From: Richard A. Goldberg, Deputy Chief of Staff for Legislative Affairs
To: Members of the General Assembly
Date: January 19, 2016
Re: CSU: Lobbyists & Administrators Win, Students & Taxpayers Lose
Over the last few days, lawmakers from both sides of the aisle along with key university officials publicly agreed with the Administration that we must reform the way Illinois public universities spend taxpayer money. University of Illinois President Timothy Killeen said “he agrees with some of the concerns about excessive spending at public universities raised by an aide to Governor Bruce Rauner.” Democratic Senator Bill Cunningham said “bills are in the works to deal with some of the issues raised by Goldberg.”
At the same time, however, some university officials continue to reject reform and would rather double down on a broken system that spends tuition money without accountability or transparency. According to the Associated Press, Chicago State University spokesman Tom Wogan claimed the “characterizations of the state’s universities” contained in last week’s memo “do not fit 148-year-old Chicago State” because it doesn’t “have private jets, our president doesn’t have a country club membership.”
Mr. Wogan – a former aide to House Speaker Michael Madigan and operative for the Democratic Party of Illinois – must not remember an interview he gave to Fox 32’s Dane Placko just a few months ago in which he defended giving the university’s president a “spectacular mansion on historic Longwood Drive in Beverly” where the school “has paid more than $32-thousand dollars just for landscaping and sprinkler service alone since 2013.” Recent reports of wasteful spending, corruption and low academic performance at Chicago State are plentiful. Sadly, minority and disadvantaged students are among the worst served at Chicago State.
Chicago State Is Failing Their Students
· While 83% of white CSU students graduate in six years, only 19% of African-American students and 15% of Latino students do the same. On average across Illinois public universities, white students have a 61% graduation rate while African Americans have a 39% graduation rate. In Illinois, Chicago State has the second lowest graduation rate for African-American students (behind NEIU’s 8% graduation rate) and the second highest graduation rate for white students (behind UIUC’s 87% graduation rate).
· According to data from the Illinois Board of Higher Education, Chicago State’s enrollment fell by 45 percent from 1996 to 2014.
· For those full-time students who enrolled in 2006, 4% graduated in four years while 21% graduated in six years. For those who enrolled in 2008, those numbers got worse: 2% graduated in four years, 19% graduated in six years. According to the Chronicle of Higher Education, that puts CSU in the 2nd worst percentile nationwide.
· According to a recent Brookings Institute study, Chicago State ranks in the 6th worst percentile for the average mid-career income of its graduate.
Financial Mismanagement and Misconduct
·
In November 2015, just a couple of months ago, a former Chicago State University Vice President was indicted for hiring her mother in a ghost payroll scheme.
· In 2014, a jury awarded $3 million in back pay and damages to a former CSU employee who was fired by Chicago State’s former president in retaliation for reporting alleged misconduct by the president and others.
· In 2013, Chicago State was fined $311,963 by the federal government for allowing failing students to remain enrolled and continue collecting federal student aid. According to the Chicago Tribune, students with grades as low as 0.0 were allowed to register for classes, in part to boost enrollment.
· According to the Chicago Tribune, Chicago State doled out huge salary raises to school administrators. The Tribune reported that former Chicago State President Wayne Watson fired CSU’s Vice President of Administration and Finance after the latter raised questions about the salary increases.
· According to the Office of the Auditor General, during Chicago State’s most recent compliance audit, auditors found that the university could not locate $276,584 worth of university property.
Lobbyists and Administrators Win, Taxpayers Lose
· According to the Secretary of State’s records, Chicago State employs two firms to lobby the state on the university’s behalf: Taylor K. Anderson and James A. Deleo & Associates. At present, we do not have access to their contracts to assess compensation.
· According to a 2013 Auditor General report, CSU had, by far, the highest ratio of administrators to students of any state university – one administrator for every 17.7 students. The next highest was the University of Illinois system with one administrator for every 29.7 students.
· According to the Auditor General, Chicago State spent 45 percent of its total payroll on administrators and 55 percent on faculty – the worst ratio of any state university. The next highest was the University of Illinois system, which spent 31 percent of its payroll on administrators and 69 percent on faculty.
