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Arizona Summit, Charlotte and Florida Coastal downsize their full-time faculties by 39%

[ 16 ] March 26, 2015 |

oliver twist

Earlier this week I was told that in January the Charlotte School of Law had bought out the contracts of a dozen faculty and 15 staff members, and that last month Arizona Summit had bought out an unspecified number of faculty. I was also told students at Charlotte were upset about the sudden faculty departures.

I contacted Jay Conison and Shirley Mays, the deans at Charlotte and Arizona Summit, and they responded as follows: Read more…

Confederacy of dunces

[ 48 ] March 25, 2015 |

american stars and bars

I have a piece on the Confederate flag license plate case:

What’s most objectionable about confederate flag specialty plates isn’t that some people might mistakenly think that the Texas state government is endorsing the political views of people who display confederate flags (they will likely not commit this error). Rather, it’s conceivable that people will conclude that the state is willing to do just about anything to make a buck, including turning its license plates into a free-fire advertising zone, where anybody can sell anything as long as they’re willing to give a cut of the proceeds to the Lone Star State.

There’s a perfectly constitutional way for Texas not to allow people to feature confederate flags on the state’s license plates, which is not to sell the right to advertise their political beliefs on those plates to anyone to begin with. But that would require ever-so slightly raising some tax rate or another to make up for the lost revenue, so the state would rather try to violate the First Amendment.

Grift American style

[ 132 ] March 24, 2015 |

elmer gantry

Salon has an interview with Rick Perlstein, in which Perlstein explains how Mike Huckabee’s hawking of some magic beans that purportedly cure diabetes is all of a piece with the intersection of New Right politics and good old fashioned American hucksterism:

[O]nline publications like Human Events and Newsmax— which is files and files of their horrible con games— would rent out their good name and their lists. You’d see something in your email like, Dear Human Events reader… and something about a 99-cent cancer cure. You never could tell where the grift begins and the politics end because there would always be rhetoric about how there’s a liberal conspiracy to hide this knowledge from the public; that this particular cancer cure was used by Ronald Reagan, et cetera, et cetera. . .

I believe that in the 1990s, The New Republic did an exposé of how Pat Buchanan had turned running for President into a business, so it didn’t start with Ben Carson or Mike Huckabee.

One of the many things I admire about Perlstein’s work is that he’s not contemptuous toward the people who are getting conned by this sort of thing, but rather understands the worldly success of the likes of Pat Robertson and Glenn Beck as a product of structural social and cultural factors, rather than evidence of individual stupidity and/or culpable naivete on the part of their marks:

A lot of this stuff comes from Evangelical culture, which is a culture of witness, so the hawking of miracles is absolutely baked into the cake. Someone like Pat Robertson was followed by a figure like Pat Buchanan or any number of candidates in the last two or three Republican primary seasons, who make a lot of noise by doing decently well in early polls but then fade out once the seasoned pros take over and the money becomes preeminent.

If this historical pattern holds, Mike Huckabee, if he does well early, will flame out before the second or third inning but I see no impediment whatsoever for him to be disqualified by the conservative rank-and-file, simply because this stuff has been going on without much complaint since the 1970s. This is part of the hustle, right? If Huckabee can claim to have been victimized because of his activities, he can always claim it’s the conspiracy of the liberal elites… and then it’s off to the races. . . .

Glenn Beck is a Mormon and this stuff is baked into Mormon culture even more than Evangelical culture. There’s the whole culture of multilevel marketing— or pyramid schemes, as they’re more derisively known— which is basically a system where you buy a franchise for some kind of product but you really only make money by selling a chunk of the franchise to your neighbor. The further down the line you are, the less likely you are to realize any profits, and most people lose lots of money on this stuff. MLM, some people joke in Utah, stands for “Mormons losing money” and so these guys are masters of the stuff. There’s also a culture of Evangelical or Mormon witnessing; being able to cry on cue when telling the story of your victimization is very important. This goes back to Elmer Gantry as portrayed by Burt Lancaster in the film of the same name.

