[HN Gopher] Penn to reduce graduate admissions, rescind acceptan...
       ___________________________________________________________________
        
       Penn to reduce graduate admissions, rescind acceptances amid
       research cuts
        
       Author : strangeloops85
       Score  : 280 points
       Date   : 2025-02-23 00:37 UTC (22 hours ago)
        
 (HTM) web link (www.thedp.com)
 (TXT) w3m dump (www.thedp.com)
        
       | kitrose wrote:
       | According to Wikipedia, Penn has an endowment of over $22
       | billion.
       | 
       | Not enough in the piggy bank to cover?
        
         | osnium123 wrote:
         | Endowments can be very restrictive and thus it's hard to
         | shuffle money around.
        
           | bitlax wrote:
           | Oh I should try that one.
        
           | nielsbot wrote:
           | What are they for then?
        
             | saulrh wrote:
             | Chronic traumatic encephalopathy and tax deductions, as far
             | as I can tell.
        
               | disce-pati wrote:
               | this comment is funny and sad all at once
        
             | chatmasta wrote:
             | Endowments are investment funds that ideally generate
             | sufficient returns to cover yearly operational expenses
             | while also growing the principal.
        
               | SJC_Hacker wrote:
               | They don't cover yearly operational expenses, which is
               | why they want indirect costs from granting agencies. And
               | also why they charge tuition
        
               | chatmasta wrote:
               | At some schools the endowment returns are sufficient to
               | cover operational expenses, which is why they can have
               | such generous financial aid policies (effectively "not
               | charging tuition" for those whom it would matter).
        
               | SJC_Hacker wrote:
               | Yeah at the Ivies and equivalents the "tuition" is
               | basically a "suggested donation" and the final bill is
               | based on how much the parents have to give. I'm not sure
               | about room and board.
        
               | OkayPhysicist wrote:
               | At private schools, stated tuition is basically just a
               | (soft) cost ceiling. The majority of students receive
               | some level of aid, either need or merit based, or both.
               | It's a pretty good system, if you want a mix of rich
               | students, academically gifted students, and disadvantaged
               | students who might succeed given the resources.
               | 
               | The existience of merit-based pricing is the big
               | differentator versus public schools.
        
               | chatmasta wrote:
               | Not sure which way you're saying the differentiator goes,
               | but "merit-based pricing" is NOT what the top schools
               | have. They are entirely need blind. You don't get
               | financial aid because you're good at sports, you get it
               | because you were accepted to the school and if you can't
               | afford to go there then they will make sure that you can
               | attend. In fact that's why the Ivies don't offer
               | scholarships - because if you can't afford to attend,
               | they'll reduce your tuition until you can.
               | 
               | I'd call it merit-based _admissions_ , if anything.
               | 
               | (Athletes can still get preference in admissions, with
               | each team given a number of slots, but it's totally
               | separate from financial aid decisions. And this is
               | actually a disadvantage compared to top, non-Ivy schools
               | like Stanford, because a top athlete from a rich family
               | would go to Stanford for free but would have to pay at an
               | Ivy.)
        
             | tomohelix wrote:
             | It is a trust fund basically. From what I uderstand, the
             | principal is nearly impossible to use/withdraw and you can
             | only use the interest/returns generated from investing the
             | principle.
             | 
             | Even that portion is also restricted. The purpose must be
             | strictly academic and some part must be paid to the
             | university, some must be reinvested, and then the final
             | pieces can be used at the professor's discretion according
             | to the rules set when the endowment is established.
             | 
             | So generally, you are looking at 1-2% of the total amount
             | that can be spent annually. Still a lot, but for research,
             | tens of millions would still not be enough for something
             | like Penn.
        
             | apical_dendrite wrote:
             | Typically, they're set up so that the income goes to a
             | particular purpose, or so that only the income is used. For
             | instance, a big chunk of Harvard's engineering and CS
             | professorships are funded through a donation from a 19th
             | century inventor of machines to make shoes. His intent was
             | to fund professorships in "practical sciences" in
             | perpetuity, and he had particular terms - he wanted
             | salaries to be competitive for instance. The university
             | can't legally spend down the principal or use the money for
             | some other purpose.
        
               | SJC_Hacker wrote:
               | But they can use the interest.
               | 
               | A $20 billion endowment at a 5% ROI is $1 billion per
               | year
        
               | garden_hermit wrote:
               | The interest is already what they are using. That is what
               | all these scholarships and endowed chairs and so on are
               | paid with.
        
             | jasonhong wrote:
             | As one simple example, some funds are for endowed chairs,
             | named after donors or companies. For example, in computer
             | science at Carnegie Mellon, we have chairs named for
             | Richard King Mellon, Kavcic-Moura, Thomas and Lydia Moran,
             | and more. (You can see a full list here:
             | https://www.cs.cmu.edu/~scsfacts/endowed.html)
             | 
             | It costs a few million to create an endowed chair, and
             | these funds can only be used to help offset salary costs
             | for that professor (thus helping with the budget for the
             | department) and for research associated with that
             | professor. You can't just use all of the money in these
             | endowed chairs for other things that people in this thread
             | are suggesting, it's not fungible.
             | 
             | You know, folks on HN often re-post links to Chesterton's
             | Fence (https://en.wikipedia.org/wiki/G._K._Chesterton#Chest
             | erton's_...), about trying to understand how things are
             | done and why, before tearing things down and potentially
             | causing more problems. I'd highly suggest the folks in this
             | thread that are exhibiting a lot of anger about academia
             | keep Chesterton's Fence in mind. Yes, academia has problems
             | (as do _all_ human institutions and organizations), but the
             | amount of good academia offers is quite vast in terms of
             | advances in science, arts, education, public discourse,
             | startups, and more.
        
               | pj808 wrote:
               | I once encountered an endowment fund that was restricted
               | for use in a defined scholarship. This was problematic
               | because that scholarship could only be given to students
               | of a specific race. Restricting applicants in this way
               | would be illegal under Canada's charter, so for at least
               | a decade the funds were simply not spent. As far as I
               | know nothing has changed.
        
               | YZF wrote:
               | Chesterton's Fence is also just an argument for
               | conservatism and never changing anything because there is
               | no end to the argument that you don't _really_ understand
               | how things are done and why. Maybe  "Academia" does need
               | a bit of a wakeup call. You're lumping in a whole lot
               | under academia and it's not really clear what portion of
               | "academia" and academia dollars are linked to those
               | outcomes you're talking about.
        
               | kelnos wrote:
               | You're attacking a straw man, though. I see a lot of
               | posts here that aren't even _considering_ why something
               | might be the way it is. We haven 't gotten to the point
               | where someone might do the "you don't _really_ understand
               | how things are done and why " goalpost-moving dance, and
               | suggesting that of course that's how it's going to play
               | out is unwarranted.
               | 
               | I mean, the initial post in this thread is just
               | completely ignorant. Expecting a university to blow their
               | endowment on a short-term[0] political issue is just
               | ignorant. They spend maybe 5% of their endowment each
               | year, because that is the safe amount to spend, as they
               | want to be able to pull that 5% out, every year,
               | essentially _forever_. Two minutes of  "research" on
               | university endowments would surface this kind of
               | information.
               | 
               | [0] Four or even eight years is _nothing_ to an
               | institution that is older than the United States itself.
        
             | TrackerFF wrote:
             | Sometimes donations which are specifically earmarked for
             | something.
        
             | insane_dreamer wrote:
             | you only spend the return on the endowment, so that the
             | endowment lasts "forever"
        
         | binarycrusader wrote:
         | As the other poster mentioned, endowments / donations often
         | come with conditions attached that significantly restricts how
         | money from them can be used.
        
         | blackeyeblitzar wrote:
         | Great point. It's bad enough seeing bloat in costs,
         | administrators, and activist degrees. But it's downright
         | ridiculous that universities with billions can't fund
         | themselves using just investment income. If endowments are
         | claimed to be restricted, I want to see the terms
         | transparently, and see them using the funds maximally before
         | coming back to taxpayers.
         | 
         | But also - why is no one asking whether we need so many college
         | educated students. I don't think it makes sense for every
         | random person to get a degree or a graduate degree. These
         | programs need to be highly selective since the supply is
         | greater than demand, particularly for graduate degrees.
        
           | nielsbot wrote:
           | What is an "activist degree"? (Is activism bad?)
        
             | cyberax wrote:
             | Usually impractical and heavily politicized stuff like
             | "colonialism studies".
             | 
             | Activism is not necessarily bad, but the current university
             | environment, for some reason, seems to produce activists
             | who are just unbelievably cringe and naive.
        
               | nielsbot wrote:
               | "Colonialism studies" is politicized? In what way? Sounds
               | like a history class to me--but please tell me why it
               | isn't.. I'm not familiar.
               | 
               | > seems to produce activists who are just unbelievably
               | cringe and naive
               | 
               | I'd be curious to see some examples.
        
               | juniperus wrote:
               | The idea that you can have an economically sound career
               | talking about historical colonialism is a bit far-
               | fetched. There are a few authors who probably scrape by a
               | living writing books on this topic, but that's about it
               | (and they don't need a degree to do this). If you get one
               | of the handful of academic jobs where you teach this
               | topic to other students, it is something of a racket,
               | where you are teaching students to get a degree in a
               | field where the only job is teaching other students this
               | topic. There is certainly inherent value in some fields
               | that don't have a direct application, like philosophy,
               | but can still inform other pursuits.
               | 
               | As for the politicization of the field of colonialism
               | studies, generally, these sort of topics are viewed
               | through a pseudo-religious lens today, the religion being
               | utopianism, the idea that there can be survival and
               | satisfaction for all. Under the utopianist worldview,
               | practical concerns are ignored and the topic is judged
               | under a lens of morality and dogma. That makes it an
               | unserious field and marred by activism. Very true for
               | many humanities and social graduate degrees. Might as
               | well go to seminary and spend half a decade learning to
               | be a theologian. The outcome is similar, dogmatic and
               | removed from reality, makes it hard to transfer into a
               | real world setting.
        
               | cyberax wrote:
               | > Sounds like a history class to me--but please tell me
               | why it isn't..
               | 
               | History, in general, has always been a somewhat
               | "activist" degree. But it's a huge area of research, and
               | it's not _necessarily_ politically charged.
               | 
               | "Colonialism studies" almost always degenerate into "all
               | civilization bad, need to destroy all humans and return
               | to the stone age" nonsense.
               | 
               | That's not to say that real research in this area is
               | impossible, this year's Nobel Prize in economics was
               | given for the colonialism research.
               | 
               | > I'd be curious to see some examples.
               | 
               | Recent Gaza protests in Seattle, for example. The
               | protesters were handing out communist propaganda. Not in
               | any roundabout way, but literal Communist Manifestos. Or
               | another example, Seattle's ex-councilmember campaigned
               | _for_ Trump, to help speed up the "destruction of
               | capitalist oppression" (
               | https://www.seattletimes.com/seattle-news/politics/a-big-
               | sea... ). I can go on, with more examples, but they are
               | mostly local to the Seattle area.
               | 
               | For less political examples, the "just stop using oil"
               | protesters who keep defacing art.
        
           | pclmulqdq wrote:
           | The administrators, athletic coaches, and non-productive
           | tenured professors all cost a lot, and their hands were in
           | the pie before these students' were. By the way, the students
           | in question are for the "activist degrees" you mentioned -
           | they seem to all be in the humanities.
        
           | apical_dendrite wrote:
           | Penn's budget is $4.7 billion (just the university, not
           | including the hospitals). Even with a $22 billion endowment,
           | they can only fund a fraction of that off of investment
           | income.
           | 
           | And what are you even talking about "coming back to the
           | taxpayers"? This isn't like a sports team holding a city
           | hostage to get a new stadium. They apply for competitive
           | grants to do particular research projects, then they do those
           | projects. They aren't asking for a handout, they are being
           | paid to provide a much-needed service (health research).
        
           | kelnos wrote:
           | Penn has a $22B endowment, and pulls around 5% out of that
           | annually. That seems to be a reasonably safe number that will
           | give them a good chance of at worst keeping the endowment's
           | size constant. Sure, they can take out more every year
           | (they'd have to take out more than 4x that to match Penn's
           | current budget), but then their endowment would reduce in
           | value every year and eventually run out. That would not be a
           | good outcome.
        
         | sethev wrote:
         | Penn's endowment distributed $1.1 billion last year. Endowments
         | like this are managed to last a long time - indefinitely, even.
         | 
         | Penn itself is older than the United States - they're not going
         | to start blowing through their endowment because of political
         | trends over the last couple months (or next 4 years), even if
         | they legally could.
        
         | tzs wrote:
         | The whole point of an endowment is to support whatever it was
         | created to support in perpetuity. They do that by investing the
         | endowment and using most of the income from those investments
         | to support the endowment's mission, and a small part to grow
         | the endowment over time.
         | 
         | Penn is spending around $1 billion/year from their endowment,
         | which is a fairly reasonably amount for an endowment of $22
         | billion.
        
       | cozzyd wrote:
       | If only Penn had the richest and most powerful men in the world
       | as alumni
        
         | Onavo wrote:
         | Yeah, move over Harvard and Yale. Two of Penn's alumni are
         | currently running the country.
        
           | mizzao wrote:
           | As a Wharton grad, the place basically trains people to be
           | ruthless and make money. Morality, history, and liberal arts
           | are not part of the curriculum. It appears to have
           | succeeded...?
        
             | HarryHirsch wrote:
             | Back then it used to be the running joke about economists:
             | "if everyone takes care of himself, everyone is taken care
             | of"
        
       | forrestthewoods wrote:
       | I have zero sympathy for universities that work grad students to
       | the bone, pay them a mere $25k stipend, and take >50% grant money
       | for "overhead".
       | 
       | The academia model is deeply, profoundly broken.
        
         | pinkmuffinere wrote:
         | For what it's worth, I remember well that I thought a 40k
         | stipend in 2017 was an AMAZING opportunity, and was very
         | excited to pursue a PhD for that reason (granted 25k today is
         | significantly less). My requirements are different now, but at
         | the time that was a great opportunity for me. Don't knock the
         | low-pay-opportunities too too hard, the most desperate people
         | really want that offer, and it is still be a better stepping
         | stone than a 0k stipend. Of course I'd also like if the offer
         | was better.
        
           | forrestthewoods wrote:
           | > the most desperate people really want that offer
           | 
           | I don't think it's great the PhD programs disproportionately
           | attract desperate talent willing to work for poverty wages.
           | 
           | I'm not saying the labs need to pay crazy BigTech wages. But
           | the status quo is downright abusive. And nevermind all the
           | perverse incentives around publishing.
        
             | SJC_Hacker wrote:
             | Unfortunately in many areas its the only way to have a
             | viable career, even if you aren't planning on going in
             | academia (very few can) a PhD is a definite plus / nearly
             | required in many industries.
        
           | Tostino wrote:
           | That's like half of what I got hired for in the Tampa area
           | (notoriously low pay) in 2011 with like 6 months of SQL
           | experience and no college degree.
           | 
           | That's really depressing to be honest.
        
             | pinkmuffinere wrote:
             | lol welcome to mechanical engineering. At the time, I think
             | a good starting pay for a mechanical engineer was ~80k
             | total. Getting half of that while pursuing a PhD seemed
             | like a great deal.
        
         | Merrill wrote:
         | They could have more grad students if they reliably graduated
         | them with a PhD in four years. I was once a lab tech for two
         | grad students that had been there 11 and 13 years respectively.
        
           | SJC_Hacker wrote:
           | Thats insane. In experimental science there is actually an
           | incentive for the PI to keep the grad student around
           | (assuming they're productive) because their training is a
           | sunk cost but its very hard to justify more than 7-8 years.
        
         | mrtesthah wrote:
         | Well it's going to be totally destroyed now, so good job. Can't
         | have academia challenging the president with objective truth,
         | can we? I'll bet the new replacement funding, will have some
         | sort of loyalty pledge to Trump strings attached.
        
         | jltsiren wrote:
         | It's almost as expensive to hire a PhD student as a postdoc.
         | 
         | A postdoc makes something close to the median wage. While not
         | great, it's enough that people in general are expected to buy
         | homes and start families with incomes like that. You can't
         | reasonably expect more from an early career job that doesn't
         | produce anything with a direct monetary value.
         | 
         | A PhD student earns much less, because the rest is used to
         | cover tuition. And that is the root issue. Neither the federal
         | government nor the states pay universities to train PhDs. The
         | tuition must be paid by the student or from another source. The
         | former does not make sense if you are not rich. If tuition is
         | paid from grants, stipends will be low, as funding agencies
         | don't want to pay more for trainees than qualified researchers.
         | And if the PhD student works as a part-time teaching assistant,
         | undergrads are effectively paying their tuition and stipend.
         | Raising undergraduate tuition fees to pay PhD students more
         | would not be very popular.
        
           | kjkjadksj wrote:
           | The tuition is bunk. You take maybe 1 or 2 years of classes
           | in your phd and its not a full courseload at all. At least in
           | stem. The rest of the time you sign up for a fake class that
           | doesn't meet anywhere so you qualify as a full time student
           | for health insurance. Except the rub is they still charge
           | your pi for that tuition for the class that doesn't exist.
        
             | jltsiren wrote:
             | Tuition is also used to pay the supervisor. Direct one-on-
             | one mentoring by a tenured / tenure-track professor is more
             | expensive than classes, which are often taught by adjuncts.
        
         | fooker wrote:
         | Exactly right.
         | 
         | I had been lucky to supplement my phd stipend with big tech
         | internships, but phd life was hell for most of my friends.
         | 
         | I have seen students living in slum-like conditions, 4-6 people
         | sharing two bedroom apartments, having to get free canned food
         | from the university, being forced to buy dangerous 20+ year old
         | cars, and so on. These are the brightest minds of our
         | generation.
         | 
         | It's sad to see so many of the comments coming out strongly in
         | support of the status quo. Don't let your hatred for whoever
         | the boogieman of the day is dictate your rational mind!
        
       | tptacek wrote:
       | Vanderbilt apparently iced its entire incoming biochemistry PhD
       | headcount? My kid got a reject, and found out later that
       | everybody else did too.
        
         | osnium123 wrote:
         | There are going to be a lot of repercussions in the future
         | given how many potential future scientists won't get trained.
        
           | HarryHirsch wrote:
           | Where's the pharma lobby? Pharma is the only industrial
           | science left in the country!
        
             | bglazer wrote:
             | They are currently on their way to Mar a Lago to ask Trump
             | to roll back the drug price negotiation provisions that
             | were instated by the Inflation Reduction Act
             | 
             | https://www.fiercepharma.com/pharma/phrma-prepares-meet-
             | trum...
        
               | HarryHirsch wrote:
               | If they are protected from competition they will end up
               | like the US auto industry in the 1970's. They can try and
               | do generics but Teva, Ranbaxy and Ratiopharm will eat
               | them once patent protection runs out.
        
               | linksnapzz wrote:
               | Of course, that'll last until Ranbaxy kills off all of
               | their patients.
        
             | icegreentea2 wrote:
             | They're weighing the impact on their future workforce
             | pipeline (and probably hoping this this only represents a
             | ~4-8 year hiccup) against whatever other benefits they can
             | get from cozying up with the administration (whacky
             | regulation land).
             | 
             | https://www.science.org/content/blog-post/pharma-ceos-
             | speaki...
             | 
             | And who knows, with the right wacky regulatory scheme
             | enacted, the workforce impact will be mitigated away.
             | Probably also banking on the size and power of the American
             | domestic economy to still allow them to siphon talent from
             | across the western world to help make up some short falls.
        
               | CSMastermind wrote:
               | I was just talking to my buddy who works in big pharma
               | and internally it sounds like they have zero concerns
               | about the current administration impacting them.
               | 
               | Actually the opposite, apparently Trump rolled back the
               | Medicare drug cost caps so they're expecting profits to
               | go up.
        
               | naijaboiler wrote:
               | Pharmacy are drug marketing companies. They have
               | essentially outsourced drug R&D to universities
        
             | osnium123 wrote:
             | Maybe they can start bringing in folks trained in the EU,
             | Canada and China.
        
           | wendyshu wrote:
           | The US graduates too many PHDs, not too few
        
             | Unearned5161 wrote:
             | do you care to elaborate? what is too many and what are the
             | repercussions of this?
        
               | hollerith wrote:
               | One of the repercussions is that young people get a PhD,
               | then cannot get an appropriate job.
               | 
               | Also, the taxpayers are paying most of the cost of these
               | PhDs.
        
               | Unearned5161 wrote:
               | yes, that's the general idea, no? Further studies funded
               | by the government. Pushing the boundaries of knowledge is
               | expensive but critical for any country that wants to
               | remain influential in the world.
               | 
               | Regarding employment rates, I can't speak too broadly on
               | that as I'm more focused on the econ field, which does
               | not have employment issues. But I would be interested in
               | hearing the base for you numbers.
        
               | latency-guy2 wrote:
               | On the condition that boundaries are pushed.
               | 
               | I say this with partial ignorance though. I don't know
               | that particular field. Generally, the number of drop outs
               | at grad school is notoriously quite high across the
               | entire spectrum. How much has the needle moved given what
               | feels like a coin flip shot of completing an advanced
               | study in all respective fields?
               | 
               | There's more graduates than ever before too. It will
               | trend sharply down over the next few years, not
               | necessarily because of the loss grants from the US
               | government, but because of the birth glut that has been
               | looming since 2008.
        
               | juniperus wrote:
               | in the case of a humanities PhD, yeah. It's probably
               | easier to become a pro-athlete than find the handful of
               | jobs that require a history PhD. But a chemistry PhD?
               | Engineering PhD... agricultural sciences... geology...
               | the job search is still a search, but these aren't
               | degrees that have no demand. You certainly are more
               | likely to find industry jobs vs. academic jobs with many
               | hard science degrees. The return on taxpayer investment
               | is sensible compared to other taxpayer funded schemes (in
               | my view, if we're going to be a country that also funds
               | primary and high school). and this investment is not a
               | direct funding of PhD students, but funding projects they
               | carry out, which in most cases is in national interest.
               | The select number of students working on completely
               | useless projects that are ideological dogma are
               | definitely making the rest of higher education look
               | useless.
        
             | osnium123 wrote:
             | It's better to graduate too many than too few because it
             | helps ensure that the US workforce of scientists and
             | engineers is cost competitive.
        
               | cudgy wrote:
               | Yeah, we gotta make sure that the Pharmaceutical
               | companies have a great source of cheap PhD labor. /s
               | 
               | I wonder how all the PhD's that spent 10 years of their
               | life and can't find a job feel about that?
        
             | heylook wrote:
             | Too many PhDs... in biochemistry...?
        
           | jaybrendansmith wrote:
           | What's going to happen is another pandemic. Millions will
           | die, and this is what opportunity cost looks like. We
           | recovered from the last one due to mRNA research from NIH
           | grants (NIAID, one of my clients) and DARPA blue sky funding,
           | almost certain to be cut. These people are literally cutting
           | the funding that saved millions of lives from the last
           | pandemic. Full stop. They don't wanna hear about your facts.
        
             | pphysch wrote:
             | One day on HN I read a thread about how academia is
             | (credibly) inundated with fraudulent research/publication
             | practices, the next day I read a comment about how Western
             | academia is (vaguely) the last vanguard against
             | civilizational collapse. There seems to be a disconnect
             | here.
             | 
             | Disclaimer: I work in academia
        
               | tptacek wrote:
               | Academic misconduct is an _idee fixe_ on HN, because (1)
               | there is about two orders of magnitude more research
               | occurring than the median HN commenter would guess, (2)
               | misconduct is generally newsworthy, and (3) even a
               | minuscule portion of fraudulent research is enough to
               | keep a steady drumbeat of misconduct stories to vote and
               | comment on.
        
         | hyperbovine wrote:
         | I've heard from colleagues that numerous biostats programs also
         | did this. Zero PhD admits for the 2025 cohorts. If the
         | department has bio in the title there's a good chance almost
         | all of its operating budget comes/came from NIH.
        
       | blindriver wrote:
       | It's pretty telling that schools like Penn don't cut their
       | administrators, but instead they cut their admissions.
       | 
       | "Between 1976 and 2018, full-time administrators and other
       | professionals employed by those institutions increased by 164%
       | and 452%, respectively. Meanwhile, the number of full-time
       | faculty employed at colleges and universities in the U.S.
       | increased by only 92%, marginally outpacing student enrollment
       | which grew by 78%.
       | 
       | When we look at individual schools the numbers are just as
       | striking. A recent report I authored found that on average, the
       | top 50 schools have 1 faculty per 11 students whereas the same
       | institutions have 1 non-faculty employee per 4 students. Put
       | another way, there are now 3 times as many administrators and
       | other professionals (not including university hospitals staff),
       | as there are faculty (on a per student basis) at the leading
       | schools in country."
       | 
       | https://www.forbes.com/sites/paulweinstein/2023/08/28/admini...
        
