Coffee heat rising

Income stream sighted

Thar she blows!

Landed an interview with the chair of a nearby community college’s English department. I’m begging for part-time work, and it looks more than moderately hopeful.

A friend from a previous life is teaching there full-time. She got me in the chairman’s door, and he expressed interest. Those two say that though the community colleges have had some budget hits, too, the situation is nowhere near as dire as the university’s. My friend said the colleges are overrun with students, meaning they’ll need adjunct faculty to handle the endless stacked sections of freshman composition.

Horrible, but better than starving, eh?

The community colleges here are part of the county and are supported by property taxes still hugely inflated by the real estate bubble. Taxes are based for two or more years in a row on a single evaluation. This year we will pay artificially inflated taxes on property valuations that now grossly overstate the real value of most houses in the county.

Because community college tuition costs a fraction of the universities’ (which have been soaring the past few years), many university-bound students take their lower-division courses at the community colleges, saving a bundle on college costs. And of course, if you’re a out-of-work cabinetmaker or drywall hanger hoping to learn accountancy, it would behoove you to get the best price you can on your general-studies courses. So it’s not surprising that laid-off workers are flooding into those schools. Their tuition helps to keep the smaller colleges afloat as the Great Desert University and its two sister institutions sink like a fleet of Titanics.

If I’m extraordinarily lucky and can pick up two courses in the fall, before GDU cans me, I can bank the net, which will help ease the way into poverty. It should more than cover COBRA, leaving me all of Social Security and a little more than half of investment income to live on. And, unless I’m mistaken, it’s not gross but net income that’s counted against your Social Security benefits, so I should be able to take on a few editing projects, too. All told, I could end up netting about $700 less than I earn now. I think I can live on that.

I hope.

Is this worse than we think, even?

What a day!

Before I even parked my purse in the office, I made a run on HR. There I learned a) they don’t know how much COBRA will be; b) the state just posted a page showing the new COBRA costs, but they’re telling staff not to tell anyone about it (says a lot, doesn’t it?); c) yes, they have to pony up the so-called “extra” pay that will have accrued by the end of December, which is supposed to be paid in the January “extra” paycheck (snark!); d) they don’t know if I get dibs on any internal hires that may be happening, given my status as an exempt year-to-year contract worker; e) the maximum number of vacation hours GDU will pay me for is 176; and f) I probably will be eligible for unemployment benefits.

ohhhkayyyy…. Moving on…

Back at the office, I get on the phone to my passing acquaintance at the General Accounting Office, the one who informed me that HR’s reps were full of beans when they told both me and La Maya that we lose our RASL (more about which, onward) if we’re laid off instead of announcing unilaterally that we’re retiring. Clear it was that this woman was no friend of GDU’s Human Resources bots, and so I felt fairly confident that she would not rat on me for inquiring about exactly what Our Beloved Employer was trying to accomplish by secretly changing my associate editor’s job status from a nonexempt classified to an exempt contract worker…and trying to faze past me the idea that her offer letter for a classified position amounted to a “contract” for a “we can squash you anytime we please” job.

My Spy’s first instinct was that nonexempt workers are hired to be present for X number of hours, and exempt workers are hired to accomplish a job, no matter how long it takes. Thus, if they dump all our graduate student assistants and leave us with six (!) journals to take from manuscript to the compositor, they will not have to pay her overtime for the obscene number of hours she will have to work beyond the number for which she is paid.

Hmmm…good thought, said I.

And, said she, it’s a lot easier to get rid of exempt workers.

Yeah. Don’t I know it.

Moving on, Spy advised that I should be very careful to figure out exactly what is the hourly rate for the new contract OBE proposes to emit, come June 30. She pointed out that RASL—a kind of severance package based on the number of unused sick leave hours a state employee has accrued—is based on your hourly pay at the time you leave state service, not on the amount you made when you were being sort of fairly paid. Quite a few retiring workers, she reported, have been rudely surprised to learn that by accepting a pay cut instead of furlough days, they cut this retirement benefit significantly.

