More Cuts coming to Akron ...

[UAZipster0305]

On 8/25/2025 at 9:35 PM, ZipCat said:

 

I'll be brutally honest. This is really, really, REALLY basic stuff that (judging by your age) you have absolutely no excuse not to understand. How are you an Akron grad and not know this? Marginal Rates aren't a universal rate. They're brackets. So while the Marginal rate might be 91%, ZERO people pay that as a total of their income:

(just an overly simplistic example):
 

1-20,000 = 5%
20,001-40,000 = 10%
40,001-100,000 = 20%
100,001-150,000 = 60%
150,001-200,000 =91%

 

Someone making $200,000 when the marginal rate is 91%, isn't taking home $18,000. They're taking home $126,500. Just because the marginal rate is 91%, doesn't mean it's your effective rate. Only money over that margin is taxed at that amount. And yes, yes it is a fact that the marginal rate was 91% from 1951-1963; and era of unmatched economic prosperity in the USA, where we expanded the middle-class to the largest middle-class in human history. 

 

You have no excuse to be at your age and not understand this. And I'm sorry, you cannot argue that the wealthy in the 1950s were just hiding their money in more creative ways. No, there wasn't as concentration of wealthy in that wealthy class as there is today. It's just a fact. Our country was most prosperous when it had higher marginal taxrates to prevent the concentration of wealthy. It is a fact.

I am all for taxing the plutocrats into oblivion to support a healthier society; however, another reason the 1950s were so prosperous is that most of the rest of the industrial world was destroyed during WWII. 

[UAZipster0305]

On 8/26/2025 at 5:04 PM, 72 Roo said:

 It is so exciting to be talking about marginal rates 2 days before one of the most interesting and competitive football opening games. I'm pumped! Damn the fact that this is a sports forum. Bring on more economics. It is more relevant and exciting. Who cares if we have a legitimate chance to be bowl eligible, providing Goodrich can get the NCAA to rescind its ban. I bet Moorhead is glued to this conversation. I know I am. 

While well intentioned, this comment has aged like milk left out on the counter. Bring on the economics and soccer discussions.

[ZipCat]

8 minutes ago, UAZipster0305 said:

I am all for taxing the plutocrats into oblivion to support a healthier society; however, another reason the 1950s were so prosperous is that most of the rest of the industrial world was destroyed during WWII. 

 

True...but we made sure to better distribute those economic gains. 

[UAZipster0305]

1 minute ago, ZipCat said:

 

True...but we made sure to better distribute those economic gains. 

Agreed 100%. All I am saying is that there was another major factor at play, which is commonly ignored in similar discussions and that is not relevant to the current circumstances.

[GP1]

21 hours ago, UAZipster0305 said:

I am all for taxing the plutocrats into oblivion to support a healthier society;

I'm old enough to remember the Soviet Union and the failures of Communism. 130 million people died in the name of Communism in the 20th Century. I addition, I have been to Cuba and have seen the destruction Communism has brought to that beautiful island. Socialism is great for the Socialists, but creates misery for everyone else. Is the perfect Social Man the Communists tell us will run the world going to create this healthier society? In reality, it gives us monsters like Stalin, Lenin and Mao. 

[UAZipster0305]

On 8/31/2025 at 11:25 AM, GP1 said:

I'm old enough to remember the Soviet Union and the failures of Communism. 130 million people died in the name of Communism in the 20th Century. I addition, I have been to Cuba and have seen the destruction Communism has brought to that beautiful island. Socialism is great for the Socialists, but creates misery for everyone else. Is the perfect Social Man the Communists tell us will run the world going to create this healthier society? In reality, it gives us monsters like Stalin, Lenin and Mao. 

And I said nothing about socialism or communism. There is no need to trot out these boogeymen models in defense of plutocrats or oligarchs. You will never be one and neither will I. The populace's constant defense of plutocrats and oligarchs astounds me.

