Category: Government

State College Budgets Balloon to Pay for Buildings, Sports, and Administrators

(p. A1) The nation’s best-known public universities have been on an unfettered spending spree. Over the past two decades, they erected new skylines comprising snazzy academic buildings and dorms. They poured money into big-time sports programs and hired layers of administrators.

Then they passed the bill along to students.

The University of Kentucky upgraded its campus to the tune of $805,000 a day for more than a decade. Its freshmen, who come from one of America’s poorest states, paid an average $18,693 to attend in 2021-22.

Pennsylvania State University spent so much money that it now has a budget crisis—even though it’s among the most expensive public universities in the U.S.

The University of Oklahoma hit students with some of the biggest tuition increases, while spending millions on projects including acquiring and renovating a 32,000-square-foot Italian monastery for its study-abroad program.

The spending is inextricably tied to the nation’s $1.6 trillion federal student debt crisis. Colleges have paid for their sprees in part by raising tuition prices, leaving many students with few options but to take on more debt. That means student loans served as easy financing for university projects.

“Students do not have the resources right now to continue to foot the bill for all of the things that the university wants to do,” said Crispin South, a 2023 Oklahoma graduate. “You can’t just continue to raise revenue by turning to students.”

It has long been clear to American families that the cost of college has gone up, even at public schools designed to be affordable for state residents. To get at the root cause, The Wall Street Journal examined financial statements since 2002 from 50 universities known as flagships, typically the oldest public school in each state, and adjusted for inflation.

. . .

(p. A9) Public university leaders often blame stingier state funding for the need to raise tuition revenue.

. . .

For every $1 lost in state support at those universities over the two decades, the median school increased tuition and fee revenue by nearly $2.40, more than covering the cuts, the Journal found.

. . .

Much of the increase in outlays showed up in the hiring process, for administrators, faculty, coaches and finance experts, the Journal’s analysis found. Salaries and benefits, which usually eat up more than half of operating budgets, rose by roughly 40% at the median flagship since 2002.

The University of Florida in 2022 had more than 50 employees with titles of director, associate director or assistant director of communications, roughly double the number it had in 2017. The school also employed more than 160 assistant, associate, executive and other types of deans last year, up from about 130 in 2017.

. . .

Though a handful of powerhouse sports departments pay for themselves, most can break even only with student fees and university subsidies. Across all flagships with available data, that additional funding totaled $632 million in 2022. That’s a jump of 27% from 12 years prior.

. . .

Research by James V. Koch, an economist who studies college spending and a former president at Old Dominion University in Virginia, found that public-university trustees approved 98% of the cost-increasing proposals they reviewed, often unanimously. In most states, he said, there hasn’t been anyone to say, “No, you can’t do that.”

Back in 2005, a Hawaii state audit called out the University of Hawaii System board for approving a budget that gave the flagship Manoa campus $200 million when, auditors said, all but $13 million went to vague or unnecessary requests.

Honolulu attorney Benjamin Kudo, who joined the university’s board in 2011, said he was stunned by the lack of information he was given during the budget process. He said he received a packet of pie charts and a PowerPoint presentation with general information on how the university planned to divide up its funds for areas including teaching, libraries, athletics and facilities across 10 campuses.

Kudo said administrators weren’t initially receptive to requests that he and another new board member, Jan Sullivan, made for more detail, including a comparison of projected versus actual spending. Kudo, who served on the board until 2022, recalled being accused of trying to micromanage the $1 billion budget.

For the full story, see:

Melissa Korn, Andrea Fuller and Jennifer S. Forsyth. “State Colleges ‘Devour’ Money, And Students Foot the Bill.” The Wall Street Journal (Friday, Aug 11, 2023): A1 & A9.

(Note: ellipses added.)

(Note: the online version of the story has the date August 10, 2023, and has the title “Colleges Spend Like There’s No Tomorrow. ‘These Places Are Just Devouring Money.’”)

Socialist Alexandria Ocasio-Cortez (AOC) Rallied with Poor Hispanic Entrepreneurs Who Were Shut Down by Government Regulators

(p. A21) Until last week, Corona Plaza in Queens was bustling: taqueros flipping fresh tortillas and vendors hawking Central American crafts over a soundtrack of cumbia and train traffic. There were produce stands, live bands and surging crowds, all in a public square that was named one of the 100 best places to eat in the city.

