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* This is not how you plead poverty and justify an almost ten percent tuition increase…
[U of I Board of Trustees Chairman Chris Kennedy] says newly hired U of I President Michael Hogan is “a bargain” at $620,000 a year.
Sen. Martin Sandoval is right…
State Sen. Martin Sandoval (12th) called the tuition increase “unconscionable” and “insulting,” noting that it’s coming even as the board hires a new university president at a base salary of $620,000.
University officials have said new president Michael Hogan’s salary is comparable to what other Big Ten schools pay.
“There is no justification to the salary,” Sandoval said. “They just want to keep up with the Joneses. It is not an acceptable model.”
The salary is only a “bargain” because of a skewed marketplace. Captive board members buy into the mystique of super-high salaries and are therefore eager to pay out the nose. The exact same board attitude has driven corporate CEO salaries into the stratosphere. Everybody else is doing it, we need to do it too. As my mother would say, “If your friends jumped off a roof, would you follow them down?”
* But Progress Illinois makes a good point…
During a severe economic crunch, when the state’s revenues are in the tank and students and university employees are being asked to sacrifice greatly, it’s totally reasonable of Sandoval to request Hogan voluntarily give back the raise. But we shouldn’t pretend that the state legislature is an innocent bystander in the college cost crunch. Since FY 1997, state allocations for higher education have dropped $137 million in real dollars. It’s far lower when adjusted for inflation. Worse yet, the state can’t even keep up with those measly payments, falling behind on its appropriations to U of I by $464 million.
Then again, that’s all the more reason to wonder why the board is willing to spend so much money. Does paying huge mountains of cash always mean you’ve found the best? Could they have found someone who actually wanted to run the U of I so much that s/he would’ve been willing to sacrifice the glitzy salary? Did they even try to break out of this race to the top?
One reason state approps dropped or held constant during Rod Blagojevich’s tenure is that he was trying to force the universities to rein in their pricey fiefdoms. It was one of the few policy initiatives of his that made sense. The problem is, the schools just kept increasing tuition without changing their money-based culture.
It was the elephant in the room.
The RTA board met Thursday, but there was no discussion of the recent discovery of a half-million-dollar fraud against Metra committed by late executive director Phil Pagano.
The RTA has financial oversight of Metra, but no one would even say whether the RTA would audit Metra.
RTA executive director Stephen Schlickman declined any comment about the Pagano investigation.
The reason they gave for staying mum was a federal investigation. Sen. Susan Garrett wants some changes over there…
Garrett said she is filing legislation calling on Metra to hire an independent auditor to review its finances and to require Metra to appoint an inspector general with specific watchdog duties.
Pagano made $269,625 a year in salary and allegedly stole at least $475,000 right under the noses of everyone at Metra. He was able to get away with this for so long because he had so much power that nobody wanted to question him. Sound familiar? Another captive, all-too-compliant board.
posted by Rich Miller
Friday, May 21, 10 @ 10:23 am
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9.5% looks like a lot, but consider (1) this amount is frozen for ongoing students for the next four/five years, so the actual increase is really a little over 3% - much less than others are doing, (2) the foolish trustees only raised tuition last year 2.5%, which translates into a negligible amount over time. Taken from those perspectives, the tuition increase is modest in any year, but particularly when the university is starved.
Comment by Principled Commentator Friday, May 21, 10 @ 10:30 am
I personally think the salary is crazy in this economic time. But I also think paying a basketball coach $750k to coach a .500 basketball team is crazy too, no matter where the money comes from.
I would like to see two legislative acts on this issue. 1. Get out of the FOIA question and explicitly state that if you sign a contract in excess of $150,000.00 a year working for a state funded entity the contract has to be published.
2. Make the contracts incentive based. We do it for school administrators. The selling point for the big contract is he will generate money. Tie that promise and increased education to his contract. Same for coaches. If I pay you 750k a year and you can’t keep a player or win more than 50% of your games, the state can void the contract.
Comment by the Patriot Friday, May 21, 10 @ 10:36 am
I think it is unusual that no ones feet is being held to the fire for the whole Pagano affair. Metra is partially supported by tax payer dollars, I believe like the CTA the system is 50% supported by taxpayer dollars.
