survey found, the median pay for presidents of the 419 private colleges and universities surveyed was $358,746, a 6.5 percent increase over the previous year. Over the last five years, the median presidential pay, adjusted for inflation, grew by 14 percent.
Why is university presidents’ pay going up so much?
“I think the answer you’d get from the governing boards that set these salaries is that it’s a market and it’s increasingly hard to find these people,” said Jeffrey Selingo, editor of The Chronicle of Higher Education, which has published its compensation survey annually since 1993. “That said, almost every year, presidential salaries have gone up faster than inflation, and faster than tuition, which rankles some people on campus.”
via www.nytimes.com
These numbers were from before last fall's market collapse. What they indicate, however, is the extent to which the boards at private colleges and universities treat and understand higher education in corporate, market, terms. Presidents are CEOs. They are paid and treated like CEOs. The language of markets--how difficult it is to find good people--is telling: what about faculty members, people who have usually dedicated themselves to research, teaching, the production of knowledge for its own sake, what about hiring from within these ranks of those who don't think of their careers in terms of paychecks?
The response would have to do with fund-raising, no doubt. This is a skill that most faculty have not developed and really don't care to. Yet, this is misleading because private colleges and universities have fund-raising departments and professionals--paid far less than our presidents--who do this work. The president isn't the primary fundraiser; he or she is the face of fund-raising; the groundwork is generally done by others, who keep files and accounts and collect information and develop plans and all the rest.
Additionally, as with other CEOs over the last decade, college presidents' salaries don't seem to have anything to do with actual achievements--increase in ranking, increase in retention, significant increase in fund-raising. Rather, it is just the neoliberal culture, the one that tells boards that they need to pay more to get the right person--just like they do in business and finance.
And, don't forget the perks--golden parachutes protecting the highly paid even as someone who is denied tenure faces destitution. To be clear: a college or university president generally receives a large severance package when leaving. So, if he or she has been at a college for 5 years, living in a house provided by the college and collecting, say, half a million a year, he or she will still pocket a million or so when leaving. A faculty member who is denied tenured, someone who has worked at a school for 5-7 years, teaching a heavy load, trying to publish, often with lingering debt from graduate school, and paid probably around 60K a year, will leave with nothing.
The neoliberalization of colleges and universities separates top administrators from faculty. Faculty produce knowledge and graduates. We are knowledge workers. Top administrators, paid in some institutions more than 20 times what entry-level faculty are paid and 40 times what secretaries are paid, are allied with the CEO class and take on their values.
What do their values reflect? A change from liberal arts education to neoliberal arts education. Here's a list. Feel free to pick and choose--like from a menu of new forms of degradation of intellectual labor:
--research only counts if it leads to profit, security, or control; it is nearly always carried out only at Ivy League and research 1 universities, and then only valuable if connected to or part of large grants; everything else is a waste of time and hence should be squeezed out;
--bookstores are profit-generators; they should be stocked with clothes and gifts;
--libraries are computer-centers; collections and print journals are too expensive, no one needs to visit an archive, research skills are trivial after google; reading takes too long, anyway;
--lectures are boring; only bring in lecturers who are big stars; the rest of the time, forgo lectures and encourage students to talk about how they feel about what they haven't read;
--teaching is about being well-liked and entertaining; learning should be fun, fun, fun; if it's not fun, why bother?
--students are to be evaluated according to strictly measurable standards; each assessment should provide predictors of the student's potential value at generating profit, security, or control; any student activities or pursuits that detract from these are endeavors must be eliminated (creative writing, alcohol, political protests, MMORPGs);
--insecurity and self-doubt should be encouraged, especially if it can be amplified into paranoia; such insecurity and self-doubt will prevent students and faculty from working together against the neoliberal arts institution;
--begin with bribes so as to generate good will and compliance: generous tuition aid packages that insure constant policing and no-risk course choices (the repercussions of losing financial aid are too great); start-up packages for new faculty that require constant grant-writing for matching funds and discourage long-term, creative, or impractical projects (as well as installing suspicion and competitiveness towards other academics);
--spin new revenue generating ventures: leadership programs (who needs followers, cooperation, or actual skills?), abroad programs (tourism for credit); internship programs (paying someone to work for them);
--faculty and support staff are a dime a dozen; make sure they know this; after all, those who can't do teach and if the egg-heads knew anything they'd be in finance.
An old school approach to liberal arts education (see Michael Berube on this), would emphasize the development of capacities to appreciate different ways of knowing, of asking questions, of thinking about where we are and how we got here. It would tend to view the liberal arts college as a community, a sort of knowledge commons. Neoliberal arts values division, entertainment, and surveillance. It also relies on competition without competition: ranking and evaluating and eliminating even as the propaganda promises that everyone is a winner, a leader, a success-story (it's rough paying 50K a year to end up just a follower or unemployed with a lot of debt and no skills). It wants education without education, that is, people creative enough to think of new ways to extract money and attention but not so creative that they reject the values forced upon them.
And, the thing is, rejecting neoliberal arts, attacking what college and universities have devolved into over the last 30 years, doesn't really matter: neoliberalism doesn't need a large, educated, middle class. It pays the few to exploit the many.
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