But last Thursday [Aug. 3, 2023] and Friday [Aug. 4, 2023], sanitation workers swept through the plaza, removing several stalls and threatening to penalize vendors who did not have a city permit to operate — nearly all of the more than 80 who regularly work there. In the days since, the grilled-meat stands and jugs of agua fresca have been replaced with protest signs.

It was the latest escalation in the city’s tense relationship with the plaza merchants — most of them immigrant women, many of them undocumented — who have helped revive one of the New York neighborhoods hit hardest by the coronavirus pandemic.

. . .

The City Council passed a law in 2021 mandating the release of another 445 food vendor permits every year for a decade, but the rollout has been slow.

There are 10,195 food vendors on the waiting list, according to a spokeswoman for the Department of Health and Mental Hygiene, which manages the applications. The agency has issued just 104 of the new licenses so far, and only four of the recipients have completed all the steps needed to sell food legally.

Ms. Calle is one of the few vendors at the plaza who has a permit — but only because she rents it from a third party for $16,000 a year, a prohibited but widespread practice.

Even so, Ms. Calle decided to close her stall this week, in solidarity with her neighbors.

“I know how hard it is” for new vendors, she said in Spanish, recounting how she had been arrested four times in 23 years for various permitting violations.

While few merchants at the plaza own the hard-to-obtain permits, most of them, including Ms. Calle, pay taxes on sales, and hold a license that certifies they have taken a food safety course.

At the rally at the plaza on Wednesday [Aug. 2, 2023], the dispersed merchants were joined by elected officials including Representative Alexandria Ocasio-Cortez and Donovan Richards, the Queens borough president, . . .

. . .

Nearly 4,000 people, most of them locals, have signed a petition in support of the vendors.

The plaza, once an underused service road near 103rd Street and Roosevelt Avenue, was redesigned in 2012 as a public square.

When the pandemic hit the surrounding neighborhood of Corona — harder than almost anywhere else in the United States — the plaza became an economic and cultural hub for recovering workers, said Carina Kaufman-Gutierrez, the deputy director of the Street Vendor Project.

For the full story, see:

Stefanos Chen and Raúl Vilchis. “Their Food Is Hailed; They Want the Right to Sell It.” The New York Times, First Section (Sunday, August 6, 2023): A21.

(Note: ellipses, and bracketed dates, added.)

(Note: the online version of the story has the date Aug. 5, 2023, and has the title “They Make Some of New York’s Best Food. They Want the Right to Sell It.” Where there are minor differences in wording between the print and online versions, the passages quoted above make use of the online wording.)

Hybrids Appeal to Consumers with Short-Term E.V. “Range Anxiety”

(p. A19) . . . there’s a good argument to be made that the government, and automakers, are leaning too hard into all-electric and neglecting the virtues of hybrid technology. When I first heard this counterintuitive argument from Toyota, I dismissed it as heel-dragging by a company that lags in electrics, but I’ve come around to the idea that hybrids — at least for now — do have a lot of advantages over all-electric vehicles.

. . .

(p. A6) “Toyota’s claim is accurate. We’ve crunched the numbers on this,” Ashley Nunes told me. He is a senior research associate at Harvard Law School and the director for federal policy, climate and energy at the Breakthrough Institute, a think tank. He testified on the topic in April [2023] before the House Subcommittee on Environment, Manufacturing and Critical Materials.

. . . electric vehicles consume huge quantities of lithium and other materials because they have huge batteries. And they have huge batteries because customers suffer from “range anxiety” and won’t buy an E.V. unless it can go for hundreds of miles without charging — even though the vast majority of trips are short.

. . .

Some people will keep driving old ICE-mobiles (cars with internal combustion engines) because they can’t afford an E.V. And those ICE-mobiles will continue to be major emitters of greenhouse gases.

The production of electric vehicles produces more greenhouse gases than the production of cars with combustion engines. So E.V.s have to travel between 28,000 and 68,000 miles before they have an emissions advantage over similarly sized and equipped ICE-mobiles, according to Nunes. That may take 10 years or more if the E.V. isn’t driven much.

For the full commentary, see:

Peter Coy. “We May Not Be Ready for an All-E.V. World.” The New York Times (Monday, July 17, 2023): A19.

