Why? Because an honoree is not chosen just to give a speech and be feted. He or she must be willing to make a big donation, usually from the company’s coffers, and — more important — to invite friends and contacts to the gala who will buy $20,000 tables or single tickets for $2,000 to $3,000, bringing new support to the organization.

So imagine that you’ve been chosen as the honoree for the XYZ Foundation and that, as a part of your “honor,” you’ve been asked to fill a number of $2,000 to $3,000 seats or $20,000 tables for the gala dinner in your honor. I don’t know how anyone could go to their family, friends, and associates during these times and ask for this amount of money to go to a dinner. Seems a bit outrageous.

Many of you know that I sit on the board of a national foundation and we’ve seen a similar occurrence taking place. In fact, we’ve lowered the cost of our galas from $500 per ticket to $250 per ticket. The hope is that with the lowered cost of attendance, we can (of course) get more people in the room, but get a wider diversity of socioeconomic classes in the room, too. Our first lowered-price event takes place next month and I think it will be a huge success.

The projects include tens of millions of dollars in work on more dormitories, a $25 million Institute for Health Sciences in New Brunswick, a $12 million renovation of the recreation center in Camden and an $18.2 million expansion of the student center in Piscataway.

Some $60 million will go toward deferred maintenance across the university. Another $15 million has been earmarked for classroom improvements.

Quote from NJ.com

If you take a moment and read the article where that quote was taken from, you’ll see that Rutgers University is justifying the gigantic expense by saying that 5,000 jobs will be created because of the expansion. However, notice that the article does not state whether or not the jobs are permanent jobs such as a cashier or a janitor or temporary jobs such as a construction worker. That’s a vital piece of information and I would think that the bulk of those 5,000 jobs are temporary.

Further, let’s remember that to create these jobs, Rutgers is spending $500 million. That’s $100 thousand spent per each job created. I’m sorry, but I have to believe that if we’re looking at this expansion and upgrading project from the stance of, “It’ll create more jobs during a recession,” well I don’t think it passes the smell test. That’s just too much money to spend on creating jobs when you know the majority of the jobs are temporary.

But here’s what really bothers me…

Rutgers is going to spend half a billion dollars to upgrade its campuses – that’s fine. But when you get right down to it, how are they going to pay for this work? I can think of two sources. First, alumni donations. As an alumnus of Rutgers University, I do send them a donation once or twice per year. I direct my donation to a particular fund that awarded me a fellowship when I was a graduate student, so I know that the same funds that helped me are helping other students who are studying in my field and were of the same ilk that I was as a graduate student. But once those solicitations start coming in about helping to pay for the expansion – I have no interest in that stuff.

Second (and this is what annoys me), Rutgers is going to have to use student tuition to pay for these expenses. They just have to do it. How else are they going to be able to afford the expansion? I guess what bothers me about this is that I’m a big believer that if money is managed correctly and the best interests of the end user are kept in mind, then you will always discover ways to find cost efficiencies and to lower the overall cost of your service. In this case, I have to imagine that if Rutgers University is doing the right things at all levels and at all times, that the cost of attending college will actually go down.

Sure, I know that anyone who has to manage a budget will tell you that once you have a new revenue source (i.e. higher tuition) you do not give it up. But I’m sorry – if everyone focused on making quality education more affordable for students, then I am convinced that we could lower the cost of tuition.

And suspending half billion dollar expansions might be a way to start that ball rolling.

Robert Shireman, a senior adviser to Secretary of Education Arne Duncan, says he expects the default rate, which reflects the early part of the recession, to continue to rise. “When people are facing a job loss, figuring out how to pay their student loan is not No. 1 on their list,” he said.

That’s right. For better or for worse, the last thing on many people’s minds at this time is their student loans. Like Mr. Shireman reports, if you’re losing your job and you’re at risk of going into default on your mortgage, then the last thing that you care about is paying back a student loan that is ten, fifteen, or twenty years old!

But you’ve got to make those payments, folks. Student loans are among the few pieces of debt that cannot be discharged in a bankruptcy filing. Further, the government can (and will) garnish your wages if you default on your student loans.

All of this gets back to a point that I’ve made a few times in the last few weeks on this blog – that one of the best ways to stimulate the economy would be to cancel some, if not all, student loan debt for existing borrowers. And this point is related to something else that I think many of us stunted by student loan debt understand that the rest of the people out there don’t get yet – namely that even with all of the stimulus plans and other money being pumped into the economy, those who have a great deal of student loan debt are not going to be able to contribute to the economic recovery.