Comment by Jim Friday, May 21, 10 @ 10:38 am
How about term limits for these public boards? Admittedly, though, Metra seems to have been well run…even a model for the nation. While term limits would perhaps address “cozy, captive” board issues, it might well breed instability. Real trade-offs to consider.
Comment by anon Friday, May 21, 10 @ 10:40 am
University of Illinois students and parents should be up in arms. What exactly does the new President bring to a troubled university (mostly caused by our lawmakers) to earn that kind of salary.
Comment by inkers Friday, May 21, 10 @ 10:45 am
It’s the spending stupid. Stop subsidizing tuition and the Fiefdoms will have a much more difficult time finding suckers to pay inflated prices.
Free Markets work.
Comment by Brennan Friday, May 21, 10 @ 10:48 am
There’s something of a symptom in the fact that hiring out-of-state professionals to come work in Illinois requires such exorbitant salaries.
Comment by Fred Slocombe Friday, May 21, 10 @ 10:49 am
99 bottles of beer on the wall
99 bottles of beer
You take one down
You throw it on the ground
You get back to doing the summer inventory while the faculty is on vacation and the Deans bicycle on the lakefront and the GA passes another gutless budget.
98 bottles of beer on the wall.
Comment by T-Contracted @ UIC Friday, May 21, 10 @ 10:50 am
–calling on Metra to hire an independent auditor to review its finances and to require Metra to appoint an inspector general with specific watchdog duties–
Clearly, any one keeping up with the news realizes that day-to-day independent watchdogs, as well as independent after-the-fact special investigators and prosecutors are needed at Metra and many many other agencies. But what an incredibly sad commentary that the allegedly capable and well paid officers, legal counsel, and department heads of these agencies do not see it as their own duty and job description to run these places with fiscal responsibility–without requiring babysitters also at taxpayer expense– to keep them in line and honest. Waste. Waste. Waste.
Comment by Responsa Friday, May 21, 10 @ 10:51 am
HOW TO GET THE GUY YOU WANT AND NOT PAY FOR IT:
I imagine the following, “Sir, I want you to be the next president of the University of Illinois, which includes campuses in Urbana-Champaign, Springfield, and Chicago - not to mention satellite campuses. It’s a big job and a great deal of responsibility. Here’s our offer, we will pay you at a discount rate due to dire economic realities. Your salary will be in the bottom quarter of Big Ten president salaries. But you should be happy, because although we know you don’t need the job, people are struggling in Illinois. You should recognize and insist on not being well compensated…after all, you are being hired to run the largest and most prestigious university in the Big Ten (smirk). Obviously this is a deal you can’t turn down.”
“Also note, the State owes us money, so you are going to have to deal with that, while finding new ways to retain top tier staff and still fulfill the mission of the university. And “yes,” we know the football coach makes a ton of many, but there are various reasons for that – in many ways his job is more important than yours. So what do you say?”
I agree, paying huge mounds of cash does not always mean that you find the best or retain the best candidate. It does mean that you have a larger pool to choose from. I’d rather choose from the best pool. Then again, maybe the pool should be limited to those in the State legislature…we keep on electing them. Surely one of them could run the university at half the cost?
I’m over it.
Comment by GetOverIt Friday, May 21, 10 @ 10:51 am
We are talking about public institutions. These are state institutions that have been given their missions by the citizens of Illinois. These are government schools. Why are they out of control with our money? Why have they forgotten their fundamental mission?
Where are the priorities? We have at-risk children programs being cut. We have Pre-K classes being cut. At the time of our biggest growth period as human beings, our state money is being spent as though it was the last dime on Earth. Then, after we have decided that you are on your own, we build these public institutions where our state money is being spent as though it was free.
I didn’t attend university in this state, so I hold no loyalties and have no personal memories tempering my comments. As a result, all I can say is that there is absolutely no excuse to worship these state institutions at all. I fail to see them as sacred cows to feed at our expense. Instead, I see them as cattle that in tough times, needs to be culled in order to feed our citizens.
Our universities have lost their ways. These institutions should be reigned in, not necessarily by government edict - but by market realities. Instead, we are seeing these fiefdoms justify their largess by claiming that their publically funded salaries are reflective due to comparisons with their privatly funded competition.