         | tomohelix wrote:
         | Nobody would fire themselves or their close friends/colleagues.
         | But they would also want less work and delegate
         | responsibilities. So if left alone, admins would have all the
         | incentive to hire more reports and try to cut cost elsewhere
         | instead of themselves, which lead to reduced revenue and
         | bloated institutions.
         | 
         | It is a vicious feedback loop.
        
         | choxi wrote:
         | But why don't they? Does anyone know what all these
         | administrators do?
         | 
         | I've heard the theory that more regulation leads to more admin
         | needs but I don't think higher education has been increasingly
         | regulated for decades.
        
           | pj808 wrote:
           | The common argument is that universities offer vastly more
           | services to their students then in the past. Career centers,
           | for example, are relatively new trend. This is in part
           | because students also 'shop' for universities with the best
           | perks - not necessarily the best faculty. The most egregious
           | examples include Michelin star chefs, lazy Rivers, and very
           | fancy scoreboards in their very fancy stadiums. Less
           | egregious examples include better campus security and health
           | support staff. As much as it's convenient to point to
           | administrators as a problem, part of the problem is also the
           | ongoing arms race to attract applicants and students'
           | expectations.
        
             | seanmcdirmid wrote:
             | A Unitarian system might be better, faculty run classes
             | maybe without even TAs, your grade is however you do on
             | your final, Spartan campuses without student amenities. The
             | kids would be more depended on themselves to sink or
             | flourish, but it's almost like that anyways.
             | 
             | But if I had to choose for my own kid and had the money to
             | afford it, I would still go with the full campus
             | experience, although a Unitarian experience would probably
             | be better for access overall.
        
               | alephnerd wrote:
               | The unitarian model you mentioned is the norm in Germany
               | and France (and even the UK to a certain extent - a CSU
               | will have better student amenities than Oxbridge tbh).
        
           | osnium123 wrote:
           | There are also more federal regulations that universities
           | need to comply with and that drives up the number of
           | administrators.
        
           | r58lf wrote:
           | I think part of the problem is that universities have lots of
           | people who do one job and that job is not everyday. For
           | instance, where I'm at we have two people in charge of summer
           | enrollment. That seems to be it. They are way way overworked
           | for about two weeks at beginning of the summer. I have no
           | idea what they do the other 50 weeks of the year. I think
           | their boss is happy as long as they deal with summer courses.
        
             | skywhopper wrote:
             | "I have no idea what these other people I don't work with
             | do, so it must be nothing" is a really naive and insulting
             | thing to say. They probably don't know what you do either,
             | would it be fair to say you do nothing of value?
        
           | reaperducer wrote:
           | _Does anyone know what all these administrators do?_
           | 
           | Yes. You don't. But other people do.
           | 
           |  _I don't think higher education has been increasingly
           | regulated for decades_
           | 
           | Every industry has. Education more than most.
        
             | akoboldfrying wrote:
             | >Yes. You don't. But other people do.
             | 
             | This assertion is so much more compelling than a couple of
             | examples would have been
        
               | skywhopper wrote:
               | There are thousands of different jobs they could have.
               | You can't think of any work that might happen at a
               | university?
        
               | stevenbedrick wrote:
               | Ok, I'll bite. My university has a team of experts to
               | help students with academic writing. Another that helps
               | us figure out how best to organize our classes in the
               | online LMS that we use for distance education, and to
               | ensure that we all are following a similar structure so
               | as to not drive our students insane. Another team that
               | helps support grad students on visas with logistics
               | around immigration law and what-not. We have an office
               | that helps with patents and technology transfer. Another
               | team that helps with data repositories and management
               | plans. We have a whole research computing office that
               | runs our hpc team and deals with random IT things that
               | scientists are always thinking up. Another that runs our
               | IRB and helps us with that whole process. Another that
               | helps us handle data use agreements so we can share data
               | between institutions while staying compliant with
               | relevant laws and what-not. We have an office that deals
               | with contracts and legal agreements so I don't have to
               | figure out whether a certain clause in a funding
               | agreement makes sense or not. And we have a whole team
               | that helps me with budgets and financial analysis of my
               | grants and research projects to make sure that my staff
               | don't suddenly find themselves unemployed in the middle
               | of a grant year because I overspent or didn't understand
               | that certain kinds of expenses weren't allowed. This is
               | just off the top of my head and includes who I've worked
               | with in the last month or two; I didn't even get into the
               | animal techs, the facilities folks, etc etc.
               | 
               | These are all people who are at extreme risk of losing
               | their jobs in the next weeks and months because of the
               | chaos happening with NIH funding, and I can say with
               | certainty that I as a scientist and an educator am far
               | more effective because I have these professionals working
               | with me. This is what our indirects cover and it is
               | absolutely crucial.
        
               | dh2022 wrote:
               | Admin Support for distance education and foreign students
               | would scale with growth of the number of students. And
               | somehow admin growth rate is double the growth rate of
               | student body.
               | 
               | The rest of your examples explain why: regulation and
               | maybe some unnecessary activities? I do not know who you
               | are but seriously: do you need "a whole team" for your
               | budget needs? How big is your budget? In my previous
               | financial analyst role I (i.e one person) supported the
               | accounting and financial needs for about 30 people (5
               | different teams, total spend including salaries, outside
               | contracts and travel about $15 million/year). All that
               | done in Excel and with plenty of time to spare. My wife
               | is a part time accountant and she supports about 10
               | consultants with all their accounting needs: payroll,
               | sending and tracking invoices, taxes (federal +
               | state+city), cash reconciliation, etc...
        
               | stevenbedrick wrote:
               | The teams I mentioned all support dozens of investigators
               | and their associated labs, they are shared resources.
               | That's part of the point of centralizing overhead costs
               | at the university level via an indirect cost mechanism-
               | if every lab had to do all of that we'd be wasting tons
               | of money and time, but by centralizing it we get
               | economies of scale. Tragically, my own lab's budget is
               | nowhere near the level that I could support enough
               | financial help on my own... ;-)
               | 
               | And yes, many of the examples I listed are there for
               | regulatory reasons, and that's a good thing. We have laws
               | around IRBs for good reasons, and it's very important to
               | have professional support in making sure we are doing
               | things the right way in that regard. Data use agreements
               | are important- when subjects share their personal data
               | with me so I can study it, they do so with the
               | understanding that it will be handled properly and part
               | of how we do that is via data use agreements, and we need
               | professionals to help with that because I certainly
               | didn't learn enough about contract law in grad school to
               | do a good job with it on my own.
               | 
               | There is obviously a conversation to be had about whether
               | a particular regulation is appropriate or whether there's
               | too much of this or that red tape, and I think every
               | scientist would be able to tell stories of administrative
               | annoyance. But it's absurd to argue that the solution is
               | to burn it all down indiscriminately, which is what we're
               | seeing.
        
             | impossiblefork wrote:
             | The thing though, is that they actually are unnecessary.
             | 
             | We don't have these guys here in Sweden, and our university
             | education costs less per head than highschool education.
             | The Russians don't have these guys, and they even have the
             | Indepedent University of Moscow, which is basically a bunch
             | of mathematicians that let anybody who passes three of
             | their courses take the rest and get a degree.
             | 
             | This whole thing where both they and we and some other
             | people let anybody who does well enough on the exams in is
             | also very important, because it means that you aren't
             | forced to jump through hoops to get accepted, and this
             | signals something to people-- that university education
             | isn't about hoop jumping or about satisfying political
             | criteria, and this signals something about the attitude of
             | the state to its citizens which is really important at
             | least to me.
        
               | kelnos wrote:
               | Sure, but this is the US we're talking about, and the
               | regulatory environment is of course different in the US
               | than in Sweden or Russia.
               | 
               | You can argue that the US's regulations are dumb and
               | shouldn't exist, but that doesn't change the fact that
               | they _do_ exist, and that universities need to retain
               | staff that can ensure compliance.
               | 
               | I don't know if the huge amount of admin jobs at US
               | universities today is actually necessary, but it's
               | plausible that universities in one country might need
               | more admin staff than universities in another.
        
           | skywhopper wrote:
           | Just because _you_ don't know doesn't mean it's just a bunch
           | of lazy jerks collecting paychecks for doing nothing. You
           | clearly don't know anything about the state of higher ed
           | regulation if you think nothing has changed in the last few
           | decades. FERPA, HIPAA, Title IX, a huge IT infrastructure and
           | all the security concerns that go with that, the ADA...
        
           | mattkrause wrote:
           | "Students" might also be the wrong denominator for research-
           | intensive places.
           | 
           | Penn has an army of postdocs and research staff too. Even
           | though they aren't paid out of indirects, they do need to get
           | paid, have places to park, get safety training, etc, all of
           | which _do_ need admins.
        
           | rs186 wrote:
           | > I don't think higher education has been increasingly
           | regulated for decades.
           | 
           | Because things never made headlines and you never paid
           | attention.
           | 
           | Maybe talk to a professor or an administrator, or ask ChatGPT
           | before posting such ignorant comment.
        
         | gedy wrote:
         | Yeah it's not partisan to wonder if it's a political move to
         | maximize annoyance to point blame back at the current
         | administration.
         | 
         | Similar to teachers having to buy their own pencils etc but
         | school administrators and their retirement funds never seemed
         | to be cut.
        
         | uberman wrote:
         | Who do you think advises students getting into classes, who do
         | you think reviews applications or works with companies to get
         | students jobs. There is administrative over head because these
         | activities are not core competencies of researchers.
         | 
         | People act like a reseach faculty member should be conducting
         | cutting edge research while writing findings applying from
         | Grant's advising students on course course offerings and
         | courting employers while also snoozing with alumni for
         | donations.
         | 
         | Noone can do it all and thus there are specialist in these
         | fields that usually cost a fraction of what a faculty member
         | costs.
        
           | pclmulqdq wrote:
           | At many schools, advising is a professorial responsibility.
           | Professors have a hard job, but they have a job that is very
           | powerful and prestigious and can be incredibly lucrative
           | (thanks to consulting gigs, patents, etc.).
        
             | heylook wrote:
             | ...subsidized housing, normalized sabbaticals, teaching a
             | course that uses the textbook you yourself wrote...
        
               | mnky9800n wrote:
               | I'm happy to accept a job where my housing is subsidized.
               | What university is this?
        
               | ykonstant wrote:
               | I recall that universities in extremely expensive places
               | like UCLA, Stanford etc subsidize housing and/or provide
               | specially priced housing for staff and faculty. Not to
               | say they are cheap, they are just tolerable given the
               | salaries, which is more than you can say with regular
               | market pricing.
        
               | i_am_proteus wrote:
               | Stanford does have faculty housing: it's made available
               | for the tenured faculty member to rent for life. The
               | school owns the house. The professor builds no equity.
               | 
               | The alternative, given the cost of housing near Stanford
               | and faculty salaries, would be for faculty to live over
               | an hour distant. The university acknowledges the benefit
               | of having faculty live nearby, and also recovers the rent
               | money and keeps the property.
        
               | pclmulqdq wrote:
               | And yet, a lot of Stanford's faculty live right next to
               | campus. It turns out all those startup board seats are
               | lucrative enough that they can actually afford a house in
               | the local area.
        
               | burnerthrow008 wrote:
               | 1. Those universities subsidize housing because the
               | salaries that they offer would otherwise attract zero
               | candidates due to the local cost of living.
               | 
               | 2. It is usually the case that the university then owns a
               | share of the equity in your house, and is owed a share of
               | the profits when you sell.
        
             | analog31 wrote:
             | Indeed, a large portion of a professor's duties are
             | administrative.
        
           | amluto wrote:
           | None of the above has changed materially over the past few
           | decades.
        
         | pclmulqdq wrote:
         | I had one professor at college who remarked on how all of the
         | parking garages on campus used to be parking lots 30 years ago,
         | and are equally full today that they were back then. The
         | student and faculty population hasn't changed over that time,
         | but the growth of administration was explosive.
         | 
         | I don't entirely know how much of this is attributable to each
         | part, but my suggestions are that these administrators are
         | driven by:
         | 
         | 1. Increases in student services (ie sports)
         | 
         | 2. Laws and regulations, like Title IX
         | 
         | 3. Increased bureaucracy around government grants and research
         | funding
         | 
         | 4. Huge endowments that need managers
        
           | bilbo0s wrote:
           | Those 4 aren't really adding much overhead.
           | 
           | For instance, I can tell you right now with certainty that at
           | any large university the number of software devs or database
           | admins in the IT department far outpace the number of
           | financial analysts working in foundation/endowment. Pick any
           | large university at random, and I'll wager that without even
           | knowing the spread.
           | 
           | But here's the thing, universities need IT divisions. They
           | also need the other large operations level bureaucracies they
           | typically have put in place. Facilities and plant, university
           | police, housing, etc etc. You can't pull off a large
           | university without these divisions nowadays. So saying, "Oh
           | we can cut them" is very shortsighted.
        
             | rblatz wrote:
             | I worked at a large public university. The University had a
             | large central IT team, but each college had its own
             | independent IT team that managed their own computers,
             | network, printers, and other technology. Each also had
             | their own software dev teams and there was significant
             | overlap an inefficiencies in this model.
        
               | skywhopper wrote:
               | Not every university is set up this way, and it's not
               | necessarily as inefficient as you think, since different
               | colleges have different needs.
        
               | pbronez wrote:
               | Yeah it's easy to think centralizing IT will deliver a
               | lot of efficiencies, but you pay the price in reduced
               | agility on the ground.
               | 
               | The best balance I've seen involves centralizing a small
               | number of essential services, ideally ones with lots of
               | compliance and security complexity. Manage that well in
               | one place, then let the departments use that
               | infrastructure to meet their unique needs.
        
               | ModernMech wrote:
               | When I get in front of a classroom and my tech isn't
               | working, I call a number and they dispatch campus IT
               | immediately to my location to fix it within 5 minutes.
               | This kind of rapid response and support isn't possible
               | for a department to fund, especially if it's a department
               | like History.
               | 
               | Face it - students have higher expectations now,
               | professors also have higher expectations. This requires
               | administrative staff to run. Back in the day school
               | budgets were lower, but even when I went to college in
               | 2005 they didn't have campus-wide wifi in every
               | classroom. We had one professor who taught with
               | powerpoint. Today, every student has a laptop in class.
               | 
               | Maintaining a modern campus takes a big IT department and
               | centralizing it is the least wasteful way to do things.
        
               | sudosysgen wrote:
               | I was at a uni with departmental IT and I certainly could
               | do that, I knew the 3-4 IT people by name and I could
               | just message them and get whoever was on campus at the
               | time to help me immediately if it was urgent.
               | 
               | There are things better done by a central IT team like
               | university level WiFi, but you can make that smaller and
               | also have departmental teams for things where more
               | agility is needed. If the people are competent it's
               | really great.
               | 
               | And yes 3-4 people only makes sense because it was a
               | large department, but smaller departments with similar
               | mandates, for example English/Literature and History,
               | just have a shared departmental IT between them.
        
             | naijaboiler wrote:
             | Large public universities with 50k students are essentially
             | running small cities and have to provide and maintain
             | facilities for a city of that size ( utilities, policing,
             | housing, facility and infrastructure maintenance)
        
           | fraggleysun wrote:
           | May I suggest a fifth possibility: your core assumption is
           | flawed and your professor hasn't been paying attention.
           | 
           | Unless your college is failing, it is hard to believe that
           | the student population hasn't changed significantly over the
           | last 30 years, when the US population has almost grown by
           | 30%.
           | 
           | I attended UCI over 25 years ago. The student population has
           | since more than doubled. Tuition rates, interestingly have
           | also almost doubled.
        
             | pclmulqdq wrote:
             | This was at a college where indeed the student population
             | did not change in size. The same goes for the professors,
             | whose population grew about 5% over that time.
        
             | kelnos wrote:
             | Not every school wants to grow the size of their student
             | body. And there shouldn't be any reason why they would be
             | forced to.
        
             | akvadrako wrote:
             | That's a weird thing to say since many small and rather
             | well regarded private schools stay small on purpose.
             | 
             | For example, do you really think Dartmouth is failing?
        
               | pclmulqdq wrote:
               | Yeah, the parent comment here should have been thinking
               | Dartmouth rather than about one of the UCs for their
               | model school. This was Caltech.
        
               | selimthegrim wrote:
               | Well, as a fellow alum, I can tell you they definitely
               | screwed up the last two points (esp ITAR) within living
               | memory.
        
             | matthewdgreen wrote:
             | Many elite colleges have opted to keep class sizes small,
             | and make themselves more selective instead. It is pretty
             | despicable. It sounds like UCI is doing the right thing,
             | although I've heard it's still hard to get into many of the
             | UC schools because there are so many applicants.
             | 
             | In fairness, a dollar in 2000 is worth $1.83 today, so that
             | would (almost) account for the tuition increase.
        
           | HDThoreaun wrote:
           | I think its likely students having more money and therefore a
           | car plus there being more students overall. Tons of colleges
           | now most students have a car and parking pass even if they
           | live 3 blocks off campus.
        
             | pclmulqdq wrote:
             | Student car ownership also didn't account for the explosive
             | growth of parking at this school. The ratio of cars per
             | student surely grew a little bit since the 1990's, but not
             | nearly that much.
        
           | _DeadFred_ wrote:
           | When I was a kid my mom dropped my dad off for his college
           | classes. When I went to school I took my car. We should
           | micromanage college administration from the outside because
           | of that.
        
           | jayd16 wrote:
           | If the lot and garage were full, it's impossible to know what
           | unserved population was taking the bus in either era. Let
           | alone many other statistical questions here...
        
         | User23 wrote:
         | The White House is trying to require at least 85% of grant
         | money go to research and not administration. It's such an
         | obviously common sense improvement and the first serious
         | proposal to roll back this administrative bloat that I've ever
         | seen.
        
           | bglazer wrote:
           | No they're _cutting_ payments for indirect costs down to 15%.
           | They're not requiring money be spent on research instead of
           | admin, they're just giving out less money.
           | 
           | This is not and was never supposed to increase American
           | research productivity. Just the opposite actually, they want
           | less science done in America, and as a bonus they "save"
           | about $5 billion, that is, approximately one half the cost of
           | a single aircraft carrier
        
           | jasonhong wrote:
           | This sounds great in theory, until you start looking at the
           | actual things that overhead covers. Things like the cost of
           | my office space, my lab space, electricity, heating, building
           | maintenance, telephone, computer network, IT and tech
           | support, the photocopier machine we share, my admin assistant
           | that handles travel and purchases, the admins in my
           | department that handle grant budgets and compliance (which
           | quite frankly I don't want to personally deal with), and
           | more.
           | 
           | I mentioned Chesterton's Fence in another post here, about
           | really understanding a problem and why things are done in a
           | certain way, before tearing everything down. I'd really
           | encourage people to try to understand things better before
           | jumping to conclusions, it's not all that different from the
           | engineer's disease that often gets mentioned on HN.
        
             | reaperducer wrote:
             | I empathize, but you're wasting your time. Half of the
             | accounts in this thread and the similar recent threads are
             | bots, not Americans, or so deeply entrenched in their blind
             | partisanship that they abdicated thinking for themselves
             | long ago.
        
               | ykonstant wrote:
               | I wonder, am I a bot, or an American...
        
           | r58lf wrote:
           | Technically they want to limit indirect costs to 15%. This
           | currently ranges from 50%-100%. Indirect costs have two
           | components, facilities and administration.
           | 
           | Facilites are the cost of buildings, electricity, janitorial
           | service, etc. Think of this as things that might be included
           | in the rent if you were renting a place to do the research.
           | 
           | Administration costs are mostly salaries for people,
           | administrative and clerical staff. Not the people directly
           | doing the research (that's a direct cost), but the people in
           | charge of safety/compliance/legal, etc.
           | 
           | Administrative costs have been capped at 25% for a few
           | decades. Facilities costs are not capped.
        
         | tptacek wrote:
         | Everything that isn't PIs and grad students is funded out of
         | admin, including all the lab techs.
        
           | jleyank wrote:
           | Computer clusters, chem or bio lab gear, staff and techs,
           | .... Some of this isn't cheap and it's not safe to let the
           | grad students and p-docs do it. And somebody has to TA all
           | those pre-xx and other mid to advanced course students.
        
           | PhotonHunter wrote:
           | Lab techs are often classified as "administrative and
           | professional" employees by university HR but on NIH grants
           | they would be paid for as a direct cost, other personnel (B
           | on the R&R budget form).
        
             | mattkrause wrote:
             | I think "core" facilites can be handled a bit differently.
             | 
             | There are certainly NIH mechanisms for supporting them, but
             | I wouldn't be surprised if some of them are partially
             | supported---or at least backstopped---by indirects...
        
           | seanmcdirmid wrote:
           | That isn't true. Research staff is funded via grants almost
           | exclusively, in computer science. I'm not sure about the
           | sciences, but I would assume they would have a lot of labs
           | that are not set up for education and would be funded mostly
           | by grants.
        
             | tptacek wrote:
             | Well, I'm the parent of a biochemistry lab tech currently
             | selecting Phd project admits, but, I don't know, maybe my
             | kid is making up that he's paid out of admin.
        
               | blindriver wrote:
               | Or he could just be honestly wrong.
        
               | seanmcdirmid wrote:
               | Just because some lab techs are admin doesn't mean they
               | all are.
        
             | mnky9800n wrote:
             | This is true in physics and geo as well.
        
         | bko wrote:
         | In Dan Simmons' novel "Hyperion," one of the characters
         | describes a government agency that both builds monuments and
         | provides medical care to children. When faced with budget cuts,
         | they reduce the medical care while continuing to build
         | monuments, because monuments are visible evidence of their work
         | while the absence of medical care only shows up in statistics.
         | 
         | The administrators are the school at this point, why would they
         | choose to cut there?
        
           | ptero wrote:
           | I recently saw a term for this -- "hostage puppy", which I
           | think is an excellent description. I think [1] is the
           | original source for the definition.
           | 
           | [1] https://x.com/perrymetzger/status/1887896797575520673
        
             | soared wrote:
             | Oof the US team I work for is beholden to a foreign HQ that
             | runs the hostage puppy play, great term.
        
             | drfuchs wrote:
             | Here's a literal "hostage puppy" that was quite the rage in
             | 1973 (though National Lampoon didn't use that phrase): http
             | s://en.wikipedia.org/wiki/National_Lampoon_%28magazine%2...
        
           | ModernMech wrote:
           | The literal worst thing Penn could do for students at this
           | point is to take more on they aren't sure they will be able
           | to support through their Ph.D. They are protecting and
           | looking our for the students they have by not accepting more.
        
           | skeeter2020 wrote:
           | this is the same reason wealthy donors want a building with
           | their name on it, but don't want to fund the janitors who
           | will keep it clean.
        
         | jasonhong wrote:
         | It's possible that there may be too many administrators at a
         | university, but from my perspective after 20+ years in
         | academia, one clear driver is continually increasing rules,
         | regulations, and compliance, along with fears of audits and
         | lawsuits. I'd even make an analogy to increased malpractice
         | insurance costs for doctors due to increasing number of
         | lawsuits doctors face.
         | 
         | For example, there are more compliance costs around IRBs for
         | human subjects, export controls of potentially sensitive data,
         | companies we can't work with (e.g. in China), contracting with
         | companies we can work with, intellectual property and startups,
         | Title IX, discrimination, Federal funding do's and don'ts,
         | cybersecurity requirements, travel to foreign countries (soon
         | to be implemented), and a lot lot lot lot more. Also, like
         | security, these things only ratchet upward, never down.
         | 
         | In the past, professors used to handle some of these things
         | informally and part-time on top of their teaching and research,
         | but it really has to be professionalized and be done full time
         | because of risks and costs of getting it wrong.
         | 
         | Taking a step back, discussions about "too many admins" also
         | feels not all that different from those threads on HN saying "I
         | could build product XYZ in a weekend, why do they have so many
         | employees?" Sure, but building the product isn't the hard part,
         | it's sales, marketing, customer support, regulatory compliance,
         | HR, data scientists, UX designers, and all the other functions
         | needed to transform it from a product to a business.
        
