Posts Tagged ‘Jon Cassidy’

Texas vs. California Update for October 19, 2016

Wednesday, October 19th, 2016

Time for another Texas vs. California update! Included here are several links from City Journal’s special “Texas Rising” issue.

  • Texas cities continue to kick ass economically:

    Texas’s spectacular growth is largely a story of its cities—especially of Austin, Dallas–Fort Worth, Houston, and San Antonio. These Big Four metropolitan areas, arranged in a layout known as the “Texas Triangle,” contain two-thirds of the state’s population and an even higher share of its jobs. Nationally, the four metros, which combined make up less than 6 percent of the American population, posted job growth equivalent to 30 percent of the United States’ total since the financial crash in 2007. Within Texas, they’ve accounted for almost 80 percent of the state’s population growth since 2000 and over 75 percent of its job growth. Meantime, a third of Texas counties, mostly rural, have actually been losing population.

    Texas is sometimes described as the new California, an apt parallel in terms of the states’ respective urban geographies. Neither state is dominated by a single large city; each has four urban areas of more than 1 million people, with two of these among the largest regions in the United States. In both states, these major regions are demographically and economically distinct.

    But unlike California, whose cities have refocused on elite priorities at the expense of middle-class occupations, Texas offers a complete spectrum of economic activities in its metros. Another key difference is that Texas cities have mostly embraced pro-development policies that have kept them affordable by allowing housing supply to expand with population, while California’s housing prices blasted into the stratosphere due to severe development restrictions. Texas cities also benefit from favorable state policies, such as the absence of a state income tax and a reasonable regulatory and litigation environment. These factors make Texas cities today what California’s used to be: places to go in search of the American dream.

  • More on how Texas cities are growing:

    Though some east/west coastal cities—notably, San Francisco—have enjoyed vigorous growth of late, none has been nearly as proficient in creating jobs in the new millennium as Texas’s four leading metros. Overall, Dallas–Fort Worth and Houston have emerged as the nation’s fastest-expanding big-city economies. Between 2000 and 2015, Dallas–Fort Worth boosted its net job numbers by 22.7 percent, and Houston expanded them by an even better 31.2 percent. Smaller Austin (38.2 percent job-base increase) and once-sleepy San Antonio (31.4 percent) have done just as well. New York, by way of comparison, increased its number of jobs in those years by just 10 percent, Los Angeles by 6.5 percent, and San Francisco by 5.2 percent, while Chicago actually lost net employment. And the Texas jobs are not just low-wage employment. Middle-class positions—those paying between 80 percent and 200 percent of the national median wage—have expanded 39 percent in Austin, 26 percent in Houston, and 21 percent in Dallas since 2001. These percentages far outpace the rate of middle-class job creation in San Francisco (6 percent), New York and Los Angeles (little progress), and Chicago (down 3 percent) over the same period.

    Snip.

    Among 52 American metropolitan areas with more than 1 million residents, San Antonio had the largest gain in its share of middle- and upper-income households—that is, the percentage of households in the lower-income category in the city actually dropped—from 2000 to 2014. Houston ranked sixth, Austin 13th, and Dallas–Fort Worth 25th in the Pew survey.

    Snip.

    In 2015, unemployment among Texas’s Hispanic population reached just 4.9 percent, the lowest for Latinos in the country—California’s rate tops 7 percent—and below the national average of 5.3 percent.

    Texas Latinos show an entrepreneurial streak. In a recent survey of the 150 best cities for Latino business owners, Texas accounted for 17 of the top 50 locations; Boston, New York, L.A., and San Francisco were all in the bottom third of the ranking. In a census measurement, San Antonio and Houston boasted far larger shares of Latino-owned firms than did heavily Hispanic L.A.

    In Texas, Hispanics are becoming homeowners, a traditional means of entering the middle class. In New York, barely a quarter of Latino households own their own homes, while in Los Angeles, 38 percent do. In Houston, by contrast, 52 percent of Hispanic households own homes, and in San Antonio, it’s 57 percent—matching the Latino homeownership rate for Texas as a whole. That’s well above the 46 percent national rate for Hispanics—and above the rate for all California households. (The same encouraging pattern exists for Texas’s African-Americans.)

