At USC, Our Administrator-to-Faculty Pay Ratio is a Major Problem

 
Last week, the Daily Trojan highlighted a very real problem on campus – a sharp increase in high-paying administrative positions that has “substantially outpaced increases in faculty hiring and (student) enrollment”.
 
This focus on the business of education, rather than student learning, is part of a disturbing trend in higher education that has been well documented at campuses across the country.
 
That doesn’t make the numbers any less shocking. Again, from the Daily Trojan:
 
“Amid concern over rising tuition, USC has seen a 305.8 percent increase in hired administrative employees over a 25 year period, while the number of enrolled students has only increased by 66.3 percent, according to a study by the New England Center for Investigative Reporting and the American Institutes for Research which looked at data from 1987 until the 2011-12 academic year.”
 
AdminBloatGraphic copy
 
This boom in non-academic hiring is certainly troubling, but these percentages only tell us part of the story. As USC hires more and more administrators, they are driving down the cost of instruction by offering our faculty low-paid, temporary employment with no job security and little or no benefits.
 
In order to fully understand the scope of the problem, it’s necessary to compare faculty salaries to those of USC administrators. Inspired by Laura McKenna’s recent piece in The Atlantic, we’ve pulled together the best data available on the growing income gap between positions devoted to the delivery of higher education, and those positions dedicated to the business of higher education.
 
As we’ve discussed previously, the majority of USC faculty are hired on temporary, semester-to-semester or year-to-year contracts. These faculty – often referred to as adjunct or contingent faculty – comprise 69%¹ of our university’s educational workforce.
 
Contingent faculty teach the majority of classes on campus, but despite their critical role, many are barely making ends meet. A recent survey of contingent faculty at USC found that on average, our professors are making $5,044² per course.
 
This means that a contingent faculty member teaching full time, or 6 classes per year, is making $30,264 annually.
 
Even worse, the vast majority of contingent faculty aren’t even offered full-time schedules, forcing them to work second and third jobs just to survive.
 
So how does that compare to spending on administrative positions? Let’s take a look:
 

 

As Laura McKenna points out, the income disparities between college faculty and administrators are “an important indication of a given higher-education institution’s fiscal priorities”. If we calculate the CEO-to-worker pay ratio at USC – in higher education this is a calculation of president-to-faculty pay – the numbers are striking.
 

President Nikias made more than $1.9 million in total compensation last year. That’s over 64 times as much as a contingent faculty member teaching a full load.
 

And it’s not just a few high earners. The average managerial salary at USC is $101,594 per year³. That’s over three times as much as a contingent faculty member teaching full-time.
 

For years, USC has embraced a business model of education that prioritizes administrative salaries over academic spending. In 2014 alone, the university spent upwards of $162 million on management4 – the 4th most of any institution in the country5.
 

It’s not just a boom in administrative bloat that should have us concerned, but also the rate at which administrative and executive compensation has outpaced spending on our university’s educators and investment in our core educational mission.
 

Tuition is more expensive than ever, but many of our faculty are struggling to make ends meet.
 

As USC prioritizes spending on lavish administrative and executive salaries over investment in student learning, it begs the question:
 

WTF are we paying for?
 


 

1. Integrated Postsecondary Education Data System (IPEDS). Title IV participating institutions: Public, 2 year and 4 year and above; Private, not-for-profit, 4 year and above; For-profit, 2 year and 4 year and above. Institution employees (excluding medical school)- all staff with faculty status that are Tenured, On Tenure Track or Not on Tenure Track/No Tenure System, Fall 2013 and Fall 2003. Contingent refers to all employees with faculty status Not on Tenure Track/Tenure System.
2. This is a calculation of the average part-time faculty pay across self-reported data in an SEIU Faculty Survey (Social Work; Cinematic Arts; Architecture; Public Policy), as well as faculty appointment letters (Letters, Arts, and Sciences; Art and Design; Social Work; Dramatic Arts; Public Policy). Average pay for reports of salary per hour was multiplied by 10 hours per week and 15weeks in a semester. Otherwise, appointment letters indicated pay per week, how many hours, and how many weeks designated per course. Pay per unit was then calculated as the total course pay divided by number of units per that course. Average per 1 unit pay was calculated, then multiplied by 3 to calculate the “Average Pay of Part-Time USC Faculty per 3-unit course.” For all faculty, the data was taken from the most current year or semester available.
3. National Center for Education Statistics IPEDS database: Total Management Outlays 2013-2014 school year for all Title IV receiving U.S. schools. Retrieved at http://nces.ed.gov/ipeds/datacenter/Default.aspx on 6/17/15.
4. National Center for Education Statistics IPEDS database: Total Management Outlays 2013-2014 school year for all Title IV receiving U.S. schools. Retrieved at http://nces.ed.gov/ipeds/datacenter/Default.aspxon 6/17/15.
5. National Center for Education Statistics IPEDS database: Total Management Outlays 2013-2014 school year for all Title IV receiving U.S. schools. Retrieved at http://nces.ed.gov/ipeds/datacenter/Default.aspxon 6/17/15.