           | SubiculumCode wrote:
           | As a fellow academic at a major research institution, I agree
           | that the regulatory aspect (IRB, grant money auditing, etc)
           | is a huge financial burden requiring many staff. This is not
           | something that universities can easily reduce without
           | loosening requirements at the Federal level
        
           | teleforce wrote:
           | > one clear driver is continually increasing rules,
           | regulations, and compliance, along with fears of audits and
           | lawsuits
           | 
           | I think this a gap that can be easily and fittingly addressed
           | by explainable AI (XAI) hopefully with much cheaper cost
           | using automation, reasoning and decision making with minimum
           | number of expert staff in the loop for verification and
           | validation.
           | 
           | I've got the feeling that Elon proposed DOGE as a trojan
           | horse for doing this sneakily:
           | 
           | 1) Reduced the budget to make govt more efficient so staff
           | number reduction is inevitable
           | 
           | 2) Sell and provide XAI based solutions for regulatory
           | compliance, etc (accidentally his AI company name is xAI)
           | 
           | 3) Repeat these with many govt's organization, research,
           | academic institutions
           | 
           | 4) Profit!
           | 
           | But apparently the US research universities like UPenn did
           | not get the memo and cut the number of graduate research
           | students instead of the admin staff.
        
             | danny_codes wrote:
             | I wouldn't trust an LLM to do anything compliance related.
             | Sounds like a recipe for a lawsuit
        
               | teleforce wrote:
               | > cheaper cost using automation, reasoning and decision
               | making with minimum number of expert staff in the loop
               | for verification and validation.
        
               | javagram wrote:
               | Verification and validation of LLM output in this context
               | would mean doing all the same research, training etc done
               | today for human staff and then comparing the results line
               | by line. It would actually take more time. How do you
               | know if the LLM failed to apply one of hundreds of rules
               | from a procedure unless you have a human trained on it
               | who has also examined every relevant document and
               | artifact from the process?
        
               | teleforce wrote:
               | > one clear driver is continually increasing rules,
               | regulations, and compliance, along with fears of audits
               | and lawsuits
               | 
               | As mentioned by the GP posts the main problem is the
               | increasing rules, regulations and compliance need to be
               | processed the admin staff not the research contributions
               | itself (these invention and innovation parts are
               | performed by the graduate students and professors who are
               | getting cuts by the limited budget).
               | 
               | This AI based system will include (not limited to) LLM
               | with RAG (with relevants documents) that can perform the
               | work of the tens if not hundreds jobs of the admin staff.
               | The agent AI can also include rule based expert system
               | for assessment of the procedures. It will be much faster
               | than human can ever be with the on-demand AWS scale
               | scaling (pardon the pun).
               | 
               | Ultimately it will need only a few expert admin staff for
               | the compliance validation and compliance instead tens of
               | hundreds as typical now in research organizations. The AI
               | based system will even get better over time due to this
               | RHLF and expert human-in-the-loop arrangement.
        
             | ModernMech wrote:
             | > But apparently the US research universities like UPenn
             | did not get the memo and cut the number of graduate
             | research students instead of the admin staff.
             | 
             | If you reduce the number of staff, the people who are going
             | to hurt first are the graduate researchers. I run my lab
             | with a whole host of college and department staff who make
             | all of our jobs easier. If you cut them, their jobs are
             | going to fall to professors, and if they have to do more
             | admin work, graduate teaching and research assistants are
             | going to get more shit work, and also there's going to be
             | fewer than them.
             | 
             | For instance we have a whole office that help us get our
             | research funded. These people are "bureaucratic
             | administrative overhead", but they make everyone's job
             | easier by providing a centralized resource for this
             | particular problem. Get rid of them an you can save
             | millions of dollars in salaries, but you're going to lose
             | more than that in lost contracts and professor/student
             | productivity. This would mean students probably would get
             | cut anyway, so they're making the smart move of supporting
             | only the students they can, and not leaving anyone out to
             | dry.
        
           | miohtama wrote:
           | Compliance industry has gone from $0 to $90B in twenty years.
           | It does not produce anything real, except lobbying for more
           | compliance needing more compliance services, software and
           | lawyers.
           | 
           | Here is a book about it:
           | 
           | https://www.amazon.com/Compliance-Industrial-Complex-
           | Operati...
        
             | brookst wrote:
             | I did work for a compliance as a service company 35 years
             | ago. Customs brokers go back much farther than that. I'm
             | very suspicious of the claim this whole industry didn't
             | exist 20 years ago, which makes me suspicious of the other
             | claims.
        
               | da_chicken wrote:
               | I work at a public K-12 in IT. We were definitely doing
               | compliance reporting 20 years ago. Compliance is pretty
               | central to the IEP process created in 1975, but it goes
               | back further than that.
               | 
               | We were cleaning out old cabinets that had been stored
               | for many years. We found aggregated student data reports
               | so old that my grandmother (still alive at 106) would
               | have been among the headcount. 90 years ago we were doing
               | compliance reports. The reports were very simple, but
               | there were no computers to create them. They would have
               | involved just as much time as we spend on today's reports
               | only we have a hundred times the data in them.
        
           | like_any_other wrote:
           | > "I could build product XYZ in a weekend, why do they have
           | so many employees?"
           | 
           | Unlike product XYZ*, there was a time in very recent history
           | when these same schools ran successfully with much smaller
           | administrations. At some point you have to ask - do you want
           | to save the cancer, or the patient?
           | 
           | *I am humoring your hypothetical, but there are in fact many
           | cases where a small team outperforms bloated, ossified
           | companies, e.g. the Britten V1000 motorcycle, or the recent
           | article about wedding planning software
           | (https://news.ycombinator.com/item?id=43133174), or the older
           | article on the windows terminal
           | (https://news.ycombinator.com/item?id=27725133)
        
             | exe34 wrote:
             | > there was a time in very recent history when these same
             | schools ran successfully with much smaller administrations.
             | 
             | as the comment you're replying to has already stated:
             | 
             | > one clear driver is continually increasing rules,
             | regulations, and compliance, along with fears of audits and
             | lawsuits. I'd even make an analogy to increased malpractice
             | insurance costs for doctors due to increasing number of
             | lawsuits doctors face. > For example, there are more
             | compliance costs around IRBs for human subjects, export
             | controls of potentially sensitive data, companies we can't
             | work with (e.g. in China), contracting with companies we
             | can work with, intellectual property and startups, Title
             | IX, discrimination, Federal funding do's and don'ts,
             | cybersecurity requirements, travel to foreign countries
             | (soon to be implemented), and a lot lot lot lot more. Also,
             | like security, these things only ratchet upward, never
             | down.
        
               | like_any_other wrote:
               | First, I don't think we should take it as a given that
               | all the admin. growth is just efficiently working on
               | complying with regulations. And I'm pretty sure foreign
               | countries, and travel to them, already existed in 1976.
               | As did patents, contracts with other companies, and
               | sanctions that US entities had to respect - remember, in
               | 1976 there was the _cold war_.
               | 
               | Second and more importantly - _these same schools ran
               | successfully with much smaller administrations_. The
               | regulations you cite are not a law of nature - are
               | universities or their bloated administrations lobbying to
               | have this regulatory burden reduced or streamlined? It
               | sure doesn 't look like it.
        
               | lc9er wrote:
               | Do you work in higher ed? It's ok to admit that you
               | weighed in on a topic you don't understand, then bow out
               | gracefully, since you've repeatedly been given accurate
               | responses to your assertions.
        
               | like_any_other wrote:
               | More than half of the explanation for the administrative
               | bloat since 1976 was blamed on factors that did not
               | change much since the 1960s - with the notable exception
               | of foreign sanctions, which were _much worse_ due to the
               | cold war. Also blamed were IRBs, which have been a
               | requirement since 1974: https://en.wikipedia.org/wiki/Hum
               | an_subject_research_legisla...
               | 
               | The "accurate responses" were non-explanations. Like
               | blaming being three hours late on a single red light.
        
               | rayiner wrote:
               | So the only people who can have an opinion on this are
               | the ones who work in the industry and does have an
               | incentive to perpetuate the status quo?
        
               | kzs0 wrote:
               | His/her first statement was directly answered in the
               | original comment. When that was noted, they swapped to
               | undermining the basis for the comment. It's pretty
               | typical for techies to provide an opinion without basis
               | and desire for it to be treated on the same level as
               | those "in the know"
               | 
               | So everyone should always be included in conversations if
               | desired, but coming in with an uninformed opinion spoken
               | loudly, desiring more to be "right" than to come to an
               | understanding, won't typically be appreciated.
        
               | scheme271 wrote:
               | Are you using 1976 as a baseline? Given this and your
               | other comments in this thread, it seems like it. I'm sure
               | the regulatory and compliance environment have changed
               | significantly in the last 50 years. E.g. OSHA and other
               | agencies have significantly increased the monitoring and
               | procedures needed to run a chemistry research lab due to
               | accidents and deaths.
        
               | fluidcruft wrote:
               | Most IRB's further outsource to consulting firms and
               | blindly do what the consultants tell them to do (not
               | included in head counts). That is just to say the
               | administrative people added are just trained to follow
               | expensive rules and lack any domain knowledge whatsoever.
        
           | AdrianB1 wrote:
           | The numbers in the post that you respond to are picturing a
           | different situation: there are almost 3 admins per professor.
           | That means the universities are not teaching places, but
           | administrative places with some teaching as a secondary
           | activity.
           | 
           | I think people overcomplicated universities and that is what
           | makes admins needed. Taking a step back, we need to make
           | universities teaching places again, with 1 admin for 3
           | professors, not the other way around. Imagine savings,
           | needing less grant money, less audits, less funding that
           | comes with strings attached.
           | 
           | In the end I think people make up too much irrelevant work.
           | And that needs to go away.
        
             | skeeter2020 wrote:
             | do you think this is parallel to the growth of "you MUST
             | attend university" mindset?
        
             | nhma wrote:
             | A more relevant metric than admins/professor would be admin
             | staff/scientific staff. Given that a research group under a
             | professor will probably contain numerous associate
             | professors, assistant professors, postdocs, PhDs, and
             | research assistants who all generate some admin workload, 3
             | admins per professor does not sound outlandish.
        
               | BrenBarn wrote:
               | I'm not sure what the person meant in the comment you're
               | replying to, but it sounds like in your comment you're
               | reading "professor" as "full professor", which is not how
               | I'd read it. I'd read it as basically "faculty member".
        
           | skeeter2020 wrote:
           | But historically universities DID deliver the same product in
           | a weekend. It really feels lika a lot of the extra admin
           | burden was generated itnernally and self-imposed. Each piece
           | of DEI is small and well-meaning, and now we have these
           | massive institutions that have to cut PhD students of all
           | things to balance the books.
        
             | sdenton4 wrote:
             | A major source of administrative and non-teaching staff is
             | that many universities have added things like 'a hostpital'
             | on the side. This is reasonable when you're running a med
             | school with a research component: you need patients to work
             | on, after all. The hospital provides a high standard of
             | care to the community that it serves, and creates both
             | revenue and costs, far in excess of any DEI program.
        
               | dcow wrote:
               | Not challenging your point, just also pointing out that
               | this scenario was already factored in (i.e. hospital
               | admin not included) when calculating the initial ratios.
        
         | bilbo0s wrote:
         | Um, I'm not a fan of bloated university employment structures,
         | but 1976 and 2018? Respectfully, you're comparing apples and
         | oranges.
         | 
         | On the campuses of today's major universities there are entire
         | support divisions. Housing, Facilities and Plant, Foundation,
         | and on and on. And all that is before we even get to the big
         | new divisions to come online on campuses since 1976. ie -
         | University Police and IT divisions. These divisions
         | collectively employ thousands of people at a typical
         | university. In fact, at most universities, the ratio of
         | employees in the bureaucracies to academic staff is roughly
         | between 15:1 and 20:1.
         | 
         | If we want to cut that appreciably, you have to take a hatchet
         | to the biggest divisions. (For most universities that will be
         | IT.) Which is exactly what some universities have done. For
         | example, the University of Wisconsin got that ratio down to
         | roughly 8:1 at one point. But there were still a whole lot of
         | database admins over at UW DoIT.
         | 
         | Point being, when people say "administrators", they're talking
         | about the flood of IT guys, facilities planners, and project
         | managers hired long after 1976. Most universities are far more
         | lean on deans than they are on software developers or database
         | admins for instance. So it's not at all clear how to get rid of
         | an appreciable number of these people and still have a
         | functioning UCLA just as an example.
         | 
         | And here's the bad news, I've only mentioned a few of the
         | operations level bureaucracies required to pull off something
         | like the University of Texas, or University of Michigan, or
         | University of Wisconsin. Or even Penn for that matter. It's not
         | as easy a problem to solve as people make it out to be.
        
           | pjc50 wrote:
           | Wait, why is University police so historically recent?
        
             | selimthegrim wrote:
             | Cleary Act
        
               | bilbo0s wrote:
               | Not really.
               | 
               | At the biggest universities, police pre-date that law.
               | 
               | The reason is obvious when you consider how large many
               | universities have become. If you throw 50000 20 year olds
               | into a 3 square mile area, there's likely to be a lot of
               | crime that happens. Sexual assaults, narcotics, and
               | thefts mostly. There are, of course, more serious crimes
               | that happen as well. In all that chaos, these
               | universities have an obligation to keep order.
        
         | jltsiren wrote:
         | If a tech company has to make rapid cuts, it will lay off
         | engineers. This is basically the same situation.
         | 
         | Administrators usually exist for specific reasons. As long as
         | those reasons remain, it's difficult to cut administrators. If
         | there are regulations governing what the university is allowed
         | to do with federal money, the university needs administrators
         | to ensure and report compliance. If students expect that the
         | university will provide accommodation, the university needs
         | enough staff to run a small city and all associated services.
        
           | acdha wrote:
           | > If there are regulations governing what the university is
           | allowed to do with federal money, the university needs
           | administrators to ensure and report compliance
           | 
           | I have a friend who's a fairly established scientist in his
           | field. The promised cuts to NIH indirect funding would have
           | exactly the effect you're describing by requiring them to
           | spend time calculating everything as direct costs for every
           | shared resource precisely enough to survive an audit. Trying
           | to save money there will cost more than it's worth because
           | most of the shared people, equipment, and resources are paid
           | for by NIH but they'd have to add accounting staff to
           | document which fraction gets billed to which grant at that
           | level of precision.
        
           | heylook wrote:
           | > If a tech company has to make rapid cuts, it will lay off
           | engineers.
           | 
           | In my experience, they'll try find literally anyone else they
           | can before laying off engineers. Both times I've been a part
           | of it was like 10-20% of laid off employees were engineering.
           | 80-90% recruiting, support, admin, HR, middle management,
           | design, etc, etc. As much as possible leave sales, marketing,
           | engineering functions alone.
        
             | naijaboiler wrote:
             | For a tech company, sales and marketing are admin staff.
             | Professors are to universities what engineers are to a tech
             | company
        
           | xienze wrote:
           | > If a tech company has to make rapid cuts, it will lay off
           | engineers. This is basically the same situation.
           | 
           | Eh, maybe. Part of me thinks this is making a spectacle out
           | of having to tighten up the finances.
           | 
           | I'm reminded of when I was in school many years ago at a
           | state university. The state called for a 2% budget cut. Or in
           | other words, going back to what the budget was a year or two
           | prior. The administration went on and on about how there was
           | absolutely no fat to cut and started making loud public
           | statements about how they would "need" to do ridiculous
           | things like cut the number of offered sections for undergrad
           | mathematics courses by 15%, eliminate the music department,
           | etc. They whipped the students into a frenzy and the whole
           | thing culminated with a protest march down to the capitol
           | building, and the state relented.
        
             | jltsiren wrote:
             | A nominal 2% budget cut is a 5-6% real cut, assuming
             | average wage growth and inflation. And if that cut meant
             | going back to where the budget was 1-2 years earlier, the
             | university had already faced effective budget cuts over
             | those years.
        
               | xienze wrote:
               | You're missing the bigger point, that the cuts they
               | proposed in response were far beyond what would be
               | necessary for such a small budget cut. To say nothing of
               | the fact that they immediately jumped to making highly
               | disruptive cuts (like an entire department) instead of
               | even considering things like cutting admin roles or
               | creature comforts (which had grown like crazy in the
               | years prior) first.
        
           | skadamou wrote:
           | >If students expect that the university will provide
           | accommodation, the university needs enough staff to run a
           | small city and all associated services.
           | 
           | No doubt you need admin to help accommodate students learning
           | needs but I've come around to thinking that they should
           | change the parameters around testing and give every student
           | the opportunity to use "accommodations" rather than making
           | them prove their disability. Everyone is being granted the
           | same degree, if a significant number of the students in your
           | program need accommodations, like extra time on the exam, why
           | not grant it to everybody who asks? Or better yet, just give
           | everyone the time they need. It seems silly to me that you
           | need to prove your need before you can get things like extra
           | time - I think it should be opened up to everybody
        
         | JumpCrisscross wrote:
         | > _telling that schools like Penn don 't cut their
         | administrators, but instead they cut their admissions_
         | 
         | Administrators are typically paid out of tuition. Penn is
         | cutting uses in line with sources.
        
           | sega_sai wrote:
           | I am assuming some grant overheads also go to admin.
        
           | kelnos wrote:
           | I get that, but a research university's prestige comes from
           | the recognition for the research they do. Accepting fewer
           | grad students means less research will be done and fewer
           | papers will be published.
           | 
           | They could presumably cut admin staff to some extent, and pay
           | grad students out of the tuition funds freed up. But why
           | would we expect the bosses to fire their friends?
        
             | ModernMech wrote:
             | This is a complicated ecosystem, it's not that simple.
             | Academic departments are not places where there's a lot of
             | slack - positions are scarce, the competition for them is
             | fierce, and the people who get them are notorious
             | workaholics. Cutting admin means more work on professors,
             | means less research output, means fewer grants funded,
             | means fewer grad students supported. So you can cut
             | students and get fewer students, or cut admin still get
             | fewer students but also less research and funding as well.
        
         | aithrowawaycomm wrote:
         | [flagged]
        
           | csomar wrote:
           | Then how did the universities operate before the increases?
           | How come digitalization is not able to reduce the admin
           | numbers. You are the one to justify why you need this
           | additional overhead and not the other way around.
        
             | PhotonHunter wrote:
             | They didn't used to have to deal with FAR and DFARS
             | compliance, export compliance, cybersecurity, iEdison
             | reporting, and so on. Nevertheless, the administrative
             | component of F&A indirects has been capped at 26% for
             | years. The universities have to fill the budget gap with
             | other funds (and no, not tuition, that is not used for the
             | research enterprise).
        
               | lc9er wrote:
               | This is exactly it. A modern university has needs that
               | are far greater and demanding than one of 50+ years ago.
               | And generally, the people doing the ground-level work are
               | underpaid and overworked. If anything, there may be a
               | glut of VP and C-level positions, but they don't make up
               | the bulk of employees.
        
             | HelloMcFly wrote:
             | In addition to what the other commenter said, most of the
             | public universities doing scientific research used to be
             | far better funded from their states than they are today on
             | a cost-per-student basis. Additional administrative staff
             | that many universities now have is often necessitated by
             | their regulatory complexity as well as the need for
             | generating different sources of funding. These are broad
             | statements that do oversimplify matters, but part of the
             | full story.
        
             | apical_dendrite wrote:
             | Why would digitization reduce the number of university
             | admins? I'm sure there were some clerks and secretaries
             | whose jobs were automated, but the universities also had to
             | add huge IT departments. Plus, everything about a
             | university is more complicated now then in was 50 years
             | ago. In 1970, Harvard had 6000 applicants for 1200 freshman
             | spots. Today it has 54,000 for 1900 spots. I'm sure the
             | percentage that are international is vastly higher now.
             | Probably a higher percentage want to visit campus.
             | Financial aid is a lot more complicated. So just the
             | admissions office is doing much more work.
        
               | AlexandrB wrote:
               | > In 1970, Harvard had 6000 applicants for 1200 freshman
               | spots. Today it has 54,000 for 1900 spots.
               | 
               | Why not sort descending by SAT score and call it a day?
               | Evaluating things like extracurriculars continues to be
               | classist bullshit and is probably responsible for making
               | acceptance criteria "complicated".
        
               | fraggleysun wrote:
               | Because SAT scores, alone, tell you nothing about a
               | candidate outside of their ability to completely that
               | test.
        
               | aoanevdus wrote:
               | By this metric I would have got into any school I wanted,
               | but that's just because I put an exceptional amount of
               | effort into preparing for the test. My grades and
               | extracurriculars weren't top-notch. I did go to an elite-
               | ish school and it was clear that many other students
               | deserved to be there more than me (ie. were able to
               | contribute to society more in various ways), and in my
               | view that difference was legible in the admissions
               | process.
        
               | ungreased0675 wrote:
               | Alternatively, why have they not expanded the number of
               | available seats with the more than adequate resources
               | available?
        
               | ModernMech wrote:
               | Because when it comes to Harvard, out of 54,000
               | applications you'll have at least 1900 perfect SAT
               | scores. Then how do you decide who to admit? You still
               | need some process.
        
             | scarby2 wrote:
             | > Then how did the universities operate before the
             | increases?
             | 
             | Easily. Every additional rule and regulation has a
             | compliance cost, we've added far too many rules and
             | regulations.
        
           | gotoeleven wrote:
           | The EO in question literally just reduces the amount that can
           | be spent on overhead. Maybe they should try reducing
           | overhead?
        
             | hooverd wrote:
             | "Overhead" here is things like physical plant and shared
             | resources.
        
             | adgjlsfhk1 wrote:
             | because most of that overhead isn't removable. all of your
             | chemistry/biology/physics research has labs and lab
             | managers as overhead. that is intrinsically expensive.
        
           | mlrtime wrote:
           | So why not just use the endowment, why does the tax payer
           | need to fund this? 22.3 Billion isn't enough?
        
             | tzs wrote:
             | They are using their endowment. They spend around 4-5% of
             | it each year.
        
         | skywhopper wrote:
         | Universities have more administrators and "other professionals"
         | because they provide more services. There was only a very small
         | IT department in the 70s. Student support services were
         | minimal. This is not a good statistic without more context.
        
         | amluto wrote:
         | > Meanwhile, the number of full-time faculty employed at
         | colleges and universities in the U.S. increased by only 92%,
         | marginally outpacing student enrollment which grew by 78%.
         | 
         | There's a separate factor at play here: colleges are
         | increasingly using people who are not full-time tenured
         | professors to teach classes. See, for example:
         | https://acoup.blog/2023/04/28/collections-academic-ranks-exp...
        
         | bloomingkales wrote:
         | Every medieval fantasy movie you ever saw, who were the extras?
         | The people in the castle stay because there's only ever a few
         | positions in the castle. By definition there can only be a few,
         | otherwise you are not a castle person.
         | 
         | I don't know if this equilibrium is natural or not since it's
         | been the paradigm for centuries across a lot of life. I'm
         | describing deep entitlement, the pure raw form of it.
        
         | rayiner wrote:
         | It's also revealing the way this move is being marketed by
         | universities. This certainly isn't the first time HHS has
         | raised concerns about the magnitude of indirect costs. Obama's
         | HHS also tried to reduce indirect costs:
         | https://archive.ph/2025.01.09-171418/https://www.bostonglobe...
        
           | matthewdgreen wrote:
           | There's nothing revealing about it. The article you posted
           | talks about capping things around 40 or 50%, or 95% of
           | current funding. Not 15%, which will bankrupt those schools.
           | 
           | It's an example of how you can take something that's true,
           | put it out of context, and be completely wrong.
        
             | rayiner wrote:
             | The 40-50% isn't what the Obama administration proposed.
             | The article says the administration didn't propose a
             | specific number. The point is that there's clearly a
             | problem here that isn't something Trump is making up.
        
               | matthewdgreen wrote:
               | One of the common moves I've seen with Trump and
               | particularly his defenders is to take an issue that's
               | real, then convert it into a weapon. So imagine my dog is
               | overweight and needs to go on a bit of a diet: well, what
               | if we took that same dog and reduced its calorie intake
               | by 75% until it starved to death. Then while I'm standing
               | over the corpse, I explain to you that "this isn't
               | something I was making up, there was a real problem
               | there."
               | 
               | Even if, against all odds, you really are in favor of
               | reforming things, killing a bunch of dogs pretty much
               | guarantees a good-faith conversation can never happen. At
               | some point you just need to decide if you're on the side
               | of truth or bullshit.
        
               | rayiner wrote:
               | That's just a roundabout way of saying you disagree with
               | us about how to solve the issue, and assign a different
               | relative valuation to the outcome where the process-
               | oriented careful approach fails to achieve any change.
               | You're welcome to do that, but that's just living in a
               | democracy.
               | 
               |  _E.g._ Obama promised sunlight and reforming the
               | intelligence community. But in the end he didn't do
               | anything because he trusted the institutions and
               | processes too much. So we voted for Tulsi to take a chain
               | saw to the CIA.
        
               | selimthegrim wrote:
               | Tulsi is an ideological tool of BJP/RSS/VHP. Who knows
               | how many people she is going to pawn the family jewels
               | to.
        