    California and Texas, the nation’s most populous states, are often compared. Both have large Latino populations, for instance, but make no mistake: Texas’s, especially in large urban areas, is doing much better, and not just economically. Texas public schools could certainly be improved, but according to the 2015 National Assessment of Educational Progress—a high-quality assessment—Texas fourth- and eighth-graders scored equal to or better than California kids, including Hispanics, in math and reading. In Texas, the educational gap between Hispanics and white non-Hispanics was equal to or lower than it was in California in all cases.

    Though California, with 12 percent of the American population, has more than 35 percent of the nation’s Temporary Assistance for Needy Families welfare caseload—with Latinos constituting nearly half the adult rolls in the state—Texas, with under 9 percent of the country’s population, has less than 1 percent of the national welfare caseload. Further, according to the 2014 American Community Survey, Texas Hispanics had a significantly lower rate of out-of-wedlock births and a higher marriage rate than California Hispanics.

    In California, Latino politics increasingly revolves around ethnic identity and lobbying for government subsidies and benefits. In Texas, the goal is upward mobility through work. “There is more of an accommodationist spirit here,” says Rodrigo Saenz, an expert on Latino demographics and politics at the University of Texas at San Antonio, where the student body is 50 percent Hispanic. It’s obvious which model best encourages economic opportunity.

  • Chuck DeVore explains how SB1234, a bill that establishes the California Secure Choice Retirement Savings Trust, a state-run retirement fund for 7.5 million Californians, is actually a mechanism for forcing taxpayers to bail out public pensions:

    Per section 100004 (c) of the new law: Moneys in the program fund may be invested or reinvested by the treasurer or may be invested in whole or in part under contract with the Board of Administration of the Public Employees’ Retirement System or private money managers, or both, as determined by the board. What is the California Public Employees’ Retirement System or CalPERS for short? It’s America’s largest public pension fund with some 1.8 million current and retired government employees.

    But, as with many public retirement systems around the nation, CalPERS is grossly underfunded. Including the California teacher retirement system and smaller local government systems, the unfunded liability for future retirement payouts is about $991 billion, according to the Stanford Institute for Economic Policy Research’s Pension Tracker run by Joe Nation, Ph.D., a former Democratic member of the California State Assembly.

    Since cash is amazingly fungible in government hands, dragooning some 7.5 million Californians into a retirement system that supports 1.8 million state government workers by levying what amounts to a 3 percent payroll tax is going to go a long way towards ensuring CalPERS’ short-term solvency while, perhaps more importantly, building public support for bailing out CalPERS’ looming trillion-dollar shortfall.

    7.5 million Californians will be made to care about CalPERS fiscal health.

    (Hat tip: Pension Tsunami.)

  • California wants to offer ObamaCare to illegal aliens. (Hat tip: Director Blue.)
  • Governor Bush’s education reforms were a lot more successful than President Bush’s. “Educational outcomes overall have continued to improve in Texas.” A long article that points out the need for more reform.
  • Meanwhile, California’s teacher’s unions are trying to destroy charter schools.
  • “The Redding Police Department’s net personnel costs in fiscal 2007-08 were $21 million for 173 employees; in fiscal 2015-16 the costs were $22 million for 131 total employees. In fiscal 2015-16, the Redding Police Department is paying $47,500 per employee more than in fiscal 2007-08. The increase is to pay its unfunded pension liability.” (Hat tip: Pension Tsunami.)
  • San Jose voters to vote on compromise pension reform that rolls back real pension reform passed four years ago. (Hat tip: Pension Tsunami.)
  • “Former [Orange County] Public Works administrator and convicted felon Carlos Bustamante, who served jail time this year for his sex crimes against county workers, lost a chunk of his pension benefits Monday after he was stripped of credit for the years he worked while committing the crimes.” But he’ll still get a pension. Also: “The board’s decision also means Bustamante is owed the nearly $56,000 he paid into the system during the 2 1/2 years he was committing crimes – meaning he’ll be refunded nearly $32,000 but will collect lower pension payments moving forward.” (Hat tip: Pension Tsunami.)
  • Los Angeles is suffering from a housing shortage. So naturally there’s a ballot initiative to make housing construction more expensive through requiring union kickbacks.
  • Here’s a long piece in City Journal by Watchdog.org’s Jon Cassidy. It’s a very balanced assessment of both the strengths and weaknesses of Texas’ governmental structure.