· According to the Auditor General, Chicago State’s administrator salaries cost $3,609 per student – the highest of any state university. The next highest was the University of Illinois system whose administrator salaries cost $2,960 per student.
· According to the Auditor General, Chicago State had the second fewest students of nine state universities and university systems, but the third most administrators.
· According to the Chronicle of Higher Education, Chicago State spent $114,762 per undergraduate completion (degrees and certificate programs) in 2013 – significantly more than the $90,406 per completion average for all Illinois public universities and the $66,436 per completion average for all U.S. public universities.
The Way Forward
The General Assembly cannot turn a blind eye to the rampant financial mismanagement inside the university system that hurts academic performance and sends tuition costs skyrocketing. Rather than creating a cash flow crisis by appropriating hundreds of millions of dollars in General Revenue Funds for MAP or general higher education without accompanying spending reductions or cost-saving reforms, let’s find a sensible and responsible way to fund MAP and higher education by tying such funding to other spending reductions or cost-saving reforms.
- Oswego Willy - Wednesday, Jan 20, 16 @ 11:56 am:
You know all that good the Governor said yesterday in investing in minority neughborhoods…
This is the stuff that ruins moves like that.
- Joe Schmoe - Wednesday, Jan 20, 16 @ 11:59 am:
He’s not attacking the institution; rather, the people who run it…..
- D.P.Gumby - Wednesday, Jan 20, 16 @ 11:59 am:
Has Goldberg appeared at a General Assembly hearing yet about Brucie’s superstar salaries and where they are hidden?
- Anonymous - Wednesday, Jan 20, 16 @ 12:02 pm:
Are we saying they are exempt from basic administrative oversight and responsibility because they are a “majority black college”?
What does race have to do with things like spending more on faculty than students, high costs and inefficiency?
- cover - Wednesday, Jan 20, 16 @ 12:03 pm:
How soon will Speaker Madigan develop legislation regarding Chicago State University and bring it to a floor vote, just to see if Rep. Dunkin votes with the Dems or the GOP? Putting Dunkin on record as voting “against” CSU, at least as perceived by his district’s residents, just before the primary would be an interesting development.
- Ghost - Wednesday, Jan 20, 16 @ 12:06 pm:
The gov isnright but handeled it poorly.
he shoukd have gotten together with the black caucaus and promised higher spending for minorities as part of a reform package addressing these problems and released that. he is not going to get good reactions, no matter how good the stats. to just firing off attacks
- NixonHead - Wednesday, Jan 20, 16 @ 12:06 pm:
The title of this post is a little misleading. Rauner is attacking the individuals that run the institution in a factual way. Title looks more like a Trump headline than a factual charge by Rauner.
- Blue dog dem - Wednesday, Jan 20, 16 @ 12:07 pm:
Chicago state is just the tip of the proverbial iceberg. Out of this whole RAUN Man governing thing, it is one of his few bright spots. I wish he could figure a way to not be harming students, but reforming our state universities is long overdue. Maybe he can tap into FELLOW Edgar’s fiscal conservative legacy and quickly clean up all these extravagances!
- GraduatedCollegeStudent - Wednesday, Jan 20, 16 @ 12:10 pm:
“Bruce Rauner has no social agenda.”
Yes Chicago State has fundamental issues and problems as an institution, but Rauner’s not exactly providing solutions either.
- Ryan - Wednesday, Jan 20, 16 @ 12:11 pm:
Everything they said about CSU is true. That place needs to be shut down.
- LizPhairTax - Wednesday, Jan 20, 16 @ 12:13 pm:
That was a fun read but Mr. Goldberg has it backwards.
The long part with the bullet points and googled up research is supposed to be where you put your proposed solutions.
- GraduatedCollegeStudent - Wednesday, Jan 20, 16 @ 12:14 pm:
===Chicago state is just the tip of the proverbial iceberg. Out of this whole RAUN Man governing thing, it is one of his few bright spots. I wish he could figure a way to not be harming students, but reforming our state universities is long overdue. Maybe he can tap into FELLOW Edgar’s fiscal conservative legacy and quickly clean up all these extravagances!===
Reform would require getting the ex-Wall Street guys out of higher ed administration. Somehow I don’t think Rauner’s interested in removing his metaphorical frat brothers.