               | rayiner wrote:
               | Tulsi is America First, just like BJP is India First.
               | That makes her a natural antagonist of Liberal
               | Internationalism and Islamic Global Socialism. But I have
               | seen no evidence to make me doubt her fierce
               | nationalistic loyalty to the U.S.
        
         | potato3732842 wrote:
         | >It's pretty telling that schools like Penn don't cut their
         | administrators, but instead they cut their admissions.
         | 
         | Ye olde Sowell quote[1] about institutional priorities and
         | budget cuts seems highly appropriate here.
         | 
         | [1]
         | https://www.pennlive.com/opinion/2013/03/thomas_sowell_budge...
        
           | toomim wrote:
           | Incredible.
        
         | analog31 wrote:
         | Are adjuncts counted as faculty? We were not when I was one.
         | This could just be a classification problem.
         | 
         | I might go even further and suggest that the problem is trying
         | to figure out how a university works by counting job titles.
        
           | MITSardine wrote:
           | My university only has 6% faculty, but 52% scientific staff
           | overall, not counting graduate students. I do believe this is
           | a classification issue coupled with the appearance and now
           | ubiquity of precarious positions (soft-funded staff,
           | postdocs).
        
         | sethev wrote:
         | Graduate students are paid to attend - they're more like
         | employees than undergraduate students. Why wouldn't a
         | university faced with funding cuts start by not hiring
         | additional people rather than getting rid of current ones?
        
           | burnerthrow008 wrote:
           | Maybe because graduate students directly contribute to the
           | university's mission by teaching undergrads and "producing"
           | research (both of which bring in $$$), while administrators
           | seem to be purely a cost center, many of whom serve no useful
           | purpose?
        
             | sethev wrote:
             | I mean, the grants that are being cut is the money that
             | graduate students bring in. Less grant money -> fewer
             | graduate students. In theory maybe it's possible to be more
             | efficient like you're suggesting, but it's hard to see how
             | the immediate response could be any different.
        
         | doctorpangloss wrote:
         | Is it possible to do all three at the same time?
         | 
         | - talk about academic "administrators"
         | 
         | - lazily generalize
         | 
         | - be intellectually honest
         | 
         | The answers you are seeking require reading at least a whole
         | book of information!
        
         | 1shooner wrote:
         | I encourage anyone taking this line of criticism to compare an
         | e.g. $5B state university to any other similar sized
         | enterprise, and consider what increased operational and
         | administrative costs those other organizations have had to
         | undertake since 1976. This can include HR and IT and
         | healthcare, legal liability and industry compliance. Now add to
         | that the additional regulatory burdens specific to higher
         | education, and the increased market expectations of higher
         | education as a holistic 'experience' that is almost
         | unrecognizable from what it was 50 years ago.
         | 
         | Much of that professional staff is geared toward corporate-
         | style product development and marketing, because they've been
         | forced to by a lack of public funding. And while a commercial
         | corporation generally aims to retain and grow a customer base,
         | gaining some economy of scale for those professional positions,
         | universities are functionally capped at those small ratios you
         | describe.
         | 
         | Of course there is administrative bloat, and the funding model
         | doesn't do enough to self-regulate that, but lack of public
         | investment causes more systemic inefficiencies than that.
        
         | analog31 wrote:
         | This may be a side issue, but is a pet peeve of mine. Penn is a
         | private university.
         | 
         | I'm a staunch supporter of higher education, but I think it's
         | worth observing that the public university and college system
         | educates people at a much lower cost. The huge cost disparity
         | between private and public college challenges most simplistic
         | explanations.
         | 
         | I'm drawn to the parallels between our "private" universities
         | and our "private" health care system. Both face almost exactly
         | the same criticism of costing twice as much while imposing
         | barriers to access.
         | 
         | I don't think improving higher education is the present
         | government's intention, but if it were my intention, I'd focus
         | on supporting our public universities, colleges, community
         | colleges, and trade schools. Both of my kids graduated from
         | public colleges, debt free.
        
         | MITSardine wrote:
         | The author of that article is acting as though there were only
         | two types of employees at a university: faculty and
         | administrative. Yet this is false, faculty are "team leaders"
         | managing a team of scientific staff (non-faculty). Typically
         | (besides PhD students) postdocs and research scientists.
         | 
         | For instance, one university has:
         | 
         | - faculty 6% (the actual professors and associate professors
         | running things)
         | 
         | - postdocs 9% (faculty/staff scientist aspirants with a PhD)
         | 
         | - research staff 25% (e.g. research engineer, research
         | scientist)
         | 
         | - other academic staff 12% (I imagine, technicians)
         | 
         | - admin staff 28%
         | 
         | So, while faculty is only 6% of the overall workforce,
         | scientific employees still make up 52% of the lot. Add to that
         | the PhD students who are not counted as employees in the US
         | despite being paid and having employee duties towards their
         | superior (a member of faculty). This same university has about
         | 40% of the number of employees worth of graduate students (7k
         | to the 17k), for instance.
         | 
         | In conclusion, what the statistics you report show, is rather
         | how precarious research has become. There existed no such thing
         | as a postdoc in the 70s; my advisor's advisor, who was
         | recruited in that decade, had already signed a contract for
         | tenured employment before his PhD was even over, as did many of
         | his peers. Nowadays, it's typical to postdoc for a minimum of 3
         | years, and then play the odds, which are not in the candidate's
         | favour as the 6% faculty to 9% postdoc hints at.
        
         | jayd16 wrote:
         | It's way way way easier to freeze hiring (akin to admissions)
         | than to go through a layoff. Not saying admin salaries are
         | justified but gutting staff has much more fallout than fewer
         | admissions.
        
       | bglazer wrote:
       | This ends with America's domestic biotech and pharmaceutical
       | industry functionally disappearing and being shipped offshore,
       | similar to many previously American led industries. This is
       | already happening [1], and will only accelerate as academic bio
       | research is strangled. There are all kinds of cultural
       | justifications being thrown around for this, all kinds of
       | grievances being rehashed or invented in real time, but it's the
       | same old story as manufacturing in America. It's just wealthy
       | powerful people stripping an industry for parts, disinvesting and
       | pocketing the remains.
       | 
       | https://www.biospace.com/business/big-pharma-rushes-to-china...
        
       | trostaft wrote:
       | Most departments at the moment are choosing to be conservative
       | with their funds. No one really knows how their capacity, whether
       | through grants or through teaching, is going to change. As far as
       | I know, many universities are also pausing hiring for full-time
       | employees (which is probably wise, at least until the dust
       | settles). Really tough time to be looking for an academic
       | appointment...
       | 
       | I'm grateful that I have enough funds to guarantee two more years
       | here as a postdoc, but if things don't settle for the better
       | there might not be a spot here anymore.
        
       | etrautmann wrote:
       | It's worth noting that Pitt's indirect rates are normal for
       | universities and this is how the system functions.
        
         | Animats wrote:
         | They are high relative to private industry. They're supporting
         | all those administrators that colleges have accumulated.
         | 
         | It's significant that U. Pitt. chose to stop admitting students
         | rather than starting to lay off administrators.
        
           | chipgap98 wrote:
           | Is there a stat or place I can read more about that? I hear
           | people throw throw the idea of administrative bloat around a
           | lot but would be interested to see data behind that
        
             | blindriver wrote:
             | https://www.forbes.com/sites/paulweinstein/2023/08/28/admin
             | i...
        
           | jslezak wrote:
           | Private industry does not run campuses full of graduate
           | courses and basic research that America's technological
           | prosperity depends on
           | 
           | Those overhead fees go to fund that, so universities don't
           | have to be even mere full of nepo baby donor legacy
           | admissions than they already are
        
             | SJC_Hacker wrote:
             | No, overhead doesn't pay for grad students or techs. That
             | money comes out of the grant funding or tuition fees (if
             | not funded off the grant)
        
               | jslezak wrote:
               | Dude this IS the grant funding they're slashing. The NIH
               | (and other grantmakers) make research grants and the
               | overhead fee from that goes to the university. This is
               | precisely what they've cut
        
               | SJC_Hacker wrote:
               | Direct costs, not indirect. Grad students and techs don't
               | see that money, unless in rare instances for a grad
               | student the grant funding is suddenly cut off for one
               | reason or another (private grants or some sequester by
               | the NIH)
        
               | jslezak wrote:
               | You are saying words. They make little sense however. The
               | total cost of running these institutions can be broken
               | down however you want. If the total doesn't add up to the
               | necessary amount they can't operate
        
           | sightbroke wrote:
           | Not really, and it's not really how things work either.
           | 
           | Private industry is charging/billing cost + margin for
           | profit.
           | 
           | University is saying X is allocated for research, Y is
           | allocated to keep the lights running for the facility and pay
           | for students. The students are generally funded by research,
           | not the University. No research money, no money for students.
        
             | SJC_Hacker wrote:
             | I guess you need to compare universities to research
             | institutes like Howard Hughes (HHMI). Unfortunately only
             | academic institutions are eligible for grants from NIH/NSF,
             | so they don't break down their costs like that.
        
               | PhotonHunter wrote:
               | This is incorrect: while some NIH and NSF grants require
               | an academic institution as the prime or sole awardee
               | there are many that are open to private organizations and
               | others that are mandated to be specific to small
               | businesses (SBIR).
        
               | costigan wrote:
               | Research funding awarded to universities and to
               | performers internal to NASA (back when there was a
               | reasonable amount of that) had overhead rates that were
               | similar to the NIH rates. When I worked at Xerox PARC, we
               | would perform research for other parts of the company and
               | charged overhead too, although the rate was a little
               | lower (around 40%). Institutional overhead has been a
               | regular feature of how research has been organized and
               | funded for 60 years. Change is fine, but most of the
               | costs are legitimate, and it takes time for the rest of
               | the system to adjust to changes in one part of it. Doing
               | it abruptly is damaging the system and will negatively
               | impact the careers of many students and young
               | researchers.
        
               | jhbadger wrote:
               | Most non-university non-industry non-government research
               | institutes in the US (eg. Salk Institute, J. Craig Venter
               | Institute, Sanford Burnham Prebys) rely on their
               | researchers applying and getting grants from the NIH and
               | NSF just as university scientists do. And their overhead
               | costs are generally even higher than universities because
               | they have no other source of income other than grants (I
               | used to be faculty at JCVI). HHMI is unusual in that it
               | is funded by a rich person's estate and doesn't need
               | this.
        
           | mlyle wrote:
           | Administrative bloat is a concern, but these indirect costs
           | include things like equipment, too.
           | 
           | If you build a good lab which has versatile equipment to
           | address many use-cases, the indirect costs will be high.
        
             | SJC_Hacker wrote:
             | BS they include equipment. Everything we needed was either
             | bought by us on grant money, or was part of some
             | collaborative grant for the whole department. E.g. and
             | imaging lab that maybe had a SEM or two-photon, etc.
        
               | mlyle wrote:
               | What you bought on one grant, and then is lab equipment
               | being maintained and serviced afterwards is now
               | "facilities" costs.
        
               | SJC_Hacker wrote:
               | The university definitely doesn't "service" it at all. If
               | it breaks, you call up the company and hope its under
               | warranty, or you pay someone to fix it, again off the
               | grant funds.
        
               | mlyle wrote:
               | I guess it's fairies performing all those calibrations
               | and restocking all those consumables that can't easily be
               | charged to individual projects.
        
               | SJC_Hacker wrote:
               | They did jack crap. Anything more complicated than a
               | light-bulb or a toilet that broke, the lab handled it
               | internally somehow (either getting the company to fix it
               | or doing it ourselves).
               | 
               | There were a few department-wide resources. Again,
               | ultimately funded off someone (or a bunch of people's)
               | grants
        
               | mlyle wrote:
               | Funded as _indirect costs_.
               | 
               | The "A" of F&A is capped at 26%.
               | 
               | That means any overhead over 26% went to some kind of
               | facilities cost at your lab.
               | 
               | (Most private industry informal accounting would call
               | that 26% "20% overhead").
        
           | AdieuToLogic wrote:
           | > They are high relative to private industry.
           | 
           | Academia is not "private industry."
        
           | ks2048 wrote:
           | Do you know that "overhead" costs are not equivalent to
           | payouts to administrators?
        
           | insane_dreamer wrote:
           | If my tax dollars are supporting research, I'd rather they go
           | to universities even if that means some bloat in the form of
           | more people hired than otherwise, rather than corporate
           | shareholders.
        
           | angry_moose wrote:
           | The overhead rate at every corporation I've worked for is
           | between 70-80%.
           | 
           | Two S&P 100s, one 500.
        
         | SJC_Hacker wrote:
         | Its "normal" because its generally accepted, not because it
         | makes any sense.
         | 
         | I was part of a research lab on grants like that. We had close
         | to $1m in total funding, on top of that indirect was like 50%
         | (so $500k/year) We maybe had 4000 sq. foot of lab space in an
         | old building that wasn't maintained well. We had one bathroom
         | for each gender on the floor for the research arm of two whole
         | medical departments. Two admins for the whole research
         | department of 7-8 labs totallying maybe 60-70 staff.
         | 
         | I ran the numbers and the lab space would have maybe cost
         | $100k/year tops (probably more like $80k, depending on quality)
         | if we were rent out equivalent industrial office space. On top
         | of that you have electrical, heating, telecom, at most $10k.
         | Support services such as HR, cleaning, IT support (of which we
         | didn't use a whole lot) could have been contracted out, at most
         | around $20k. So there was about $350k which I figured was
         | mostly just a subsidy and went to "administration". Not that I
         | was philosophically opposed to it, except maybe the admin.
        
           | SideQuark wrote:
           | The parts you list result in wasted research money. The
           | system you complain about results in more R&D getting out
           | into the world.
           | 
           | The money you complain about goes to run an org that has
           | connections, does advertising, provides stable employment
           | when grants fluctuate, has hiring and HR and payroll and a
           | zillion other services, all making those doing the research
           | more able to do research, and provides more channels to move
           | results into production.
           | 
           | So it makes sense. You just haven't thought through or had to
           | perform all the pieces, so to you it doesn't make sense.
        
             | monero-xmr wrote:
             | Ah yes, we need a fudge factor to subsidize a bunch of
             | unquantifiable woo like "advertising" and "stable
             | employment".
             | 
             | I'm sick and tired of elites telling me basic business
             | operations of profit and loss, value for money,
             | _quantifiable results_ are beyond my peasant brain to
             | understand.
        
               | vkou wrote:
               | > Ah yes, we need a fudge factor to subsidize a bunch of
               | unquantifiable woo like "advertising" and "stable
               | employment".
               | 
               | Try convincing the AC guys to work for parts cost + a
               | skilled worker wage * number of hours worked, see how
               | well that goes over. They'll laugh you out of the room,
               | and you'll be left sitting on your ass without air.
               | 
               |  _The entire world_ charges overhead for work done. Most
               | of it _way_ more than 25% of the sticker price.
        
               | SJC_Hacker wrote:
               | >Try convincing the AC guys to work for parts cost + a
               | skilled worker wage * number of hours worked, see how
               | well that goes over. They'll laugh you out of the room,
               | and you'll be left sitting on your ass without air.
               | 
               | Huh? Thats exactly what they do. Parts + labor
        
               | vkou wrote:
               | And at what markup do they bill you, compared to what
               | they paid their supplier, and to what they pay the guy
               | who drives out to install it?
               | 
               | (Hint: Nearly half of what you pay on the bill is _their_
               | overhead.)
        
               | monero-xmr wrote:
               | It's wonderful that I can compare proposals and know the
               | bill. To pretend NIH grants are anything remotely like
               | normal private sector contractors is absurd and
               | shamefully deceitful
        
               | vkou wrote:
               | > It's wonderful that I can compare proposals and know
               | the bill
               | 
               | Does the NIH not, like, compare proposals before deciding
               | on whether to pay for them?
               | 
               | > To pretend NIH grants are anything remotely like normal
               | private sector contractors
               | 
               | Please enlighten us to the differences that are at all
               | pertinent to this question. Specifics, not vague scare
               | quotes.
        
               | SJC_Hacker wrote:
               | While there are classes of grants with different levels
               | of funding, the grants are generally considered on their
               | own merits and not based on how much overhead a the
               | recipients institution would charge. Thats a side
               | negotiation.
        
               | vkou wrote:
               | It's a side negotiation that, as I understand, happens
               | through a _different_ process, set down by law. But there
               | 's still a process, and contracts have been made by the
               | parties involved, and there's a legally mandated timeline
               | for renegotiating those contracts that is not being
               | followed.
               | 
               | You are right that it _is_ different from how the private
               | sector operates. The private sector does not even let you
               | think about negotiating either their overhead or profit
               | margin.
        
           | cozzyd wrote:
           | Typically overhead is only charged on a portion of expenses.
           | In our case, anything over $5k or that is part of a
           | "constructed equipment" over $5k (these two categories are
           | the large majorities of expenses in our lab, as most things
           | we buy are components of detectors we build) are overhead
           | free. Supplies/laptops/travel/tools/business
           | meals/inexpensive equipment do incur overhead, but the
           | effective overhead rate is much less than the nominal one.
        
           | dgacmu wrote:
           | You're actually still misunderstanding overhead a little.
           | 
           | Overhead isn't applied uniformly. For example, tuition for
           | Ph.D. students isn't charged overhead, nor is (usually)
           | equipment. So on $1m of funding, if you've got 4 Ph.D.
           | students, that may be something like $200k/year of tuition
           | that isn't subject to overhead. Add in another $100k of
           | equipment and suddenly that 50% indirect cost rate is
           | actually more like 35%, so you end up doing $1m of "work" on
           | $1.35m of budget.
           | 
           | Departments often negotiate something called "overhead
           | return", which is a way of returning a small amount of money
           | to the individual departments -- some of this does things
           | like supporting Ph.D. students if their advisor runs out of
           | funds, or helping research faculty bridge short funding gaps.
           | These things are reasonable and help the institution remain
           | coherent through the uncertainty of grant-driven existence.
           | 
           | There's waste everywhere, but it's not quite as bad as it
           | might seem without a deeper understanding of the university
           | research funding model.
        
             | mlyle wrote:
             | It's also worth noting that this overhead percentage is
             | misleading. A lot of other contexts would view $1M of work
             | on $1.35M of budget as 25% overhead, not 35%.
        
       | mjfl wrote:
       | This is likely a temporary move, intended to be used for
       | rhetoric. Eventually the faculty will complain, because they rely
       | on large pyramids of postdocs and grad students for almost all
       | labor. There's simply no way to continue the work of university
       | research without a strong supply of grad students. Once this is
       | realized, and the NIH doesn't bend, then grad admissions will
       | increase again, and admin cuts will start, as they should.
        
         | JumpCrisscross wrote:
         | > _this is likely a temporary move, intended to be used for
         | rhetoric_
         | 
         | It's a rational move given the U.S. governments word on
         | payments and commitments is no longer credible. If your
         | employer started bouncing paycheques, your cutting back on
         | expenses wouldn't be "intended to be used for rhetoric." It's
         | simple self preservation.
        
           | benatkin wrote:
           | The tax cut ruins that, as would the DOGE dividend
        
             | JumpCrisscross wrote:
             | > _tax cut ruins that_
             | 
             | Ruin what?
        
               | benatkin wrote:
               | Fiscal responsibility
        
         | osnium123 wrote:
         | That or the volume of research will simply shrink and world
         | class research will take place only in China.
        
         | sega_sai wrote:
         | Amazing commenters here -- for them people are like cattle.
         | "Temporary move". Graduate students without an offered position
         | -- it's nothing, they'll just wait a bit. Cut one funding one
         | day, maybe release later.
        
           | mjfl wrote:
           | I didn't say it's a good thing. I think it's dishonest and
           | manipulative.
        
         | gammarator wrote:
         | The "large pyramids" are largely funded by federal grants. If
         | the grants aren't there, the grad students won't be either.
        
           | mjfl wrote:
           | Wait- do you think the grants have gone away? Do you even
           | know what overhead is?
        
             | costigan wrote:
             | Didn't the NIH freeze the review meetings in this year's
             | proposal review process, putting all grant funding that
             | would start next fiscal year in question? This is separate
             | from the change to the overhead rate.
        
       | Merrill wrote:
       | 59% indirect research costs for administrative overhead seems
       | high. Could it be that these charges against grants are used to
       | fund students in other subject areas where grants are not
       | available?
        
         | forrestthewoods wrote:
         | 59% is borderline criminal. Perhaps 15% is too low. But 59% is
         | absurd and unacceptable.
        
           | cute_boi wrote:
           | FYI, Overhead don't include everything. Even in remaining 49%
           | there are many overheads :)
        
           | linksnapzz wrote:
           | The Salk Institute's overhead rate, IIRC, is 90%. Yet, they
           | keep getting funds, so they're doing something right.
        
             | forrestthewoods wrote:
             | Fraudulent orgs also keep getting funds. That don't make it
             | right.
        
               | johnnyanmac wrote:
               | So, what's the fraud? I'm a bit tired of that word as of
               | late as some kind of catch-all for "I don't understand
               | how this works and I don't like it".
        
               | forrestthewoods wrote:
               | I'm not accusing any particular organization of fraud. I
               | am rejecting the notion that just because one institution
               | historically receives funds that those funds were put to
               | good use.
               | 
               | I understand how grants and overhead rates work. It's an
               | embarrassment.
        
               | johnnyanmac wrote:
               | "you're not literally saying fraud, but you're also not
               | NOT saying it's fraud"
               | 
               | Serious accusations need serious evidence. I'm not a fan
               | of this sowing of doubt without a solid basis to back it
               | up. That's very much the DOGE modus operandi, and it's a
               | lazy and dangerous form of argumentation. I'll call it
               | out wherever I can.
               | 
               | You're just saying "thing bad" and expecting agreement
               | without putting any legwork in. The onus is on the
               | accuser, not the accused.
        
               | forrestthewoods wrote:
               | > The Salk Institute's overhead rate, IIRC, is 90%. Yet,
               | they keep getting funds, so they're doing something
               | right.
               | 
               | I do not agree with this statement. Take from that what
               | you will.
               | 
               | > The onus is on the accuser, not the accused.
               | 
               | In criminal law I agree. When it comes to budgeting I do
               | not. The onus is on every program to prove every year
               | that they're worth funding. I don't accept the notion
               | that just because something was funded in the past that
               | it was wise then and that it's wise to continue to fund.
               | 
               | So when someone says "this org has a 90% indirect cost
               | rate and keeps getting funded" I do not think "they must
               | be doing something right". I instead think "wow they
               | better have a frickin spectacular argument as to how that
               | is possibly justifiable, and I'd bet $3.50 they don't".
        
           | aaronharnly wrote:
           | It's worth clarifying that the 59% overhead rate doesnt mean
           | 59% of the funds go to overhead. If you have a $1m grant, you
           | add on $590k for overhead. Then the total grant is $1.59m, so
           | actually 37% of the total funds are for overhead.
        
         | jofer wrote:
         | It's pretty typical, actually. 50% is about the minimum that
         | major universities take out of a grant you get as a researcher
         | at the university.
         | 
         | It's nominally to fund general facilities, etc. At least at
         | public universities, it does wind up indirectly supporting
         | departments that get less grant money or (more commonly) just
         | general overhead/funds. However, it's not explicitly for that.
         | It's just that universities take at least half of any grant you
         | get. There's a reason large research programs are pushed for at
         | both private and public universities. They do bring in a lot of
         | cash that can go to a lot of things.
         | 
         | This also factors a lot into postdocs vs grad students. In
         | addition to the ~50% that the university takes, you then need
         | to pay your grad student's tuition out of the grant. At some
         | universities, that will be the full, out-of-state/unsupported
         | rate. At others, it will be the minimum in-state rate. Then you
         | also pay a grad student's (meager) salary out of the grant.
         | However, for a post-doc, you only pay their (less meager, but
         | still not great) salary. So you get a lot more bang for your
         | buck out of post-docs than grad students, for better or worse.
         | This has led to ~10 years of post-doc positions being pretty
         | typical post PhD in a lot of fields.
         | 
         | With all that said, I know it sounds "greedy", but universities
         | really do provide a lot that it's reasonable to take large
         | portions of grants for. ~50% has always seemed high to me, but
         | I do feel that the institution and facilities really provide
         | value. E.g. things like "oh, hey, my fancy instrument needs a
         | chilled water supply and the university has that in-place", as
         | well as less tangible things like "large concentration of
         | unique skillsets". I'm not sure it justifies 50% grant
         | overhead, but before folks get out their pitchforks,
         | universities really do provide a lot of value for that
         | percentage of grant money they're taking.
        
           | rayiner wrote:
           | Well that makes it sound worse than I thought. Why should it
           | be any higher than the pro rata allocation of the project's
           | actual use of university facilities (lab space, equipment,
           | etc)?
           | 
           | Even in the defense industry, a cost-plus contract with a 10%
           | margin is a lot. And it's a federal crime to include costs in
           | the overhead amount that aren't traceable to the actual
           | project.
        