    The good news is that the benefits of the Texas model, overseen by its part-time legislature, are impossible to ignore. From 2000 to 2014, Texas created some 2.5 million nonfarm jobs, more than a quarter of the U.S. total for the period. In 2015, amid free-falling oil prices, Texas still managed to finish third among states in job growth, thanks to booming health care, education, professional services, manufacturing, hospitality, warehousing, and light industrial sectors. Construction is doing well, too. Wondrously cheap housing and pro-growth land-use policies draw people and business to the state. None of this diversification was centrally planned. It’s the product of an economy that’s wide open to foreign trade and immigration. Immigration has boosted native Texans’ income by an aggregate $3.4 billion to $6.6 billion a year. Income inequality is up, too—but that’s just another way of saying that high-paying jobs are growing fastest.

    To a large degree, the Texas model has worked because the Austin governing establishment is penned in, limited in the damage that it can inflict by a state constitution that not only keeps lawmakers from enacting new laws for one out of every two years but also severely restricts taxation and imposes budget caps. Texas has no state income tax, and instituting one would require voter approval. The legislature makes do with a sales tax, a handful of excise taxes, and an onerous gross-receipts tax that penalizes high-volume businesses. The Texas state government simply never has the money for bold new expansions of government. So it stays small, just as the original Texans wanted it. It’s not perfect and never will be, but the state is flourishing.

    (Hat tip: Pension Tsunami.)

  • Texas state government has done a good job controlling debt. Local governments? Not so much. (Hat tip: Pension Tsunami.)
  • Police are under fire in Sacramento and Los Angeles.
  • The high speed rail project is uniting Californians! In opposition to it:

    The rest of the story is the astonishingly widespread political opposition to the train by California voters these days, even though 53 percent of them approved the idea when it was on the state ballot in the November 2008 election. The opposition spans ideological left and right and demographic rich, poor, and middle-class: from wealthy Silicon Valley technocrats horrified that the ultra-fast rail lines, with overpasses only every 10 miles or so, would wreck their leafy, bicycle-friendly upscale-suburban neighborhoods, to Latino-majority working-class towns in Southern California’s San Fernando Valley that would be split in half by the train corridors, to equestrians in the San Gabriel Mountain foothills who would see their horse trails destroyed and environmentalists concerned about wetlands destruction in Northern California and threats to wildlife and endangered plant species in Southern California’s Angeles National Forest, through which several of the proposed train routes would plow.

  • Hat tip for the above to Amy Alkon, who also notes:

    The analyzed per mile rate would make a one-way SF to LA ticket cost about $190.5 Therefore, if the CHSRA’s assumed private operator must charge enough to break even, four tickets for a LA/SF round trip would cost at least $1,520. Conclusions: California’s 2009 median household income was $42,548.6. For a middle class household to ride the train LA-SF once would cost them about 4% of their annual pre-tax income.

  • San Francisco to city of Brisbane: “Build housing in your city so San Franciscans can enjoy it…or else!”
  • CalPERS tries to stick 700 person town of Loyalton with a $1.6 million bill as punishment for dropping out of the system…for four retirees. (Hat tip: Pension Tsunami.)
  • The Bay Area Air Quality Management District needs more money so employees can enjoy more expensive junkets to New Orleans.
  • Want to sell signed books in California? A newly passed law requires you to issue a certificate of authenticity for any item over $5, including your name and address, even if it came from the publisher pre-signed. No COA? “You can be liable for TEN TIMES damages, plus attorneys fees. Call it a cool half mill, because you didn’t know you were supposed to issue a COA.” Word is they’re planning to change this idiocy, but that doesn’t excuse passing it in the first place.
  • Another California idiot law: A man can’t display historical Civil War paintings at the state fair because they have confederate flags in them. More here.
  • Did California just legalize child prostitution? Snopes says no, but I’ve seen California impose more tendentious readings on other laws. (Hat tip: Director Blue.)
  • “Jerry Brown Just Signed a Tough-on-Rape Bill That’s So Bad, Even Feminists Hate It.” (Hat tip: Instapundit.)
  • Voters in Apple Valley, California push for initiative to force voter approval on debt spending. Naturally the City Council puts their own initiative on the ballot to continue “eminent domain acquisition efforts unencumbered by another election.” Plus they illegally spent taxpayer money advertising in favor of their own initiative. (Hat tip: Pension Tsunami.)
  • Harrison County in east Texas has been enjoying industrial gains.
  • Dallas has become a big hub for philanthropy. (Hat tip: Pension Tsunami.)
  • California passes a hide an actor’s age upon request law. I sincerely doubt this will pass constitutional muster on first amendment and equal protection clause grounds. Plus, IMDB’s servers are in Washington state…
  • Verengo Inc, the largest installer of residential solar systems in southern California, filed for Chapter 11 bankruptcy protection on Friday as it seeks to sell itself after defaulting on a bank loan.”
  • “The San Diego-based Garden Fresh Restaurant Corp., which owns the Souplantation chain, has filed for chapter 11 bankruptcy protection…Court papers show that Garden Fresh pins its troubles on declining sales, higher minimum wages, and higher employee benefit costs.”
  • DentalOne is relocating its headquarters from Ohio to Plano.
  • Kroll Report Whitewashed Low LSAT Scores at UT Law

