[rdouble]

The increases in spending are indeed soaked up by overpaid administrators and their teams, known as "institutional support." For state schools, budget information is public and you can see for yourself how the university spends its money. This opinion piece regarding the University of Minnesota distills some of that information: http://www.startribune.com/opinion/42550752.html

But in one category, expenditures have nearly doubled over the last five years. That category is "institutional support," which consists essentially of central administration. The 2008-09 budget plan increases expenditures for institutional support by more than $143 million, or 80 percent, over the figure for 2004-05. The spending increase in this category alone covers the amount by which the governor proposes to reduce the state’s annual appropriation to the university.

What has the university bought with all this additional money spent on "institutional support"? Among other things, a growing array of vice presidents and associate vice presidents. The university now employs 12 VPs, several of whose positions have been created during the last five years. Every occupant of such a position earns a six-figure salary, starting at around $250,000 per year. Multiply by twelve, add a number of associate VPs, then staff support, plus assorted expenses for everything from office supplies to travel — and the institution spends millions more each year on central administration

This same pattern can be seen at almost any state university in the United States.