There is or was a right-wing talk radio station in Denver, and awhile back I listened in rapt fascination to the Michael Savage show while stuck in a traffic jam. I was particularly struck by how between all the frothing at the mouth, Savage would pitch every kind of snake oil imaginable — miracle medical cures of course, but also financial miracles via no money down real estate pyramid schemes, gold bug propaganda, survivalist kits, you name it.

Anyway, all this makes me think of (what else?) law schools, but really you can apply a grifter-style frame to a huge number of social institutions, from the most disreputable to the most respectable. (For instance climate change denialism lends itself very well to this typology.)

I propose the following typology, using the current crisis in legal education as an exemplar. Any successful sustained grift (the term of art is a “long con”) will feature three sorts of promotional characters. These character types have fuzzy boundaries, and indeed a single person may at any one time exhibit traits of two or all three of them, as well as moving between types over time.

The Wise Guy

This guy (or gal) is on the grift and knows it. He therefore has a certain purity to him. Example: The people running Sterling Partners, the Chicago private equity firm that figured out how to gorge itself on federal loans by opening up for-profit open-enrollment law schools. Sterling Partners knows exactly what it’s about, which is profit-maximization courtesy the American taxpayer.

The Bullshitter

These are the classic sales types. Asking them if they believe their own pitches is like asking an actor if he really is the character he’s playing. In other words the question itself involves a category mistake. Examples: Basically every law school dean when he’s playing the role of a law school dean.

The Zealot

This person really believes. It’s of course extremely tempting to believe things that one wants to believe are true, and plenty of people give in to that temptation, even if doing so requires performing certain unnatural intellectual acts (Flaubert: “To be stupid, selfish, and have good health are three requirements for happiness, though if stupidity is lacking, all is lost.”).

I could add plenty of illustrative links but reading Perlstein makes me feel a certain sympathy for the devils, so readers can come up with their own favorites.

I do wonder where Erwin Chemerinsky fits into this maze however.

Billy Joel and the law

[ 61 ] March 23, 2015 |

glass houses

This is real.

The possibilities for “interdisciplinary legal scholarship” grow ever-more exciting.

Is there a law review article yet on Barry Manilow and the Sherman Act? There will be.

Infinite number of monkeys etc. (Good album name)

Touro currently charges $44,520 per year.

Half the 2013 graduating class didn’t get any kind of legal job, and nearly 30% were either unemployed, working retail, or in part-time short-term “jobs.”

The invention of the $250,000 law degree

[ 40 ] March 18, 2015 |

This is a followup to an earlier post about the exploding cost of legal education over the past few decades.

I’m employing the University of California Hastings law school to illustrate both how much that cost has gone up, and why. The latter question is the focus of this post.

Hastings’ total tuition revenue plus its state appropriation is a good rough proxy for the school’s annual operating budget over time. (Until the 1980s the school had essentially no other sources of revenue. Since then, it has gradually developed significant sources of auxiliary income, from endowment and annual gift income — the school didn’t even have a development program until the 1970s!– and from renting housing to students, which it began to do in the 1980s. The income from these sources largely offset lost revenue from tuition discounting, which essentially didn’t exist prior to the 1990s).

This graph thus illustrates, in constant dollars, the growth in the cost of operating the school: Read more…

The destruction of public legal education in America: A case study

[ 45 ] March 11, 2015 |

tapestry

Yesterday I linked to a talk given last week by UC Irvine dean Erwin Chemerinsky on the future of legal education, in which Chemerinsky criticized Brian Tamanaha’s claim that law schools can and should spend much less money than they’re currently spending. Chemerinsky’s argument is that law schools cost as much as they do almost wholly because of personnel costs. Thus, according to him, the only way to cut costs significantly would be to have a law school with a small full-time faculty and a lot of part-time adjuncts, and that, in Chemerinsky’s words, “wouldn’t be a very good law school.”

This is because full-time faculty are better teachers than part-timers, and because full-time faculty are around the building a lot more, and thus are more easily available to answer student questions outside of class (This is actually his argument, in case you’re wondering if the will to sarcasm is getting the best of me).

