Think About It……..                                                                                   October 19, 2011

When it’s time for our kids to begin their higher education and take on at least four years of college it’s time for them to start “paying through the nose”.  In fact, the high cost of a University education has become unaffordable, for many, without a student loan and it is estimated that over 80% of University graduates begin their working life with a student loan amounts in excess of $100,000….. if, they can find a job. Thousands of young graduates nationwide have been looking for a good job for several years. Many, working minimum wage jobs, have determined that their University education simply was not worth it.

One would think that our own University of Alaska with campuses in both Anchorage and Fairbanks and thirteen community campuses around the state would be a very affordable choice for all our Alaskan students but the fact is that our own university is very expensive. Considering the amount of money our legislature gives to the U of A, you would think that they would demand that costs be held a low as possible for a resultant very low tuition for resident Alaskan students.

One would also think that holding down costs at the top would be a good example to set for all the other salaries right down the line. Unfortunately that is not the case.  After only one year on the job, The Board of Regents, gave its new U of A President Patrick Gamble a $25,000 raise. He now gets $320,000 a year plus at least $50,000 in fringe benefits. That’s almost three times as much salary as our Governor. Gamble and his three chancellors are paid almost one and a half million dollars a year.

If one looks at top administrative costs, throughout private and public education institutions, as well as beyond to banks and large multi-national corporations, we can see overall trend towards ridiculous compensation and benefit packages. CEO’s are now earning 400 times what an average worker receives.

Now, comparing top CEOs and top educational institution administrators is quite a stretch….. but when one looks at the numbers, the same seemingly irrational pay raises are applicable. Every conservative and solid business approach usually attempts to decrease administrative costs to promote development and investments in other areas of its operations. So, why isn’t this common sense being applied when thinking about educational heads and other top executives?

The system is the problem.  To justify its pay scales the UA system points to other Universities  and says, “they give more and if we don’t pony up for more we won’t get the talent and smarts we need to grow.”  If this is the primary case for bloated UA executive salaries, then I propose that top educational executives nationwide with UA administrators leading the way, partner with comparable public and private institutions to adjust pay scales towards a more rational and equitable amounts.

Prove to students, to citizens and to the faculty you manage that you have bigger commitments towards furthering education than increasing your own salaries. And for all those who say “impossible,” I say, who better to lead this change than presumably the best and brightest….. our top educational executives.”

Think About It!       JCD   10-19-2011

Filed under: Think About It by Admin