Nice post yesterday at Balloon Juice. Freddie slightly mixed up a non-profit board and the University of Georgia, but quite a linkfest.
The secondary story : In 1980, the student newspaper at the University of Georgia split from the University. They formed a non-profit. Board of the non-profit hired some full-timers. Full timers & 1 board member decided to take charge. Students took a hike. Board member Ed Stamper fell on the sword. Nice story about the importance of solidarity, but not exactly administrative bloat.
More central to the tale, there's a link to the Washington Monthly Ginsberg story. (Beware: EVIL Scott Brown ad embedded! Or Romney "You didn't build that" BS. Sad, Charles Peters). Lots of comments at Balloon Juice, which are worth reading. Although they may obscure the lesson : In union, there is strength. Faculty & students together ARE the University, and will always be able to slough off the Administration.