In other words, a good legal education is by its nature extremely expensive, and indeed there’s just nothing that can be done about that (Again, this really is what he’s arguing).

Chemerinsky is a well-known con law professor of a generally liberal-left orientation. I suspect that if somebody made a similar argument to support the status quo in regard to the extremely expensive American health care system, he would simply laugh in that person’s face, given that many nations with excellent health care systems spend far less than the US does on health care.

Now for various reasons it’s somewhat more difficult to compare legal education systems across nations than it is to compare national health care systems. On the other hand, it’s much easier to compare the same legal education system across time within the same country.

Let us go now, you and I, to gaze upon the financial history of one law school over the past 55 years. This sort of micro-analysis of a single institution within a much larger institutional system has its limitations, of course, but it also offers a vivid particular glimpse of one piece of the general story of what has happened to legal education, to public education, and to public legal education, in this country over the course of the past half century. Read more…

Chemerinsky’s folly

[ 93 ] March 10, 2015 |

ec

Erwin Chemerinsky has a theory, which is his.

His theory is that it’s impossible to provide a good legal education at any less than the astronomical prices currently being charged by American law schools, including his personal vanity project, the University of California-Irvine, of which he is the first dean. To wit:

There is no solution to the high cost of legal education.

Chemerinsky’s goal when he started UCI wasn’t to solve that particular problem. Far from it: instead he intended to create a “top 20″ law school. To that end he has spent a fortune hiring high-priced faculty talent, including most notably himself and his wife — a dynamic academic duo that was pulling down $600,000 in direct comp alone from the school in 2013. (Several other UCI law faculty are making close to or more than $300,000 per year).

In pursuing this precious ranking, Chemerinsky apparently convinced the school’s central administration to, for the moment at least, keep the school’s entering classes very small, in order to bolster its matriculants’ average entrance credentials: Indeed, after admitting classes of 119 and 126 in 2012 and 2013, the school ratcheted back to a class of just 89 this past fall, meaning that in its sixth year of operation UCI’s total enrollment is still just 326 students (when he started the school Chemerinsky indicated the plan was to have a school of about 600 students).

Meanwhile, Chemerinsky’s hiring binge has continued unabated: the school is now up to 43 full-time faculty — a 50% increase from just two years ago.

All this means the law school must be currently losing a whole lot of money. How much? Well those 43 faculty are costing the school close to ten million per year in salary and benefits, which means the school’s total operating costs are probably well more than double that, since you’ve still got to pay for non-faculty personnel, physical plant costs, library costs (the school was spending nearly two million per year on the latter item alone a couple of years ago), and the school’s share of the university’s indirect operating costs (that is, university-wide costs not incurred directly by individual academic units).

Meanwhile, how much tuition revenue is the school pulling in this year? UCI is playing the new favorite game of many a financially troubled law school, which is to charge crazy high sticker tuition, but then offer deep discounts off that number to the vast majority of students. Indeed almost 90% of students last year were getting discounts that averaged nearly $25,000 each, and that number is unlikely to have gone down, given how desperate Chemerinsky was to buy another entering class with high LSAT and GPA numbers (critical to the rigorous scientific method of the USN rankings system).

So those 326 students are probably paying an average effective tuition rate this year in the mid to high 20s. Let’s say $27K per capita. That’s $8.8 million dollars. UCI was given $20 million by real estate mogul Donald Bren to found the law school, but that money has probably already been burnt through in large part to buy the school’s first few classes (the original class paid no tuition, and subsequent classes paid, and continue to pay, drastically less than list price). Of course the school has no endowment to speak of beyond that original nest egg, nor is it getting anything in annual giving from its as yet almost completely hypothetical alumni base. So that pretty much exhausts the sources of law school revenues (grants and contracts, so critical to the funding of academic departments which do work that the outside world is actually willing to pay for, remain rare in legal academia).

UCI made its debut in the rankings today, tying with several other schools for the #30 spot, i.e., a very long way from the elite zip codes of “top” law schools, and still a good ways down the road from its sub-elite local competitors UCLA and USC, which are perpetually in the 15-20 range.

