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America’s Largest And Most Expensive DEI Program Is About To Go Up In Flames

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The flag of the University of Michigan

From the Daily Caller News Foundation 

By Jaryn Crouson

The University of Michigan’s (UM) multi-million dollar diversity, equity and inclusion (DEI) program may soon be dismantled.

The university’s board of regents has reportedly asked UM president Santa Ono “to defund or restructure” the DEI office amid growing criticism and public pressure, according to emails shared on X. The board is expected to vote on the matter on Dec. 5.

“I write to share information with you about impending threats to the University of Michigan’s DEI programming and core values of diversity, equity, and inclusion,” Rebekah Modrak, faculty senate chair, wrote in an email to faculty senate members. “It has been confirmed by multiple sources that the Regents met earlier this month in a private meeting with a small subgroup of central leadership members, and among the topics discussed was the future of DEI at UM, including the possibility of defunding DEI in the next fiscal year.”

Calls for the university’s DEI program to come to a close surfaced after The New York Times exposed its failures and the vast amount of money being thrown at it.

“In recent years, as D.E.I. programs came under withering attack, Michigan has only doubled down on D.E.I., holding itself out as a model for other schools,” the NYT wrote in an October article. “By one estimate, the university has built the largest D.E.I. bureaucracy of any big public university. But an examination by The Times found that Michigan’s expansive — and expensive — D.E.I. program has struggled to achieve its central goals even as it set off a cascade of unintended consequences.”

Despite UM investing $250 million into DEI since 2016, students and faculty have reported a deteriorating campus climate since the program began and are less likely to interact with people of a different race, religion or political ideology, though these are “the exact kind of engagement[s] D.E.I. programs, in theory, are meant to foster,” the article stated. Attempts to create a more diverse campus also fell flat, with black enrollment at the university remaining a steady 5%.

The program also created a “culture of grievance,” with the office’s conception coinciding with an “explosion” of complaints on campus involving race, gender and religion, the NYT reported. Meanwhile, nearly 250 university employees were engaged in some form of DEI efforts on campus.

Modrak in her email referenced the article, calling it a “tendentious attack” that was “not well researched,” and claiming that the author “cherry-picked” examples of UM’s failures.

DEI staff cost the university approximately $30.68 million annually, with the average salary reaching $96,400, according to Mark Perry, an American Enterprise Institute scholar. Several DEI employees are paid more than $200,000 a year, while the department’s head makes upwards of $400,000.

“I think that across the ideological spectrum both regular citizens and policymakers have really shifted on issues of identity politics,” John Sailer, senior fellow and director of higher education policy at the Manhattan Institute, told the Daily Caller News Foundation. “I think a lot of people who would have at some point, probably just as a matter of knee-jerk reaction, supported diversity initiatives, have started to really reconsider what these initiatives are actually doing, and reconsider whether everything that falls under the name of DEI is actually something that they support. And so there was already the slow burn.”

The major catalyst of this change, Sailer explained, was the series of fiery protests that ravaged college campuses across the country after Hamas’ deadly Oct. 7, 2023 attack on Israel, which were “absolutely a big part of the story.”

“A lot of people were already skeptical of DEI,” Sailer said. “A lot of people were already of the opinion that these policies, even though they purport to be about diversity, in practice really have been about a particular ideological vision for higher ed. Then on October 7, I think a whole different part of the American electorate and a whole different constituency, many more people from the professional world looked at universities and thought, What on earth is going on? What is the problem here?”

The University of Michigan, like many other schools, was overwhelmed by violent protests that resulted in several arrests and criminal charges being filed against 11 students and alumni.

“It became clear that a part of the problem was we have these massive bureaucracies that should ostensibly promote treating people well,” Sailer continued. “And it was in fact a lot of people most involved with the DEI complex who were supporting these kind of radically anti-Israel, radically anti-West, at times, rudely antisemitic demonstrations.”

The reelection of former president Donald Trump on Nov. 5 likely played no small role in this shift either.

“I think now every elected official is aware that there’s something of a popular mandate to reform higher education, and that mandate existed before Trump was elected in 2024, but there’s also a kind of popular rebuke of the progressive identity politics,” Sailer said. “I have to think that the conversation that the University of Michigan’s regents are having about DEI would be different if there had not been this nationwide rebuke of identity politics that the election of Trump seems to represent.”

Trump has promised many reforms to the education sector, including abolishing the Department of Education entirely. The president-elect has also vowed to bring peace to Israel and Gaza and said that such efforts would help curb the rise in antisemitism in the U.S.

While several other schools have begun to dismantle DEI offices across the country, some in response to state laws barring the departments and policies, the case at the University of Michigan is unique. Most efforts thus far have been led by Republican lawmakers, such as in Texas and Florida, but in the blue state of Michigan, the university’s highest governing body is comprised almost entirely of Democrats.