- justacitizen - Wednesday, Jan 20, 16 @ 12:22 pm:
Citing the Board of Higher Ed and the Auditor General facts should not be labeled an “attack” on CSU.
- Goldloser - Wednesday, Jan 20, 16 @ 12:22 pm:
As a taxpayer, I find Rich Goldberg’s attitude highly disrespectful and a sign how out of control Bruce Rauner’s Illinois has become. Illinois doesn’t need another “attack dog” bur rather “lead dog”. If Goldburg and his handler, Bruce Rauner, doesn’t have the required leadership skills to run Illinois he should resign.
- Honeybear - Wednesday, Jan 20, 16 @ 12:26 pm:
Yesterdays ADME event was what they call here at my office, a “ghetto blessin”. A “Ghetto Blessin” is defined as an advantage to you personally but it takes from someone else. Thus finding a 20$ bill in East St. Louis and putting it in your pocket is a “ghetto blessin”. Yesterday Rauner and Dunkin looked good. But they are taking it away today from poor Chicago State. The woman next to me got her bachelors degree there. That school helps so many. The Governor just “can’t get him no get right”. His hubris leads him to believe that African Americans will not notice or understand. They are watching. They do understand. They know. Again the hubris of the Raunerite. James 5:4 Dunkin James 5:4
- 360 Degree TurnAround - Wednesday, Jan 20, 16 @ 12:26 pm:
When did Taylor Anderson lobby for Chicago State? Looking at SOS records, and he didn’t register as a lobbyist for Chicago State?
- sideline watcher - Wednesday, Jan 20, 16 @ 12:29 pm:
Here we go…God forbid we talk about race.
No one is saying that they should be exempt from anything. Think about what will happen if they close and the devastating impact that would have in the community that surrounds it. The students don’t have anything to do with that.
I swear it really seems like the Governor pulls up in his limo and throws cake outside to the people and can’t understand why they keep yelling that they’re hungry.
- CrossTabs - Wednesday, Jan 20, 16 @ 12:30 pm:
Without a doubt, CSU is the most poorly run university in the state. But what happens when others like WIU, NIU, EIU, etc. start running out of money. Is Rauner just going to issue another memo with a laundry list of each university’s failings?
- wordslinger - Wednesday, Jan 20, 16 @ 12:32 pm:
Geez, if you can’t count on hostage takers to at least keep their demands consistent, what’s the world coming to?
Up to last week, MAP and uni funding was tied just to passage of the governor’s political agenda.
- Rich Miller - Wednesday, Jan 20, 16 @ 12:33 pm:
===God forbid we talk about race===
Yeah, we can only do that when it’s about black on black crime.
/s
- Anon - Wednesday, Jan 20, 16 @ 12:36 pm:
DeLeo probably gets a taste but probably passes most through to the former senate pres. Chicago state did well under the former pres.
- Anonymous - Wednesday, Jan 20, 16 @ 12:39 pm:
Emil Jones U (CSU) has been a south side pork and patronage haven for decades with Madigan and Jones/Cullerton using it to keep their black members in line. It is not operated to serve students, it has been operated to serve politicians. It is amazing that it retains any accreditation.
- Triple fat - Wednesday, Jan 20, 16 @ 12:46 pm:
Hey Kenny Dunkin,
Please see http://www.gtcr.com/team/ 56 positions; not one African American in a Team of Vice Presidents, Managing Directors, Principals, Senior Associates, and Associates. Now he is attacking CPS and minority students attending Chicago State University… Do you really think he is serious about improving entrepreneurship among minorities? Did you ask him how many minority owned businesses he helped during his management of GTCR?
- CapnCrunch - Wednesday, Jan 20, 16 @ 12:47 pm:
Chicago State looks like a public works project disguised as a university.