(Note: ellipses added.)

(Note: the online version of the commentary has the date July 14, 2023, and has the title “A Climate Hawk’s Issues With Electric Vehicles.”)

“Proud Symbol of Britain’s Welfare State” in “Deepest Crisis of Its History”

(p. A1) As it turns 75 this month, the N.H.S., a proud symbol of Britain’s welfare state, is in the deepest crisis of its history: flooded by aging, enfeebled patients; starved of investment in equipment and facilities; and understaffed by doctors and nurses, many of whom are so burned out that they are either (p. A6) joining strikes or leaving for jobs abroad.

Interviews over three months with doctors, nurses, patients, hospital administrators and medical analysts depict a system so profoundly troubled that some experts warn that the health service is at risk of collapse.

. . .

(p. A6) More than 7.4 million people in England are waiting for medical procedures, everything from hip replacements to cancer surgery. That is up from 4.1 million before the coronavirus pandemic began in 2020.

Mortality data, exacerbated by long wait times, paints a bleak picture. In 2022, the number of excess deaths rose to one of the highest levels in the last 50 years, and those numbers have kept rising, even as the pandemic has ebbed.

In the first quarter of 2023, more than half of excess deaths — that is, deaths above the five-year average mortality rate, before the pandemic — were caused by something other than Covid-19. Cardiovascular-related fatalities, which can be linked to delays in treatment, were up particularly sharply, according to Stuart McDonald, an expert on mortality data at LCP, a London-based pension and investment advisory firm.

For the full story, see:

Mark Landler. “After 75 Years, Health Service In U.K. Teeters.” The New York Times (Monday, July 17, 2023): A1 & A6-A7.

(Note: ellipsis added.)

(Note: the online version of the story has the date July 16, 2023, and has the title “A National Treasure, Tarnished: Can Britain Fix Its Health Service?”)

Scientists Had Political Motives for Dismissing Wuhan Lab-Based Covid Origin

(p. A17) On March 17, 2020, the journal Nature Medicine published a paper by five scientists, “The Proximal Origin of SARS-CoV-2,” that dismissed “any type of laboratory based scenario” for the origin of the pandemic. It was cited by thousands of news outlets to claim that the virus emerged naturally. But Slack messages and emails subpoenaed and released by the House Oversight Select Subcommittee on the Coronavirus Pandemic suggest that some of the authors didn’t believe their own conclusions. Before, during and even after the publication of their paper, they worried privately that Covid-19 was caused by a laboratory escape, perhaps even of a genetically engineered virus.

. . .

On April 16, a month after publication, Mr. Andersen wrote that “I’m still not fully convinced that no culture was involved” and “we also can’t fully rule out engineering”—i.e., that the virus not only was released from the lab but had been genetically manipulated there. He worried about the Wuhan lab’s research on live SARS-like viruses from bats at low biosafety levels: “it’s definitely concerning work, no question about it.”

So why did they publish a paper denying that laboratory origin was plausible? The answer may lie in their messages. In early February 2020, Mr. Rambaut wrote: “Given the s— show that would happen if anyone serious accused the Chinese of even accidental release, my feeling is we should say that given there is no evidence of a specifically engineered virus, we cannot possibly distinguish between natural evolution and escape so we are content to ascribing it to natural processes.”

Mr. Andersen replied: “I totally agree that that’s a very reasonable conclusion. Although I hate when politics is injected into science—but it’s impossible not to.”

. . .

To adjust the conclusions in a scientific paper for political reasons isn’t part of the scientific process. The world was misled with serious consequences.

For the full commentary, see:

Matt Ridley and Alina Chan. “The Covid Lab-Leak Deception.” The Wall Street Journal (Thursday, July 27, 2023): A17.

(Note: ellipses added.)

(Note: the online version of the commentary has the date July 26, 2023, and has the same title as the print version.)

Disenchanted Young Chinese Are “Lying Flat” or Joining the Bureaucracy

(p. A1) HEFEI, China—More than one in five young people in China are jobless. The government casts much of the blame on the job seekers themselves, insisting that their expectations have gotten too high.

. . .

