Archives for May 2019

This post is part of an extended Open Letter to the Iowa State Auditor.

A little over eleven years ago, in March of 2008, the University of Iowa Hospitals and Clinics (UIHC) — which is owned by the state and administered by the Iowa Board of Regents — commenced a feasibility study for constructing and operating a new, dedicated children’s hospital. That study was in turn the result of decades of conversation about moving the various pediatric units into a single facility, thus building out UIHC’s infrastructure in a market already heavily influenced by the university’s massive, sprawling medical complex. Despite the fact that much of the campus would soon be inundated with catastrophic flooding, by 2011 that study had turned into an active and accelerated plan, with an initial budget of $270M. (Project timeline here.)  [ Read more ]

This post is part of an extended Open Letter to the Iowa State Auditor.

While naming physical structures after human beings is a time-honored tradition in many cultures around the world, in no context is that tradition more lampooned and maligned than in higher education in the United States. For every alumnus whose life work materially changed society for the better — and was thus deserving of genuine recognition — there are a hundred who merely lined their pockets with the fruits of their degrees, if not also contributed to society’s ills in the process. Because colleges and universities are always looking for ready sources of revenue, however, any alumnus with a bulging bank account can, with the right crony connections and the right number of zeroes, buy the naming rights to a prominent edifice on campus, thus purchasing outright the reverence that others earned with their good works.  [ Read more ]

This post is part of an extended Open Letter to the Iowa State Auditor.

Rank and file state employees in Iowa are constrained in their financial decision making by their job descriptions and limited budgetary authority, and that includes the seventeen staffers at the Iowa Board of Regents, and thousands of similar employees at the regent schools. If those government workers spend state funds without a valid justification, they may end up being terminated, if not also having a criminal referral filed by the Iowa State Auditor. (Recent examples from the University of Northern Iowa here and here, and from the University of Iowa and UI Athletics here and here.)  [ Read more ]

This post is part of an extended Open Letter to the Iowa State Auditor.

In the two previous posts it was noted that over the past four years the Iowa Board of Regents has raised tuition out of scale to any legislative funding cuts, and that student-subsidized economic development is one explanation for how that new unrestricted revenue is being spent. Unfortunately, because the regents routinely obscure and even scrub tuition totals from their public reports, and because the board is only obligated to report on economic development which is directly funded by the legislature, we have no way of knowing whether the regents are taking money from students and spending it on economic development that the state desires, but does not want to fund with taxpayer revenue. What we can say is that any new economic development programs at the state universities are almost certainly being funded by tuition revenue, because everyone agrees that there is simply no other substantial source of revenue to draw from.  [ Read more ]

This post is part of an extended Open Letter to the Iowa State Auditor.

In the previous post it was noted that although the Iowa Board of Regents produces copious and detailed reports on all manner of operations and performance, it also goes out of its way to obscure and omit the amount of revenue generated from tuition and fees. While routinely positioning itself as a victim of ‘state’ funding cuts — even as the regents are themselves part of state government — the end result is that the state of Iowa, through the Board of Regents, has raised a massive amount of new revenue over the past four years. What we still do not know is how the board is spending all of that unrestricted revenue, and how much is being spent.  [ Read more ]