             | SJC_Hacker wrote:
             | Its essentially a subsidy, and been abused for years.
             | 
             | One clarifying point. Indirect is normally charged on top
             | whatever the PI gets. So they don't "take out" 50% the
             | total. They add 50% to the original grant. So if a
             | researcher gets a $500k grant, 50% indirect would be $250k,
             | and the total allocation is $750k.
        
               | rayiner wrote:
               | That sounds similar to cost plus in the defense sector.
        
               | fraggleysun wrote:
               | It is different. Cost plus allows the contractors to
               | charge for development and add a profit margin.
               | 
               | The corporate equivalent would be a fixed price contract,
               | which has overhead built in and far exceeds university
               | rates.
        
             | insane_dreamer wrote:
             | In the defense/other industries, everything is put under
             | the "cost" part. There's just a lot more line items that
             | cover all that stuff.
             | 
             | The overhead simplifies this to a large extent in that the
             | PI only needs to account, as a "direct" expense the cost of
             | his team (salaries, and things not covered by the
             | university such as compensation to human subject
             | volunteers, etc.)
        
         | jeffbee wrote:
         | High overhead indicates efficiency, not waste.
         | 
         | If you are Bozo University that has no grants, you also have no
         | overhead, because everything you spend is attributable to that
         | first grant. You spend $50 for tiny little flasks of liquid
         | nitrogen. You buy paper at Staples.
         | 
         | If you are UCSF, you have 80% "overhead" because everything is
         | centralized. Your LN2 is delivered by barge. You buy paper from
         | International Paper, net 20, by the cubic meter. You have a
         | central office that washes all the glassware. Your mouse
         | experiments share veterinarians. All of this costs much, much
         | less _because_ of the  "overhead".
        
           | largbae wrote:
           | I am trying to follow this...
           | 
           | if a grant is the same $1M and Bozo University gets to spend
           | all million on the actual research at hand, but UCSF only
           | gets 200K, how is UCSF more efficient?
           | 
           | Wouldn't the LN2 be traceable to the project either way as
           | direct non-overhead cost, but UCSF efficiency makes that cost
           | lower, achieving the same overhead ratio but either a lower
           | grant cost or more researcher stipend?
        
             | tarlinian wrote:
             | Plenty of actual research costs count as overhead to avoid
             | the need to hire an army of accountants to allocate every
             | single bit of spend.
             | 
             | For example, the electricity costs of the lab in which the
             | research is run would typically be paid for by the
             | university and would be considered overhead. It's not
             | "administrative bloat". Most of the particularly gross
             | administrative bloat is on the undergraduate side of things
             | where higher tuition costs have paid for more "activities".
        
               | rayiner wrote:
               | Well how do you know that if you aren't accounting for
               | it?
        
               | PhotonHunter wrote:
               | F&A rates (facilities and administration, "indirects")
               | are subject to negotiation every 4 (IIRC) years, where
               | those costs are accounted for (perhaps not well enough,
               | but that is a separate point). The administrative
               | component of F&A been capped at 26% for years and R1
               | universities are maxed out, so the negotiations are over
               | the facilities component.
        
               | mlyle wrote:
               | You can know what the research organization costs as a
               | whole; and you can know what's "worth" charging to
               | individual projects. The rest is indirect costs, which
               | you can measure and use this data when negotiating
               | indirect cost reimbursement with NSF or NIH.
        
               | jeffbee wrote:
               | Note that the institution I used as an example doesn't
               | even have undergrads. It is not using NIH grants to
               | cross-subsidize a college. Medical research is the only
               | thing they do. And they are the #2 recipient of grants,
               | after Johns Hopkins.
        
               | selimthegrim wrote:
               | Caltech has undergrads.
        
           | comeonbro wrote:
           | If I understand you correctly, what you're claiming is:
           | 
           | University 1 gets $100. $10 of it goes to admin, $90 to
           | researcher. Researcher spends $60 on supplies and equipment.
           | This is accounted for as 10% administrative overhead.
           | 
           | University 2 gets $100. $20 of it goes to admin, $40 to
           | researcher, $40 to supplies and equipment. This is accounted
           | for as 60% administrative overhead.
           | 
           | Is this an accurate characterization of your claim?
        
             | mlyle wrote:
             | > University 2 gets $100. $20 of it goes to admin, $40 to
             | researcher, $40 to supplies and equipment.
             | 
             | This is not how it works; this would be 150% overhead. ($60
             | / $40).
             | 
             | Basically, if something is a shared utility (common lab
             | maintenance, supplies that can't be metered and charged to
             | specific projects, libraries on campus, etc.) then it's
             | overhead.
             | 
             | Also included in overhead is administrative & HR
             | expenses... and things like institutional review boards,
             | audit and documentation and legal services needed to show
             | compliance with grant conditions.
             | 
             | The reasons for high overhead are threefold:
             | 
             | 1. Self-serving administrative bloat at universities and
             | labs. We all agree this is bad.
             | 
             | 2. Shared services in complex research institutions (IRBs,
             | equipment maintenance, supplies, facilities). This is
             | _good_ overhead. We want more of this stuff, though we want
             | it to be efficiently spent, too.
             | 
             | 3. Excessive requirements and conditions on grants that
             | require a lot of bodies to look at them. This is bad, too,
             | but doesn't get fixed by just lopping down the overhead
             | number.
             | 
             | Unfortunately, if you just take overhead allowance away
             | suddenly, I think it's just #2 which suffers, along with a
             | general decrease in research. Getting rid of #1 and #3 is a
             | more nuanced process requiring us to remove the incentives
             | for administration growth on both the federal and
             | university side.
        
         | bglazer wrote:
         | First the rate was negotiated on a per institution basis with
         | the government. It's based around a mountain of oversight and
         | compliance. Ironically all that compliance work contributes to
         | the need for more administration.
         | 
         | Second, modern research needs a lot of people doing non-
         | directly research adjacent stuff. Imagine looking at all the
         | support people on an airbase, and saying why don't we just cut
         | them and let the pilots fly without all this logistics baggage.
        
         | fooker wrote:
         | >Could it be that these charges against grants are used to fund
         | students in other subject areas where grants are not available?
         | 
         | No, PhD students from areas where funding is not available are
         | required to teach. The university pays them for the teaching.
         | Considerably less than what they would have had to pay someone
         | who teaches for a living.
        
       | jmclnx wrote:
       | [flagged]
        
         | dkjaudyeqooe wrote:
         | You can still get an education, you just have to be rich.
        
           | Gigachad wrote:
           | So the number of educated people in the country drops
        
             | rayiner wrote:
             | The america that put a man on the moon had only 10% of
             | adults with a college degree.
        
               | gmm1990 wrote:
               | Doge geniuses would have cut that 4% of the federal
               | budget right before Apollo 11
        
               | anon7000 wrote:
               | It's an interesting question. Would doge suddenly have a
               | change of heart if they were trying to compete with a
               | serious enemy?
        
               | johnnyanmac wrote:
               | Given Trump's stances this week, I somehow think we've
               | gone reverse red scare and would just work to spread
               | communism in America. We're just so different from 50/60
               | years ago.
        
               | wat10000 wrote:
               | The America that launched 158 rockets to orbit in one
               | year and landed most of the boosters for reuse had a
               | substantially higher rate.
        
               | selimthegrim wrote:
               | So, how was education doing in pre-1971 East Pakistan?
        
               | johnnyanmac wrote:
               | we also had manufacturing jobs, strong unions, and a
               | better minimum wage. We getting any of those back?
        
               | jmclnx wrote:
               | True, but in the 40s, 50s and 60s, High School Courses
               | were very close to undergrad courses now in the US.
               | 
               | Back then, public schools were not afraid of failing
               | students, plus hardly anyone in high school worked after
               | school. Typically they work at summer jobs. Also if you
               | dropped out at 16, you could find work at a living wage,
               | not now.
        
           | yongjik wrote:
           | Oxford and ETH Zurich will be open for the rich, but
           | Trumpists openly despise higher education, and I'm not sure
           | whether any American universities will be safe if Trump stays
           | in power for four years.
        
             | wraaath wrote:
             | RIP US-based Academia INC In the immediate term, obviously
             | the center of academic research moves to Europe/Asia, but
             | the longer term damage is irreparable. Where is the 0-1
             | basic research that fundamentally moves the ball forward
             | going to come from? Clearly not the US anymore.
        
           | mlrtime wrote:
           | You mean like Pitt's endowment of 5.8 Billion?
        
         | rayiner wrote:
         | If a Chinese university was spending 59% on overheard the
         | university president would be imprisoned. The CCP has no
         | tolerance for that kind of thing.
        
           | monero-xmr wrote:
           | And America didn't allow that for a long time. Obama
           | attempted to cap indirect costs unsuccessfully.
           | 
           | America also has what appears to be an unlimited tolerance
           | for undergraduate tuition fully paid for by non-dischargeable
           | debt.
           | 
           | You'd be hard pressed to find another group in America with
           | less sympathy than universities with the common man. Except
           | perhaps government workers
        
             | vkou wrote:
             | That says more about the common man than it does about the
             | institutions he hates, and it says nothing good about him.
        
               | rayiner wrote:
               | The common man is definitionally the one whose'a opinions
               | matter. Maybe academics should become worthy of the
               | respect of those who fund their activities.
        
               | threecheese wrote:
               | So we should make sure everyone feels represented? That's
               | not working very well.
        
               | johnnyanmac wrote:
               | Should it? The common man didn't want women to vote 100
               | years ago (and didn't go to acedemia either). They didn't
               | want minorities to be people (or I guess count as 60% of
               | a person) 200 years ago. The common man could be wrong.
        
               | monero-xmr wrote:
               | The common man approved these changes, eventually. That's
               | democracy. Violating the will of the people _now_ because
               | they didn't always agree with you is not democracy. You
               | would much prefer to live in a monarchy or some form of
               | feudalistic society if you would prefer to override the
               | will of the people
        
               | johnnyanmac wrote:
               | Yup. But they didn't change their minds overnight. And
               | not without a lot of protesting, and even some bloodshed.
               | That's what's trying to happen. People from 100 years ago
               | before the 19th amendment would also interpret it as
               | "violating the will of the people", but that's almost
               | always how you change minds as a grassroots.
               | 
               | >You would much prefer to live in a monarchy or some form
               | of feudalistic society if you would prefer to override
               | the will of the people
               | 
               | Protesting a proposed monarchy does not mean I approve of
               | a monarchy. I'm not really a fan of this kafkatrap esque
               | narrative. People post-Women's suffrage would also
               | complain, so it's not like you're critical to convince of
               | this to get my goals.
        
               | monero-xmr wrote:
               | We live _in a democracy_!
               | 
               | > Democracy is the theory that the common people know
               | what they want, and deserve to get it good and hard.
               | Mencken
               | 
               | Elites forget who runs the show
        
               | vkou wrote:
               | > We live in a democracy!
               | 
               | We do. That's how we collectively decides what gets done.
               | It's the least bad system for making decisions.
               | 
               | That doesn't mean we sometimes don't make some really
               | fucking stupid decisions, and there's no way to whitewash
               | it.
               | 
               | Just because a lot of people believe in something doesn't
               | mean they are right, it just means that's what we are
               | going to be doing. Plenty of democratic societies have
               | made horrific mistakes in the past. American readers
               | might be passingly familiar with the Declaration of
               | Causes of Seceding States, while German readers may have
               | heard of something that happened in 1932.
               | 
               | And since the election, the show is definitely being ran
               | by elites, they just happen to be elites with a much
               | wealthier PR department. It's wild, though, how they've
               | duped people into thinking they are some kind of
               | everyman-outsiders.
               | 
               | Anyone who still thinks the richest narcissist in the
               | world and a slumlord from New York give two figs about
               | some working class sap will be in for a surprise.
        
               | monero-xmr wrote:
               | The disillusionment with elites has been brewing forever,
               | such is the nature of common vs. elite. However I would
               | say the outright detestment for normal people reached its
               | pinnacle when Obama said people who don't vote for him
               | "cling to guns and religion" and Hilary Clinton said
               | those voting Trump were a "basket of deplorables". Such
               | blanket statements from our leaders describing half the
               | country truly proved the minds of those fully detached
               | from the common man.
               | 
               | It's fair to protest and disagree. It's another thing to
               | call those who oppose you in a democratic society "nazis"
               | or other hyperbolic pablum.
               | 
               | The absolute failure and collapse of the American left
               | will be studied endlessly over the coming years. It will
               | rebuild. But the wilderness will be long and difficult.
        
               | vkou wrote:
               | > Such blanket statements from our leaders describing
               | half the country truly proved the minds of those fully
               | detached from the common man.
               | 
               | Of the two parties this past election, one ran a campaign
               | of governing for _all_ America, and the other of
               | division, with a loud and clear goal of punishing the
               | half of the country that didn 't vote for them.
               | 
               | Yet, strangely enough, the latter campaign was the one
               | that succeeded. It's strange how the standard for the two
               | parties differs.
               | 
               | > It's another thing to call those who oppose you in a
               | democratic society "nazis" or other hyperbolic pablum.
               | 
               | Are you implying that it's somehow impossible for a
               | democracy to elect a fascist or an authoritarian? Did the
               | Confederacy, or the Reich just magically appear out of
               | thin air?
               | 
               | (Bonus question: Why do they... Keep giving, and
               | applauding Nazi salutes at rallies? Did they sleep
               | through history class? Are they unaware of what that
               | symbol means? Should I not believe what I see with my own
               | eyes?)
        
               | rayiner wrote:
               | I grew up in NoVA. The dominant attitude at the time
               | among the cognitive elites who worked for government was
               | that we know how to do things, and we'll use our
               | capabilities in service of doing the things the common
               | people want. It was a veneer even then--for example
               | immigration has been increasing for decades even though
               | the majority has never wanted that. But at least lip
               | service was paid to the order of authority.
               | 
               | Sometime between Bush and Trump I that was replaced by an
               | attitude of "the common people are deplorables and our
               | values and goals are better." Same attitude we have in
               | south asia actually.
        
           | bnjms wrote:
           | _What part_ of these new policies helps address this issue?
        
             | rayiner wrote:
             | The fact that the policies limit overhead to 15%?
        
               | BenFranklin100 wrote:
               | You apparently have little idea how indirect rates work
               | in academia.
               | 
               | Some basic math: A $500K grant with a 60% indirect will
               | have 0.6*$500K = $300K worth of indirect costs on the
               | 300K+500k= $800K grant. The indirect cost are thus
               | $300K/800K or 37.5% of the total.
               | 
               | This compares well to cutthroat biotechs which have SG&A
               | rates of 40 to 60%.
               | 
               | Further, the indirect rates in academia largely support
               | services like histology labs, imaging cores, compute
               | resources, safety training, and chemical disposal. It
               | would be far more expensive if each lab had to contract
               | out these services directly.
        
               | ks2048 wrote:
               | Do you know what "overhead" means in this context?
        
         | hsuduebc2 wrote:
         | They would in the end vote against you. You can't let that
         | happen.
        
           | CSMastermind wrote:
           | Franco and Stalin both increased University funding.
           | 
           | Cuba to this day spends more of its GDP on education than any
           | other nation on Earth.
           | 
           | Syria (under Assad) spent more than South Korea, Afghanistan
           | more than Greece, Iran more than the UK, Egypt more than
           | Ireland, Iraq (under Sadam) more than Japan, Saudi Arabia
           | more than Canada, etc.
           | 
           | You can look it up, the more totalitarian the government the
           | higher the spend on education not less.
           | 
           | There's three big cohorts that heavily fund their University
           | systems:
           | 
           | 1. The Nordic States 2. Former British colonies 3.
           | Dictatorships
        
         | monero-xmr wrote:
         | China doesn't fund all of the bullshit research America does in
         | the social sciences of dubious quality and reproducibility. I
         | would love to axe everything that isn't a hard science.
        
           | Loughla wrote:
           | Yes. The only thing that contributes to society is science.
           | 
           | That's why we have museums devoted exclusively to science and
           | the study of science. It's why scientists tend to write great
           | books about the human condition.
           | 
           | Jesus Christ.
           | 
           | Also. Define hard science please.
        
             | monero-xmr wrote:
             | It seems to me that wonderful books about philosophy and
             | the human condition could be written without taxpayer
             | funding, considering all of human knowledge is available at
             | our fingertips
        
               | foobarian wrote:
               | What if... the taxpayers would like such books to be
               | written?
        
               | johnnyanmac wrote:
               | Why are we blaming Schools for using taxpayer funds and
               | not the congress (or state govenor) who makes the budget?
               | When did we celebrate shooting the messenger?
               | 
               | Also, this is pretty selfish reasoning. I'm sure the
               | manufacturing jobs feeding us would take a stance to
               | defund science as well. It's just a bunch of nerds
               | playing around in a lab. They aren't contributing to the
               | country.
        
           | tokioyoyo wrote:
           | They have a whole fund for it called National Social Science
           | Fund that funds non-STEM and alike research.
        
         | fooker wrote:
         | Great that you have invoked China. Guess what their research
         | grant overhead is? 15-20%.
        
           | johnnyanmac wrote:
           | Source?
        
         | dang wrote:
         | " _Eschew flamebait. Avoid generic tangents._ " -
         | https://news.ycombinator.com/newsguidelines.html
         | 
         | These things lead to (very) low-quality threads, as seen below.
        
       | zombiwoof wrote:
       | amazing how many Americans can applaud this reduction when it is
       | completely illegal. America works because of checks and balances
       | and oversight. Obviously there are problems and grift.
       | 
       | But to think that everyone is okay that solving it means Elon and
       | a hand picked group of 25 year olds can just slash budgets and
       | see top secret documents when none of them would pass a drug test
       | or screen means we are know looking at the fall of the American
       | system
        
         | blindriver wrote:
         | Imagine thinking that it's illegal to cut spending when you're
         | $36 Trillion in debt. I think it should be illegal to NOT cut
         | spending when you're at that debt level.
        
           | johnnyanmac wrote:
           | Yes, it is. In the constitution.
           | 
           | Moreover, anyone who paid the slightest attention to Trump's
           | own words knows these cuts aren't paying off a deficit.
        
           | beej71 wrote:
           | There are legal ways to cut spending and illegal ways to cut
           | spending.
        
         | CrimsonRain wrote:
         | You sound like this: blocking bribing your politicians is bad.
         | How people can applaud this?!!
         | 
         | Imagine having tds so bad you support fraud etc because someone
         | managed to put a "legal" label on it.
        
         | johnnyanmac wrote:
         | Sadly, it'll have to hit their wallets directly before they
         | realize they've been hoodwinked. I wish people would realize
         | this sooner, but America's long been a country that reacted too
         | late instead of taking preventative measure.
        
         | juniperus wrote:
         | I keep seeing people point out whether things are legal or
         | illegal.. but my understanding is that the executive branch
         | decides which crimes to prosecute, which makes this point
         | fairly irrelevant save for judicial intervention, which is also
         | tenuous at best when it comes to some of these moves.
        
       | codelion wrote:
       | It's a tough situation. I agree administrative bloat is a real
       | problem in universities, but cutting indirect cost recovery so
       | drastically seems like a really blunt instrument. It's going to
       | disproportionately hurt research programs, and freezing
       | admissions is a pretty drastic first step. Hopefully the
       | temporary pause gives them some breathing room to figure things
       | out.
        
       | FpUser wrote:
       | Rich will get education anyways. Less fortunate will be squeezed
       | out of opportunities. Nice.
        
         | johnnyanmac wrote:
         | "Roaring" 20's, amirite? It's just not us roaring.
        
       | aurizon wrote:
       | https://www.youtube.com/watch?v=Oy-P17UwK4A
        
       | jostmey wrote:
       | I see a lot of comments about Universities being inefficient,
       | bloated with administrators, and that the cap on indirect rates
       | is justified. I agree, but it is not as simple as made out to be.
       | 
       | I've worked at a university, startup, and large company. In terms
       | of efficiency, startup > university > large company. In other
       | words, large companies are less efficient than universities and
       | universities are less efficient that startups.
       | 
       | I agree the grant overhead is ridiculous and that Universities
       | are bloated with administrators. It felt like every 6 months, an
       | administrator would find a previously unnoticed rule that would
       | indicate my office placement violated some rule, and I would have
       | to move. I think I went through three office moves. Ugh. On the
       | other hand, universities provided time and resources for real
       | work to get done
        
       | sega_sai wrote:
       | Now, imagine the alternative universe where the government was
       | actually interested in reducing administrative bloat in
       | universities. It could have introduced for example a limit on
       | grant overhead on all future grants, which would have likely
       | forced universities find saving in admin/sports etc. Obviously we
       | don't live in that universe. We live in the world where
       | capricious government with people like Musk who think they know
       | everything better than everyone else just introduces arbitrary
       | cuts. And then various commenters (including here) contort
       | themselves trying to justify those cuts.
        
         | Domenic_S wrote:
         | > _It could have introduced for example a limit on grant
         | overhead on all future grants_
         | 
         | So exactly what they introduced, except not applying to current
         | grants?
         | 
         | > _forced universities find saving in admin /sports etc._
         | 
         | Aren't sports a net money generator for universities?
        
           | insane_dreamer wrote:
           | > Aren't sports a net money generator for universities?
           | 
           | only for a select few; most are a loss
        
       | neilv wrote:
       | > _A Penn professor, who requested anonymity due to fear of
       | retribution, told the DP that the decision appeared to be "last
       | minute" and came after departments had already informed the
       | University of the students who were selected for graduate
       | programs._
       | 
       | > _The professor added that the University "pulled the rug out"
       | from many faculty members, some of whom had already offered
       | acceptances to students they had thought were admitted -- only to
       | now face the possibility of having to cut those students from the
       | program._
       | 
       | If students were informed they were accepted, by anyone at the
       | university (even verbally by a professor), then it's time for the
       | university to cover this (regardless of which budgets it was
       | supposed to come out of), even if it has to draw down the
       | endowment.
       | 
       | Unless the university is willing to ruin a bunch of students'
       | lives in brinksmanship, and then deal with the well-deserved
       | lawsuits.
        
         | selimthegrim wrote:
         | I don't think the relationship between departments and the
         | central University is what you think it is
        
           | neilv wrote:
           | Will wronged parties who decide to sue, sue the department,
           | or the university?
        
             | selimthegrim wrote:
             | They would sue the professors in their individual capacity
             | as well as the university.
        
       | lvl155 wrote:
       | Federal workers should just quit en masse to teach these guys a
       | lesson. And make them hire back for 2x the salary.
        
         | monero-xmr wrote:
         | Yes, do that! Quit ASAP!
        
         | fnordpiglet wrote:
         | Most people need their jobs to pay their rent and have health
         | insurance and aren't programmers with a LinkedIn inbox full of
         | recruiters to draw on. They weren't making a ton of money to
         | begin with and many desperately need the job. Public service
         | has nice long term benefits like a pension, but most federal
         | employees are not well off by any measure.
         | 
         | I find people who feel glee at the suffering of these families
         | disturbing.
        
           | johnnyanmac wrote:
           | If we could all group together, such a resignation wouldn't
           | even last a day. It's the ultimate prisoners dilemma and
           | we're slowly running out of options less drastic. everyone
           | would benefit and few would lose their jobs compared to this
           | still-fast slashing.
           | 
           | also, nitpick:
           | 
           | >aren't programmers with a LinkedIn inbox full of recruiters
           | to draw on.
           | 
           | It's not 2022 anymore. Those LinkedIn inboxes are empty for
           | me. This market sucks.
        
             | juniperus wrote:
             | a general strike is great and all, but didn't Reagan call
             | the bluff with those air traffic controllers and just hire
             | all new ones? Replacing top scientists in all the
             | institutions is basically impossible, but for the most
             | part, a lot of positions would be certainly easy to fill.
             | Park rangers? Forest service employees? lab techs? These
             | are jobs that tons of people with a Bachelor's would be
             | more than happy to fill. Government employees generally
             | want to keep their job for life. So most are more inclined
             | to hide under the covers and try to avoid the spotlight.
             | Though I have seen many get antagonistic and incredulous
             | with recent events but I think it should be clear that
             | people need to keep up. With this recent email sent out
             | saying "reply or you're fired," I mean it's cute some
             | people think they aren't going to reply, but they must do
             | that at their own peril. I'd be replying quick.
        
