They didn’t used to have to deal with FAR and DFARS compliance, export compliance, cybersecurity, iEdison reporting, and so on. Nevertheless, the administrative component of F&A indirects has been capped at 26% for years. The universities have to fill the budget gap with other funds (and no, not tuition, that is not used for the research enterprise).
This is exactly it. A modern university has needs that are far greater and demanding than one of 50+ years ago. And generally, the people doing the ground-level work are underpaid and overworked. If anything, there may be a glut of VP and C-level positions, but they don’t make up the bulk of employees.