The government’s guidance is ringing hollow with many young people. Growing up in a period of rising prosperity, they were told that China was strong, the West was declining and endless opportunities awaited them. Now, with the urban youth unemployment rate hitting a record of 21.3% in June, their employment frustrations are posing a new challenge to Xi and his vision for a more powerful China.

For the estimated 11.6 million college graduates in 2023, having heeded calls by the state to study hard, the prospect of resorting to the physical labor that many of their parents performed is distinctly unappealing.

. . .

(p. A10) The problem isn’t that jobs don’t exist in China. They do. With its shrinking population, China needs workers as much as ever. It is that China’s weakened economy isn’t producing enough of the high-skill, high-wage jobs that many college students have come to expect.

This is especially so after Xi’s targeting of the private sector in recent years with regulatory crackdowns on technology and other companies.

Disenchanted, many young people are opting out of the job market entirely, or “lying flat,” as many of them call it. Chinese media has recently featured articles about young “drifters” who live hand-to-mouth and pick up odd jobs as they roam the country.

Many of those who still want to work have soured on the private sector, with surging numbers of people sitting for the country’s civil-service exam for a chance at a low-paid, but stable, role in China’s bureaucracy.

For the full story, see:

Brian Spegele. “Unemployed Youth Cast Pall Over China’s Economy.” The Wall Street Journal (Thursday, July 27, 2023): A1 & A10.

(Note: ellipses added.)

(Note: the online version of the story has the date July 26, 2023, and has the title “How Bad Is China’s Economy? Millions of Young People Are Unemployed and Disillusioned.”)

Federal Trade Commission (FTC) Seeks to Bury Merging Firms in Paperwork

(p. A13) The Federal Trade Commission is trying to make it harder for companies to merge by burying them in paperwork. The FTC’s proposed overhaul of a critical part of the U.S. merger review process would increase the average time to prepare a merger filing from 37 hours to 144. According to the agency’s calculations, that’s roughly $350 million in added costs for an estimated 7,100 filings a year, which would be a boon for lawyers but a burden for businesses.

The one-size-fits-all proposal to add dozens of hours of paperwork per deal—regardless of competitive concerns—is an overreach by the FTC and the Justice Department’s antitrust division that will disproportionately chill investments at the lower end of the reporting threshold.

For the full commentary, see:

Christopher Williams and Henry Hauser. “Antitrust Officials Pile on the Paperwork.” The Wall Street Journal (Wednesday, July 5, 2023): A13.

(Note: the online version of the commentary has the date July 4, 2023, and has the same title as the print version.)

Portland Feels “Unsafe” and “There’s Trash Everywhere”

(p. A3) PORTLAND, Ore.—Mark Rogers has made a list of things he misses about Portland—its vegan restaurants, Powell’s bookstore, public transit—and the things he doesn’t—having his things stolen, stepping in human excrement, extreme politics.

The 44-year-old artist moved across the country to Fort Wayne, Ind., last year.

“I don’t want to talk trash about my home city even though there’s trash everywhere,” Rogers said.

. . .

Andrea Lamprecht, 50, a cardiac nurse, said she was chased by a homeless man while out on a jog in her Alameda neighborhood on the east side of Portland, where the median home price hovers around $1 million.

She and her husband, Derek Lamprecht, an orthopedic surgeon, had raised their children in Portland. The chasing incident contributed to the couple’s decision to move to a quiet rural area about 10 miles outside the city in 2021. “It never felt unsafe before,” said Derek Lamprecht. “The character of the city changed.”

For the full story, see:

Zusha Elinson. “Disenchanted Portland Residents Leave the City.” The Wall Street Journal (Thursday, June 29, 2023): A3.

(Note: ellipsis added.)

(Note: the online version of the story has the date June 28, 2023, and has the title “Portland Is Losing Its Residents.”)

Dem Celebrities and Politicians Cultivated Crony Ties to FTX Fraudster Bankman-Fried

(p. B1) About 10 months before he was arrested on fraud charges, the cryptocurrency mogul Sam Bankman-Fried posed for a photograph at the 2022 Super Bowl in Inglewood, Calif.

On one side of him were Orlando Bloom and Katy Perry, the celebrity couple. On the other was the actress Kate Hudson. Standing in the center, with his arm slung over Mr. Bankman-Fried’s shoulder, was a lesser-known figure: Michael Kives.