It is our money. It is to go to our children’s future. This has to stop because we can’t afford it. Ironically, shouldn’t these state institutions have enough leadership and faculty specialists in place to understand this?
Comment by VanillaMan Friday, May 21, 10 @ 10:51 am
How about eliminating these public boards?
They are kevlar for elected officials. The board takes the shrapnel when the bombs set by elected officials finally explode.
Stop sending capital and jobs to Texas.
Comment by Brennan Friday, May 21, 10 @ 10:52 am
I think when the state gave the universities control of their income funds, it lost any leverage for limiting tuition increases. Then again, the General Assembly has not shown much desire to actually control tuition in public higher education through any other means. The truth in tuition legislation that freezes tuition for a freshman throughout a four-year public university career has proven a small mine for some universities, inflating real need for the rate of increase to subsidize perceived shortfalls in state funding. Public universities are in fact state agencies, though neither the state nor the universities seem to recognize that.
Comment by Captain Flume Friday, May 21, 10 @ 10:52 am
The water is over the dam on Hogan. And a board
with folks like Chris Kennedy on it is of course
going to see $600,000 plus as chump change. These folks think families making $250,000 a year are poor.It’s all in the perspective.
From what I’ve read about his UConn tenure, I don’t think Hogan is the type to take a pay cut. And maybe he shouldn’t, just because a legislator is grandstanding for the folks back home.
At this point, the question will be, does he have real substantive goals and can he deliver. The board and the people of Illinois should make him work for the money and his performance should be measured against those goals frequently. That’s where boards and we the people tend to be deficient…in the followup.
Comment by cassandra Friday, May 21, 10 @ 10:58 am
While I agree that there is a perception issue here, Hogan’s salary isn’t a lot of money compared to the overall U of I budget.
I’m far more concerned about the salaries of School Superintendents across the state. Some of them are earning almost as much as Hogan while running school districts a fraction of the size, and there are a lot more of them, so the fiscal impact is outsized and disproportionate.
At least here there is a comparative rationale for the salary. With the Superintendents the salaries are all over the place, with some of the smallest districts paying the highest salaries. People complain that Ron Huberman is making too much, but arguably he should earn more than the others for running the largest district.
Comment by Don't Worry, Be Happy Friday, May 21, 10 @ 10:59 am
We should consider the state university as some type of utility and tie their increases to the CPI or the rate of inflation or make them petition to have their rates increased. PQ would love it if the CUB got involved, wouldn’t he?
Comment by dupage dan Friday, May 21, 10 @ 11:00 am
Mike Madigan for U of I President!
Comment by Cincinnatus Friday, May 21, 10 @ 11:09 am
HMMM arent their two trustees on the U of I board that Pat Quinn promised to remove if they wouldnt resign then he flip flopped and backed down. Another example of Quinns lack of a backbone soaking the Illinois taxpayer. Well at least if your a friend/family or contributor to an Ill legislator you can get a free ride.
Comment by Fed up Friday, May 21, 10 @ 11:14 am
The fact that an agency the size of Metra is not required to have an independent external auditor explains a lot about the state of things in Illinois.
Comment by Excessively Rabid Friday, May 21, 10 @ 11:16 am
Why not compromise, pay him a 100k a year with performance incetives and objective that can take his pay up to 660k a year if he meets all the incetive objectives.
Thats how Micheal Eisner got so stinking rich. most of his compensation was tied to performance, and he turned Disney around.
Comment by Ghost Friday, May 21, 10 @ 11:18 am
Principled Commentator is correct that an important factor in the tuition increase is the requirement enacted a few years ago that tuition is frozen for incoming freshmen for four years. That law limits the ability of universities to react on a year-by-year basis and forces them to set tuition rates based on predictions of conditions four years into the future. Predicting the state of the economy 4 years out is an impossible task.
Progress Illinois is also correct in pointing that state funding of the universities has declined.
Sandoval is grandstanding. What’s his solution?
The legislators don’t appear to want direct oversight of the universities. It is much better for them to have the Board of Trustees make the decisions about tuition increases and salaries to be paid to the university presidents and take the heat from the public. Then the Sandovals of the world have the ability to rant about the results without having to come up with any type of concrete alternative to the current system.