Higher Education's Reliance on Adjuncts Has Consequences

In the Tampa Bay Times, Kym O’Sullivan speaks out about academia’s dirty little secret:
“Students are often clueless about the situation, believing all professors to be full time, but adjuncts are so disconnected from campus life that the classroom experience is diminished. For instance, we don’t have our own offices, so we must cart our supplies in rolling suitcases, making it easy to forget assignments or lose essays. We have no phone lines, so students must reach us via e-mail, which can be inefficient.
Furthermore, our time on campus is limited, making it difficult for students to locate us outside of the classroom. Full-time professors interact with their student body all day, every day, while adjuncts are available only a few hours a week.
The most trying issue for adjuncts, however, is the lack of decent compensation.”
69% of USC faculty work in temporary, non-tenured positions.
69%.
Read the full story here.

The College President-to-Adjunct Pay Ratio

A great piece from The Atlantic’s Laura McKenna:
“While income inequality in higher education isn’t as high as Chipotle, it does rival that of other publicly traded corporations, including Nike, IBM, and Motorola.
State schools with the highest-paid presidents seem to be offsetting their administrative bloat with cheaper labor.”
Just a reminder: USC President Nikias raked in over $1.9 million in total compensation from the university last year.
Head over to The Atlantic for the full story.
 

USC Sees Increase in Administrative Staff

From the Daily Trojan:
“Amid concern over rising tuition, USC has seen a 305.8 percent increase in hired administrative employees over a 25 year period, while the number of enrolled students has only increased by 66.3 percent, according to a study by the New England Center for Investigative Reporting and the American Institutes for Research which looked at data from 1987 until the 2011-12 academic year.
The administrative increase comes during a time when colleges have claimed it necessary to both cut costs and raise tuition. The increase in university staffers who neither conduct research nor teach has continued, slowing only slightly during the economic downturn.”
Read the whole story here.

Back to School: The Price We Pay in 4 Graphics

Fall semester is in full swing, and our campus is buzzing with activity. The first weeks of back on campus are always an exciting time for students and faculty, and this year is no exception.
 
This year, however, we’re paying special attention to university priorities, and working hard to ensure university resources are going to the places they’re needed most.
 
As you may have noticed, students are paying more than ever before to attend classes at USC. Since 2001 tuition has increased 92%, and this year will be our most expensive yet.
 
tuition
As tuition continues to climb, we all pay the price: students, parents, faculty, and the community.
 
 Many Trojans rely on student loans to cover the cost of tuition, and as a result, these students and their families are taking on greater amounts of student debt than any generation before them.
 
At USC, the average borrower is now looking at $28,474 in undergraduate student debt upon graduation.1
 
 Among all universities in the country, USC is ranked 5th in graduate student loan debt. That’s $460 million of debt to USC graduate students in 2013-2014.2
 
So where’s all that money going?
 
It’s not going to our talented Trojan faculty, who are working harder than ever to deliver a world-class education to students. Despite their dedication, the majority of our professors work in contingent, part-time positions offering low pay, limited benefits, and no job security. In fact, 69% of USC faculty work in contingent positions, hired on temporary, semester-to-semester contracts.3
 
contingemt
 
Being a professor – once a stable, middle-class career – has become a low-wage, precarious job with an uncertain future.
 
We have seen a dramatic shift away from investment in university educators and affordable, accessible higher education for students. Instead of investing in student learning, our university has continued to dump money into lavish infrastructure projects and bloated administrative salaries.
 
As evidenced in an analysis of USC’s expenses, “Other Salaries and Wages” remains the single largest expense category, and has increased twice as much as faculty salaries over the last 4 years.
 
expense
 
And USC top 8 executive compensation has more than tripled since 2001.
 
top8
 
Faculty are working harder without job security, for lower pay, and with less institutional support than ever before. Students and parents are paying more than ever, and taking on debt that could hold them back for years to come.
 
