Sunday, February 5, 2017

The U's billion dollar administration

Your latest news in administrative bloat, courtesy of Michael McNabb:

The overall total expenditures for fiscal year 2016 were $3.5 billion. So the almost-$1 billion costs of administration account for 28 percent of those total expenses.

Is 28 percent in administrative overhead excessive? There is no national system for comparing administrative costs at universities, so we have to look to the world outside the campus. With past administrative overhead of 20 percent, American private health insurance companies had the highest administrative costs of any health insurance system in the world.

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