RASL is a feature that pays you for accrued sick leave, based on your years of service. You accrue sick leave separately from vacation time, and it builds rather slowly. After you’ve racked up 500 hours, you’re entitled to be paid about 30 percent of your hourly pay for each hour of accrued sick leave, at the time you leave your job. When you hit 1,000 hours, glory be! As your parting gift, the state forks over 50 percent of your hourly rate for each hour of accrued sick leave. This money drifts up because it is contributed to a state fund from your salary.

Well, I have almost 1,200 hundred hours, presently worth something over $17,000.

Spy pointed out that if they reduce my hourly pay with this new contract, it could drastically affect my RASL. So drastically, she advised, that it may be worth turning the contract down and walking if what they offer in June is a pay cut. She advised carefully figuring how much my RASL is worth at my present rate of pay and being prepared to calculate, quickly, how much I would lose if I accepted a pay cut.

So: add that task to the mix. And add to it another layer: figure out how to get by if I have to quit at the end of June instead of hanging around until the end of December. Gaaaaahhhhh!

Now Spy waxed garrulous. This is one of those government employees who knows how to function within and to operate a bureaucracy because of long, long service. Just listening to her made it clear that she’d been around forever. She remarked that she had several friends with over 30 years of service to the state, and that among them all, no one could remember anything remotely like what they’re seeing now. She said people are demonstrating in front of their office buildings and having sh*t-fits in the lobby, but all anyone could say to them is that there just. isn’t. any. money. left. to. pay. out. Staff can’t help, because they have nothing—literally nothing—to help with.

More spookily still, she observed that some people are beginning to talk seriously about the possibility that the state government could completely shut down. Not just close the prisons and the universities. No. Shut down everything. Go out of business.

After that conversation it took some hours to get a grip, and I will say, at this moment it’s still a pretty tenuous grip.

Back at the office, Her Deanship commanded another audience. Tomorrow I have to go in prepared to discuss which RAs will get the ax first, and which of our client journals will go away in what order. Took half the afternoon to compose a memo responding to that and to argue in favor of retaining our lead RA through the fall semester.

Just as I was wrapping up that little gem, said lead RA showed up and asked, “Am I going to be here in the fall?”

Oh shit.

So, I had to close the door and explain to her what is happening. By the time that discussion was over, I’d been clenching my jaw so violently I’d brought on a muscle tremor.

Her department has lost most of its graduate student support lines. There were nine lines to support 26 graduate students. They are now all distributed. OBE delayed so long in dropping the ax on our department that this exceptionally worthy mother of two has now lost her chance at any other assistantship. It’s not like they didn’t know. I mean, please! How many times has Her Deanship put me off since last freaking August when I have told her we need new client journals? Five? At least. I’ve sensed for weeks that the reason for the stonewalling is that she knew we weren’t expected to survive and she didn’t want to commit our services to faculty members, only to have to yank the rug out from under them.

Just another manifestation of the basic fact of academic life: a university’s administration does not give one thin damn about the welfare of its students.

In an attempt to get a good word in for my associate editor, I spent two or three hours laboring over the STUPID annual evaluation form, an enormous time-waster. Anyway, assuming Her Deanship accepts it and passes it along to HR, if the sidekick applies for a new job at GDU anytime in the more or less near future, a rave review will be sitting in her permanent files.

My jaw hurts. I’m going to go put a heating pad on my face.

Yours in eternal awe of Our Beloved Employer,

—Funny

How IT put “apps” into job applications

LOL! Just went over to the Maricopa County Community Colleges job applications site (where, BTW, precious few openings are to be found). If I’m to teach part-time, I’ll have to get into their HR system.

They’ve updated their electronic job application system. In some ways, it will be convenient, because you used to have to fill out a pages-long application over and over and over and over, one for each opening you addressed, and you had to send your transcripts with every job application. The community college district would advertise 87 gerjillion openings, and you had to jump through all these hoops for each one. Now once through will do you.

But…wow! Instead of sending a transcript, you now have to fill in a form that asks you to list every. college. course. you. have. ever. taken. No lie: check out the form.

