Nathan Brown: Five Theses on Privatization and the University of California Struggle

Five Theses on Privatization and the UC Struggle
Reclaim UC

The following speech by Nathan Brown was delivered at the UC system-wide strike rally held at UC Davis on November 15:

Hello Everyone!

It’s beautiful to see so many of you here today. On four day’s notice, this is an incredible turnout. Let’s remember how much we can do in so little time.

I’m an English professor, and as some of you know, English professors spend a lot of our time talking about how to construct a “thesis” and how to defend it through argument. So today I’m going to model this way of thinking and writing by using it to discuss the university struggle. My remarks will consist of five theses, and I will defend these by presenting arguments to support them.

THESES

1. Tuition increases are the problem, not the solution.

2. Police brutality is an administrative tool to enforce tuition increases.

3. What we are struggling against is not the California legislature, but the upper administration of the UC system.

4. The university is the real world.

5. We are winning.

THESIS ONE: Tuition increases are the problem, not the solution.

In 2005 tuition was $6,312. Tuition is currently $13,218. What the Regents were supposed to be considering this week — before their meeting was cancelled due to student protest — was UC President Yudof’s plan to increase tuition by a further 81% over the next four years. On that plan, tuition would be over $23,000 by 2015-2016. If that plan goes forward, in ten years tuition would have risen from around $6,000 to around $23,000.

What happened?

The administration tells us that tuition increases are necessary because of cuts to state funding. According to this argument, cuts to state funding are the problem, and tuition increases are the solution. We have heard this argument from the administration and from others many times.

To argue against this administrative logic, I’m going to rely on the work of my colleague Bob Meister, a professor at UC Santa Cruz and the President of the UC Council of Faculty Associations. Professor Meister has written a series of important open letters to UC students, explaining why tuition increases are in fact the problem, not the solution to the budget crisis. What Meister explains is that the privatization of the university—the increasing reliance on tuition payments (your money) rather than state funding—is not a defensive measure on the part of the UC administration to make up for state cuts. Rather, it is an aggressive strategy of revenue growth: a way for the university to increase its revenue more than it would be able to through state funding.

This is the basic argument: privatization, through increased enrollments and constantly increasing tuition, is first and foremost an administrative strategy to bring in more revenue. It is not just a way to keep the university going during a time of state defunding. What is crucial to this argument is the way that different sources of funding can be used.

State funds are restricted funds. This means that a certain portion of those funds has to be used to fund the instructional budget of the university. The more money there is in the instructional budget, the more money is invested in student instruction, in the quality of your education. But private funds, tuition payments, are unrestricted funds. This means there are no restrictions on whether those funds are spent on student instruction, on administrative pay, or anything else.

What Professor Meister uncovered through his research into the restructuring of UC funding is that student tuition (your money) is being pledged as collateral to guarantee the university’s credit rating. What this allows the university to do is borrow money for lucrative investments, like building contracts or “capital projects” as they are called. These have no relation to the instructional quality of the institution. And the strong credit rating of the university is based on its pledge to continue raising tuition indefinitely.

Restricted state funds cannot be used for such purposes. Their use is restricted in such a way as to guarantee funding for the instructional budget. This restriction is a problem for any university administration whose main priority is not to sustain its instructional budget, but rather to increase its revenues and secure its credit rating for investment projects with private contractors.

So for an administration that wants to increase UC revenues and to invest in capital projects (rather than maintaining the quality of instruction) it is not cuts to public funding that are the problem; it is public funding itself that is the problem, because public funding is restricted.

To Read the Rest of the Speech