If Sandoval doesn’t like the amount of salary and benefits paid to the university presidents, then he should introduce legislation that sets the salary by law. In that way, the General Assembly could take direct control. In addition, they could change the law and require university presidents to be appointed subject to approval of the Senate, just as is done with the Governor’s cabinet officers. Similarly, if he doesn’t like the fact that the Board of Trustees is voting for a tuition increase then he should introduce legislation providing that the General Assembly shall set the tuition rates at each of the state universities.
Absent some type of substantive proposals, it’s nothing but blather.
Comment by Just the Facts Friday, May 21, 10 @ 11:23 am
Hogan is getting paid a lot of money relative to most Illinoisans. Relative to most university presidents, and his salary isn’t out of line.
Maybe Sandoval can demand that Bruce Weber and Ron Zook to take pay cuts too. That’ll save some money, right?
I think if Sandoval wants to help the U of I in a meaningful way, he’ll introduce legislation banning the General Assembly’s tuition waiver program.
Hey, who is getting free tuition from Sandoval? Is that subject to FOIA?
Comment by 47th Ward Friday, May 21, 10 @ 11:49 am
I spend a lot of time with people from connecticut and this guy didn’t exactly win that state over. I don’t have the clips yet, but there were some nasty things said about him in the papers that covered him and they weren’t exactly sad to see him go.
also private school tuitions are going up 6-7 percent per year. northwestern will be over 50k a year or close to it by the time these kids graduate so 22k a year is not that bad.
Comment by shore Friday, May 21, 10 @ 11:53 am
Public universities exist to provide an education at a reasonable price to the people of Illinois. This is a rational and reasonable investment in the future. Unfortunately Illinois has chosen to reduce its commitment to the future by reducing, year after year, its support for public universities.
The free market supporters on this blog can choose to support any of the private universities they like. But Illinois needs quality public universities and it is a valid government expense to continue supporting them.
Quinn, Blagojevich, Ryan, Edgar and Thompson have all supported dragging down the University of Illinois (and other state schools) by reducing state support and hoping things will work out OK. As with the pension situation, this problem creeps along with no end in sight.
Finally- is the new U of I president worth his salary? It seems a bit high but even if he worked for one dollar a year his university would be in a huge financial pickle. I doubt he or anyone else can stop the downhill slide.
Comment by DuPage Dave Friday, May 21, 10 @ 12:05 pm
Of course the RTA isn’t going to say anything. They are responsible for financial oversight of the service boards. Up until now, they’ve only practiced budgetary oversight. The RTA has not fulfilled the responsibilities embodied in the State legislation - and now, there’s a problem. The RTA has for years avoided their own duties to keep from stepping on Metra and CTA’s toes. So the investigation of Metra’s internal financial oversight will naturally run several blocks east for external oversight.
The RTA on the other hand was audited by the State a few years ago — and there were some internal financial controls that needed tightening. They better hope they made those changes. But if RTA Board Members, Executive Director and upper management compensation and perks get a spotlight shone on them, oooooo. Watch out. And unlike Metra, RTA is a small organization, with no operational, life or death, responsibilities. That is the last thing Mr. Schlickman needs, as he is trying to just head out the door quietly and gracefully.
Comment by KeepSmiling Friday, May 21, 10 @ 12:15 pm
DuPage Dan said,
“The free market supporters on this blog can choose to support any of the private universities they like. But Illinois needs quality public universities and it is a valid government expense to continue supporting them.”
I am of two opinions on this. If all of the taxpayers of Illinois are required to support the public universities, how is it that all of the kids with identical minimum test scores cannot enter a given school? Admission policies at these state universities that preclude this are nothing more than reverse discrimination which dilutes academic achievement for so-called “diversity” reasons. I object to state-funded schools that accept this approach of low expectations of its students. Without reform of this approach, state funding should be limited, or eliminated. A far better approach would be to take a significant portion of higher education dollars and fund individual students, allowing them to take their money to any school in the state. Are we interested in the students’ welfare, or the welfare of the education bureaucracy? Whenever a third party comes between a service and its consumer, inefficiency follows (c.f. heathcare), and chaos ensues.