“The fact that University of Michigan is an institution controlled by elected Democrats, the fact that its Board of Regents would consider doing something like this, I think it signals a broader shift,” Sailer said. “It’s a huge deal for the University of Michigan to even have this kind of reform on the table. It’s a huge deal because the University of Michigan is the exemplar when it comes to DEI. If the University of Michigan makes this decision, that marks a big shift.”

This move by the university could signal others to follow suit.

“It could be just a massive step towards broader higher education reform,” Sailer told the DCNF.

UM and the Board of Regents did not immediately respond to the DCNF’s request for comment.

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Alberta

Albertans still waiting for plan to grow the Heritage Fund

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From the Fraser Institute

By Tegan Hill

In February 2024, the Smith government promised to share a plan to grow the Heritage Fund—Alberta’s long-term resource revenue savings fund—with the public before the end of 2024. But 2025 is upon us, and Albertans are still waiting.

The Lougheed government originally created the Heritage Fund in 1976/77 to save a share of the province’s resource wealth, including oil and gas revenues, for the future. But since its creation, Alberta governments have deposited less than 4 per cent of total resource revenue in the fund.

In other words, for decades successive Alberta governments have missed a golden opportunity. When governments make deposits in the Heritage Fund, they transform onetime (and extremely volatile) resource revenue into a financial asset that can generate more stable earnings over time. Eventually, the government could use annual income from the fund to replace volatile resource revenue in the budget.

Historically, however, rules that would have helped ensure the fund’s growth (for example, a requirement to deposit 30 per cent of resource revenue annually) were “statutory” rather than “constitutional,” which meant Alberta governments could easily disregard, change or eliminate these rules once they were no longer convenient.

And they did. The government changed that 30 per cent requirement to 15 per cent by 1982/83, and after an oil price collapse, eliminated it entirely in 1987/88. Due to a lack of consistent deposits, paired with the real value of the fund eroding over time due to inflation, and nearly all fund earnings being spent, the Heritage Fund is expected to be worth less than $25 billion in 2024/25.

Again, while Premier Smith has promised to grow the fund to between $250 billion to $400 billion by 2050, we’ve yet to see how she plans to do that. Whatever plan the government produces, it should heed lessons from other successful resource revenue savings fund such as Alaska’s Permanent Fund.

The Alaska government created its fund the same year Alberta created the Heritage Fund, but Alaska’s fund is worth roughly US$80 billion (or C$113 billion) today. What has the Alaska government done differently?

First, according to Alaska’s constitution, the state government must deposit 25 per cent of all mineral revenues into the fund each year. This type of “constitutional” rule is much stronger than a “statutory” rule that existed in Alberta. (While Canada does not have separate provincial constitutions, it’s possible to change Canada’s Constitution for province-specific measures.) Second, the Alaska government must set aside a share of the fund’s earnings each year to offset the effects of inflation—in other words, “inflation-proof” the principal of the fund to preserve its real value. And finally, the government must pay a portion of fund earnings to Alaskan citizens in annual dividends.

The logic of the first two rules is simple—the Alaskan government promotes growth in the fund by depositing mineral revenue annually, and inflation-proofing maintains the fund’s purchasing power. But consider the third rule regarding dividends.

The Alaska government created the annual dividend, paid out annually to Alaskans, to create political pressure for future governments to responsibly maintain the fund. Because citizens have an ownership share in the fund, they’re more interested in the state maximizing returns from its resource wealth. This has helped maintain and reinforce robust fiscal rules that make the Permanent Fund successful.

Based on this success, if the Smith government began contributing 25 per cent of resource revenue to the Heritage Fund and inflation-proofed the principal, it could pay each Albertan a total dividend between roughly $600 to $1,100 from 2024/25 to 2026/27, or roughly $2,300 to $4,400 per family of four. And as the fund grows, so would the dividends.

Almost one year ago, the Smith government promised a new plan for the Heritage Fund. When the plan is finally released, it should include a constitutional requirement for consistent contributions and inflation-proofing, and annual dividends for Albertans.

Tegan Hill

Director, Alberta Policy, Fraser Institute
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Alberta

Wonder Valley – Alberta’s $70 Billion AI Data Center

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From the YouTube page of Kevin O’Leary

Interview with Kyle Reiling, Executive Director of the Greenview Industrial Gateway. 

“This is the only place on earth that can do something this scale”

When Kevin O’Leary heard Alberta Premier Danielle Smith reveal just how much energy Alberta has, he knew Alberta has the solution for the coming explosion in energy consumption.

Kevin O’Leary: The demand for AI is skyrocketing—and America is out of power. Enter Alberta, with abundant natural gas and a bold premier. I’m raising $70 billion to create the world’s lowest-cost, highest-efficiency data center. Hyperscalers like Tesla, Microsoft, and Google need it, and we’re making it happen. This is how you lead the AI revolution.

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