- burbanite - Wednesday, Jan 20, 16 @ 12:47 pm:
Maybe the state should have CSU go bankrupt and the Gov. can take control of the board and appoint all its members and take over their fiscal managment. Since he has such a good track record on managing budgets.
- Anonymous - Wednesday, Jan 20, 16 @ 12:50 pm:
@cover:
I am not sure if Dunkin has many constituents commuting from his district to Chicago State. Northeastern Illinois (CSU’s solvent and more successful sister school) is much closer and better managed.
- Chicagonk - Wednesday, Jan 20, 16 @ 12:50 pm:
The south side desperately needs a competent four-year public university. Key word being competent.
- Triple fat - Wednesday, Jan 20, 16 @ 12:54 pm:
Goldberg and Superstars,
Please keep proving my point regarding the Governor’s apparent hostility towards the African American community.
Thank you and have a nice day.
- 360 Degree TurnAround - Wednesday, Jan 20, 16 @ 12:55 pm:
I’d print this memo and Ken Dunkin/Bruce Rauner’s photo and distribute in Ken’s district.
- Marty Funkhouser - Wednesday, Jan 20, 16 @ 12:59 pm:
The fact that they’ve stashed Wogan over there makes me think Richie has a point.
- CSU - Wednesday, Jan 20, 16 @ 1:02 pm:
Here’s a relevant quote from the Chicago State faculty blog on Rauner’s press release:
“Just who is responsible for the kinds of abuses Rauner cites? Who hires university presidents? Is it Boards of Trustees who are recommended by legislators and appointed by the Governor? Using our own little university as an example, remember back in March 2013 when we had the opportunity to rid ourselves of our president and his crony-infested administration? Who was that who rode to his rescue by staging a circus at two separate Board meetings? Were there well-known political figures involved in the effort to retain our execrable president? Was it not the Governor of Illinois who failed to re-appoint Board members who favored our former president’s removal and replaced them with Watson supporters? Exactly how much of a voice do university faculty, staff and students have in these matters? Of course in this twisted state political system, it makes perfect sense to hold the “little people” accountable for the misdeeds of the powerful.”
Former Governor Quinn had an opportunity to appoint a better board of trustees for CSU and he chose to play politics.
- LizPhairTax - Wednesday, Jan 20, 16 @ 1:12 pm:
Marty Funkhouser
Is it really “stashing” when he’s your spokesperson handing out attributable quotes?
It’s not like he’s the VP of super secret stuff.
- Demoralized - Wednesday, Jan 20, 16 @ 1:14 pm:
==reject reform and would rather double down on a broken system==
They must just pick up that line and move it around depending on the topic. Budget. Universities. Turnaround Agenda. It’s an all purpose line.
- sal-says - Wednesday, Jan 20, 16 @ 1:17 pm:
== Financial Mismanagement and Misconduct ==
So, Goldie has the audacity to call somebody else out about “FINANCIAL MISMANAGEMENT AND MISCONDUCT”.
A key SuperStart representative of the raunner administration that’s writing the handbook on this?
FINANCIAL MISMANAGEMENT AND MISCONDUCT??!!!
The SuperStarts just never fail to amaze!
- illini - Wednesday, Jan 20, 16 @ 1:33 pm:
Sal - you said it before I had a chance. Not saying that there may not be some other legitimate questions, but some do have the “audacity” to try to shift the focus of the discussion and to try to change the focus of what is really going on.
- 47th Ward - Wednesday, Jan 20, 16 @ 1:55 pm:
Shorter Goldberg: “Chicago State is poorly managed. Therefore we decided to not fund any state universities or any MAP grants.”
Is that the takeaway?
Go Cougars!
- wordslinger - Wednesday, Jan 20, 16 @ 2:04 pm:
–Shorter Goldberg: “Chicago State is poorly managed. Therefore we decided to not fund any state universities or any MAP grants.”–
Yet that never came up when the governor proposed $370 million in MAP grants last February.
Or when he vetoed MAP grants last May.
Or when he threatened to veto them again when the Senate voted 37-0 to restore MAP grants last August.
I suspect Rauner is going to get veto-proof rolled sooner rather than later on MAP grants and uni funding. Too many GOP members in uni districts.
