Education: Oh, Say Can U.C?

To illustrate what he meant, Professor Earl Cheit leaned down, swabbed his index finger across the floor under his chair and then held up the evidence. His finger was black. The floor was filthy because it had not been swept; it had not been swept because maintenance funds were inadequate; the maintenance funds were inadequate because the huge and prestigious University of California (nine campuses, $1 billion annual budget) has for the past four years been involved in what Berkeley Economist Cheit calls a "cost-income squeeze" that is prototypical of problems facing other large U.S. educational institutions.

In Sacramento last week, the...

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