Mr. Kives, a Hollywood agent turned investor, played an unusual role in Mr. Bankman-Fried’s business empire: super connector. He and his business partner, Bryan Baum, helped the young founder cultivate relationships with Mr. Bloom, Ms. Perry and former President Bill Clinton, and offered introductions to a who’s who of celebrities and business leaders, from Leonardo DiCaprio to the governor of Saudi Arabia’s Public Investment Fund.

The relationship was mutually beneficial. Mr. Bankman-Fried invested $700 million in Mr. Kives’s venture-capital firm, court records show, an extraordinary level of support for a fund with a short track record of start-up investments. Mr. Kives, the founder and face of the firm, and Mr. Baum each received $125 million as part of the deal.

For the full story, see:

David Yaffe-Bellany and Erin Griffith. “The Celebrity Super Connector Who Brought Big Names to FTX.” The New York Times (Saturday, June 24, 2023): B1 & B4.

(Note: the online version of the story has the date June 23, 2023, and has the title “The Super Connector Who Built Sam Bankman-Fried’s Celebrity World.”)

Feds Release Covid Origin Report on a Friday Evening–A Time to “Put Out News They Want Buried or Ignored”

(p. A12) The Office of the Director of National Intelligence released a long-awaited declassified report, which included spy agencies’ findings on the so-called lab leak theory, . . .

The 10-page report said scientists at the Wuhan Institute of Virology did conduct research on coronaviruses, in some cases had inadequate safety measures and had genetically engineered coronaviruses.

. . .

After three years of study, some senior U.S. officials have said that the spy agencies are unlikely to come to any satisfactory conclusion, in large measure because China has not cooperated with international inquiries and some officials in Beijing are not interested in digging deeper into the cause of the pandemic.

. . .

The report was released on a Friday evening, traditionally a time when administrations put out news they want buried or ignored. Conservatives had criticized the government for failing to meet a deadline of the beginning of the week, though few congressionally mandated reports are delivered precisely on time.

While Biden administration officials have said they have ordered investigations without favoring one theory over another, Republicans have harshly criticized how the White House and its intelligence agencies have investigated Covid’s origins.

“The lab leak is the only theory supported by science, intelligence and common sense,” John Ratcliffe, who served as the director of national intelligence in the Trump administration, said as the report was released Friday [June 23, 2023], adding: “The Biden administration’s continued obfuscation of Covid origins is a disservice to the intelligence community.”

For the full story, see:

Julian E. Barnes. “Intelligence Agencies Remain Divided Over Theory That Covid Came From Lab.” The New York Times (Saturday, June 24, 2023): A11.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the story has the date June 23, 2023, and has the title “U.S. Intelligence Report Finds No Clear Evidence of Covid Origins in Wuhan Lab.”)

Government Infrastructure Serves Elite More Than Ordinary Citizens

(p. A1) In a country where major industry and political fortunes alike are often tied to a vast, interwoven rail system, India has lavished public resources on new trains, but its purse strings have been much tighter when it comes to ensuring the safety of those already racing along its tracks.

Those decisions loomed large on Sunday [June 4, 2023] in the aftermath of a devastating train wreck that killed at least 275 people in eastern India.

. . .

Over the past years, India has been polishing its long-ramshackle infrastructure as never before, and its railways, which are at the heart of the world’s fifth-largest economy, have been a prime beneficiary. The government spent almost $30 billion on the rail system during the past fiscal year, up 15 percent from the year before.

But the amount spent on basic track maintenance and other safety measures has been falling. A report last year by India’s auditor general, an independent office, found that less money was being allocated for track renewal work and that officials had not even spent the full (p. A11) amount set aside.

. . .

. . . most of Mr. Modi’s initiatives have been aimed not at the basic steps needed to get trains from Point A to Point B without mishap, but at improving speed and comfort. He regularly extols higher-fare new electric Vande Bharat trains connecting bigger cities and has made an early priority of a Japanese-style bullet train, though it can do nothing to improve the lives of the country’s ordinary passengers.

For the full commentary, see:

Alex Travelli. “Rail Funding In India Put Upkeep Last.” The New York Times (Monday, June 5, 2023): A1 & A11.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the commentary has the date April 18, 2023, and has the title “Money for Show Horses, Not Work Horses, on India’s Rails.”)