As I argued back during the stimulus debate, the failure to use federal dollars to help close state budget gaps was a terrible mistake. First off, every dollar taken out of state spending roughly offsets the stimulative effect of every dollar spent by the Federal government--meaning that until you've closed the state budget gaps (either actually or virtually), every dollar of stimulus spending accomplishes roughly nothing. I say "roughly," because the stimulative effect of spending a dollar can very tremendously, as shown in this chart from a Feb 4 diary:
via www.openleft.com
Putting the UC situation in the context of the state-fed relation in re the stimulus. Note the comment here (#15), who adds a caveat to Samuels: http://www.michaelberube.com/index.php/weblog/comments/1370/: "One thing I wish he’d do though is be more careful with numbers. He has this calculation of what undergraduate education costs (the basis for his claims that undergraduate fees “subsidize research” etc.) that is just way off, assuming that buildings are free, that staff is free, that administrators (and yes, there’s way too many but clearly we couldn’t function with zero) work only for themselves."
But he also adds: "Re-reading my comment I realize it is dominated by criticism, when I in fact agree with most things Bob says in that interview. So let me make clear, I do agree in fact with most things he says in that interview!"