Don’t blame ASU for tuition, real estate deals
On its face, the Arizona attorney general’s lawsuit over Arizona State University’s lucrative real estate deals may have merit.
But rather than merely hailing Attorney General Mark Brnovich for going after the university’s entrepreneurial practice, we must ask these questions:
Brnovich is suing the state’s Board of Regents to force the owners of a planned 330-room Omni Hotel to pay property taxes.
He argues that it is illegal for ASU, which is tax-exempt, to allow for-profit companies such as the Omni hotel to build on university-owned land and thus avoid paying property taxes.
The court will now decide who’s right. Brnovich, who says it is unconstitutional for ASU to rent out land to a private company, or the university that
says it has done nothing wrong.
As attorney general, Brnovich’s clients include state agencies such as the Board of Regents. The Regents are appointed by the governor to oversee ASU, the University of Arizona and Northern Arizona University.
But Brnovich argues the Regents aren’t his clients and thus can sue them.
A Maricopa County Superior judge tossed Brnovich’s 2017 lawsuit over tuition, saying he lacked standing to do so. In other words, he needs permission from the governor to sue.
Brnovich has appealed the case, so the question whether he’s suing his own client is still is up in the air.
Brnovich aide Ryan Anderson said his boss went after the Board of Regents because they’re directly responsible. For instance, they set the tuition formula that skyrocketed the cost of education and they gave university President Michael Crow permission to broker sweetheart real-estate deals.
A university spokesperson called the latest lawsuit “frivolous” and “a huge waste of taxpayer money, time and energy.”
Brnovich should sue the Legislature and governor instead. They’ve systematically defunded public universities, leaving them out to dry, or in the case of ASU, becoming entrepreneurially creative.
In fiscal 2008, state funding was $482.9 million, or 30.95 percent, of ASU’s budget. It kept going down every year to $320.3 million for fiscal 2018, or 10.83 percent, of the university’s budget.
At the same time, the university grew exponentially in student population and prestige. Now the bulk of the budget comes from student fees and tuition, grant research and other revenue streams like renting land to private companies.
Brnovich argued in his tuition lawsuit that tuition is out of control. "The Constitution requires education to be nearly free as possible," he told Republic.
And he adds: "Maybe if our public universities weren’t in the real-estate development business, they could make sure some of that money was going to lower tuition for all Arizonans."
I agree tuition is out of control and I, too, question the entrepreneurial practice. But what else is Crow and the other PLACE YOUR RECRUITMENT AD IN THE LARGEST JOB NETWORK BY CALLING 1-888-262-2149 OR EMAIL PHOENIXJOBS@GANNETT.COM