    Friday, June 12th, 2015

    Remember the Kroll Report, the look into the University of Texas’ system of preferential admissions for unqualified friends and relatives of the well-connected? The one that showed UT Regent Wallace Hall was right and his critics were wrong?

    Now it turns out that the Kroll report whitewashed some aspects of the UT scandal, namely how low the LSAT scores were for some of those well-connected applicants:

    “Of 6,155 admitted applicants from 2010 to 2014, only four were admitted with an LSAT score below 150,” Kroll reported. Also, “During the time period reviewed, we found only two applicants who were admitted with both an undergraduate GPA below 3.0 and LSAT score below 155; however, both applicants belonged to an under-represented minority group and had valuable public sector experience before applying to law school.”

    Actually, Kroll found dozens of students with LSAT scores below 150, and even found three students admitted during the Powers years with scores in the 130s.

    Snip.

    It’s impossible to say now exactly how many underqualified students were admitted, as UT redacted the tallies. We can say that in 2004, UT Law admitted at least one person with each of the following scores: 137, 140, 141, 144, 147, 148 and 149.

    In 2005, UT Law admitted at least one person with each of the following scores: 137, 140, 141, 143, 144, 147, 148 and 149.

    In 2006, the low scores recorded were 137, 141, 143, 146, 147, 148 and 149.

    So who ordered the Kroll to spike its findings?

    “Vice Chancellor Dan Sharphorn oversaw the report. He reports directly to Chancellor Bill McRaven.”

    Ongoing lawsuits by Watchdog.org and a Dallas Morning News columnist may succeed in getting past UT’s stonewalling (“In response to a public records request, UT last week produced a key 24,536-page document from the Kroll files, with every last page redacted.”) to cast some light on the subject.

    (Hat tip: Instapundit.)

    Wallace Hall Fires Back at Straus

    Wednesday, April 1st, 2015

    After the grand jury failed to indict him, Wallace Hall fired back at Texas House Speaker Joe Straus:

    “The campaign by Speaker (Joe) Straus, Representative (Dan) Flynn and Senator (Kel) Seliger to criminalize my service as a Regent constitutes abuse of office,” Hall said in a statement. “Their use of the levers of political power to cover up wrongdoing by legislators should now be investigated, and those exposed for their abuses should be driven from office.”

    The piece also points out the numerous vested interests of people who have weighed in against Hall.

    Kroll Report Vindicates Wallace Hall (Yet Again)

    Wednesday, February 18th, 2015

    Every time new revelations come to light about the UT Admissions Scandal, they’ve always proven that UT regent Wallace Hall was right to launch his investigation, and that his critics were wrong to attempt to bury it (and him). The latest revelations are no exception:

    University of Texas at Austin President Bill Powers used his authority to get “must have” applicants admitted to the state’s flagship school and misled internal lawyers looking into influence peddling in the admissions process in both the undergraduate college and UT’s top-ranked law school, an independent investigation obtained by The Dallas Morning News has found.

    The wide-ranging investigation ordered by former Chancellor Francisco Cigarroa found that Powers overruled his admissions office and exercised broad control when it came to favored applicants – some of whom had the recommendation of powerful people in this state.

    That report is the Kroll Report. What they found was what Wallace Hall alleged: That there was one admissions process for ordinary applicants, and another for the well-connected. “Applicants with special connections had a 72% acceptance rate compared to 40% overall.”