For the love of God. Do you know how many courses it takes to get a Ph.D.? This is going to take hours!

And to make things perfect, the online part of the system doesn’t work with a Mac. When you get to the form to enter your Social Security number, it won’t let a Mac enter anything, nor will it save your data UNTIL you’ve entered the Social Security number.

My laptop (ASU’s, actually: another thing I’m going to have to buy sometime in the next nine months) has lost its connection with the modem’s router and will not reconnect. So that means I will have to do this from the campus.

To give you an idea how long this is going to take, they have an online tutorial to show you the obvious: instructions on following the instructions to fill out the forms. They estimate it will take you 15 minutes just to plow through this tutorial.

That’s for the privilege of earning $2,400 a course.

You can teach a maximum of three courses a semester, which would come to just about what I need to survive in the post-layoff world.

However…there are no ads for P/T faculty advertised.

Well, at any rate, I need to get this form filled out, which I’ll have to do this week.

I think GDU is paying $3,000 a course. That would make it possible for me to hit the $14,000 mark by teaching 3 and 2, instead of 3 and 3 with the community colleges. And GDU hires (uhmm…maybe: in better times) adjunct faculty to teach the upper-division Writing for the Professions course, which is slightly less onerous than freshman comp. On the other hand, GDU’s classes are much larger than the community college’s, and the attrition rate is lower. In a community college course, by the time everyone has dropped who’s going to drop you can end up with just 12 or 15 students, which is manageable. The last time I taught Writing for the Professions as a side job, GDU doubled the enrollment of two courses and I ended up with 80 online students! In a writing course!!!

I keep telling myself there’s nine months to find some sort of work. But it’s damned scary: there is nothing! You can’t get a job when no one’s hiring.

La Maya, who still subscribes to the local paper, said yesterday’s edition reported that to make up its enormous budget deficit, among other things the state would have to close all three universities. On the one hand it’s hard to believe anyone actually said that; on the other, this is Arizona.

Augh! There oughta be a law against three o’clock in the morning!

Funny is on Twitter

apatosaurus33
Halcyon days

…sort of… Just signed up this morning, and now see the learning curve for this thing will be a bit steep for a survivor of the Cretaceous.

At any rate, I’m finally on Twitter, no doubt moments before another comet comes along to end the Twitter Age. Those comets: what a nuisance!

The username is FunnyAboutMoney. I have yet to figure out what the “@” function is about, but if it has significance, will let you know. Please sign up to “follow” FaM, and let me know how to find you on Twitter so I can sign up to follow you!
🙂

Image: Public domain; found at Wikipedia Commons

Mortgages: Is a 30-year mortgage better than a 15-year loan?

Over at Room Farm, proprietor Chance is offering an article she wrote some time back for Living Almost Large, in which she argues that it’s better to stretch your finances (and by implication, to select a cheaper house) and get a 15-year mortgage than to pay for real estate with a 30-year mortgage. Readers at LAL squawked that it’s impossible to afford a 15-year loan, given the outrageous cost of real estate, and when last seen, Room Farm readers were echoing that and suggesting it’s better to go for 30 years and pay extra toward principal. This strategy gives you an “out” if you run into hard times, in the form of payments-due that are really smaller than what you habitually into the loan.

Let’s consider how affordable a 30-year mortgage really is when compared to a 15-year loan. Real estate has dropped so drastically, it’s now possible to find good housing at prices that allow buyers to consider the shorter repayment term.

As an example, one of my research assistants and her husband just purchased a house in the high-rent district of my part of town. Buying the place out of an estate (it wasn’t a foreclosure—the heirs just wanted to unload it fast), they grabbed a nice house with a pool on a big corner lot amid a cluster of $500,000 homes. Their cost: $225,000.

The dollar difference between payments on 15- and 30-year loans is a lot when you’re talking about the $200,000 range. Let’s say the young people put only 10 grand down and finance $215,000. Right now a 30-year fixed mortgage from our credit union is at 4.625 percent: monthly principal & interest would be $1,105. A 15-year mortgage is at 4.375 percent: $1,631 a month.

