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The Shrinking UC System: What The Budget Cuts Mean


Aired 1/21/11

The University of California's Board of Regents capped its three-day meeting in San Diego this week with a dire message: The UC system that put California on the map could unravel. Regents are now rethinking the size and nature of the UC system.

— Charts and graphs were projected on big screens in a dark auditorium at UC, San Diego.

The information showed how Gov. Jerry Brown’s proposed budget cuts will affect the 10 campuses of the UC system.

The Shrinking UC System: What The Budget Cuts Mean
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Officials had somber faces once the lights were turned on.

“I feel like a passenger on the Titanic being told by the captain how long it will take before the boat sinks,” said Rex Hime, an ex-officio UC regent.

UC is facing $500 million in proposed cuts. That’s the largest hit to UC's budget in recent history.

But the regents say the problem is compounded by an additional $500 million deficit to cover pensions and rising utility bills. Combined, UC is staring down a $1 billion budget gap.

A few regents think lobbying the governor and the state legislature might help lessen the financial blow.

But Regent Frederick Ruiz said it is time to face the music.

“We, as regents, need to assume that we are not going to get the $500 million. The stakeholders need to know - whether it is the faculty, the students or employees - they need to know their livelihoods are at risk,” Ruiz said.

Higher education is bearing the brunt of the governor’s proposed budget cuts.

The California State University system is also facing a $500 million cut. Community colleges would lose $400 million.

UC regents fear the three main tenants of a UC education – affordability, access and quality – will be severely affected.

Regent Richard Blum said UC will have to redefine its purpose and mission.

“We have to decide what the university is going to be tomorrow," Blum said. "We have to decide who (the UC system) is going to be. How we are going to deal with the problem? We don’t have time to screw around with it.”

University of California President Mark Yudof said proposed budget cuts to hi...
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Above: University of California President Mark Yudof said proposed budget cuts to higher education will severely affect the UC system at the UC Board of Regents meeting held in San Diego.

Regents are already hinting at the possibility of laying off thousands of people.

Enrolling more out-of-state and out-of-country students would also provide UC with more money because these students pay higher fees.

Analysts say the result might be a smaller UC system with fewer students who are actually from California.

Meanwhile, in-state students are urging the regents not raise their tuition and fees. Students are now paying more money into the UC system than the state of California.

UC President Mark Yudof said the regents do not want to raise fees again, but all options have to be on the table.

“We can’t give up on quality,” Yudof said. “Reducing UC to an average university system in America, I'm not for it. It is not good for California. Who’s going to do the next breakthroughs? It’s not going to be done by corporations in this state.”

Even so, regents say cutting classes and eliminating some majors at UC campuses are other possibilities. Regents are also warning of cuts to student services, caps on enrollment and a decrease in financial aid.

UC, San Diego student Alison Lekander said once again, it seems like the financial crisis is on the backs of students.

“It’s all a business,” she said. “Everything seems like business to try to get more money out of the student when we should be paying less.

Yudof is giving the 10 UC chancellors six weeks to determine cost cutting plans for their campuses.

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Avatar for user 'Transparency'

Transparency | February 12, 2011 at 5:47 p.m. ― 6 years ago

Budget cuts not an issue for the spending habilts of UC Chancellor Birgeneau. Just how widespread is the budget crisis at University of California Berkeley? University of California Chancellor Robert J Birgeneau’s ($500,000 salary) eight-year fiscal track record is dismal indeed. He would like to blame the politicians, since they stopped giving him every dollar he has asked for, and the state legislators do share some responsibility for the financial crisis. But not in the sense he means.

A competent chancellor would have been on top of identifying inefficiencies in the system and then crafting a plan to fix them. Competent oversight by the Board of Regents and the legislature would have required him to provide data on problems and on what steps he was taking to solve them. Instead, every year Birgeneau would request a budget increase, the regents would agree to it, and the legislature would provide. The hard questions were avoided by all concerned, and the problems just piled up to $150 million of inefficiencies….until there was no money left.

It’s not that Birgeneau was unaware that there were, in fact, waste and inefficiencies in the system. Faculty and staff have raised issues with senior management, but when they failed to see relevant action taken, they stopped. Finally, Birgeneau ($500,000 salary) engaged some expensive ($3 million) consultants, Bain & Company, to tell him what he should have been able to find out from the bright, engaged people in his own organization.

In short, there is plenty of blame to go around. Merely cutting out inefficiencies will not have the effect desired. But you never want a serious crisis to go to waste. An opportunity now exists for the UC President, Board of Regents, and California Legislators to jolt UC Berkeley back to life, applying some simple oversight check-and-balance management principles. Increasing the budget is not enough; transforming senior management is necessary. The faculty, Academic Senate, Cal. Alumni, financial donors, benefactors await the transformation of senior management.
The author, who has 35 years’ consulting experience, has taught at University of California Berkeley, where he was able to observe the culture and the way senior management work.

(Cal (UC Berkeley) ranking tumbles from 2nd best. The reality of University of California Berkeley’s (UC Berkeley) relative decline are clear. In 2004, for example, the London-based Times Higher Education ranked UC Berkeley the second leading research university in the world, just behind Harvard; in 2009 that ranking had tumbled to 39th place.)

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