Edited September 1, 2025 by UAZipster0305

[GP1]

12 minutes ago, UAZipster0305 said:

And I said nothing about socialism or communism. There is no need to trot out these boogeymen models in defense of plutocrat or oligarch. You will never be one and neither will I. The populace's constant defense of plutocrats and oligarchs astounds me.

We have Plutocrats. We don't have Oligarchs. Oligarchs arise after Socialism/Communism and privately control what used to be state run businesses. Shame on Bernie Sanders for so often misusing the word. 

[Hilltopper]

https://www.beaconjournal.com/story/news/education/2026/05/14/university-of-akron-president-rj-nemer-future-plans/89729820007/

 

D3 here we come!

 

Athletic facilities

Nemer’s campus tour included a drive by the university’s athletic facilities that serve more than 500 student-athletes and spirit teams.

 

Athletics – and the cost to operate them – will be a major focus as Nemer moves into his third year.

 

The recent state performance audit found the university’s already struggling main operating fund covered a $24 million deficit for the athletic department two years ago, which was more than twice the average subsidy of $11.7 million at other Ohio Mid-American Conference schools.

 

Roughly 15% of the $22 million in reductions the university’s board of trustees approved for this academic year were to come from the athletic department, according to the audit.

 

The university has hired Huron Consulting Group to help develop a specific strategic plan for the athletics department.

 

Nemer has pledged to raise athletic revenues and donor support as well as reduce the department's costs. But he said the reductions will not destroy what he calls a powerful brand engine that raises the university’s visibility and brings students, alumni and fans together.

 

Bisconti said the faculty still has had “some ups and downs” with Nemer. She hopes he will continue to engage with campus leaders through the shared governance framework and continue to improve communication with faculty, which has been an issue with nearly every president. Faculty is also waiting to see how Nemer will address the university’s athletic spending, a primary source of frustration as more than 100 faculty positions have been reduced since 2020.

 

“We’ve been hearing about cuts to athletics or increases in their revenue sharing for 20 years and have yet to see it,” she said.

 

 

Edited May 14 by Hilltopper

[GP1]

7 hours ago, Hilltopper said:

https://www.beaconjournal.com/story/news/education/2026/05/14/university-of-akron-president-rj-nemer-future-plans/89729820007/

 

D3 here we come!

 

Athletic facilities

Nemer’s campus tour included a drive by the university’s athletic facilities that serve more than 500 student-athletes and spirit teams.

 

Athletics – and the cost to operate them – will be a major focus as Nemer moves into his third year.

 

The recent state performance audit found the university’s already struggling main operating fund covered a $24 million deficit for the athletic department two years ago, which was more than twice the average subsidy of $11.7 million at other Ohio Mid-American Conference schools.

 

Roughly 15% of the $22 million in reductions the university’s board of trustees approved for this academic year were to come from the athletic department, according to the audit.

 

The university has hired Huron Consulting Group to help develop a specific strategic plan for the athletics department.

 

Nemer has pledged to raise athletic revenues and donor support as well as reduce the department's costs. But he said the reductions will not destroy what he calls a powerful brand engine that raises the university’s visibility and brings students, alumni and fans together.

 

Bisconti said the faculty still has had “some ups and downs” with Nemer. She hopes he will continue to engage with campus leaders through the shared governance framework and continue to improve communication with faculty, which has been an issue with nearly every president. Faculty is also waiting to see how Nemer will address the university’s athletic spending, a primary source of frustration as more than 100 faculty positions have been reduced since 2020.

 

“We’ve been hearing about cuts to athletics or increases in their revenue sharing for 20 years and have yet to see it,” she said.

 

 

I can't see the entire article. Based upon what is in your post, I don't see the same conclusion. 

[Zips1991]

44 minutes ago, GP1 said:

I can't see the entire article. Based upon what is in your post, I don't see the same conclusion. 

I don't either. Sounds like the President still believes in D1 athletics even if the faculty doesn't.