               | fnordpiglet wrote:
               | Park rangers and lab tech are highly skilled highly
               | contextual roles. You can't just go and pull someone off
               | the street and make them experts in running assay
               | machines or have decades of knowledge of a park and its
               | terrain. There are plenty of people who can be churned
               | for sure, but why are we doing this to them? There are
               | ways of restructuring that's thoughtful and mission
               | enhancing, this is just wanton destruction to both our
               | institutions and peoples lives and livelihoods - all
               | because less than a majority voted for a single person -
               | who is going against the will of the legislature and the
               | majority of people. Politics aside, this is a time of
               | sorrow and life altering trauma for a great many people.
               | The profound lack of empathy for them and the acting like
               | they're somehow the "enemy" is just heartless.
        
           | lvl155 wrote:
           | That's my point really. People just assume government workers
           | are lazy and don't do much but in reality a lot of these
           | people play CRITICAL roles. Having been on both sides,
           | government workers aren't more or less efficient versus
           | private counterparts. I can go on and on about lazy and zero-
           | skill people in private enterprises that survive purely on
           | "networking". And we saw evidence of this during the pandemic
           | when a lot of these people were exposed.
           | 
           | This country would literally fall apart within the week and
           | people will beg them to return.
        
         | dyauspitr wrote:
         | Wrong strategy for the time. These people don't care about what
         | is lost, they're greedy individualists, they don't care about
         | the country.
        
           | johnnyanmac wrote:
           | It hasn't happened in America, but I think people severely
           | underestimate how devastating a real strike can be. Remember
           | that the ports strike in October only lasted 2 days but
           | estimated costs were already in the 10 (or even 11) figures.
           | 
           | A full on government walkout for a day would fix a ton. They
           | won't care, but even their voter base wouldn't ignore the
           | late payments, cancelled appointments, and overall confusion
           | a day would do.
        
             | dyauspitr wrote:
             | You're wrong, their voter base would ignore everything
             | short of their own children being killed. It's tenacious
             | smooth brain solidarity.
        
               | johnnyanmac wrote:
               | Every society is X missed meals away from anarchy. For a
               | society like America that hasn't experienced famine en
               | masse in almost a century, that X wouldn't need to be too
               | high. They can ignore their kids but not their bare bones
               | basics.
        
               | wraaath wrote:
               | March 2020 almost became that.
        
             | juniperus wrote:
             | I'm all for the concept of a general strike, but I think
             | the general public would be very unsympathetic with a
             | government employee strike. People would be racing to put
             | their name as someone willing to replace a striking
             | government worker.
        
               | lvl155 wrote:
               | I don't think you realize how hard it is to fill these
               | critical jobs. You would need skilled labor at pay
               | substantially below the private market rate. A lot of
               | these talented people work for the government because
               | they're patriotic. And this admin is doing its best to
               | piss off these people.
        
               | juniperus wrote:
               | I don't know about that. The benefits are a big reason a
               | lot of people want to be lifelong government employees,
               | it seems.
        
       | colincooke wrote:
       | The entire academic industry is in turmoil, the uncertainty on
       | how bad things could get is probably the worst of it as
       | Universities are having to plan for some pretty extreme outcomes
       | even if unlikely.
       | 
       | For those who are questioning the validity of a 59% (or higher
       | for some other institutions) overhead rate, your concerns are
       | worth hearing and a review could be necessary, but oh my please
       | not like this. This was an overnight (likely illegal!) change
       | made with no warning and no consultation.
       | 
       | If the government decided that a cap was necessary it should be
       | phased in to allow for insitutions to adjust the operational
       | budgets gradually rather than this shock therapy that destroys
       | lives and WASTES research money (as labs are potentially unable
       | to staff their ongoing projects). A phased in approach would have
       | nearly the same long-term budget implications.
       | 
       | Are there too many admin staff? Likely? Is this the right way to
       | address that? Absolutely not.
       | 
       | For those who are unfamiliar with how career progress works in
       | Academia, it is so competitive that even a year or two "break" in
       | your career likely means you are forever unable to get a job. If
       | you're on year 12 of an academic career, attempting to get your
       | first job after your second (probably underpaid) postdoc and
       | suddenly there are no jobs, you can't just wait it out. You are
       | probably just done, and out of the market forever as you will
       | lose your connections and have a gap in your CV which in this
       | market is enough to disqualify you.
        
         | rayiner wrote:
         | > For those who are questioning the validity of a 59% (or
         | higher for some other institutions) overhead rate, your
         | concerns are worth hearing and a review could be necessary, but
         | oh my please not like this. This was an overnight (likely
         | illegal!) change made with no warning and no consultation.
         | 
         | Why should the public believe that procedures that produced 59%
         | overhead rates in the first place can be trusted to fix those
         | overhead rates now? Sounds like a demand for an opportunity to
         | derail needed reform by drowning it in red tape.
         | 
         | Also, what would be illegal about the change? Are the overhead
         | rates in a statute somewhere? The grants certainly aren't
         | individually appropriated by Congress.
        
           | mlyle wrote:
           | > Also, what would be illegal about the change? Are the
           | overhead rates in a statute somewhere? The grants certainly
           | aren't individually appropriated by Congress.
           | 
           | 2024 appropriations (and it showed in many years before
           | then-- Public Law 118-47. Statutes at Large 138 (2024): 677.
           | 
           | SEC. 224. In making Federal financial assistance, the
           | provisions relating to indirect costs in part 75 of title 45,
           | Code of Federal Regulations, including with respect to the
           | approval of deviations from negotiated rates, shall continue
           | to apply to the National Institutes of Health to the same
           | extent and in the same manner as such provisions were applied
           | in the third quarter of fiscal year 2017. None of the funds
           | appropriated in this or prior Acts or otherwise made
           | available to the Department of Health and Human Services or
           | to any department or agency may be used to develop or
           | implement a modified approach to such provisions, or to
           | intentionally or substantially expand the fiscal effect of
           | the approval of such deviations from negotiated rates beyond
           | the proportional effect of such approvals in such quarter.
        
             | rayiner wrote:
             | That says the indirects must be based on the existing
             | regulations. The memo purports to rely on the existing
             | regulations. It relies on 45 CFR SS75.414(c)(1), which
             | states:
             | 
             | > The negotiated rates must be accepted by all Federal
             | awarding agencies. An HHS awarding agency _may use a rate
             | different from the negotiated rate for a class of Federal
             | awards_ or a single Federal award only when required by
             | Federal statute or regulation, or _when approved by a
             | Federal awarding agency head or delegate based on
             | documented justification as described in paragraph (c)(3)
             | of this section._
             | 
             | Subsection (c)(3), in turn, says:
             | 
             | > (3) The HHS awarding agency must implement, and make
             | publicly available, the policies, procedures and general
             | decision making criteria that their programs will follow to
             | seek and justify deviations from negotiated rates.
             | 
             | Just based on a quick perusal it seems like the
             | administration has a decent argument that the agency head
             | can approve the 15% indirect by fiat as long as he or she
             | comes up with a documented justification.
        
               | mlyle wrote:
               | https://goodscience.substack.com/p/indirect-costs-at-nih
               | This reads that argument in the exact opposite direction:
               | 
               | > So, an HHS division like NIH can use a different rate
               | only for a "class" of grants or a "single" grant, and
               | only with "documented justification."
               | 
               | > There is nothing that says NIH could, in one fell
               | swoop, overturn literally every negotiated rate agreement
               | for 100% of all grants with all medical and academic
               | institutions in the world, with the only justification
               | being "foundations do it" rather than any costing
               | principle whatsoever from the rest of Part 75 of 45
               | C.F.R.
               | 
               | Further, this doesn't allow a blanket adjustment to
               | _existing_ awards.
        
               | rayiner wrote:
               | That is an argument in the opposite direction, but it
               | overlooks two things.
               | 
               | 1) The "documented justification" must reflect the
               | requirements of subsection (c)(3), but that provision
               | imposes no real substantive requirements. It's a
               | litigable, but the linked article concludes there must be
               | more justification than the statute seems to require.
               | 
               | Note also that, amusingly, _Kisor_ is still the law of
               | the land and under that decision agencies still get
               | deference in interpreting their own regulations.
               | 
               | 2) The article frames the Congressional rider as
               | prohibiting changes to the indirects. But the statute
               | only prohibits changing the regulation, which HHS hasn't
               | done.
        
               | mlyle wrote:
               | This is a pretty twisted reading; it basically is a
               | reading of the statute that it has no effect or any kind
               | of restraint at all.
               | 
               | We'll see what happens.
        
               | tlb wrote:
               | The purpose of many laws is to require documentation
               | without imposing any new limits on what the government
               | can do.
        
               | rayiner wrote:
               | The statute just says the agency must use the existing
               | regulations. The regulations were promulgated by the
               | agency to govern its own discretion. The executive reads
               | the regulation to constrain the civil service to a
               | particular process, but allow the negotiated indirects to
               | be overridden by the head of the agency with a documented
               | reason.
               | 
               | You're assuming that the regulation would constrain the
               | head of the agency but why would that be the case?
        
               | jaybrendansmith wrote:
               | Whether or not the head of agency is allowed to a drastic
               | change like this doesn't change the fact that it is
               | stupid. It's going to cost money in the long run.
        
           | skwb wrote:
           | > Also, what would be illegal about the change?
           | 
           | At the *very* least you should be following the
           | administrative rules act (requiring you to solicit 45 days
           | for comments by effected parties) before making such a
           | dramatic change in policy.
           | 
           | Courts absolutely love striking down EOs (of both Dems and
           | Reps Admins) when they should have been following the
           | administrative rules act.
        
             | rayiner wrote:
             | You can file an APA lawsuit about anything. Nobody really
             | calls APA violations "illegal." It's a "show your work" and
             | "don't be drunk or crazy" procedural law.
        
               | skwb wrote:
               | The fact that courts do strike down admins on violating
               | the APA does, in fact, make it illegal.
        
               | jhp123 wrote:
               | DACA repeal was blocked on APA grounds
        
           | colincooke wrote:
           | 1. Why should the public believe that they can fix it.
           | Perhaps they can't, that's not entirely my point. My point is
           | that if the government firmly believes that a change is
           | necessary there are _simple_ ways of acheiving such a change
           | without causing such chaos, waste, and hardship. Perhaps a
           | phased in approach, or other mechanisms. Overnight shock
           | therapy offers very little economic benefits while having
           | very harsh personal and insitutional cost.
           | 
           | 2. What is illegal about the change. The NIH overhead rate is
           | actually negotiated directly between the institution and the
           | NIH, following a process put into law. This is why a federal
           | judge has blocked this order [1]. I'm far from a lawyer, but
           | my read of this is that this is a change that would need to
           | come through congress or a re-negotiation of the rates
           | through the mandated process.
           | 
           | [1]: https://www.aamc.org/news/press-releases/aamc-lawsuit-
           | result...
        
           | BenFranklin100 wrote:
           | You seem to be unfamiliar with how indirect rates work.
           | 
           | First some basic math: if a project is budgeted at a direct
           | cost of $500,000, the indirect rate of 60% applies to the
           | $500,000, i.e. $300,000.
           | 
           | The total grant is thus $500K + $300K = $800K. The $300K
           | indirect costs are thus 37.5% of the total. This is an upper
           | limit, as many direct costs such as equipment do not get
           | indirect rates applied to them.
           | 
           | Second, these rates are painstakingly negotiated with the NSF
           | and NIH. Yearly audits to ensure compliance must be passed if
           | funding is to continue.
           | 
           | Third, these indirect cost go towards to items such as
           | electricity, heat, building maintenance, safety training and
           | compliance, chemical disposal, and last by not least
           | laboratory support services such as histology labs,
           | proteomics core, compute infrastructure, and some full time
           | staff scientific staff. Only a relatively small portion goes
           | to administration.
           | 
           | Finally, scientists generally would welcome review and reform
           | of indirect costs to ensure they get the maximize benefit
           | from the indirect rates. However, DOGE is not interested in
           | reform. They are interested in raze and burn destruction.
           | 
           | If DOGE gets its way, it will knock the Unites States off its
           | perch as the world's technological leader.
        
             | a2tech wrote:
             | You can tell people the truth all day long. They don't want
             | to hear it. They're convinced that academia is rotten to
             | the core and none of your facts and figures will dissuade
             | them.
             | 
             | For example I know at my institution every dollar, every
             | piece of effort, is painstakingly tracked and attributed to
             | funding sources. We have extensive internal checks to make
             | sure we aren't misusing funds. Audits happen at every major
             | milestone. All of that effort is reported. It's exhausting
             | but the government requires it because we have to be good
             | stewards of the funds we have been granted. No one believes
             | it.
        
               | BenFranklin100 wrote:
               | We must keep trying. It's frustrating but we can't give
               | up. Scientific progress depends on us.
        
               | addicted wrote:
               | I'm not part of academia but was heavily involved in
               | funding because of my position in student government
               | while still in college.
               | 
               | While I won't argue there isn't waste (what endeavor
               | doesn't have waste?) it's an incredibly tiny percentage
               | (except in cases where there was actual fraud, which we
               | also discovered and the Feds prosecuted and convicted
               | people for).
               | 
               | The irony is that academia is so afraid of "waste" that I
               | wouldn't be surprised if colleges spend more money on the
               | auditing and the compliances, etc than the actual waste
               | they prevent.
        
               | BenFranklin100 wrote:
               | I've had to deal with NIH audits up close. The amount of
               | work devoted to compliance can make one question if the
               | grant money is even worth it in the first place.
               | 
               | A big part of the reason indirect rates evolved is
               | because the administrative burden to track direct costs
               | is immense. How do you split up direct costs on an
               | electric bill? Do you place a meter on each wall outlet
               | and try to assign each amp to a specific job? Or safety
               | training? Divide the safety meeting minutes by ..... ?
               | It's impossible. Which is why Vannevar Bush pioneered
               | indirect costs. See the history section here:
               | 
               | https://www.cogr.edu/sites/default/files/Droegemeier%20Fu
               | ll%...
        
               | johnnyanmac wrote:
               | A bit stupid on a community like this because many people
               | at least spent 4 years in school.
        
             | AStonesThrow wrote:
             | > knock the Unites States off its perch as the world's
             | technological leader.
             | 
             | It's a funny thing. there is a distinct chauvinism to any
             | citizen's nation. Every American is confident and
             | absolutely positive that we are the best in so many
             | categories. By what metrics? And who measures these? What
             | about other nations who claim the top spot as well?
             | 
             | Before I travelled to Europe in 2008 I had some mental
             | image of backwards, technologically inept populace that had
             | old electronics and lagging standards and rickety brittle
             | infrastructure. I mean you watch films and look at pictures
             | and you see the roads and the old buildings and the funky
             | cars and there's just a mix of things that are 500 years
             | old or 1500 years back and thoroughly modern.
             | 
             | when I finally showed up in Spain I was completely
             | disabused because all the electronics and the homes were
             | totally modern and there were big box superstores that
             | looked exactly like Target or safeway.
             | 
             | We went to shopping malls, watched normal first-run films
             | in luxurious theaters that sold beer, and we rode around in
             | cars/trains/boats, and I visited veterinarian and physician
             | and hospital, and the medical treatment was
             | indistinguishable from the American type.
             | 
             | I mean, this is one consumer's anecdata, but you've got to
             | consider that we're ready to believe vague propaganda about
             | #1 America First Outclassing The Solar System, and the
             | fervent patriotism is perhaps not a 100% accurate lens.
             | 
             | Universities are _designed to collect and disseminate
             | knowledge worldwide_. The top institutions and even the
             | worst ones thrive on international collaboration. Think
             | about how difficult it is to achieve and hold military
             | superiority even. Schools are an effective equalizer, and
             | globalist mindsets are the default.
        
               | emeril wrote:
               | the US is def not the best in many categories - though I
               | suspect certain pockets of the US (overrepresented on HN)
               | are like SV re: tech/quality of life and academia
               | 
               | many people I know - mostly [science/math/etc. denying]
               | republicans think the US is the best at everything
               | including healthcare (!!!) despite reams of data
               | conclusively proving otherwise
               | 
               | my fingers are crossed that DOGE/Dump does something
               | stupid enough to irritate the populace (and by extension
               | a handful of senators/representatives to grow a mini-
               | spine) enough to stop this destruction
        
               | juniperus wrote:
               | in terms of scientific research though, America is ahead
               | of much of Europe. It's historically been easier to get a
               | good job in research in the US. Some research is also
               | harder to carry out in Europe due to regulations. Now,
               | whether the European lifestyle compares to the US is a
               | different story. But when it comes to university-level
               | research, it has been the case that there is just more
               | money to throw toward it in the US, leading to more
               | highly-cited papers. That might be changing, though.
        
           | addicted wrote:
           | The "overhead" isn't even overhead as most people understand
           | it.
           | 
           | But the real question is why does the general public think
           | 59% is too high? Irs an arbitrary number. Maybe an
           | appropriate level of "overhead" is 1000%.
           | 
           | In reality the people who actually know anything about how
           | this is calculated, across the board and across the political
           | spectrum, do not think this is a major concern at all.
           | 
           | The only people who are complaining about it are the ones who
           | hear the word overhead, have no concept of what it means
           | other than taking a lay persons understanding that all
           | overhead is unnecessary and are coming with the idea that
           | anything above 0% is bad.
        
             | ModernMech wrote:
             | This is really it. Generally they gesture vaguely toward a
             | notion of "administrative and bureaucratic overhead",
             | without really understanding how that overhead actually
             | cuts waste and improves research output by removing
             | redundancies. If we were to zero out this administrative
             | overhead, it would mean every professor would end up doing
             | less research and more not-research.
        
             | rayiner wrote:
             | Were the people at HHS who tried to reduce indirect costs
             | in 2013 during the Obama administration also not the
             | "people who actually know anything?" https://archive.ph/202
             | 5.01.09-171418/https://www.bostonglobe...
             | 
             | I bet the "people who actually know anything" at Boeing
             | would also say their launch costs are as low as they can go
             | and there's nothing to cut.
        
               | selimthegrim wrote:
               | It seems like the better comparison from your article
               | would be 1992, but really, having RFK Junior sitting
               | there with a chainsaw is in no way comparable to 2013
        
               | rayiner wrote:
               | It's different because RFK with a chain saw might achieve
               | change where Obama failed.
               | 
               | We have had 3 populist elections in the last 5 cycles.
               | Obama 2008 was co-opted and Trump 2016 was stymied by
               | Russia investigations. So this time there's RFK and Elon
               | and Tulsi with chain saws. If the people don't like the
               | results they can vote for Harris in 2028. But at least
               | sometime tried to do what the winning party voted for.
        
               | meroes wrote:
               | These are cuts to enrich the extremely wealthy, not for a
               | lean-mean-fighting industry. Your whole conception is
               | off. They don't need or care if the entire country does
               | better overall, they care about personal wealth. It's
               | Obama wasn't trying anything of the sort.
        
           | johnnyanmac wrote:
           | >Also, what would be illegal about the change?
           | 
           | Besides the president screwing with the budget agreed upon by
           | Congress that kicked all this off?
        
           | amluto wrote:
           | I'm not convinced that the rate, per se, is actually a
           | problem. What is a problem is the structure. If a contract
           | said "you get $1M to do X and your university gets $590k,
           | paid pro rata by time until completion", fine, and one could
           | quibble about the rates.
           | 
           | Instead, the grant is for $1.59M, and each individual charge
           | to the grant pays an extra 59% to the university,
           | conditionally, depending on the type of charge and the
           | unbelievably messed up rules set by the university in concert
           | with the government. Buying a $4000 laptop? Probably costs
           | your grant balance $6360. Buying a $5000 laptop? Probably
           | costs $5000 becuase it's "capital equipment" or "major
           | equipment" and is thus exempt. Guess who deliberately wastes
           | their own and this also the university's and government's
           | money by deliberately buying unnecessarily expensive stuff?
           | It gets extra fun when the same research group has grants
           | from different sources with different overhead rates: costs
           | are allocated based on whether they are exempt from overhead!
           | 
           | And cost-plus disease is in full effect, too. If the research
           | group doesn't use all their awarded money because the finish
           | the project early or below estimated cost, the university
           | doesn't get paid their share of the unspent money. This
           | likely contributes to grantees never wanting to leave money
           | unspent.
           | 
           | Of course, DOGE isn't trying to fix any of the above.
        
           | plantwallshoe wrote:
           | If they can't be trusted to fix the problem themselves with a
           | 5 year phase in period they most definitely can't be trusted
           | to fix the problem immediately...so I don't get your point.
        
             | rayiner wrote:
             | Everyone involved in the current process has an incentive
             | to not change anything. If you go through the existing
             | process with some five year target, the universities and
             | bureaucrats will bleed you to death with procedures and
             | lawsuits and lobbying, as they did with prior efforts under
             | Obama. It's the same way NIMBYs kill development projects.
             | The only way to change it is shock and awe.
        
               | plantwallshoe wrote:
               | What article are we taking about? The response to "shock
               | and awe" was rescind offers to students, not cut down on
               | administrators or address inefficiencies.
        
               | rayiner wrote:
               | That's a temporary measure. The universities know that in
               | he long run they need students but can cut
               | administrators. But at least the immediate reaction is
               | controlling costs rather than geering up to lobby and
               | litigate their way out of it.
        
               | sudosysgen wrote:
               | The US has a peculiar culture where elite academic
               | institutions are very much willing to limit their numbers
               | of students, so it's not clear to me that they will in
               | the long run control costs. Large, prestigious US
               | universities have historically preferred funding more
               | administrators over more students.
        
         | blindriver wrote:
         | Elon proved with Twitter that large corporations can survive
         | drastic, chaotic and insane levels of cuts/layoffs (80%+) and
         | still survive. If DOGE waited to do things less drastically,
         | nothing would ever get done. The cuts that are going through
         | are nothing as drastic as what Twitter endured (except USAID)
         | so I guess he is willing to risk short term disruption for
         | long-term spending cuts and that the organization will
         | reorganize and restabilize pretty quickly.
        
           | duxup wrote:
           | > and still survive
           | 
           | Twitter hardly ever made money before and after is in the
           | same state now. Its contribution (anything?) to this country
           | is far different than a government institution.
           | 
           | The comparison here isn't encouraging and makes no sense.
        
             | antman wrote:
             | Amazon made almost no profits for many many years others
             | too. They follow a reinvest or expansion strategy and if
             | investors believe it the stock goes up. It is not
             | encouraging that Twitter lost 80% of its value under Musk's
             | leadership and not something pne wants for the US
             | Government which also does not work on a for profit basis.
             | Ofcourse Musk fakes that he doesn't know that and promotes
             | his unsubstantiated wins stories daily.
        
               | johnnyanmac wrote:
               | Amazon offered very obviously valuable and profitable
               | services. I think we're starting to realize ad-based
               | monetization is not how to maintain a billion dollar
               | corporation anymore. I wouldn't have much aspects for
               | Twitter even if Musk never took over. But he sure did
               | accelerate things.
        
               | Fade_Dance wrote:
               | >ad-based monetization is not how to maintain a billion
               | dollar corporation anymore.
               | 
               | Online ad revenue has been growing, 15% per year
               | recently. Huge growth. That includes legacy networks like
               | (decrepit) Facebook, which is seeing double digit growth,
               | and the short form video frontier is growing considerably
               | faster and constantly pushing out new ad/partnership
               | models and is very much a strong growth industry in an of
               | itself.
               | 
               | Ad revenue is more than sufficient to sustain a billion
               | dollar corporation. It can and does sustain trillion
               | dollar corporations, and the industry is currently in a
               | strong growth phase with a lot of obvious green fields
               | for innovation.
        
             | khazhoux wrote:
             | You seem to miss the point.
             | 
             | Twitter was an imperfect yet functional website before
             | Elon. Elon fired most of the staff. Twitter then continued
             | to be an imperfect yet functional website.
             | 
             | Hell, I remember ten years of HN saying "WTF does Twitter
             | need so many people for??", and then those same people said
             | "OMG Elon is insane to fire so many people!!".
        
               | cudgy wrote:
               | Many people are more concerned about the messenger than
               | the message. They'll flip-flop their opinions solely
               | based on who is doing the bidding.
               | 
               | A glaring recent example. If Biden had taken action like
               | Trump has to negotiate with Russia to stop the Ukraine
               | war, would the Democrats be screaming that Biden is a
               | "Putin apologist"?
               | 
               | If Barrack Obama made statements about deporting
               | undocumented immigrants (which he did), Democrats fall
               | largely silent. If Trump makes similar statements, same
               | Democrats scream fascism, racism, and Nazi/white
               | supremacy.
        
               | naijaboiler wrote:
               | Not just the act matters. The rhetoric used by the
               | messenger matters to.
        
               | duxup wrote:
               | I don't know what that means as far as a comparison to a
               | government institution.
               | 
               | Twitter could be massively profitable, or woefully
               | unprofitable ... it has no impact on anyone outside
               | investors.
        
             | rayiner wrote:
             | Twitter's cash flow has doubled:
             | https://www.teslarati.com/elon-musk-x-doubled-ebitda-
             | since-2...
        