    Let’s look at some details of the process from the Kroll report summary:

    Review of Undergraduate Admissions Process

  • When an inquiry or recommendation concerning a candidate for admission is forwarded to the President’s Office from a “friend of the university” or other “person of influence” – which may include a public official, a member of the Board of Regents or UT-System official, an important alumnus or alumna, a major donor, a faculty member or other UT-Austin official – a long-standing practice has been to place a “hold” on that candidate’s application. The purpose of a hold is to indicate that a negative decision may not become final until the party which placed the hold is notified.
  • Since 2009, certain hold designations have been entered on UT-Austin’s mainframe computer with the designation of “Q,” “L,” or “B.” A designation of “Q hold” indicates the application is being monitored by the President’s Office. An “L hold” indicates that the application is of interest to one of the college Deans. When both the President’s Office and a college Dean request a hold, the file is designated as a “B hold” applicant. (Several other types of holds exist for a variety of reasons; however, as explained later in this report, the only holds within the scope of Kroll’s investigation, and thus of interest for purposes of this report, are Q, L, and B holds.)
  • Due in part to the increased competitiveness of undergraduate admissions at UT-Austin, and in part because recordkeeping is now computerized, Q-hold volumes have escalated considerably 13 over the past several years. Under President Powers, Q holds have totaled as many as 300 applicants of interest per year. The majority of holds appear to be based on requests from Texas legislators and members of the Board of Regents, while others are instigated by requests from the Chancellor’s Office, donors and alumni.
  • The existence of holds combined with end-of-cycle meetings between the Admissions Office and the President’s Office, during which final decisions are made on all hold candidates not already admitted, has caused increasing levels of tension between the Admissions Office and the President’s Office. In recent years, President Powers, acting through his Chief of Staff, has at times made holistic determinations that differed from that of the Admissions Office. Consequently, it appears that a select handful of applicants each year are admitted over the objection of the Admissions Office. The President’s Office has acknowledged to Kroll that this has occurred, but insists that decisions are always made with the “best interests of the university” in mind.
  • Based on our investigation, there is no evidence that any applicants have been admitted as a result of a quid pro quo or other inappropriate promise or exchange. There also is no evidence that efforts were made to “save spots” for certain applicants or that a dual system of admissions has been informally established. However, it is acknowledged that additional acceptances are sent out each year to accommodate special cases. With certain “must have” applicants, the President’s Office ordered applicants admitted over the objection of the Admissions Office.
  • Because written records or notes of meetings and discussions between the President’s Office and Admissions are not maintained and are typically shredded, it is not known in particular cases why some applicants with sub-par academic credentials were placed on a hold list and eventually admitted. Rarely was it discussed why particular applicants needed to be admitted, or what, if any, connections the applicants had with persons of influence. But President Powers acknowledged to Kroll that “relational factors” do occasionally play an important role in determinations to admit some applicants who might not have otherwise been admitted.
  • Over a six-year period, applicants on whom a hold of any type was placed were admitted 72% of the time, compared to an overall admission rate of approximately 40%. Texas residents accounted for 82% of all applicants placed on a hold list. Email correspondence reviewed by Kroll further confirmed that a relationship with university officials has on occasion provided applicants a competitive boost in the admissions process.
  • The total number of arguably less-qualified applicants who have benefitted from the hold system and the President’s oversight of the hold candidates appears to be relatively small. Indeed, from 2009 to 2014, Kroll identified a total of only 73 enrolled applicants who were admitted with both a combined SAT score of less than 1100 and a high school GPA of less than 2.9. Kroll’s review of the available “outlier” files found that political connections may have influenced the admission decision in a small number of cases, while other cases suggested the possibility of alumni/legacy influence despite the prohibition under Texas law against legacy admissions. Several other cases, however, suggested a demonstrated commitment to ethnic and racial diversity and the consideration of other appropriate criteria.
  • While it is often not clear why a particular applicant was placed on hold or received special consideration, the President’s Office acknowledged to Kroll that legislative letters and calls are typically accorded more weight than other letters and calls because legislative oversight impacts the university.
  • In short, while it is impossible to conclude with absolute certainty from a review of the data and selected files alone that any one particular applicant benefitted from undue influence or pressure exerted on the admissions process, it is readily apparent that certain applicants are admitted at the instigation of the President over the assessment of the Admissions Office. The end-of-cycle meeting between the President’s Office and Admissions Office results each year in certain applicants receiving a competitive boost or special consideration in the admissions process. The data reviewed by Kroll confirms what President Powers and others have acknowledged, that relationships matter and are the deciding factor in admissions decisions for a select handful of applicants each year.
  • Although the practice of holds and exercise of presidential discretion over Admissions may not violate any existing law, rule, or policy, it is an aspect of the admissions process that does not appear in UT-Austin’s public representations.
  • Several other important constituents are at least partially complicit for this ad-hoc system of special admissions. For example, the Board of Regents sends approximately 50 to 70 names of applicants to the President’s Office each year. Similarly, many names are placed on a hold list as a result of requests from the Chancellor’s Office, the UT-System Office of Government Relations, major donors and alumni. In most years, there are certain legislators and Regents whose names are noted more than others. It would appear that these other bodies send inquiries concerning student applicants to the President’s Office with the expectation that such applicants be closely monitored by that office.
  • Kroll notes that the existence of holds and watch lists, and the end-of-cycle meetings between the President’s Office and the Admissions Office, were not disclosed or specifically addressed by President Powers and his Chief of Staff during an internal Admissions Inquiry previously conducted by the UT-System. Although President Powers and his Chief of Staff appear to have answered the specific questions asked of them with technical precision, it appears that by their material omissions they misled the inquiry. At minimum, each failed to speak with the candor and forthrightness expected of people in their respective positions of trust and leadership.
  • Review of Law School Admissions Process

