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Thursday, June 16, 2011

At Last, Something Is Heard

We at this blog have been waiting for UCOP and the Regents to get involved in the state budget. It's late in the game - a simple-majority budget was passed last night that (as previously noted on this blog) chops another $150 million from UC. But at last, we are hearing from UC's powers-that-be.

Gov. Brown could veto the budget. If he signs it, he could cut spending in particular lines but can't raise spending. However, other bills can be enacted that modify the budget. In any case, the UCOP press release reproduced below in italics could be the start of more activism. Let's hope.

What has been needed all along is a deal between UC and the state (governor, legislators, Legislative Analyst, Dept. of Finance, interest groups). Such a deal would not be a de facto one-way commitment by UC (as under the old "compact" with the previous governor). It would have contingencies indicating that for X (dollars) from the state UC does Y (tuition subsidy, access, etc.). But if X is reduced, Y is reduced accordingly. If the state continues to insist it has no responsibility for the UC pension, that insistence is, in effect, a reduction in X.

For its roughly $2.5 billion, the state gets a university with a $20 billion budget that includes a significant inflow of funds from the feds. No other state program, not one!, has a multiplier effect on the state's economy even approaching that mark. And that immediate multiplier does not include longer term effects on state growth and labor force enhancement.

Yudof, Gould respond to legislators' budget plan

Date: 2011-06-15
Contact: UC Office of the President
Phone: (510) 987-9200

In response to the Legislature's budget plan, University of California President Mark Yudof and Board of Regents Chairman Russell Gould issued the following statement today (June 15):

The new budget plan released and approved by the Legislature within the last 24 hours is unacceptable for our state's public universities. It's unacceptable to our students and their families, and it should be unacceptable to all Californians. We oppose its implementation, and will marshal the voices of people throughout the state to urge that Governor Brown restore our funds.

Our message to Governor Brown and the Legislature is simple: No more cuts to higher education. We cannot let this plan stand.
UC, like the California State University, already has taken steps to absorb a $500 million cut with substantial impacts to programs on the campuses. An additional $150 million in cuts will impair our ability to provide access at an affordable price while preserving academic excellence and allowing students to complete their degrees in a timely way.

If this budget plan stands, the likely result will be a double-digit tuition increase on top of the 8 percent hike already approved for next year. And to require UC to carry a $500 million "loan" balance into fiscal year 2012-13 because the state can't provide UC with the fully budgeted allocation will only force the university to incur extra costs that are passed on to students and their parents. In addition, this budget plan poses a threat to UC and higher education in future years as it fails to achieve a sustainable, balanced budget. Without a stable, predictable funding base, our long-term quality is seriously threatened.
The world-class education, research and public service provided by the University of California fuel the economy and contribute to the well being of millions of people throughout the state. This budget plan would be bad for all Californians. That's why we will fight it.

The release is at http://www.universityofcalifornia.edu/news/article/25753

Anyway, at last:


UPDATE: Gov. Brown vetoed the budget today 6-16-11.

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