Higher education spending has been horrifically out of control the last 4 decades in the United States. Employees of college and universities have been pigs at the trough when it comes to getting paid and living in retirement. On top of that, the system has been producing unprepared students in favor of political indoctrination.
Connecticut University recent financial statements provide a glimpse into repugnant financial decisions.
UConn is preparing for a loss of up to $134 million after resident students were sent home to avoid the virus halfway through the spring semester.
That number could grow by as much as $70 million next year as the university expects to see a decline in the number of international students attending in the fall, either through government-imposed travel restrictions or just continued fallout from the pandemic.
UConn’s total salary costs for faculty and staff were $426 million, according to their last presentation to the Board of Trustees. Salaries and fringe benefits made up 57 percent of the university’s operating budget.
The report said high fringe benefit costs of $338 million per year were “impacting UConn’s and UConn Health’s competitiveness.” The high fringe benefit costs are due to Connecticut’s unfunded pension and retiree health liabilities.
“The deficits would be non-existent without the State’s unfunded [State Employee Retirement System] liabilities,” the presentation says.
The state paid $608 million in support to its flagship university in 2020, including $198.1 million for salaries, which covered 47 percent of UConn’s total salary costs, $168.1 million for fringe benefits and $212 million for debt service.