               | abduhl wrote:
               | This is an incorrect statement. Twitter's revenue halved
               | but its expenses were cut as well meaning its EBITDA
               | doubled. The most likely conclusion on cash flow is that
               | it went down actually, probably by a half in line with
               | revenue (since revenue is a sign of flow in).
               | 
               | This is not the stunning retort to criticisms of Elon's
               | "fire them all" approach that some imagine it to be. It
               | basically says "we cut expenses by 75% and only lost half
               | our business." Which half of the US government are you
               | willing to lose, and are you sure you're cutting the
               | right 75% to lose the targeted half? Which half of the
               | subjects that we fund R&D for are you willing to lose?
        
               | rayiner wrote:
               | https://www.bankrate.com/investing/ebitda/ ("Some
               | investors and analysts use EBITDA to assess the operating
               | performance of a business or as a broad measure of its
               | cash flow.")
               | 
               | Increasing EBITDA by downscaling the business and
               | severely cutting expenses is a common approach when
               | turning around an unprofitable company.
        
               | abduhl wrote:
               | https://altline.sobanco.com/ebitda-vs-cash-flow/ ("EBITDA
               | and cash flow are both important financial metrics, but
               | they serve different purposes and provide different
               | insights into a company's financial health.")
               | 
               | We can quote secondary sources back at each other all
               | day, but it's somewhat pointless because the truth is
               | what I said already: EBITDA and revenue are merely
               | indicators for cash flow, not synonyms. You used the
               | wrong words dude.
               | 
               | I also noticed you only replied on a pedantic point while
               | leaving the substantive questions on which half of the
               | government and research funding you'd like to see gone
               | (and how these cuts target that half) as an exercise for
               | the reader.
        
               | rayiner wrote:
               | I think it's common for people to refer to "cash flow"
               | (without referring to OCF or FCF or whatever specifically
               | ) when they mean EBITDA, but I'm happy to be wrong about
               | that. I'm not a financial analyst. But as you
               | acknowledge, EBITDA is an indicator of cash flow. Is
               | there a difference between the two measures that you
               | think is relevant to X? X is increasing how much money
               | they're making right?
        
               | abduhl wrote:
               | I'm glad we agree that cash flow is not the same as
               | EBITDA.
               | 
               | The question we are talking about is whether Twitter
               | makes more money now versus before Musk's take over. If
               | "makes more money" means revenue, then the answer is a
               | definitive no, it does not make more money now. If "makes
               | more money" means profit, then the answer is that we
               | don't know but probably not because profit is found after
               | ITDA (hence the B in EBITDA) and we know the ITDA is
               | substantial for Twitter given how it was acquired.
               | 
               | So yes there is a difference between cash flow and EBITDA
               | that is germane here, and the difference is that cash
               | flow doesn't help us answer the question that we are
               | asking while the one piece of information that we do have
               | (revenue) tells us the opposite of the answer you're
               | trying to imply.
        
               | duxup wrote:
               | Elons own statements at his meetings indicates otherwise.
        
               | rayiner wrote:
               | The linked article, which is relying on WSJ reporting,
               | says EBITDA increased from $682 million to $1.25 billion.
        
               | duxup wrote:
               | Elons own description of his business is that they're
               | only just profitable some quarters.
               | 
               | Let alone that we're talking about comparing an
               | advertiser based social network to a government
               | institution.
        
           | shusaku wrote:
           | This is the most infuriating part of this. Musk acted like a
           | moron and overpaid for twitter. Then cash constrained, he
           | rapidly cut things to save money. Now twitter is completely
           | diminished in its reach, at an all time brand low, and at
           | real risk from competitors.
           | 
           | Meanwhile, the companies Musk built that actually have
           | dominated their space are big idea innovators like Tesla and
           | SpaceX. Musk wasn't successful because he's a good penny
           | pincher, he was successful by burning cash on big ideas and
           | talented people.
           | 
           | But somehow we decided its case 1 that we'll apply to the
           | government.
        
             | johnnyanmac wrote:
             | Case 2 had a lot of safeguards _around_ Musk to keep him
             | isolated from the talented people. But Case 1 made Musk
             | feel better. So we know which one he prefers. Not like he
             | 's going to suffer the losses the most.
        
           | costigan wrote:
           | This equivalence between a company that provides one app
           | that, if it were to disappear, would hurt no one, and a
           | government that has thousands of functions, many of which are
           | life-and-death in both the short and long run, is just
           | ridiculous.
        
             | ars wrote:
             | Very few government functions are life or death.
        
               | costigan wrote:
               | Let's take one example. The Epidemic Intelligence Service
               | (EIS) is a two-year post-residency program that trains
               | health professionals in applied epidemiology. These
               | officers are crucial for on-the-ground investigations of
               | disease outbreaks. It's a 2-year program, with 50-60
               | doctors in each year. All of the first-year doctors in
               | this year's program were fired by DOGE, so far, for a
               | capacity reduction of 50%. Both years are in the
               | 'probationary' civil servant category, so the jobs of the
               | rest of them are still at risk.
               | 
               | I asked ChatGPT 4o for other examples, and it generated a
               | list of 40. You can do that for yourself, if you're
               | interested.
        
               | robwwilliams wrote:
               | Except when they are.
        
               | rasz wrote:
               | FAA, CDC, NNSA, it goes on and on
        
               | johnnyanmac wrote:
               | Regardless, the life-and-death ones are being slashed
               | too. They aren't discriminating in these plans.
        
               | juniperus wrote:
               | when it comes to scientific research, sometimes a
               | research breakthrough is life or death to people.
        
           | rdtsc wrote:
           | > Twitter that large corporations can survive drastic,
           | chaotic and insane levels of cuts/layoffs (80%+) and still
           | survive.
           | 
           | US Government is not Twitter, but yeah, I can see some
           | element of it. Now I suddenly remember, the various comments
           | here convinced me that X/Twitter will be dead in just two
           | months. Yet, it's still around. Not that I care to make
           | account there or bother looking at it, but I figure if it
           | kept crashing, it would show up in the news. Maybe everyone
           | moved to bluesky and it just doesn't have any customers?
        
             | johnnyanmac wrote:
             | So you're still just going to attack the most extreme
             | interpretations and dismiss the truth because it's not
             | literally dead?
             | 
             | Digg is still alive. Myspace is still alive. These big
             | brands don't literally die often; someone will want to try
             | and play around with it.
             | 
             | >but I figure if it kept crashing, it would show up in the
             | news. Maybe everyone moved to bluesky and it just doesn't
             | have any customers?
             | 
             | Twitter is technically stable in terms of servers. They did
             | a good job doubling up by 1) minimizing the load needed by
             | making users sign in to see more than a literal permalink
             | (you can't even see comments anymore) while 2) being a bait
             | to get more new accounts to report on engagement. Not that
             | that matters now since Twitter is no longer publicly
             | traded.
             | 
             | It's the everything else around it that caused it to
             | plummet.
        
               | rdtsc wrote:
               | > So you're still just going to attack the most extreme
               | interpretations and dismiss the truth because it's not
               | literally dead?
               | 
               | I can attack my own interpretation, that seems fair,
               | doesn't it? You can have your own interpretation, and
               | then attack it, (or not attack it) later.
               | 
               | > Digg is still alive. Myspace is still alive. These big
               | brands don't literally die often
               | 
               | I had no idea! That's cool. I never really used either
               | one that much. I do know yahoo is still around. One
               | difference is I periodically I see links to X/Twitter. I
               | never see people link to digg or myspace. But sounds like
               | you have a different perspective, which is also cool.
               | 
               | > dismiss the truth because it's not literally dead?
               | 
               | Just to be clear, the truth for me is my impression from
               | reading HN about 2022 or so. Namely from comments like
               | these:
               | 
               | > (Nov 18, 2022) I very much doubt that. Twitter must
               | have had some bloat, but there's no way that 80% of the
               | workforce was bloat. I'd be extremely surprised if
               | Twitter(as in, the website/app, not the registered legal
               | entity) still exists and works by the end of this year.
               | 
               | I agreed to them at the time. So not sure how "truth" and
               | "dismissing" applies; it's really just an impression. Am
               | I allowed to dismiss my own impression? Seems odd to
               | object to that...
        
               | johnnyanmac wrote:
               | >I can attack my own interpretation, that seems fair,
               | doesn't it? You can have your own interpretation, and
               | then attack it, (or not attack it) later.
               | 
               | Your comment just gave some vibes that because Twitter
               | didn't literally die 2 years ago (as you and others
               | predicted) that it seems that introspection was
               | completely proven wrong, "Yet, it's still around". I just
               | simply wanted to assert that being nearly dead doesn't
               | exactly inspire confidence, even though the doctor was
               | technically disproven by his statement of "you'll be dead
               | in 6 months".
        
               | rayiner wrote:
               | Twitter's cash flow has doubled:
               | https://www.teslarati.com/elon-musk-x-doubled-ebitda-
               | since-2...
        
           | thcipriani wrote:
           | "Elon Musk's X is worth nearly 80% less than when he bought
           | it, Fidelity estimates"[0]
           | 
           | [0]: <https://www.cnn.com/2024/10/02/business/elon-musk-
           | twitter-x-...>
        
           | viccis wrote:
           | > can survive drastic, chaotic and insane levels of cuts
           | 
           | I get ads on X that are just videos of animals being slowly
           | shot multiple times to death. There's also some for tools to
           | slim jim car locks. None of the mainstream/normal accounts I
           | used to follow (shout out SwiftOnSecurity) are there, and
           | instead it's a hotbed of crypto scams and deranged vitriol.
           | The site is still running, but is a shell of its former self,
           | making so little money that Elon is trying to sue people (and
           | now, abusing US govt payment systems) to force them to pay
           | him for advertising.
           | 
           | I can see how if you think that's a success, that you would
           | think similar actions with regard to the US government are
           | successful. The necessary cuts he's making are not necessary,
           | and I'm guessing you aren't impacted, so, given the general
           | lack of theory of mind towards others, I'm not surprised you
           | think they're ok. The rest of us out there who understand the
           | idea of human suffering are concerned for our fellow citizens
           | facing arbitrary and unnecessary pain as the result of a
           | capricious court eunach's drug influenced decisions before
           | the "restabilization" that will never happen.
        
           | hedora wrote:
           | > _short term disruption_
           | 
           | Great euphemism for "In one month, we're going to kill tens
           | of millions by withholding food/medical care and permanently
           | destroy institutions that took a century to build".
           | 
           | I'm going to use that phrase.
        
           | BenFranklin100 wrote:
           | This is false. Twitter is not the US government. And Twitter
           | is certainly not the US scientific establishment which is
           | dispersed broadly across the nation and which has taken
           | decades to build up. Many research universities will shutter
           | their research departments permanently if these overnight
           | changes are implemented. This is especially true in smaller
           | states like Alabama, which is why Republican Katie Britt is
           | sounding the alarm. Moreover, many people will leave the
           | field permanently.
           | 
           | Moreover, scientific R&D is a strange place to slash if cost
           | savings are the goal. Medicare and Medicaid comprise over 50
           | times the NIH and NSF combined budget of approximately $50B.
           | If we want to save costs, research into diseases like
           | Alzheimer's Disease is the way to go. Alzheimer's currently
           | costs the nation $412B per year [1], eight times the NIH
           | annual budget. Therapies which delayed the onset of
           | Alzheimer's Disease by 20 years would nearly eliminate this
           | cost.
           | 
           | Let's be clear: DOGE is led by a self described autist who
           | has little idea how government and broader society functions.
           | The damage he will do if left unchecked is vast.
           | 
           | [1] https://nchstats.com/alzheimers-disease-in-the-us/
        
           | ks2048 wrote:
           | It seems Twitter is in a death spiral. That is the model to
           | apply to scientific research and academia that has powered
           | Americas dominance for the past 100 years?
        
           | antman wrote:
           | Elon proved with Twitter that he doesn't know what he is
           | doing. Huge loss, zero lessons. If US ends up being downsized
           | financially and ethically the way Twitter has, that will also
           | provide zero lessons for Musk.
        
           | addicted wrote:
           | Twitter's valuation has plummeted since Elon's purchase.
           | 
           | And to the extent Twitter is still limping along it's because
           | Twitter due to its very nature benefits immensely from the
           | stickiness of social networks.
           | 
           | For example, Facebook is almost completely junk. It hasn't
           | improved or been relevant in a long time. And yet it survives
           | and makes tons of money simply because people don't want to
           | rebuild their networks.
           | 
           | There are many other examples where even minor cuts have been
           | devastating. The classic example is of course GE, the
           | ultimate example of cutting a company to the bone, which
           | worked for a decade or so, but set the company up to
           | essentially cease to exist after.
           | 
           | Then you have Boeing, a company in an industry with less
           | competition than probably any other in the world and it's
           | struggling to make money because of this thinking.
        
             | cudgy wrote:
             | Boeing and GE are inappropriate comparisons. Their cost-
             | cutting maneuvers were primarily driven by moving existing,
             | quality work to overseas contractors. It was simply about
             | saving money without worrying about efficiency or long-term
             | benefit. The overhead of managing contractors spread
             | throughout the entire world is much more difficult than
             | overseeing groups say within the Seattle Washington area. I
             | really don't see how this compares to reduction of work
             | forces in government divisions. These government positions
             | are not being moved overseas along with the complicated
             | overhead of managing the groups all around the world.
        
               | sudosysgen wrote:
               | The functions will end up being outsourced to contractors
               | and bureaucracy will have to deal with managing them and
               | their failures. This is exactly what has already happened
               | to many departments and direct cuts to workforce will
               | only worsen it.
        
           | johnnyanmac wrote:
           | Define "survive". Elon is still a billionaire?
           | 
           | Sure, if we detonate all nukes, I imagine 20% of humanity
           | will survive. "We" won't die out that easily. Me and you are
           | probably dead, though. Statistically speaking.
        
           | amluto wrote:
           | Having spoken with people who worked there, Twitter built a
           | system for which the technical its mostly ran without much
           | help. So it's not surprising that you can still tweet with
           | most of the staff gone.
        
         | fooker wrote:
         | I have a PhD from a reputed US university and I agree with the
         | fixed overhead aspect of this.
         | 
         | There is no reason students get a third of the grant money and
         | live in poverty (30k per year) while the university hires a
         | football coach for ten million and builds a new building every
         | year.
         | 
         | This is exactly the way this has to be handled, the
         | universities are intentionally making this look worse than it
         | is for public sympathy.
        
           | colincooke wrote:
           | Again please read my post carefully. There is a valid
           | critique of overhead rates, but simply doing it suddenly in
           | this manner has little added economic benefit in the long
           | run, while ruining lives and creating waste/chaos in the
           | short run.
           | 
           | You can make a strong argument these institutions require
           | reform, but such reform should be done not overnight, and not
           | through such broad strokes.
        
             | fooker wrote:
             | I disagree.
             | 
             | The kind of reform you are talking about does not work
             | against quasi-government organizations with the GDP of
             | small countries.
             | 
             | It'll be held up in courts for 50 years, and even then
             | it'll be a game of whack a mole.
             | 
             | There's a reason things got so bad.
        
               | vkou wrote:
               | Yes, the rule of law is incredibly inconvenient. Why be
               | bound by it, when you can just do anything that you want?
        
               | fooker wrote:
               | Yes, that's why countries are not just run by courts and
               | judges.
        
               | vkou wrote:
               | If you want to change the law, the legislature is right
               | there. All it needs to do is pass a bill.
               | 
               | If you can't be arsed to change the law, you have to
               | follow it.
               | 
               | This is generally how civilized people are expected to
               | behave, and a 49.8% mandate does not give you license to
               | do away with the rule of law.
        
               | fooker wrote:
               | There's no law to change here.
               | 
               | Universities have freedom in how to use grant money. The
               | government had so far not bothered with controlling what
               | they do with the money coming from the government. The
               | situation is a bit like you donating to a charity and
               | they spending it on executive bonuses.
               | 
               | Are you proposing that the government has to sign
               | everything into law before taking any action? Can you
               | think of why that might be a terrible idea?
        
               | affinepplan wrote:
               | this isn't true. I don't think you understand how
               | university funding works.
        
               | johnnyanmac wrote:
               | There isn't. Congress decided the budget. Your goal is to
               | blame your reps and make sure they budget the way you
               | want next time. That's the proper way.
        
               | fooker wrote:
               | I think we are talking about different things here.
               | 
               | I am not writing in support of funding cuts.
               | 
               | I am strongly supportive of stopping universities from
               | skimming most of the funding, and the research getting a
               | tiny bit. Student researchers doing the actual work get
               | less than minimum wage.
               | 
               | If you are surprised by the 'less than minimum wage'
               | part, it's a bit of creative accounting by universities
               | counting a 'tuition waiver' as part of your wages.
        
               | cudgy wrote:
               | Since when is it required that all the money in a budget
               | be spent? Amounts are budgeted for a division and then
               | it's up to that division to operate within that budget.
               | It doesn't mean they have to spend every single dollar in
               | the budget. In fact, it should be a goal to spend less
               | than the money that's allocated in the budget so that it
               | can be applied to the next year. The idea that all the
               | money has to be spent, regardless is part of the problem.
        
               | vkou wrote:
               | > Since when is it required that all the money in a
               | budget be spent
               | 
               | Since Congress passed The Constitution's Appropriations
               | Clause and the Congressional Budget and Impoundment
               | Control Act (ICA) in 1974.
               | 
               | Because otherwise, the executive could just unilaterally
               | shut down any part of the government at any time. _Or
               | siphon money from one department to another_.
               | 
               | Which it can't by design, since _congress_ controls the
               | purse.
               | 
               | There's a process outlined in that act, under which the
               | executive can report to Congress that it is reducing
               | spending, and Congress must approve that reduction in
               | order for it to take effect. That is the law of the land.
               | The law is being broken.
               | 
               | If you don't like the budget, there is one governing body
               | that can do something about it in this country. The
               | legislature. They control spending, just like putting
               | people in prison is controlled by the judiciary.
               | 
               | Strangely, all the people grousing about executive
               | overreaches are dead silent on all this.
               | 
               | The sin has never been executive overreach, the sin was
               | always an executive they did not control.
        
               | rayiner wrote:
               | There is a very basis here for invoking "rule of law"
               | where:
               | 
               | 1) we're talking about discretionary grants being made
               | out of taxpayer dollars;
               | 
               | 2) congress has delegated authority to make the grants
               | and to the executive, including determining indirects;
               | and
               | 
               | 3) the executive action is being used to save money.
               | 
               | It's also "the rule of law" in some sense when NIMBYs sue
               | to keep a Ronald Mcdonald House from being built in their
               | posh neighborhood, but that doesn't mean we need to
               | lionize it on that basis, or preemptively surrender to
               | efforts to invoke the law to block reform. The
               | universities can afford expensive lawyers with their 59%
               | indirects, let those lawyers worry about it.
        
               | johnnyanmac wrote:
               | Translation: it's too slow and you don't care what breaks
               | in the process. You already got yours.
               | 
               | Anyone complaining about slow courts should probably
               | focus on the courts themselves, or the money coming in.
               | Not the act of laws.
        
             | cudgy wrote:
             | And yet everyone was arguing recently about how amazing
             | Deepseek was because they operated on such a smaller budget
             | and how the restriction of chips into China forced them to
             | find an efficient solution to training an LLM model. Sudden
             | and drastic changes don't always result in bad outcomes; in
             | fact, they can many times produce outcomes that were never
             | possible without the shock to the system.
             | 
             | Most of the critics of the doge are arguing that the
             | changes are too fast and that the system needs to gradually
             | and systematically through a series of conferences and
             | meetings come to a proposal that might be implemented
             | sometime in the future.
        
           | fnordpiglet wrote:
           | Doesn't the football stuff fund itself through tickets,
           | licensing, etc? It seems hard to believe research overhead
           | grants are going to the football coach.
        
             | fooker wrote:
             | Money is fungible.
        
               | bilbo0s wrote:
               | And?
               | 
               | The one thing has nothing to do with the other.
               | 
               | Football funds itself. That's why the coach makes so much
               | money. If research funded itself, researchers would make
               | a lot of money.
        
               | costigan wrote:
               | Only if the organization with the money wants to do that.
               | Flip it around. Do you think the sports program at any
               | major university pays for physics research facilities (or
               | any topic outside of sports medicine)?
        
               | fooker wrote:
               | >Only if the organization with the money wants to do
               | that.
               | 
               | Great, this should be a enough of an argument then for
               | the federal government to decide how grant money is used.
        
               | costigan wrote:
               | It does. That's what the negotiation on overhead rates is
               | for.
        
               | fnordpiglet wrote:
               | Not when double entry accounting is involved.
        
             | o11c wrote:
             | I've heard that said. But my university tuition had an
             | explicit 10% charge to subsidize upgrades for the football
             | program, so ...
             | 
             | It's very easy to lie in budgets by only counting a subset
             | of expenses.
        
           | robwwilliams wrote:
           | Spurious. Football coaches are not paid by overhead dollars.
           | but mainly by alumni that like football wins.
           | 
           | No, when a major for-profit company outsources research they
           | pay way more than a 50% "markup". Unless they go to a
           | research university: then they pay much less, and just like
           | the federal government they are getting a fine deal.
           | 
           | Yes, some rich foundations (Gates, Ellison etc) exploit the
           | situation and do not pay full overhead costs: They are
           | essentially mooching on the research institutions and the
           | federal government.
        
             | cudgy wrote:
             | So you don't think that some of the money that gets sent to
             | athletic directors to build fancy stadiums and pay for
             | multimillion dollar coaches would've gone possibly to
             | research facilities if those athletic departments didn't
             | exist?
        
               | ls612 wrote:
               | The places paying their football coaches big bucks have
               | football programs that are net revenue generating.
        
               | icameron wrote:
               | Athletic programs are a net profit center at many D1
               | football schools.
        
               | robwwilliams wrote:
               | No, I do not. Most health science centers do not have
               | football teams ;-). I am at UTHSC in Memphis and I can
               | assure you we do not send money to support the Vols in
               | Knoxville. Worlds apart.
        
           | HDThoreaun wrote:
           | Football program spends big because it rakes in huge amounts.
           | In order to keep making all that money though they need a
           | good team which costs money.
        
         | ars wrote:
         | > it should be phased in to allow
         | 
         | This NEVER works. It just doesn't.
         | 
         | Bureaucracies are self perpetuating, it's just their nature.
         | Each person at the bureaucracy is 100% certain they are
         | essential.
         | 
         | The only way to shrink them is to force them.
        
           | costigan wrote:
           | The federal workforce, as a percentage of all jobs in the
           | U.S. was 4% in the 50's, decreased steadily to 2% in 2000 and
           | has held roughly steady since then. (The source is
           | https://usafacts.org/articles/how-many-people-work-for-
           | the-f... second figure, and I'm taking total jobs as a proxy
           | for the population that the workforce serves.)
           | 
           | The end of that period of reduction was Clinton's Presidency.
           | Clinton's National Performance Review (NPR) started at the
           | beginning his term in '93. It had goals very similar to the
           | stated goals of this efficiency effort, but it was organized
           | completely differently. He said, "I'll ask every member of
           | our Cabinet to assign their best people to this project,
           | managers, auditors, and frontline workers as well."
           | 
           | GPT4o: The NPR's initial report, released in September 1993,
           | contained 384 recommendations focused on cutting red tape,
           | empowering employees, and enhancing customer service.
           | Implementation of these recommendations involved presidential
           | directives, congressional actions, and agency-specific
           | initiatives. Notably, the NPR led to the passage of the
           | Government Performance and Results Act (GPRA) of 1993, which
           | required federal agencies to develop strategic plans and
           | measure performance outcomes. Additionally, the NPR
           | contributed to a reduction of over 377,000 federal jobs
           | during the 1990s, primarily through buyouts, early
           | retirements, natural attrition and some layoffs (reductions-
           | in-force or RIFs).
           | 
           | Source: https://govinfo.library.unt.edu/npr/library/papers/bk
           | grd/bri...):
           | 
           | The recommendations that involved changes to law, the GPRA,
           | were passed in both houses of Congress by unanimous voice
           | vote.
           | 
           | I don't think the stated goals of the current efficiency
           | drive are controversial. The problem is the method. I want to
           | understand the basis for people supporting those methods, the
           | "we've got to break some eggs" crowd, when the example of the
           | NPR exists. In my opinion, it didn't cause conflicts between
           | branches of government, didn't disrupt markets, and was
           | wildly successful. It also caused much less disruption in
           | people's lives, because the changes were implemented over
           | several years with much more warning.
           | 
           | I, personally, don't think the real goals of this effort are
           | the stated goals, but that's a different issue.
        
