US: Universities tap fees for unintended projects

While California universities have faced round after round of crippling budget cuts and protests against increased fees have flared on campuses, administrators have tapped funds meant for classrooms and students to cover some extraordinary costs - losses on ill-timed real estate deals, loans to high-ranking officials and an ambitious construction project - writes Jack Dolan for The Los Angeles Times.

Experts say the moves, made without wide student knowledge or public oversight, show that administrators have put aggressive business plans ahead of the teaching mission. When things go wrong, they're dipping into student fees, scholarship funds and money meant for classes to pick up the tab.

"It's almost like they kind of lose sight of the core purpose of what they're there to do, and get excited by the opportunity to speculate with other people's money," said Steve Boilard, director of higher education for the state's nonpartisan Legislative Analyst's Office. At the University of California, Los Angeles, student fees are being used to save a plan to renovate Pauley Pavilion, home of the school's legendary basketball team.
Full report on The Los Angeles Times site