Always the advocate, Chemerinsky pasted a smiley face on this outcome:

“I am very proud of UCI Law’s accomplishments in building a top law school in only six years,” said Dean Erwin Chemerinsky. “We have so much to be proud of thanks to the hard work of faculty, administrators, students, alumni and supporters, both on campus and in the legal community. We are so grateful for the generosity and support we have received in building the University of California, Irvine School of Law.”

Dean Erwin Chemerinsky continued: “I expect that we will rise significantly in U.S. News rankings in the years ahead.

As a friend notes, the problem with this kind of thing is that the battle for rankings is unrelenting. Chemerinsky must have convinced the UCI administration to let him run the school at huge loss to this point, on the basis of the promise that he would get it into UCLA/USC territory, at which point they could expand to 600 students and charge $40K per year in effective tuition, rather than offering most of the class massive discounts.

Well he didn’t make it, and now he’s got a big problem, which consists of those 43 very highly-paid faculty, none of which are ready to get pushed out via buyouts (the preferred cost-cutting strategy of schools losing a lot less money than UCI is losing right now). If the class is expanded by cutting matric entrance numbers, that will also hurt the school in the rankings, so it’s all a Catch-22.

UCI’s central administrators are probably experiencing severe buyer’s remorse right now, but they are getting no more than they deserve for buying into the idea that what the utterly saturated California legal hiring market needed was yet another “prestigious” law school.

How law schools priced themselves out of the higher education market

[ 31 ] March 4, 2015 |

canary

‘How did you go bankrupt?’ Bill asked.
‘Two ways,’ Mike said. ‘Gradually and then suddenly.’

— The Sun Also Rises —

Over the past half century, higher education in America has been a spectacularly successful growth industry. At the beginning of the 1960s about 400,000 people were graduating each year with four-year degrees: by 1970, the demographics of the baby boom and the passage of the original Higher Education Act had combined to more than double that figure.

Despite the baby bust (there were fewer 18-23 year-olds in the US in the late 1990s than there had been 30 years earlier), enrollments and graduation totals grew slowly but steadily between the early 1970s and the late 1990s, and then began to zoom upwards again about 15 years ago: annual college graduation totals increased by 56% between 1998 and 2014. American colleges and universities currently produce nearly twice as many bachelor degrees annually as they did forty years ago, and about four times as many as they did 50 years ago. (The traditional college-age population cohort is only about 10% larger than it was in 1974).

Still, there may be storm clouds on the horizon. Read more…

Not looking forward to 19 more months of this

[ 139 ] March 3, 2015 |

Hillary Clinton running for president is going to be nothing but wall to wall fake “scandals,” since expecting even-the-liberal-media to react any differently is equivalent to expecting a classic rock station not to play Stairway to Heaven ever again.

Where has all the money gone? The decline in faculty salaries at American colleges and universities over the past 40 years

[ 160 ] March 2, 2015 |

Once upon a time, I began to look at the financing of law school education in America, and was amazed by what I found. Recently, I’ve been researching the economic structure of American higher education in general. My amazement is growing . . .

Everyone is aware that the cost of going to college has skyrocketed since [fill in any date going back to the middle of the last century]. Why has this happened? This post is about one possible explanation, that turns out not to have any validity at all: increases in faculty salaries. In fact, over the past 40+ years, average salaries for college and university faculty have dropped dramatically.

Salaries have increased, sometimes substantially, for a tiny favored slice of academia, made up of tenured professors at elite institutions, some professional school faculty (business, law, medicine), and most especially faculty who have moved into the higher echelons of university administration. Such examples merely emphasize the extent to which the economics of the New Gilded Age have infiltrated the academic world: the one percent are doing fabulously well, and the ten percenters are doing fine, while the wretched refuse of our teeming shores will adjunct for food.

Numbers:

Average salary for all full-time faculty in degree-granting post-secondary institutions (this category includes instructors and lecturers, as well as all ranks of professors) in constant 2012-13 dollars:

1970: $74,019

2012: $77,301

These figures, of course, give a very incomplete picture of the economic circumstances of the actual teaching faculty in America’s institutions of higher education.