However: On the 15-year loan, the first payment covers $847.18 of principal and $783.85 of interest. For the 30-year loan, only $276.74 goes toward principal; the remainder forks over $828.65 in interest.

Three years later, the principal on the 15-year loan is $962.26, and the interest is $668.77. The 30-year loan is applying $316.63 toward principal and charging $788.76 in interest.

How does this look halfway through each loan?

Seven and a half years into the 15-year loan, the buyer would be putting $1171.22 toward principal and only $459.81 into interest. The 30-year loan doesn’t reach its halfway point for 15 years (by then the person with the 15-year mortgage is having a mortgage-burning party!). After 15 years, the buyer with the 30-year loan is still shoveling half the payments into interest: $550.96 pays down principal, and $554.43 goes toward interest.

Let’s say each buyer stays in the house until the mortgage is paid off. At the end of the loan periods, assuming neither buyer has paid extra toward principal, the 15-year loan has cost its purchaser $78,526.24, but the 30-year loan has relieved its buyer of $182,948.10.

For the borrower, interest is money down the toilet. You might as well shred hundred-dollar bills and flush them. Seventy-eight grand is quite enough to fork over for the privilege of paying an astronomical amount to keep a roof over your head!

I would agree with Chance: you’re better off buying a lesser house and straining every muscle and sinew to pay it off in 15 years than you are to diddle away 2.32 times as much interest on the 30-year loan. The alleged savings in taxes are negligible compared to the amount you’re paying on interest over the term of the loan.

If, as some people suggest, you apply an amount equivalent to 10% of the monthly payment to principal, you’re not paying as much interest as you would on the 15-year loan, but neither are you knocking down principal much. Ten percent of our proposed loan payment is only $110: that’s +-$526 short of the amount needed to reduce the 30-year loan to 15 years. Although it is true that the extra payment toward interest would mean that 15 years into the loan principal payments would be higher than interest ($659.96 vs. $445.43), at the end of the loan this buyer has still paid $146,783.23 in interest. That’s almost twice as much she would have paid had she taken out a 15-year loan.

If our buyers can’t afford the higher payment needed to pay their loan in 15 years, maybe they would be wise look for a cheaper house.

Principal and interest figures calculated in Quicken 2006 for Mac.

Perfect retirement day

Lillian Austin
Lillian Austin

My friend K., who lives in Waddell (halfway to Yuma from here), came into town to visit and to shop at the city’s premier nursery, Baker’s, which at 40th Street and Osborn is halfway to Tucson from her place. It was a very pleasant day: magnificent weather, good company. She bought roses, herbs, and flowers; I bought Lillian Austin, an English rose by David Austin; we perused the show put on by an iris fanciers’ club. We spent several hours socializing and enjoying the garden-like nursery.

After she headed back to the far side of the galaxy, I harvested the first beets of spring out of the garden, fired up the barbecue, defrosted a steak. Braised the beautiful little beets with butter and nutmeg; braised the incredible beet greens in olive oil, garlic, and fennel seed; threw the steak on the grill. Awesome dinner, accompanied by dos fine cervezas (Corona!) with juicy ripe lime from the backyard tree, all of it consumed in the shade of the back patio.

The hour still being late afternoon, Cassie and I circumnavigated the nearby park, also very pleasant on a springtime Saturday.

You know… Soon, every day will be like this!Think of it.

Not having made three, four, five thirty-six-mile round trips to campus in the preceding week, I will think nothing of driving out to Waddell to hang out with my friends. We will not need the excuse of a shopping trip to get together. Driving out to Sun City to visit SDXB surely will feel less onerous, too.

Every day I will be able to garden at my convenience, to download House on Hulu in the middle of the morning, to cook a fine meal, to raise a glass to God’s creation at midafternoon, to stroll around the park whenever the dog and I choose.

Ohhh please, Mr. University President: don’t throw me in that briar patch!
😀