  • By design and practice, UT Law School also utilizes a holistic admissions process. Although the law school requires no minimum LSAT score and only a 2.2 undergraduate GPA from an accredited institution, it is apparent that GPA and LSAT scores play a prominent role in admissions decisions. This fact, which is true of virtually all nationally ranked law schools, is driven in large part by the importance of GPA and LSAT in the perceived competitiveness of the law school and how it affects national rankings.
  • Unlike many law schools, UT Law School does not rely on an Admissions Committee to review application files or to render individual admissions decisions. Instead, almost all individual admissions decisions are made by either the Assistant Dean for Admission and Financial Aid or by the Director of Admission Programs. Consequently, although Kroll found that the professionals in these positions perform their jobs with expertise and integrity, the system as designed insufficiently prevents final admissions decisions from potentially being influenced by external factors, including informal discussions with the Dean after receiving letters, phone calls or contacts from persons of influence. For example, members of the Texas legislature and other persons of influence frequently call or write in support of particular law school candidates outside of normal application procedures, and the Dean’s Office receives numerous calls from legislators urging the admission of certain applicants.
  • Kroll found no evidence that the Dean or others at the law school acted improperly or in any way compromised the integrity of the admissions process. Nevertheless, the system as designed presents these well-intentioned professionals with potentially difficult balancing acts and ethical quandaries.  When the Dean’s Office receives information about a law school applicant from a trusted source, the recent practice has been for the Dean to informally review the applicant’s credentials and determine whether a case for admission is plausible. If so, the Dean discusses the matter with the Assistant Dean for Admission and Financial Aid. As long as a final decision has not been made and communicated to the applicant, the Dean feels free to discuss any information received about an applicant with the Assistant Dean. In some instances, the resulting discussions have changed the mind of the Assistant Dean regarding a candidate for admission.
  • The President of UT-Austin also receives calls and letters from persons of influence concerning law school applicants. When this occurs, the President’s Office advises the law school (usually the Dean) of these interests. From 2006 to 2012, former Dean Larry Sager received 10 to 20 calls a year from Nancy Brazzil about President Powers’ interest in certain law school applicants. Brazzil made clear she spoke for the President’s Office. Sager acknowledged that the intensity of Brazzil’s interest in a candidate may “have on occasion swayed my decision.”
  • There’s a good bit more, but those are some of the highlights.

    Indeed, Cigarroa admitted that “Fairness has at times been compromised in the admission of students into the University of Texas at Austin.”

    Over at Watchdog.org, Jon Cassidy puts the total admissions number of unqualified applicants as in the thousands.

    He’s not the only one who thinks it’s a big deal. Over at The Dallas Observer, Jim Schutze says “To every single applicant who ever got turned down by UT, I say this: Your wildest most paranoid imagining of why you got screwed and how they really do admissions at UT was nowhere near wild or paranoid enough. We’re talking about admissions meetings where university officials shred all their notes before leaving the room.” He also notes, yet again, what a horrific whitewash job UT’s own internal investigation was.

    Also this: “Kroll looked at a sample of 73 smelly admissions files tied to legislators. In that sample, four affluent high schools in Texas accounted for 45 percent of the sample. Among the four, Highland Park High School was way out ahead at No. 1 with a third of all the dicey admissions in the whole sample.”