With assets totaling over $10 billion, our university has the resources and capacity to make drastic improvements for students and faculty. Instead, USC continues to drive the widening gap of income inequality in Los Angeles through skyrocketing tuition and unstable, temporary employment for faculty.
 
This corporate model of education runs contrary to our educational mission.
 
It’s time for a change. Together we can hold USC accountable.
 
 Our university needs to invest the proper amount in instruction, giving our professors the support they need to deliver quality education to students.
 
No longer can USC prioritize profits over the stability of student education. Students and families should not be faced with a lifetime of crippling student debt. Faculty should not be living check-to-check while our university rakes in millions.
 
Tuition funds should support student learning, not line clash royale free gems the pockets of wealthy administrators and corporate board members.
 
We are united to fight for a better USC, and this year we’re taking action.
 
Stay tuned as we fight for quality, affordable education for students and good jobs for faculty.
 
Get involved:
Sign up for regular updates and campus action alerts here.
Have you been affected by our university’s business model of education? Share your story here.
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1 SOURCE: College Insight indicates USC’s graduates average $28,474 in debt upon graduation: http://college-insight.org/#spotlight/go&h=0ec593691290fb03da41effda3bf4911
2 SOURCE: Center for American Progress Analysis of U.S. Department of Education Data: https://studentaid.ed.gov/sa/about/data-center/student/title-iv
3 SOURCE: Integrated Postsecondary Education Data System (IPEDS). Title IV participating institutions: Public, 2 year and 4 year and above; Private, not-for-profit, 4 year and above; For-profit, 2 year and 4 year and above. Institution employees (excluding medical school)- all staff with faculty status that are Tenured, On Tenure Track or Not on Tenure Track/No Tenure System, Fall 2013 and Fall 2003. Contingent refers to all employees with faculty status Not on Tenure Track/Tenure System.

There Is No Excuse for How Universities Treat Adjuncts

Caroline Fredrickson of The Atlantic writes:
 
“That colleges and universities have turned more and more of their frontline employees into part-time contractors suggests how far they have drifted from what they say they are all about (teaching students) to what they are increasingly all about (conducting research, running sports franchises, or, among for-profits, delivering shareholder value).”
 
“The problem is that universities are using https://sites.google.com/view/instagramviewer/ their power in ways that shortchange both contingent teachers and, ultimately, students.”
 
69% of USC faculty work in contingent positions. Head to The Atlantic for the full story.

Colleges Flush With Cash Saddle Poorest Students With Debt

From Long Island Press:
 
“NYU is not the only university with a billion-dollar endowment to leave its poorest students with heavy debt loads. More than a quarter of the nation’s 60 wealthiest universities leave their low-income students owing an average of more than $20,000 in federal loans.
 
At the University of Southern California, which has a $4.6 billion endowment, low-income students graduate with slightly more debt than NYU’s graduates: $23,375.”
 
Click here for full story.

USC Administration Shuts Down Art Students’ Blog

HyperAllergic on the latest in a long string of recent conflicts at Roski:
 
As tensions between the students and the Dean heated up, especially surrounding the mass drop out of the #USC7 earlier this year, “the Tumblr turned into a hosting site for our many open letters and support comments from our petition to remove Dean Muhl,” said Jacinto Astiazarán who graduated in 2015. He sees the timing of the site’s deletion as directly related to these recent conflicts. “Beyond it being a retaliative move, it was a strategic attempt at wiping those statements off the web.”
 
So much for academic freedom? Read the whole thing here.

USC’s Once Heralded MFA Program Opens With Only One Student

You read that right. From the LA Weekly:
 
“It’s an absurdly small class for any MFA program, and particularly for USC’s Roski School of Art and Design. Last May, the once-lauded program suffered a devastating blow when the entire class of 2016 left the school in protest of alleged broken promises and a perceived corporate takeover of the program.”
 
THIS. THIS is the price we pay for the corporatization of higher education. Head over to the LA Weekly for the full article.

Stop Universities From Hoarding Money

From the New York Times:
 
“Who do you think received more cash from Yale’s endowment last year: Yale students, or the private equity fund managers hired to invest the university’s money?
 
It’s not even close.
 
Last year, Yale paid about $480 million to private equity fund managers as compensation — about $137 million in annual management fees, and another $343 million in performance fees, also known as carried interest — to manage about $8 billion, one-third of Yale’s endowment.”
 
USC’s endowment currently sits at $4.6 billion. Who do you think got more cash from the endowment last year: USC students or Wall Street equity managers?
 
Read the full New York Times story here.