           | johnnyanmac wrote:
           | It worked during Clinton's administration, and didn't involve
           | a wrecking ball. It's possible when people actually
           | commmunicate with each other.
        
         | eezurr wrote:
         | >For those who are unfamiliar with how career progress works in
         | Academia, it is so competitive that even a year or two "break"
         | in your career likely means you are forever unable to get a
         | job.
         | 
         | Honest question. If the job market is that competitive, why are
         | we guiding people down this path that requires investing their
         | entire young adult life? To me, it seems you've inadvertently
         | made a case for cutting funding.
        
           | gizmo686 wrote:
           | We aren't really. We are guiding people to get college
           | degrees. However, undergraduate education and professional
           | research are both done by the same institution. Further, that
           | institution likes to have those professional and apprentice
           | professional researchers work as teachers. The result of this
           | is that undergraduates get a lot of exposure to professional
           | Academia, so they naturally have a tendency to develop an
           | interest in that profession. Given how small the profession
           | actually is, even a small tendency here saturates the job
           | market.
        
             | johnnyanmac wrote:
             | At this point, what profession isn't "small"? It feels like
             | jobs are declining across all industries except for the
             | most exploitative ones they can't easily outsource.
        
           | jltsiren wrote:
           | The big question is how should the government allocate the
           | funding for basic research between career stages to maximize
           | the benefit to the society.
           | 
           | If you focus on training PhDs, which is the American way, you
           | get a steady stream of new people with fresh ideas. But then
           | most PhDs must leave the academia after graduating.
           | 
           | If you focus on postdocs, you get more value from the PhDs
           | you have trained. Most will still have to leave the academia,
           | but it happens in a later career stage.
           | 
           | If you focus on long-term jobs, you have more experienced
           | researchers working on longer-term projects. But then you are
           | stuck with the people you chose before you had a good idea of
           | their ability to contribute.
        
           | yodsanklai wrote:
           | You can also get a job in the private sector after a PhD.
           | It's not necessarily a waste of time for those we don't get
           | to work in Academia.
        
         | epolanski wrote:
         | > you are forever unable to get a job
         | 
         | In academia*
        
         | khazhoux wrote:
         | > For those who are questioning the validity of a 59% (or
         | higher for some other institutions) overhead rate, your
         | concerns are worth hearing and a review could be necessary, but
         | oh my please not like this
         | 
         | This comment encapsulates a big part of why people like Trump.
         | They are sick of inaction in the name of careful consideration
         | and nuance.
         | 
         | And I kinda understand it. By analogy, I've see this many times
         | at different companies I've worked at. Whether it's a 20-year
         | scripting engine or a hastily put together build system that
         | barely works but the entire project depends on, whenever
         | someone suggests to replace it you just get reason after reason
         | for why you have to move slowly and consider all the fine
         | details. Months and years pass and the core system never
         | improves because an "old guard" shuts down every attempt to
         | change it. Finally, someone new comes in and calls bullshit and
         | says enough's enough, and rallies a team to rebuild it. After a
         | difficult process, you finally have something that works better
         | than the old system ever could.
         | 
         | Yeah, I understand the story doesn't always end well, but the
         | analogy above helps me understand Trump's appeal.
        
           | josho wrote:
           | Let's ask ourselves what happens when the story doesn't end
           | well and it's a service that government has been providing.
           | The answer may be lives are lost, the economy breaks, enemies
           | win victories, etc.
           | 
           | Move fast and break things is fine in a competitive
           | marketplace. It's asinine for the government to do.
           | 
           | The answer is to elect better politicians who can nominate
           | better heads and those department heads can drive the
           | necessary change without succumbing to the old guard.
        
         | _DeadFred_ wrote:
         | The people in charge don't want good action, they just want
         | action and now. They want to damage these institutions. They
         | have published and spoken extensively on this. That we keep
         | letting their defenders change the narrative to pretend
         | anything else and continue to give good faith WHEN THEY HAVE
         | TOLD US THEY ARE NOT ACTING IN GOOD FAITH in insane to me.
         | 
         | BTW, interesting thinking on the action for action's sake
         | governing style:
         | 
         | "The cult of action for action's sake. "Action being beautiful
         | in itself, it must be taken before, or without, any previous
         | reflection. Thinking is a form of emasculation."
         | 
         | https://www.openculture.com/2024/11/umberto-ecos-list-of-the...
         | 
         | If that action also hurts liberals working at traditionally
         | liberal aligned institutions, all the better in their minds.
        
       | yongjik wrote:
       | The sudden cut on NIH funding is intended to maximize fear and
       | chaos, and since this is NIH, the impact will be most felt in
       | cutting-edge medical research. And I think that's precisely the
       | point: Trump is in a rampage to destroy American institutions,
       | his supporters _hate_ higher education, and high-ranking research
       | universities are a prime target.
       | 
       | Come on, are we supposed to discuss the finance of university
       | administration as if this is some well-thought-out proposal to
       | make America's universities be better and more efficient? Don't
       | give in to the gaslighting. The barbarians have breached the gate
       | and we're arguing whether torching down the main street would
       | help us with next city council meeting.
        
         | kelnos wrote:
         | This is the thing that really frustrates me: much of the
         | discussion around the damaging effects of what Trump and Musk
         | are doing seems to assume some sort of good-faith motivations
         | on the part of Trump and Musk.
         | 
         | But that's not what they're doing. They're dismantling the
         | executive branch of the federal government because they want
         | less regulation for all their corporate buddies, and they want
         | to privatize lots of government functions to, again, benefit
         | all their corporate buddies.
         | 
         | And on top of that, they want to cut taxes (for corporations
         | and the wealthy, mainly) at a level that will reduce tax
         | revenue beyond the spending cuts they want to make. So they
         | won't be balancing the budget, or reducing the deficit. We'll
         | still have a federal government that borrows more and more
         | money every year, but provides less and less to the people of
         | the country.
         | 
         | That's it. There's no noble plan here.
        
           | pphysch wrote:
           | America has been a plutocracy for decades; Trump 2.0 isn't
           | new in that sense.
           | 
           | I think beneath Musk's buffoonery there is a political pivot
           | happening. Part of me wonders if he is a heel to make Trump
           | seem more normal.
        
       | marcosfelt wrote:
       | This blog post gives some good context on why indirect rates
       | exist and some more reasonable ideas for reforming the current
       | system: https://goodscience.substack.com/p/indirect-costs-at-
       | nih?utm...
        
       | iamleppert wrote:
       | Time for these universities to pick up the tab and run a
       | sustainable business that isn't dependent on government handouts.
       | If their research is high quality and valuable, it will survive.
       | 
       | The current state of academia paper mills, unreproducible
       | research and rampant fraud are a direct result of the spigot of
       | money and lack of accountability.
        
         | klysm wrote:
         | Complete bullshit. Research is high risk and frequently 0
         | return. It's fundamentally not a sustainable business. Is it
         | worth doing still? I would say yes.
         | 
         | These actions by the government are fucking over people who
         | have dedicated years of their lives to pursue advanced research
         | degrees and academic careers.
        
         | ks2048 wrote:
         | They are not "running a business". The American research
         | Universities have been reaping great rewards for relatively
         | small investments.
        
           | iamleppert wrote:
           | It's about time they start running one. The American people
           | are done subsidizing ivory towers, meanwhile they have
           | endowments that could fund the entirety of it themselves.
           | 
           | Higher education is in for a rude awakening under the Trump
           | administration. All I can say is it's a shame Doge can't do
           | layoffs and clean house at some of these universities. Do
           | away with tenure and get rid of the dead weight!
        
             | naijaboiler wrote:
             | This is such a stupid and myopic view. It honestly is
             | pathetic
        
             | tmpz22 wrote:
             | How many jobs on your resume exist solely because of the
             | charity of American Research Universities?
        
         | johnnyanmac wrote:
         | There's a good reason Acedemia and Business should be as
         | separate as possible. Do you think we would have been
         | researching EV's if Oil got to fund grants?
         | 
         | Innovation isn't found by making faster horses, you can't treat
         | tomorrows tech as you would yesterdays line budget.
        
       | jauntywundrkind wrote:
       | Mike Caulfield says,
       | 
       | > _If institutions don 't push back together, they will cease to
       | exist in the form they are now. I don't know how to say this more
       | clearly._
       | 
       | And my heavens yes. This is the government threatening to end
       | funding for universities. This movie here is no where anywhere
       | near enough. This is an attempt to end the entire higher
       | education system.
       | 
       | Does it need help & reform? Yes. But simply destroying education
       | outright serves no good. This is a destruction of civilization by
       | radical extremists. Universities need to be working together to
       | defend against this mortal threat to the existence of higher
       | education.
        
       | rKarpinski wrote:
       | U Pitt's endowment is 5.7 Billion! The funding cuts are big but
       | it's only ~2% of the endowment, why are they pausing PHD
       | admittance rather than using the resources they have readily
       | available?
        
         | wraaath wrote:
         | endowment per student for the top universities runs mid-7
         | figures for places like Princeton (3.75M), Yale (2.7M), MIT
         | (2.1M) etc. The endowment per student for UPitt in 2023: 172k,
         | which really doesn't give it a lot of wiggleroom to spend while
         | maintaining the purchasing power of the gift endowments over
         | time.
        
         | quink wrote:
         | The endowment as of June 30th 2023 was $5.5 billion. A year
         | later it was $5.8 billion. If you add inflation and this
         | spending cut alone, it has not grown.
         | 
         | Sure, it's "only ~2%", but surely I don't need to tell you how
         | the money, meant to _persist in perpetuity_, a _237_ year old
         | institution has accumulated to educate _30,000_ students is a
         | different measure than an annual income? - a drop large enough
         | to, as I pointed out above, no longer make it a viable sum of
         | money in perpetuity?
         | 
         | Here I'm imagining you, sitting on let's say, $500,000 and
         | thinking it's no problem if you spend _an extra_ $10,000 more
         | every year, it's only 2%, and then wondering after a while
         | where all the money to invest went, but where your money went
         | entirely. I think rather than comment on a university's
         | finances, better make sure yours are in order first because I
         | suspect there's a troubling fundamental lack of financial
         | literacy on display here that's going to come back to haunt you
         | at some point.
        
           | rKarpinski wrote:
           | This makes complete sense when the universities grand purpose
           | is to perpetually aggregate money to manage as a tax exempt
           | hedge fund.
        
       | ayakang31415 wrote:
       | In the article, they did not specify if the funding cut is a
       | result of re-structuring direct-indirect cost ratio (essentially
       | no research cut but the administration cut only), or the fund
       | granted to a fewer researchers. If they actually receive less
       | money for the same current researches, there is no need to accept
       | fewer students.
        
       | qwertyuiop_ wrote:
       | This is nothing more than Administrators administering to protect
       | their influence and cushy jobs.
       | https://www.theatlantic.com/ideas/archive/2024/05/bureaucrat...
        
       | pmags wrote:
       | Many of the comments here reveal a profound ignorance about the
       | actual costs of conducting biomedical research, as well as a lack
       | of knowledge what the Trump administration is doing to knee-cap
       | NIH funding.
       | 
       | 1. If you want to have some perspective on what indirect costs
       | actually cover I'd recommend this video (published 2 years ago)
       | by AAU, AAMC, and other partner associations. --
       | https://www.youtube.com/watch?v=yxTDlFvkvio
       | 
       | 2. The courts have temporarily blocked the indirect cuts to
       | existing grants, but the Trump administration is using other
       | backdoor means to further withhold funding. See this article in
       | Nature -- https://www.youtube.com/watch?v=yxTDlFvkvio
       | 
       | The long and the short of it, is that NIH is not reviewing grants
       | or making awards at anywhere near "normal". Study sections are
       | being cancelled at the last minute without any certainty about
       | when they will be held. Investigators with existing multi-year
       | grants don't know what to expect at renewal time. Factor in the
       | layoffs at NIH and NSF as well.
       | 
       | The administration has also said they intend to cut NSF budgets
       | from $9B to about $3B dollars.
       | 
       | Under these circumstances it would be irresponsible for
       | universities to admit normal numbers of graduate students.
       | 
       | Even if tomorrow the Trump administration said "Whoops, we messed
       | up" and reversed all executive orders, I'd estimate they've cost
       | the US research enterprise something like 12-18 months of
       | productivity. And we're only 1 month into Trump 2.0.
       | 
       | Here's some other knock on effects I anticipate we'll see in the
       | next 3-6 months:
       | 
       | 1. Opportunities for undergrad research will be greatly reduced.
       | If you have a college age kid who's interested in engaging in
       | research of any kind (sciences, humanities, engineering) they
       | will have many fewer opportunities and those opening that exist
       | will be even more competitive to get into.
       | 
       | 2. Universities will cut way back on lab renovations, new
       | facilities, and delay upkeep. Few people understand just how many
       | tradespeople work on a university campus every day. This includes
       | both facilities staff but also many outside contractors. This
       | will have a major impact on blue collar jobs.
       | 
       | 3. IT companies, biotechs, and scientific suppliers for whom
       | universities are key clients are going to be hit hard. Expect
       | layoffs and small companies to close up shop in this sector as
       | the effects of research cuts percolate through the system.
        
       | yes_really wrote:
       | Pitt has an endowment of 5.5 BILLION dollars [1].
       | 
       | It really does not seem like they paused all PhD admissions as an
       | honest way to optimize their money. It seems like they are using
       | their institutional power to protest Trump's policies, to create
       | a sad state of academic research so that Trump is blamed for it
       | until he reverts his policies.
       | 
       | I feel sad for the rejected PhD students that were caught in the
       | crossfire of Pitt's protest.
       | 
       | [1] https://www.utimes.pitt.edu/news/pitt-s-endowment-2022-23
        
       | dang wrote:
       | All: some of the comments in this thread are about the University
       | of Pittsburgh, not Penn, because there were two Pennsylvanian-
       | university-pauses-admissions-due-to-funding-cuts threads duelling
       | on the front page and we merged the Pittsburgh one hither. Sorry
       | to any Pittsburghers; it was purely because this thread was
       | posted earlier.
       | 
       | * (It was this one: _U. of Pittsburgh pauses Ph.D. admissions
       | amid research funding uncertainty_ -
       | https://news.ycombinator.com/item?id=43145483.)
        
       | juniperus wrote:
       | I know in my state school, none of the labs expect to be able to
       | take any student, period, at least for now. Some labs have even
       | told students they might need to find a new lab to finish their
       | degree, which I don't know how that works. Right now, the
       | uncertainty is playing a major role. Advisors don't know if their
       | money will evaporate/not be renewed, and are highly doubtful that
       | new grants will roll in. The people running federal labs are
       | saying basically that the expectation is to run a tight ship and
       | do the research that is necessary, but not to expect being able
       | to run wide-ranging projects as they have, that everyone needs to
       | reduce their size and wind down what they're doing to only what
       | is necessary.
       | 
       | I certainly don't think shutting down American research and
       | having a country where there are no new graduate students is a
       | really sane scenario. I think some research is definitely
       | inexplicable when it comes to being taxpayer-funded, and some
       | labs are bloated and can run a tighter ship. But everyone is
       | basically paying the price because of a small minority of labs
       | who are operating as though they aren't receiving taxpayer money,
       | and are conducting research that is truly pointless. Of course
       | those labs exist, but they are a small group of labs... Clearly
       | no one wants to spend the time to look at all the grants and
       | projects individually to find the bloat. The strange part is that
       | doing this sort of mass-culling actually just invigorates many to
       | double-down on what they are doing if it is somewhat politically
       | unsavory right now. So it really isn't achieving much other than
       | recruiting an opposition to republican power, which is probably
       | worth more to prevent than the money that could be saved.
       | 
       | I think it's realistic to assume that the federal government is
       | going to just wholesale cut a lot of the science funding, because
       | compared to other nations, America actually funds a whole lot of
       | science, and from what I can tell, that's much less true in other
       | countries. The effects of that might be a bit abstracted from
       | this event, these cuts might just result in less scientific
       | innovation, which could cost billions of dollars added up over
       | time easily. But, if this is just a sort of shock-and-awe thing,
       | and then money starts becoming available again and the result is
       | that "DEI" practices are expunged from criteria, then maybe the
       | takeaway is just that labs just act with a lot more caution. From
       | what I see, most labs already operate under large amounts of
       | caution because the grant system is tricky enough.
        
       | whatever1 wrote:
       | The experiment that the US is running is unprecedented.
       | 
       | What if we screw all our allies, make them scared for their
       | safety so that they start building their own weapons, dismantle
       | completely the government apparatus by assigning clowns to lead
       | it, gut the income by incapacitating IRS and bringing down all
       | the institutions we built as a nation (universities, congress,
       | courts etc).
       | 
       | I am trying to avoid conspiracies, but how would an enemy from
       | within would look like, if not like this? The only thing not done
       | yet is to point our own ICBMs at us.
        
       | pbronez wrote:
       | To the extent that MAGA can be said to have a point, I think this
       | is it. Deep underneath the arrogance and scapegoating, they're
       | calling bullshit on institutions that have become self-licking
       | ice cream cones.
       | 
       | I think there's some truth to that criticism. I would prefer to
       | see the institutions reformed democratically than destroyed by
       | fiat. I contend that sacrificing rule of law is deeply
       | counterproductive. But the core complaint that things aren't
       | working? There's some truth to it.
        
         | insane_dreamer wrote:
         | The core complaint is by no means new, and the Trump/Musk
         | "solution" is worse than the problem.
        
       | insane_dreamer wrote:
       | The government's decision to cap the overhead rate for university
       | grants requires _more_ administrational burden rather than less,
       | so the only thing to cut are the actual researchers.
       | 
       | Another example of the stupidity of Trump/Musk's actions.
        
       | insane_dreamer wrote:
       | Hosting a large number of top universities which conduct research
       | attracts the best and brightest minds from around the world, many
       | of whom stay in the US after doing their PhD, and is a
       | significant factor in what makes the US the biggest economy in
       | the world.
       | 
       | Even if you subscribe to an America First policy, tearing down
       | university research labs (which is the knock-on effect of cuts at
       | the NIH, NSF, etc.) is one of the worst things you could do.
       | 
       | Want to actually cut gov spending? Look no further than the
       | military budget (which the GOP Congress is proposing to
       | _increase_, not decrease).
       | 
       | (That being said, yes, there is waste at universities. I'm all
       | for some reform, but this is not reform, it's destruction.)
        
         | umvi wrote:
         | Defense, social security, Medicaid should all have high
         | scrutiny, but that would be unpopular so neither party will
         | touch those; thus, serious deficit reduction won't happen
         | because doing so requires making unpopular decisions
        
           | insane_dreamer wrote:
           | defense, yes
           | 
           | social security and medicaid, absolutely not (scrutiny, fine;
           | cuts, no)
        
       | geekraver wrote:
       | Ph.D. programs being stopped: https://www.wesa.fm/health-science-
       | tech/2025-02-21/universit...
        
       | strangeloops85 wrote:
       | OP here: I think the reason for reducing Ph.D. admissions is very
       | simple and should be understandable to anyone who has ever been
       | responsible for making payroll. We (at universities) have great
       | uncertainty about future "revenue" (grants) with even funding for
       | ongoing contracts/ grants not being guaranteed to come in next
       | fiscal year. So we need to reduce expenses which are placed on
       | the grants, the largest amount of which is paying for our
       | trainees. The vast majority of universities in the US do not have
       | extremely large endowments, and at least at the school I work at,
       | the (very modest) endowment amounts that can be used for ongoing
       | expenses already are.
       | 
       | I, as a PI, am not directly admitting anyone into my group this
       | year to ensure I have enough funding to pay existing group
       | members. We're hunkering down and making sure those we have now
       | will be funded through the rest of their Ph.D. While this article
       | is talking about program-level decisions, there is a bottom-up
       | aspect as well - at my program and many others, we (faculty)
       | directly admit students into our group and are often responsible
       | for their salaries from day one. Many faculty are, at an
       | individual level, making the same decision I am, to reduce or
       | eliminate any admissions offers this year.
       | 
       | Edit: For reference, I am not at UPenn, but at a "typical" state
       | school engineering program.
        
         | currymj wrote:
         | most of the general public doesn't know PhD students get paid
         | stipends.
         | 
         | if they do know that, they don't realize how tightly each
         | term's stipend is tied to a specific funding source.
        
         | efavdb wrote:
         | I mostly had to teach throughout my PhD. Curious if funding of
         | that sort is also at risk or if it comes out of tuition from
         | undergrads.
        
           | strangeloops85 wrote:
           | In theory it is less at risk, but in practice there may be
           | fewer TAships due to general budget shortfalls and also more
           | students competing for those spots.
        
           | anticensor wrote:
           | Why not offer a doctorate with the doctoral students paying
           | tuition like we do in Turkish private universites?
        
             | jltsiren wrote:
             | It doesn't make sense if you are not rich.
             | 
             | Completing a PhD typically takes 5-7 years in the US. In my
             | public university, the nominal tuition for that time would
             | be $100-150k for in-state students and $180-250k for
             | others. Then add living costs on top of that. A PhD
             | increases expected lifetime earnings over bachelor's, but
             | not in all fields and definitely not enough to justify such
             | spending.
        
           | stonogo wrote:
           | TA salaries come out of the university overhead on grants.
        
         | skeeter2020 wrote:
         | how many admin people are Penn and other unis cutting in
         | "anticipation"?
        
           | KittenInABox wrote:
           | It's a different budgetary item. Unlike a household budget
           | where people are given a general income and then asked to
           | decide to spend it on housing, gas, groceries, etc. It's far
           | more like SNAP, where the money given to you is legally bound
           | to very specific things-- you can buy baby food but not
           | diapers for your baby.
        
             | fn-mote wrote:
             | I'm somewhat skeptical of the idea that salary money cannot
             | be shifted around.
             | 
             | Grants paying for PhD students- sure, those cannot be
             | shifted to pay for admin; that makes sense.
             | 
             | Are administrators line items in the state budget? Then
             | this would make more sense.
        
               | MITSardine wrote:
               | It's even more specific than that. Grants are often
               | specific to a research project and you're not supposed to
               | pay, say, a postdoc that works on X with a grant that's
               | supposed to cover work on Y.
        
           | mercacona wrote:
           | Cutting admin people might mean more paperwork for professors
           | and researches, which can lead to less grants and funding
           | because you can't do science while doing paperwork. Not that
           | easy to be efficient without losing productivity.
        
       | kkylin wrote:
       | Not disagreeing there's bloat and inefficiencies at many US
       | research universities, but something I think is missed in a lot
       | of these discussions is that a lot of research funding works on a
       | reimbursement basis: for relatively small things like travel, we
       | (faculty, students) would spend first, then get reimbursed. For
       | bigger items the university pays and charges the grant
       | accordingly (after due diligence). None of this happens without
       | armies of accountants; these are often classed as
       | "administrators."
       | 
       | I would love to have fewer vice presidents, etc., people who
       | really _are_ administrators  / middle managers, on our campuses.
       | But there really aren't as many of these positions as people seem
       | to think. Articles like [0] (cited in one of the othe comments)
       | seem to lump everyone who is not faculty or student an
       | "administrator." Most such people are really staff; on the
       | research side they help with accounting, compliance, etc. (On the
       | student-facing side there's also a lot of staff -- students &
       | families expect a lot more from universities now, everything from
       | housing to fancy gyms to on-campus healthcare, and more. All that
       | needs staff to run.) To confuse things more, some faculty (say at
       | med schools) don't teach all that much, and some "administrators"
       | do pitch in and teach from time to time.
       | 
       | Again, I don't disagree we can do better, but I also think any
       | discussion of higher ed costs and inefficiencies really should
       | start with the reality of what universities do.
       | 
       | [0]
       | https://www.forbes.com/sites/paulweinstein/2023/08/28/admini...
        
       | muaytimbo wrote:
       | 22.3 billion endowment. Maybe they can fund a little research
       | without taxpayers?
        
       | zkmon wrote:
       | Though it might look like the effect of new gov, actually all
       | this is just the wave of AI and excess technologies poisoning the
       | very birth places of those technologies and science. The effect
       | takes many forms and appears to be associated with other cause,
       | but overall trend is clear. Humans don't need places of learning
       | any more. Universities are heading into their ruins.
        
       | drawkward wrote:
       | Defend the cathedral!
       | 
       | Without the production of knowledge, it will soon prove
       | impossible to levy objective evidence against the despicable lies
       | of the Trump administration.
        
       | jgalt212 wrote:
       | At Yale
       | 
       | > Yale University employs nearly one administrator per undergrad
       | [1]
       | 
       | If Penn suffers from this same bloat, maybe they should be
       | cutting adminstrators. I see no mention of such cuts in this
       | article.
       | 
       | [1] https://www.thecollegefix.com/yale-university-employs-
       | nearly...
        
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