Mindless loyalty to the Turnaround Agenda won’t cut it for GOP GA members in uni districts. Goldberg is throwing the spaghetti against the fridge to see if something else will stick.
- Anon - Wednesday, Jan 20, 16 @ 2:09 pm:
“I suspect Rauner is going to get veto-proof rolled sooner rather than later on MAP grants and uni funding.”
Totally agree, but what is taking the legislators so long to do so?
- Anonymous - Wednesday, Jan 20, 16 @ 2:16 pm:
So because CSU has had troubles (many to be sure), but mostly under previous administrators and the current audit was much better, Rauner is starving not only the other 11 public universities and 48 community colleges but an untold number of private institutions. And he didn’t say a word about any of this until now?
- Nick Danger - Wednesday, Jan 20, 16 @ 2:19 pm:
Take out all things related to race and this University remains a huge travesty to its students and anyone who pays to support it. Who can defend it? Really. CSU has long been festering and everyone knows it. The fiscal crisis has brought it to a head.
- Anonymous - Wednesday, Jan 20, 16 @ 2:20 pm:
“apparent hostility towards the African American community.”
Wow. Saying that African American students deserve better is “hostility towards the African American community”?
What a twisted view of things.
- Parting Gifts - Wednesday, Jan 20, 16 @ 2:32 pm:
Chicago State University has a brand new president who assumed office on January 1st.
Many of the problems listed in the press release related to his immediate predecessor (Watson). To demonstrate how tone deaf the CSU board of trustees continues to be, the board voted the controversial former president emeritus status, tenure, a two person staff and an on campus office located in the university library.
Really bad decision making for a university that is poor financial shape.
- Anonymous - Wednesday, Jan 20, 16 @ 2:33 pm:
That disparity in graduation rates is striking, as are the comments by CSU itself on their blog.
Governor Quinn and Democrats could have done something about this.
Instead, one of Messr Madigan’s operatives is defending 32K on gardening for the university pres. It’s stomach turning.
- zatoichi - Wednesday, Jan 20, 16 @ 2:39 pm:
It is amazing that when Admin wants to go at someone they can find endless data and date specific info. When they are asked to provide a plan for a future state project, the plan is always coming, but it cannot be talked about right now and details are not available.
- Triple fat - Wednesday, Jan 20, 16 @ 2:47 pm:
Anonymous,
How many minority run businesses has GTCR partnered with? How many minority hires? How many African Americans work in the Governor’s office. Just saying they deserve better doesn’t make the Governor the provider of betterment. I don’t think that is a twisted view. It’s a realistic view.
- Nick Danger - Wednesday, Jan 20, 16 @ 2:48 pm:
zatoichi, so you’re saying the administration should not have pointed out the massive CSU failings?
- Anon - Wednesday, Jan 20, 16 @ 2:48 pm:
==students with grades as low as 0.0 were allowed to register for classes==
So that’s where Blutarsky wound up after Faber College.
- Triple fat - Wednesday, Jan 20, 16 @ 2:48 pm:
In other words… quit it with lip service and DO SOMETHING!!!
- wordslinger - Wednesday, Jan 20, 16 @ 2:50 pm:
–It is amazing that when Admin wants to go at someone they can find endless data and date specific info. When they are asked to provide a plan for a future state project, the plan is always coming, but it cannot be talked about right now and details are not available.–
LOL, no kidding.
The whole “economic and fiscal” rationale for the Turnaround Agenda released last week looks to be the work of some stoner who was smoking his breakfast behind the Kwiki Mart just before the bell rang.
Compared to that, Dr. Goldberg is publishing his dissertation here.
- Anonymous - Wednesday, Jan 20, 16 @ 2:59 pm:
Triple Fat at 2:48, now that is something I can get on board with.
All of them, from Madigan to Rauner, are busy talking instead of doing. Those two are the worst of the bunch. And seeing as Madigan has had a big hand in creating many of these problems through his role as speaker and party chair for decades, hopefully he has some new ideas in mind for how to help fix the problems that have been created. All we have now is Rauner suggesting we tear everything down and Madigan suggesting only that Rauner’s ideas are bad.