That said, I do feel that some level of support of equal-opportunity (not outcome) schools is required by the state. But as we have seen with “legislators’ scholarships” and the admission scandals that forced the last group of U of I administrators out of office, and “diversity-driven” admission policies causing increased failed-to-graduate rates, these universities have lost their way and do not deserve undying love from the state’s taxpayers.
Until the schools institute common-sense policies, on admission, inflation adjusted tuition, and cost control, they should live in fear of continued support of the legislature, and ultimately the voters.
Comment by Cincinnatus Friday, May 21, 10 @ 12:29 pm
Let’s face it. The U of I is stuck for the long term with declining state funding as a percentage of its overall budget. It can only try to slow this downward slide while simultaneously increasing federal grant monies and private contributions. However, the decline in State support will greatly outweigh these other income increases. So, tuition dollars are all that is really left to try to fill-in the gaping hole left behind. If U of I did not have control of the Income Fund and its tuition levels, it would have long ago made the budget cuts it needs, and eliminated some of the truly wasteful job slots and duplicative programs. (Funny how the U of I quietly opposed the Income Fund legislation, and supported tuition increase limitations under Stukel.) I think the legislature needs to let U of I starve for another couple of years so that they will indeed have to pare back the waste under the new President. They have done little or nothing to address the base cost of the institution — a few unpaid days off this past year is a pathetically insufficient response. Ikenberry could have burned down several forests of waste prior to the new President arriving. Instead, the U has fiddled during this interim period.
U of I will always have a relatively “safe” position, because it will always have the enrollment of the best public university students. The other state universities have relatively modest federal grants and private contributions to speak of, and they will have to make the hard cuts — or face functional bankruptcy reorganization.
Comment by Chad Friday, May 21, 10 @ 12:40 pm
Keep Smiling: That would be a big ‘ol “no” on RTA “financial controls.” Their oversight function, such as it is, appears to be overly focused on producing data that keeps key federal funds flowing. Their funky and fungible approach to accounting–one year’s expense is another year’s revenue–is a friggin’ nightmare to follow.
Comment by Indeedy Friday, May 21, 10 @ 12:42 pm
Northwestern tuition will be 39,800 next yearnot $50,000. My daughter starts there this Septmeber and I hope (nd think)the tuition will be under 50,000 when she graduates. Slightly off topic. Although she was also accepted at the UI I am somewhat relieved that she will not be going there. Using the UI as a budget football is not going to be good for anyones education.
Comment by Northwestern Father Friday, May 21, 10 @ 12:51 pm
I don’t think Hogan is a bargain by any means but you get what you pay for. This University is a mess right now and it needs a top notch guy. In order to do that you need to pay a competative salarty relative to other opportunities the person will get.
Saying you might have been able to get another person who would do just as good of a job at a bargain price sounds good but it doesn’t mesh with reality. It just hardly ever happens.
Comment by Ahoy Friday, May 21, 10 @ 12:57 pm
===It just hardly ever happens. ===
But do they ever really try?
Comment by Rich Miller Friday, May 21, 10 @ 12:58 pm
So the guy who was hired as Chairman of the RTA to hold transit agencies accountable is now the guy who will hold McPier accountable? Whose bright idea was that? (Rhetorical)
An award to the first investigative reporter to make that connection.
Comment by Connecting the dots Friday, May 21, 10 @ 1:09 pm
By the way, the U of I is now unquestionably a Democratic fiefdom (to use Rich’s term). Just look at the people being hired, and you would think they are taking orders from City Hall. In fact — some are from City Hall. At one time it was a GOP fiefdom — the road from GOP Springfield to the U was well paved a number of years ago. Even Tristano got a job there. But the economy and university management were generally better back then.
The point of all of this is that Democratic Springfield largely intensified and now owns the public university mess. They have controlled the budget, and their appointees and former employees have been running the campuses for some time now. The actors and attitudes that “manage” our State budget now “manage” the universities.
I do not agree that Edgar and Ryan share the same degree of responsibility that Blago, Quinn, and the legislature now have. If Edgar shares some responsibility for U of I, it is because he stripped the institution of its relatively independent fiduciary Board and made it into a patronage appointment. The most recent appointees are an improvement, but we can’t trust future governors to appoint top-notch people once the memory of the admissions scandal fades from memory.
