A U.S. District Court in Arizona last week approved a $145 million payment by Apollo Group, Inc., to settle a class action lawsuit, according to a corporate disclosure. Originally filed in 2004, lawyers for shareholders had alleged that company officials made misleading statements about a Department of Education investigation of student recruiting practices at the University of Phoenix. The court dismissed the securities-fraud verdict against Apollo and former company officials as a result of the settlement.
Higher Education Quick Takes
Internet2, the higher education technology consortium, on Tuesday announced new master agreements with 16 companies in what the consortium is calling a major step toward eliminating the “transaction costs” that have made campus-based technology deployments unduly expensive for universities and vendors alike. Instead of negotiating individual contracts, Internet2’s 221 member colleges essentially will be able to opt in to a licensing agreement the consortium negotiated with more than a dozen providers of cloud computing services, including Microsoft, Hewlett-Packard, Dell and Desire2Learn.
The agreements are part of Internet2’s Net+ Services project, which it unveiled last year. The goal of the project is to work with technology companies to tailor versions of their cloud-computing services to match the needs of colleges and universities, then enable institutions to buy licenses for those services through Internet2, rather than negotiating with companies on an individual basis -- a tedious, redundant exercise that was driving up the cost of doing business for everyone involved, says Shelton Waggener, the CIO of the University of California at Berkeley.
Internet2’s negotiations on behalf of its members do not merely constitute a group discount deal, but a “new operating paradigm for delivering services to higher education,” says Waggener. Campus technology budget makers “cannot trim [their] way to success,” he says. “It’s about creating models that allow us to keep the dollars in the classroom and the labs and not spend them on lawyers for contracts or shipping costs or wasted capacity.”
A faculty-administration agreement has cleared the way for a faculty union (including both tenure track and non-tenure-track faculty members) at the University of Oregon. The union -- organized jointly by the American Association of University Professors and the American Federation of Teachers -- first submitted cards indicating that the professors wanted to unionize. The administration objected to the make-up of the bargaining unit, but negotiations resolved those differences, and the process of union certification is now expected to proceed. The new union is the result of a campaign by the AFT and the AAUP to jointly organize more faculty members at public research universities. Union organizers pledged to use collective bargaining to improve working conditions for all instructors in ways that would also improve the quality of education.
Robert Berdahl, interim president of the university, issued a statement in which he said that "we have acknowledged from the beginning that our faculty has the right to organize. We did not oppose the organization effort nor did we support it. We simply recognized the rights of those who chose this route." His statement added: "While the University of Oregon has a long history of working with collective bargaining units on our campus, a faculty union will present unique questions that must be addressed. This will be particularly true when we account for tenured and tenure-related faculty. For example, tenure-related issues typically involve peer review. The peer review process is an essential means by which universities have always assured the achievement of quality; it must remain central to how we evaluate faculty in the future, even with a union overlay."
As President Obama began a three-state tour of college campuses, making a speech in North Carolina about the importance of keeping the interest rates for federally subsidized loans at 3.4 percent, House and Senate Democrats said they intend to introduce legislation today to stop the rate from doubling and pay for the extension by ending a tax break for self-employed. The interest rate for subsidized loans, currently at a historic low, is scheduled to double to 6.8 percent on July 1 if Congress takes no action.
The bill, the Stop the Student Loan Interest Rate Hike Act of 2012, would pay for the lower rate -- which costs about $6 billion per year -- by limiting a tax provision that allows owners of certain kinds of corporations, called S corporations, to avoid payroll taxes on their earnings. About 4 million S corporations exist in the US, including many professional offices like doctors or law firms, the Associated Press reported. They do not pay corporate earnings taxes, instead redirecting the income to their owners, who pay income taxes on that money (but not payroll taxes for Medicare or Social Security). Under the Democrats' bill, such corporations making more than $250,000 per year and with fewer than three owners would no longer be able to avoid payroll taxes.
It was unclear whether the plan would get any Republican support.
- The Big Ideas in Higher Education Conference, The Jersey Alliance and Rutgers University, May 17-18, Piscataway, N.J.
- Global Advancement of Universities & Colleges Conference, Arcadia University, Xi'an International University, China Peking University, Voronezh State University, May 23-25, Voronezh, Russia.
- 52nd Annual Forum, Association for Institutional Research, June 2-6, New Orleans.
- 7th Annual University-City Relations Conference, International Town and Gown Association, Eastern Kentucky University and City of Richmond, Ky., June 4-8, Richmond, Ky.
- 2012 College Media Conference, Council of Independent Colleges and American Association of State Colleges and Universities, June 27-29, Washington, D.C.
These meetings, conferences, seminars and other events will be held in the coming weeks in and around higher education. They are among the many such that appear in our calendar, to which campus and other officials can submit their own events. Our site also includes a comprehensive catalog of job changes in higher education; please submit your news to both listings.
Mitt Romney, the presumptive Republican presidential nominee, may be making a play for the student vote, but Super PACs that back President Obama are fighting back against the effort.
In a conference call organized by the Romney campaign on Tuesday, Hank Brown, a former U.S. senator and former president of the University of Colorado, predicted a "dramatic turnaround" in the student vote in 2012, Bloomberg reported. "Four years ago, the president was able to fool a number of our college students into supporting his campaign and the result has been the highest level of unemployment for youth in our country's recorded history," Brown said.
The same day, two pro-Obama PACs released an advertisement based entirely on Romney quotes, in which he boasts of cutting state spending on higher education while he was governor of Massachusetts, expresses skepticism about federal spending on higher education, and tells students concerned about loan debt that they need to look for inexpensive colleges.
And perhaps more powerful than that ad will be President Obama's appearance on "Late Night With Jimmy Fallon," in which he "slow jammed the news" with a focus on student loan issues.
Harvard University’s faculty has taken a public stand against commercial journals that sell subscription “bundles” as a way to get libraries to spend more on journal subscriptions than they otherwise might. In a memo, addressed to the campus and posted on the Harvard Library website, the library’s Faculty Advisory Council said the amount the university spends on subscription “bundles” is approaching $3.75 million. “The Faculty Advisory Council to the Library, representing university faculty in all schools and in consultation with the Harvard Library leadership, reached this conclusion: major periodical subscriptions, especially to electronic journals published by historically key providers, cannot be sustained: continuing these subscriptions on their current footing is financially untenable.”
The memo did not single out any publishers by name, but said that it was "untenable" for the library to renew its current agreements with "at least two major providers." The faculty council advised researchers to raise the issue of exploitative journal pricing with their professional organizations and with each other and consider submitting to open-access journals instead of those “historically key providers.”
More than 20 years ago, the Posse Foundation established a model in which it brought groups of historically underrepresented students (the "posses" of its name) to selective colleges, where their strength in numbers and the attention of their institutions have helped them succeed where others like them might not have. Now the foundation is turning its attention to military veterans, launching a new program with its first branch at Vassar College.