HIGHER EDUCATION BUBBLE UPDATE, BILLION-DOLLAR-SLUSH-FUNDS EDITION: California State University hid a $1.5 billion surplus while raising tuition. Where is the accountability?

Here we go again: Another scandal involving a state-funded entity hoarding a secret stockpile of money. This time, an investigation by California State Auditor Elaine Howle discovered $1.5 billion in surplus funds hidden in outside accounts controlled by the California State University system.

Yes, that’s billion with a “b.” While CSU was squirreling away this massive fortune, it was simultaneously raising tuition costs for students and begging the California State Legislature for more money.

“CSU put the money, which primarily came from student tuition, in outside accounts rather than in the state Treasury,” according to a story by The Sacramento Bee’s Sawsan Morrar.

We’ve seen this story before. In 2017, Howle’s office busted the University of California Chancellor’s Office for hiding a $175 million slush fund from public view – while also hiking tuition on students.

People should do jail time for this mishandling of funds. The Sacramento Bee asks: “How many more times will we learn of secretive massive funds, hidden from view by so-called public servants who apparently consider themselves above the rules?”

The answer is, as long as there’s no penalty for doing so.