University Of California Deals With Wall Street Banks Could Wipe Out Prop 30 Gains, Report Says
Earlier this month, California voters passed Proposition 30, a ballot measure containing a number of tax increases that will help avoid drastic cuts to the state's higher education system.
But according to a recent UC Berkeley report, all of those gains could be wiped out by a series of deals made by University of California administrators. Many of those officials, the report notes, have close ties to Wall Street firms making millions in profits from the state's cash-strapped institutions.
The report, titled "Swapping Our Future: How Students And Taxpayers Are Funding Risky UC Borrowing And Wall Street Profits," charges that the University of California system has lost almost $57 million dollars on deals so far -- and the losses are continuing at a rate of some $750,000 each month. Potential loses, it claims, may reach up to another $200 million.
Congrats on voting yourselves a tax hike to payoff Wall Street firms, California!