About 500 students are currently blockading entrances to the University of California Board of Regents meeting at UC San Francisco this morning, where the Regents are scheduled to vote on a budget that presumes a 24 percent across-the-board increase on UC tuitions over four years. Picketing students have pledged to shut the meeting down.
According to Charlie Eaton, one of the organizers of the protest and co-author of a report released this week that charged the Regents with employing exotic financial instruments that doubled the UC system's debt load over three and a half years, as of 8:45AM PT only a third of the Regents have made it inside the building. About 100 students are inside, according to Eaton.
Millions of dollars in new tax revenue earmarked for the University of California system as part of the state's recently passed Proposition 30 will instead be routed to major financial firms, because of bad bets made by a Wall Street-influenced UC Board of Regents.
Over the last decade, tuition and fees for undergraduates in the UC system have tripled, adding enormous debt burdens to UC graduates and pushing lower-income students into the already overburdened state college and community college systems, or out of higher education altogether. Members of the UC Board of Regents, which governs the system and which approved the tuition hikes, have blamed the increases on the bad economy and on politicians.
However, according to a new report written by five doctoral students at UC Berkeley, in the years preceding the 2008 financial collapse, members of the Board of Regents themselves had overseen "a qualitative shift in the financial practices of the University of California" by employing the same kinds of exotic financial instruments that precipitated the meltdown on Wall Street - primarily, bond issuances hedged by interest rate swaps.