Comment by Chad Friday, May 21, 10 @ 1:23 pm
Check out the salaries that the staff at the UI Foundation are making and you will choke.
Comment by Skeptical Cynic Friday, May 21, 10 @ 1:29 pm
Senator Sandoval you know what is “unconscionable” and “insulting,” the $100,000 a year plus boards and commission that exist. And what’s really terrible is the fact that you voted for legislator’s spouses to be appointed to these. Not to mention these ridiculous posts get health care and a pension. Why not cut all these down to like at most $5K or per diem. This would save millions, keep a few more teachers in place or help with some human services cuts. It’s really hard for an elected official on one hand to argue about a U of I president’s salry while on the other hand voting in favor of these ridiculous appointments and yes in these times the U of I President should do the right thing and refuse the increase, now Senator you do the right thing and call for the elimination of these ridiculous hig priced boards and commissions and appoint people to them that truly are interested in pulic service instead of just fatteing their wallets
Comment by Oh Really Friday, May 21, 10 @ 1:31 pm
Principled is dead on in his analysis. When the General Assembly passed “truth in tuition” it really forced the universities to try and project four years into the future. That is extremely difficult and hence they error on the side of caution.
Comment by 4 percent Friday, May 21, 10 @ 1:56 pm
If you review what the RTA said, they did not say they weren’t doing anything, they simply claimed that public discussion of it was discouraged because of an ongoing federal investigation.
Comment by Transit Supporter Friday, May 21, 10 @ 2:08 pm
Hogan’s longevity package is not as lucrative as his predecessor’s, so some of what he will make over time will even itself out a little.
The arguments about the truth in tuition being difficult for universities to project budgets may be valid, but I don’t think that too many of them would return to yearly increases for each student. They have found that they can pocket some extra funds by over-projecting, and thus over-charging students. We have come to expect very high tuition, fees, and textbook costs. This certainly keeps the lending banks and the textbook publishers (and the faculty who “write” textbooks) content. Most of the people in power today came from a time when a decent summer job could help pay most or all of your tuition for the coming year. Even in a good economy, you won’t find many opportunities to earn $20,000 between May 15 aand August 15. Makes me sad and makes me mad.
Comment by Captain Flume Friday, May 21, 10 @ 2:23 pm
I find it hard to believe that the RTA and Metra, boards, loaded with political animals, didn’t have any idea where the money was going. Like the man said, money is the mother’s milk of politics.
Reilly is going to have to say something. By the way, where’s Mr. Ladd, on the milk carton?
Comment by wordslinger Friday, May 21, 10 @ 2:32 pm
@Chad pm:
“By the way, the U of I is now unquestionably a Democratic fiefdom…”
You mean the State of Illinois, right?
Comment by GetOverIt Friday, May 21, 10 @ 4:08 pm
Getoverit: wise person, you got it right. The U of I is now just another disfunctional state agency on the Democratic Party reservation. They really hollowed it out.
Comment by Chad Friday, May 21, 10 @ 5:17 pm
Is compensation of university administrators a matter of public record? If so, why is anyone screaming about this particular salary? I don’t believe the list of state university administrators statewide making >$250K in compensation would fit in a single column on one page. Maybe I exaggerate, but not by much.
Comment by Excessively Rabid Friday, May 21, 10 @ 5:19 pm
In his remarks to the Chicagopress, Sen. Sandoval kept referring to Hogan’s new position relative to the location and students ethnic origins as the UIC campus. Before he undertakes to run the University of Illinois, perhaps he should learn the location of the University as UIUC.
Comment by Loyal Illini '65 Friday, May 21, 10 @ 9:42 pm
Th e real problem is that so little of the function of the UI is “education”.
According to the most recent University budget, only 20% of the budget goes to “instruction” and 9% goes to “academic support” largely patronage hires.
“research” accounts for about 19% of the budget, although some of that is funded by outside grants.
The old “learning and labor” credo long ago was jettisoned for “patronage and pork”, especially in Urbana.
The sad fact is that the university is now more of a hospital and resarch institution than a cwenter of undergraduate education.
Why aren’t we cutting back on non-grant, economically useless research, and getting out of the health care business if the U is so broke?
I don’t know yet, but I’m going to find out!
Comment by PalosParkBob Sunday, May 23, 10 @ 12:09 am