Report on the profitability of education and the exploitability of students. San Diego, California, USA: Reclaim UCSD; 2012. Available from: http://reclaimucsd.wordpress.com/report-on-privatization/. Accessed 2012 Mar 5. Archived by WebCite at http://www.webcitation.org/65xCnQBVx. Printable layout archived by WebCite at http://www.webcitation.org/65xD02Dyv.
The rapid privatization of funding sources in the University of California (UC) system (tuition as opposed to state funding), and the shift from instruction to capital projects, are traced to corruption and conflicts of interest within the UC Board of Regents, and to landmark political decisions, notably the Proposition 13 restrictions on property tax increases (1978) and the Compact for Higher Education (2004). Privatization is characterized as a financial bubble, depending on assumptions of ever-increasing growth in tuition payments and in student and institutional debt, similar to the subprime mortgage bubble, and likewise unsustainable. Rapid growth of highly paid upper management has added to the burden, and lack of financial transparency has concealed the mechanisms of privatization, the conflicts of interest, and the nature of the investment risk assumed. Proposed solutions include democratization of the UC Regents, repeal of the major provisions of Proposition 13, and reform of the initiative process by which Proposition 13 was passed.
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