1. Speculating on the University Immaterial Labor Workshop Fall 2014

2. Rhetoric versus Reality Question: Why is it necessary to raise tuition and segregated fees? University Administration Answer: The key reason for increasing tuition is the long-term decline in state funding. Fifty years ago state dollars composed 90% of core educational costs. Today state funding covers 40% of core budget and 15% of the overall UW-Madison budget. Tuition exceeded revenue from state aid for the first time in 2004. In recent years tuition has risen to 20%. Blank said maintaining reasonable tuition levels are a primary responsibility, but other sources of funding for the university, including federal research grants and private donations, are less reliable. She explained that an increase in tuition would make the university more competitive.

3. http://www.wisconsin.edu/news/2014/08/2015-17BiennialBudgetRequest-Miller.pdf *GPR: General Purpose Revenue (state funding)

4. Auxiliary Operations: Food Service, Student Housing, and College Stores. User fees (room, board, parking) are primary revenue sources. State GPR: General Purpose Revenue – state funding (divided between specific purpose (7%) and general program support (10%) Tuition: student tuition and loans Federal funds: grants and other federal funding Gifts/Grants and Seg Fees Gifts: Provides support for broadly defined activities such as professorships, scholarships, fellowships, traineeships, research and instructional programs. The donor may restrict the use of the funds to a specific program area or purpose Lab Fees Operations Receipts

5. Segregated fees at UW-Madison have increased by 90% over the last 10 years. Why have tuition and segregated fees increased so much? In-state freshmen students in 2014 pay 77% more in tuition and fees then freshmen did 10 years ago.

6. UW 2012-13 Data Digest

7. From: http://www.cpd.fpm.wisc. edu/Current-Projects.htm http://www.cpd.fpm.wisc. edu/Current-Projects.htm

8. From: http://www.cpd.fpm.wisc.edu/capitalbud get/Guidebook13-19.pdf http://www.cpd.fpm.wisc.edu/capitalbud get/Guidebook13-19.pdf

9. From: http://www.cpd.fpm.wisc.edu/capitalbud get/Guidebook13-19.pdf http://www.cpd.fpm.wisc.edu/capitalbud get/Guidebook13-19.pdf

10. In the last 10 years, on average, segregated fees at UW-Madison have increased by 90% - largely due to increases in non-allocables (student union, rec sports facilities, health services and childcare tuition assistance programs) which have increased by 103% compared to 45% increase in allocables (student orgs, student govt, campus bus). Students have less control and input in altering non-allocable budgets which make up 80% of the seg fee budget. Building projects (like Union South and Memorial Union Renovation) cost students $192 a year for up to 30 years (without including costs for maintenance and upkeep of buildings) From: http://www.secfac.wisc.edu/senate/2014/0203/2470%20Ad%20hoc%20tuition%20report.pdfhttp://www.secfac.wisc.edu/senate/2014/0203/2470%20Ad%20hoc%20tuition%20report.pdf

11. “The Vicious Cycle of Finance and the Country Club University” Restriction free revenue stream Seek wealthy out-of-state student tuition Building spree to attract students Construction debt Grow the endowment and attack labor Raise tuition More endowment and investments and attacks on labor

13. Initial conclusion: Tuition and seg fees are the only source of revenue that comes with no strings attached. It is then (on the revenue side of the balance) the universities primary lever. That is why it has been increased so aggressively.

14. Credit RatingBond Credit ratings for borrowers are based on substantial due diligence conducted by the rating agencies. While a borrower will strive to have the highest possible credit rating since it has a major impact on interest rates charged by lenders, the rating agencies must take a balanced and objective view of the borrower’s financial situation and capacity to service/repay the debt. The credit rating has an inverse relationship with the possibility of debt default. In the opinion of the rating agency, a high credit rating indicates that the borrower has a low probability of defaulting on the debt; conversely, a low credit rating suggests a high probability of default. A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities. The indebted entity (issuer) issues a bond that states the interest rate (coupon) that will be paid and when the loaned funds (bond principal) are to be returned (maturity date). Interest on bonds is usually paid every six months (semi- annually).

18. Out-of-State New Undergraduate Freshmen increased by 42% between 2003 and 2012. (UW Data Digest) 2012-2013 Tuition for in-state undergraduate students is $10,385 and for out-of-state is $26,634. 2012-2013 Tuition for in-state graduate students is $11,839 and for out-of-state is $25,166. Blank has said that UW-Madison should have affordable tuition for in-state students, but that out-of-state tuition should be set by the marketplace, saying the university’s out-of-state tuition is probably underpriced compared to neighboring institutions. To fix funding shortfalls, Blank said the university would take a comprehensive approach: fighting to restore lost state funding in the 2015-2017 biennial budget launching the first major fundraising campaign since 2006 partnering more strategically with corporations and market partners collecting more tuition from out-of-state From: http://host.madison.com/news/local/education/on_campus/new-uw-madison-chancellor-calls-for-tuition-hike-for- nonresidents/article_9f041645-ad92-5276-9551-8dcb25db7cdf.html#ixzz3D7WUY4Te

19. In 2011-12, over fifty percent (51%) of undergraduates graduate with student debt. The average undergraduate student leaves UW with $25,759 in debt. UW 2012-13 Data Digest

21. From: UW Legislated Accountability Report 2014, https://apir.wisc.edu/accountability/2014_Accountibility_Report_Final.pdf https://apir.wisc.edu/accountability/2014_Accountibility_Report_Final.pdf

22. UW 2012-13 Data Digest UW was ranked 210 out of 254 universities rated in the U.S. News Campus Ethnic Diversity rankings (2013-2014 report).

23. Future Workshop Research Questions: 1.How has access and percentage of "unrestricted funds" changed over the past few years? (Including tuition/fee increases and freezes, out-of-state student ratio, impact of NBP?) 1.Can we decipher the trend in administrative increases here at UW? Can we decipher the pay scale and types of jobs categorized as administrative in the UW financial report; i.e. how does the university define and remunerate administrative workers on campus differently? 1.What are the restrictions/obligations attached to bonds in WI? (Including interest payments and their time-scale, references to labor organizations, expectation of future incoming revenues, etc) 1.How do the tuition bubble trends at UW correspond to those elsewhere, keeping in mind that according to financial report the debt bubble will double on debt service here in WI? And where else are unrestricted funds being invested in/generated (ie tech transfer projects)? 1.If the UMich shows the security of its bond rating through student tuition dollars (security to back bonds), then what is the UW equivalent? The state is providing security to investors, but how is UW providing security for the state?