Now, if there were only a few of us, then the effect wouldn’t be so bad. But the number of people with out of control student loans is growing and that is not a good thing for the economic recovery…

Any for the brainwashed leftists out there, understand this – just because someone speaks with a definitive tone (which Obama clearly speaks in) doesn’t mean that they are a good speaker! It means that they are confident, yes. But interrupting the free verbal flow of one’s ideas with constant, “iii” and “aaaaahhh” blips is indicative of a speaker who is unsure of the intellectual weight of his words.

As someone who supports this President (and all Presidents, by the way), I really hope that Obama invests some time and resources into practicing how to speak in public. When he stutters and stammers his way through a press conference like he did tonight it does NOT show this country the strong leadership that it voted for during the election.

Oh, and enough of the “I inherited this” crap already. You’ve been President for two months – you’re no longer “inheriting” the initial problem, but you’re now dealing with pieces of the recession that have been created on your watch! And what, exactly, did you create? There is a mess with this AIG thing, right? Hey – didn’t YOUR Treasury Secretary create that mess before you were President? Does that mean that your administration is inheriting its own mistakes? Can you rightly blame that on Bush?

Here’s hoping for more from President Obama and his administration. Where is the change that America voted for?

Imagine that! The cellphone industry is publishing a report that suggests the education industry – one of the largest in the United States – should invest in smartphones for its students. Brilliant.

This reminds me of a situation that came up at my job last year. We were engaging in a contract with a lobbyist to advocate for more dollars to be spent on education facilities. One of the ideas that our boss at the time had was to generate an in-house report showing the need for more facility dollars and how our organization was well positioned to use those dollars most efficiently.

I almost jumped out of my skin.

Can you imagine being a legislator and having ABC Company come up to you and say, “We need more money for Project X. Here is a report showing the need for more money for Project X. Please note that ABC Company is the best organization to utilize extra dollars allocated to Project X.”

Talk about self-serving! Any legislator that is worth their skin would laugh off that report and – if they are really interested in whatever “Project X” happens to be – would commission an independent report. Luckily, through some arguments and some luck, my company partnered with a highly regarded university to create an independent report on the idea of more money for school facilities. It was a much better option than having us do a report in house that essentially says, “Give us money.”

Anyway, you can read the full text of the New York Times article, but trust me – it’s slightly ridiculous.

Admissions officers nationwide point to several possible reasons for the drop in applications. Some students have pared their college lists this year. Many more are looking at less-expensive state universities. Many institutions accepted more students under binding early-decision programs, and each such acceptance drains off an average of 8 to 10 regular-decision applications. And some experts suspect that students are delaying their college plans.

I hope that the last sentence here is somewhat correct. I wrote last April about an article talking about how more students are deciding to take time off in-between high school and college. The suggestion above by the New York Times might be the proof to the previous article.

Many students would be much better served by taking this time off and getting an internship or an entry-level job somewhere. So long as high school graduates do not begin to get themselves into a mountain of debt, the option to apply to college and begin a more rigorous study is always available. Now, of course it would not be a good idea to prolong the college activities for too long. But if high school graduates are beginning to think about alternatives to the quick entrance into college, then I think that can only be a good thing.

Besides giving the students a bit more of a real world view on issues (which is often lacking in the academy), the decline in students who immediately enter college could put colleges in a new position where they have to prove the value of their education. In other words, colleges might be put in a position to have to show how each dollar spent by a student (or his/her family) can translate into real dollars earned post-graduation.

Some forward-thinking departments at the local college are already putting these facts out there – or at least trying to generate the right numbers to put out to the public. Talk about a powerful piece of information for the college applicant. Imagine being able to look at a variety of business schools and choose from the ones that have a proven track record of creating the highest paid executives? There’s some education reform that everyone can believe in…

“Overall,” writes Heritage, “the typical American defined as poor by the government has a car, air conditioning, a refrigerator, a stove, a clothes washer and dryer, and a microwave. He has two color televisions, cable or satellite TV reception, a VCR or DVD player, and a stereo. He is able to obtain medical care. His home is in good repair and is not overcrowded. By his own report, his family is not hungry and he had sufficient funds in the past year to meet his family’s essential needs. While this individual’s life is not opulent, it is equally far from the popular images of dire poverty conveyed by the press, liberal activists, and politicians.”

“Nearly three-quarters of poor U.S. households own a car,” says the study, “31 percent own two or more cars. Ninety-seven percent of poor households have a color television; over half own two or more color televisions. Seventy-eight percent have a VCR or DVD player; 62 percent have cable or satellite TV reception. Eighty-nine percent own microwave ovens, more than half have a stereo, and more than a third have an automatic dishwasher.”

In these times of economic hardship, it makes you wonder how desperate some of our fellow Americans really are… Hey, if someone can afford a microwave, stereo, car, color television, and some type of DVD or VCR player, then they can certainly afford to pay the rent or mortgage each month, right?

When read statistics like these, it just makes you wonder how “bad off” we really are during this recession.