- GraduatedCollegeStudent - Wednesday, Jan 20, 16 @ 3:00 pm:
===That disparity in graduation rates is striking, as are the comments by CSU itself on their blog.===
Other relevant stats: Number of white undergrads: 102 (2.5%)
Number of African American undergrads: 3370 (77.6%)
Number of Latino undergrads: 271 (6.2%)
While it doesn’t exactly excuse things a whole lot (and they don’t provide economic crosstabs) one might agree that such a wide demographic swing may skew graduation results just a tad…
===Governor Quinn and Democrats could have done something about this. ===
So could Edgar (the current CSU board of trustees model dates back to his administration) and Ryan and Blagojevich. This particular fire has been burning for decades.
===Instead, one of Messr Madigan’s operatives is defending 32K on gardening for the university pres. It’s stomach turning. ===
One suspects that other members of Rauner’s social set would feel the same way on the grounds that that is too little.
- sideline watcher - Wednesday, Jan 20, 16 @ 3:00 pm:
yes Wordslinger! I was thinking the same thing! You just made me crack up!
But in all seriousness…this looks like a job for Rep Dunkin! He chairs Higher Ed Approp! I wonder if Rep Dunkin will stand with Rauner on this one? Save us Rep Dunkin!
/s
- cdog - Wednesday, Jan 20, 16 @ 4:16 pm:
So many failures, so many not taking responsibility.
Rauner. Completely off the rails tying everything to TA, destroying infrastructure.
Madigan. Needs to take a hit on this. Inexcusable to have leadership authority, and not fix the kind of systemic findings of the 2013 Auditor General report.
There should positively be cost control metrics tied to tuition.
Get on it Madigan, you are supposed to be protecting “the little guy.”
- Anonymous - Wednesday, Jan 20, 16 @ 4:20 pm:
What has IBHE done about these problems?
- RIJ (formerly PolPal56) - Wednesday, Jan 20, 16 @ 4:47 pm:
I entered higher ed in Illinois in the early 80s. At least since then CSU was the most poorly administered and weakest university in Illinois, but a politically untouchable one. The severity of the problems have ranged from chronic to acute, and CSU has never been able/willing to solve them.
To mention CSU at any other Illinois public institution is to trigger violent eye rolling, akin to that produced by the mention of such illustrious schools as Ashford University.
- Anonymous - Wednesday, Jan 20, 16 @ 5:00 pm:
Chicago state is a corrupt institution that does a Terrible job attempting to educate students. The graduation rate is a joke and the financial mismanagement is rampant.
- anon - Wednesday, Jan 20, 16 @ 6:44 pm:
It is difficult to recall that President Gerald R. Ford was once a commencement speaker at Chicago State.
At what point does it make sense to close the university based upon its falling enrollment?
The institution had an interesting history, but it has been struggling for a long time under the past several administrations. How is it any different from the public schools that were closed for declining enrollment and poor performance.
- anon - Wednesday, Jan 20, 16 @ 6:47 pm:
Wogan has his work cut out for him to defend the CSU bloated admin costs.
- Spoke too soon? - Wednesday, Jan 20, 16 @ 8:18 pm:
Thabedi, et al?
- Arthur Andersen - Wednesday, Jan 20, 16 @ 8:20 pm:
CSU has been an administrative mess for a long time. Having Jimmy DeLeo as a lobster tends to say they’re not ready for reform yet. I’m heartened to see Honeybear post that good things are happening for students despite the years of mismanagement.
In any case, let’s give the new President some time to get things fixed and lay off the letters-they really aren’t funny or good snark any more. I mean, if BVR wants letters written full of questionable content written by a total $&@#%, he can get rid of Goldberg and I’ll write ‘em for free.
- rbionaz - Thursday, Jan 21, 16 @ 6:24 am:
Some of us at Chicago State have been trying for years to get Illinois politicians to pay attention to the misdeeds of our administrators. We’ve talked to Republicans and Democrats, all the way to the Governor’s office. They didn’t give a damn. Now they care. What cynical nonsense.