One of the more astonishing statistics regarding the economics of our colleges and universities is that, despite the fantastic increase in the cost of attending them, there are now on a per-student basis far fewer full-time faculty employed by these institutions than was the case 40 years ago. Specifically, in 1970 nearly 80% of all faculty were full-time; by 2011, more part-time than full-time faculty were employed by American institutions of higher learning (note that the former category does not include graduate students who teach).

While comprehensive salary figures for part-time faculty aren’t available, it’s clear that their salaries are on average vastly lower than those of full-time faculty (and of course when it comes to who does the bulk of the actual teaching at many schools, the designations “full-time” and “part-time” have a distinctly Orwellian flavor). If we assume that “pat-time” faculty earn one-third as much as their full-time counterparts — and this seems improbably optimistic, given that the average compensation for part-time faculty for teaching a three-credit course is around $2,700 — that would mean that in 1970 average salaries for college and university faculty were nearly 30% higher, in real dollars, than they are today.

This an astonishing figure, given that, in the last 40 years, tuition at private colleges has more than tripled, while resident tuition at public institutions has nearly quadrupled.

So where has all that money gone? Here are a couple of plausible-sounding answers, often cited by university administrators, which turn out to have little or nothing to do with soaring college costs:

(1) Faculty benefits. While it’s true that the amount universities spent on benefits for full-time faculty members nearly doubled between 1977 and 2011, going from $11,832 to $22,754 (2012$), the vast majority of this per capita cost increase was ameliorated by the replacement of full-time faculty with “part-time” faculty, who of course are almost never eligible for any faculty benefits. (BTW, 70% of the increase in the cost of benefits for full-time faculty was accounted for by employer contributions to the cost of medical insurance plans, meaning that most of this nominal increase in total compensation for full-time faculty went straight into the pockets of third parties, i.e., insurance companies and health care providers).

(2) Back-filling cuts in state support for higher education. Total state support for higher ed in America increased from approximately $42 billion (2014$) to $80 billion between 1970 and 2014, while total enrollment in public institutions of higher education increased from 6.43 million to 14.88 million. This means state support decreased from about $6,550 to $5,375 per student. This is not a trivial decrease, but on the other hand, federal Pell Grants, which didn’t exist in 1970, totaled $33.7 billion in 2012-13. Roughly 70% of this amount went to students enrolled in public schools, meaning that total tax subsidies to public higher education are actually higher now per student than they were in 1970.

In addition, another consequence of the New Gilded Age is that college endowments have exploded: while 18 institutions had endowments of at least one billion dollars (in 2014$) in 1987, 91 had reached that level last last year, while hundreds of others had endowments in the hundreds of millions. (A particularly extreme example is provided by my alma mater. When I graduated in 1982, the University of Michigan’s total endowment was $115 million. As of last June, it was $9.7 billion, which represents a 34-fold increase in constant dollars. Over this same time, undergraduate resident tuition has more than tripled in real terms, from less than $5,000 (2014$) to nearly $15,000.)

It’s clear that, over the past few decades, American higher education has turned into a veritable money-printing machine. What’s also clear is that, with few exceptions, this massive increase in revenue isn’t going to the people who do the teaching in these institutions.

Profiles in rent-seeking: College athletics edition

[ 175 ] February 28, 2015 |

db

The athletic directors and the commissioner of the Big 10 conference are very, very, very concerned about putting the education of their unpaid quasi-professional athletes students who participate in extra-curricular activities first. Very concerned. How concerned? This much:

“While we are comfortable generating multiple ideas about an ‘education first’ approach to intercollegiate athletics in the twenty-first century, we won’t go it alone on any of these matters,” Big Ten commissioner Jim Delany said in the statement. “We look forward to working with our colleagues in the NCAA Division I governance structure, and to exploring a broad exchange of ideas from both inside and outside of intercollegiate athletics.”

ESPN.com had previously reported that the Big Ten had begun internal discussions about making all or some freshman athletes ineligible, a measure that would have the greatest effect on the current one-and-done climate in college basketball.