    Well, who could possibly object to rich, well-connected kids getting to cut into the admissions line ahead of mere commoners?

    While UT defenders are quick to assert that “no criminal activity occurred,” Cassidy believes that the blatant favoritism for legacy admissions may have violated the state education code, which states “the university must continue its practice of not considering an applicant’s legacy status as a factor in the university’s decisions relating to admissions for that academic year.”

    The Dallas Morning News piece notes:

    Many of Powers’ current problems can be traced to the work of UT Regent Wallace Hall, a man who has been pilloried for personally examining the admissions process.

    The Kroll report appears to vindicate Hall’s work and add weight to his concerns that political and financial influence dictated some admissions decisions.

    Hall’s inquiries into the admissions process led to him being targeted by state legislators, including House Speaker Joe Straus and former Lt. Gov. David Dewhurst.

    Dewhurst was forcibly retired by Dan Patrick. Straus, have course, has been one of Hall’s staunchest foes, and shows every sign of desiring to continue UT’s culture of admissions favors for the well-connected indefinitely…

    The UT Law Scandal: Bigger Than Previously Reported

    Monday, January 26th, 2015

    Back when the University of Texas Law School “forgivable loan” scandal broke, I said it was for all intents and purposes a slush fund and a serious ethical problem for UT.

    I didn’t know the half of it.

    This piece by Jon Cassidy at Watchdog.org (based in part on documents he obtained from UT) paints ex-UT Law Dean Larry Sager as wetting his beak even more than previously suspected.

    For years before a forgivable loan scandal forced him to resign as dean of the University of Texas Law School in 2011, Lawrence Sager was running up annual six-figure bills on a credit card paid for by the UT Law School Foundation.

    From 2007 to 2010, Sager racked up $401,498.29 on that card, all of it paid by the foundation, apart from tens of thousands in other expenses for conferences, computers, club dues, food, travel, storage units and other items.

    I can imagine numerous scenarios where a UT law school dean could rack up $400,000 in credit card expenses, but most of them involve words like “gambling,” “hookers” and “blow.”

    More from Cassidy:

    In all, the foundation has spent more than $1 million in compensating and reimbursing Sager. That’s just a fraction, however, of the $68 million the foundation has spread around UT during the past decade, most of it compensating the school’s faculty and administrators.

    The question the attorney general’s report does not answer, or even ask, is whether the members of the Law School Foundation have received anything in return for their largesse. Reporting by Watchdog.org has established that many children of generous foundation members have been admitted into UT Law, although there is little evidence that would cast doubt on their qualifications.

    More on that “forgiveable loan”:

    The report says that “under Dean Sager’s leadership the Law School provided incorrect or incomplete responses to requests for salary information by both University management and the public pursuant to the Texas Public Information Act. To settle a lawsuit, both Foundation and public funds were expended in order to paper over a climate of non-disclosure.”

    Scott also faulted Sager for concealing the $500,000 forgivable loan he procured for himself, reporting that “the Law School maintained two forgivable loan lists — one that contained Dean Sager’s $500,000 forgivable loan and one that excluded that particular loan.”

    Keeping two sets of books is a classic indicator of financial fraud.

    Thus far I have only skimmed the official Attorney General report on the loan issue (much less dug through all of the appendices), but there are several other questionable practices highlighted, like an unrecorded, $25,000 payment to one faculty member.

    As Dallas Observer writer Jim Schutze notes, the state media continues to ignore the scandal regent Wallace Hall uncovered:

    Cassidy’s and Williamson’s reporting was uniformly ignored by reporters and editorial pages of the state’s mainstream media. Most of the state’s major editorial pages joined the exposed members of the Legislature in denouncing Hall. An ad hoc committee of the Texas House of Representatives labored for months to find a way to remove Hall from the board of regents. When their own lawyers told them Hall hadn’t done anything for which he could be impeached and was in fact carrying out the duties of a regent, the committee slapped Hall instead with a gratuitous and toothless “censure,” an act with the legal meaning and gravitas of “fuck you anyway.”

    And while he may no longer be Dean, Sager is still listed among UT law faculty.

    The report goes to show, once again, that Wallace Hall was right about the need for tighter and deeper board oversight at UT. And that UT’s stables still haven’t been fully swept out…