ICC rate cut – revenge of the nerds part 7

10/27/2009: We’re slowly piecing together the story about why UO’s ICC rate was cut from 50 to 48 to 42%. Rich Linton had apparently seen this coming, and had taken 0.5% cuts (the default) for several years, rather than face a full review. But he could not postpone past 2008, and the ensuing federal review – based on 2006 numbers – produced the dramatic fall, costing UO faculty research $2 million per year starting this year.

In short, the cut was foreseen and could have been avoided by increasing expenditures on coverable research related items (space, startups, etc.) by $2 million per year, to establish a higher base. This is apparently a common strategy at other universities. But our administration decided not to do this. Instead they spent the money on Moseley’s retirement plan in UO-Bend, renovating their offices in Johnson Hall, etc.

If our math is correct, the return to spending the money on research would have been over 100% – per year. I’m no economist, but what the fuck? Frohnmayer sure had interesting preferences. And Rich – maybe you should have told the faculty about this a few years back? Next time an anonymous comment on UO Matters is all it will take.

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