Delany, who was getting paid just $1.8 million by the conference two years ago, and who is strongly opposed to college football and basketball players having their salaries raised from their current level of $0.00, was walking back those reports, since even the rumor that the conference was considering such a proposal was already being used against the conference’s football and men’s basketball teams (the two sports that make all the money) by coaches from other, less educationally-serious conferences.

But the conference is very serious about education. How serious? This serious:

Purdue athletic director Morgan Burke said he believes in the NCAA policy that prohibited freshmen participation before a 1972 reversal.

“I, for one ,as a Big Ten AD, am tired of being used as a minor league for professional sports,” Burke said. “What was right for the NCAA in the first 70 years of its history, maybe we ought to go back and say, ‘What’s changed?'”

Among Big Ten leaders, he said, a consensus exists to “get education back on the proper platform.”

What’s changed? Oh it is a deep and abiding mystery. Or is it?

Gaze upon my balance sheets, ye mighty, and despair:

Salary of Michigan athletic director Don Canham in 1980 (Canham at this point was the most successful AD in the country, having transformed Michigan’s athletic department into the most profitable revenue-enhancing in all of college sports): $54,000

Salary of Michigan football coach Bo Schembechler in 1980 (Schembechler had the highest winning percentage of any college football coach during the 1970s): $105,000

You can multiply these numbers by 2.87 to account for inflation.

Salary of Michigan athletic director Dave Brandon in 2014-15: $900,000 base, $175,000 in deferred comp, up to $200,000 in performance bonuses.

Salary of new Michigan football coach Jim Harbaugh: $7,000,000.

Brandon won’t be collecting any performance bonuses this year, as he pulled off the astonishing feat of doing such an atrocious job that he got several hundred students to march on the university president’s house demanding he be fired, which he subsequently was. He will collect several million dollars in severance pay, however, because The Market. (An amusing account of some of his follies can be found here). My favorite detail of Brandon’s contract is that he and his wife got the free use of dealer-provided cars, with the dealers paying not only for the cars, but for registration and license plates, while the university was left on the hook for insuring the vehicles, as well as for the cost of “routine oil changes.” (BTW Brandon is the ex-CEO of Domino’s Pizza, and had, conservatively speaking, a net worth well into the tens of millions of dollars, before he took a job with a seven-figure salary that also covers the cost of routine oil changes for his free cars).

And Brandon wasn’t even in the top quarter of Big 10 AD pay last year, as the athletic directors at Ohio State, Nebraska, and Wisconsin were all pulling down more than one million dollars in base pay alone.

Those salaries in turn pale in comparison to the $3.24 million being paid two years ago to what might — might — be the highest-paid law professor in the land, Vanderbilt athletic director David Williams (Williams also has an appointment on the Vanderbilt law faculty, which should provide a soft landing if the Commodores’ football team’s current streak of five four three two one zero good football seasons in a row should ever be broken. Williams’ salary is largely a product of the sweetheart deals administrative grifter extraordinaire Gordon Gee put in place before he high-tailed it out of Nashville).

Williams was in the news yesterday when he announced that Vanderbilt’s basketball coach Kevin Stallings wouldn’t be suspended, after he was caught advising one of his student-athletes that he would “fucking kill you” if his on-court deportment did not improve posthaste. (To be fair, Stallings explained to ESPN afterwards that his stated intention to kill his own player was merely a figure of speech, and should not have been taken literally.)

In the light of all this, Burke can perhaps be forgiven if he feels that the half million dollars he’s getting paid to be Purdue’s AD this year, not counting up to another $120,000 in “performance bonuses,” is practically a vow of poverty. On the third hand a cynic might point out that Burke has suckled unmolested at the increasingly engorged teat of big time college athletics for the 22 years he’s held his current position, and that he’s seen his own stupendous salary go up by 50% over the past six years alone.

I don’t get it

[ 126 ] February 27, 2015 |

dress

Are the people who say this dress is gold and white pulling some sort of internet-wide prank?

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