[Hilltopper]

9 hours ago, GP1 said:

I can't see the entire article. Based upon what is in your post, I don't see the same conclusion. 

This part.

The university has hired Huron Consulting Group to help develop a specific strategic plan for the athletics department.

 

 

[GP1]

2 hours ago, Hilltopper said:

This part.

The university has hired Huron Consulting Group to help develop a specific strategic plan for the athletics department.

 

 

I still don't get it. Is there any evidence that this consulting company has taken a program from one division to a lower one in athletics as part of a strategic plan? If they have, I could see it. If not and that's the plan, seems like it could be money poorly spent. 

 

Huron was hired by Toledo when they had budget deficits around level of Akron's in 2022, but Toledo is still around. Their plan seems to have worked. The President hired people to boost revenue to support the current athletic department. It seems like he is looking for a way to make that work and not gut the program. 

Edited May 15 by GP1

[kreed5120]

There should be some opportunities for Akron athletics to raise some additional money to reduce the deficit. Sponsor patch on jerseys is allowed next year. That should bring in 6-figures. The stadiums naming rights expire within the next 2-3 years so we should be able to seek something there. The college football playoffs will be expanding and even though the P4 hoard most of the money, some of that will trickle down to the G6. 

[csims0917]

Huron blows. Guarantee whatever plan they come up with will get shut down.

[GP1]

https://www.wsj.com/us-news/education/colleges-restricted-endowments-financial-trouble-247c7d3c?st=KXSau7

 

Interesting read. I hope Akron isn't doing these things. 

 

Also, I saw the company hired to help the athletic department, Huron or whatever, is mentioned. 

[kreed5120]

17 minutes ago, GP1 said:

https://www.wsj.com/us-news/education/colleges-restricted-endowments-financial-trouble-247c7d3c?st=KXSau7

 

Interesting read. I hope Akron isn't doing these things. 

 

Also, I saw the company hired to help the athletic department, Huron or whatever, is mentioned. 

 

The University of Akron's endowment has grown from $204.2 million in 2016 to $376.5 million in 2026 per the audited financials. That would indicate to me that they aren't depleting the principle on restricted endowments to cover operational costs.

 

Personally, I feel it's a positive these small private schools are going out of business. There is clearly a student debt crisis ongoing and frankly a Notre Dame College wasn't worth the ~$50K tuition+room and board it was charging. Both Akron and Kent were ranked ahead of them academically in just about everything and you could attend either school for ~$20K less each year. If they were a Case Western caliber school academically this would be different, but they offered a lowered quality product at an inflated price. Schools like them going out of business should help strengthen the ones that remain.

[GP1]

2 hours ago, kreed5120 said:

 

The University of Akron's endowment has grown from $204.2 million in 2016 to $376.5 million in 2026 per the audited financials. That would indicate to me that they aren't depleting the principle on restricted endowments to cover operational costs.

You're probably right. The Rule of Seven says an investment will double every seven years at 10% interest. I know from experience the school doesn't invest in investments that return 10% so they are doing well investing and getting more donations. I tip my hat. 

[kreed5120]

29 minutes ago, GP1 said:

You're probably right. The Rule of Seven says an investment will double every seven years at 10% interest. I know from experience the school doesn't invest in investments that return 10% so they are doing well investing and getting more donations. I tip my hat. 

 

Another thing to take into account is a lot of the earnings endowments make are intended to be spent to fund scholarships, research, or whatever its designated purpose. Money will really only double every 7 years if you keep it invested. Money compounding in perpetuity without ever being spent while looking nice on a balance sheet would kind of be pointless.

 

The goal is probably to spend 3-5% of the endowment per year, but have the investments grow at 6-7%. That way the endowment still steadily grows in size, but is making the differences the donors intended. It growing as much as it did in the last 10 years probably has more to do with stronger than expected market returns combined with an increase in gifts.

Edited 20 hours ago by kreed5120