State college system is insolvent; reorganize

The simple fact is that the Vermont State Colleges System is insolvent. If it were a public corporation, it would be in Chapter 7 bankruptcy, where assets fail to meet obligations, and no recovery plan has been submitted.

Emotions run very deep, because Vermont State Colleges are a very good living arrangement for those who benefit. But its pay rates are high, benefits are generous, pension and retirements are not being paid from current revenue, and faculty workloads are well below average. The system needs to borrow money by selling a bond to general investors. Investors will not buy bonds unless they get repaid. To sell bonds, the state colleges bonds pledge the full faith and credit of the state of Vermont. The numbers are not good. 

If the faculty workload and compensation profile of Vermont State Colleges System resembled that of Burlington College, this issue would never be in the news. A few years ago, several of the highest paid employees of the state of Vermont were in the State Colleges System. Without a thorough reorganization, throwing tax funds at the colleges will only defer the next crisis.

Bruce P. Shields

Hyde Park