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Friday, September 18, 2020

It would be nice to have a detailed NET accounting


Below is an excerpt from an article in the Bruin on revenue loss due to the coronavirus crisis by UC. Look, we all know that UC is losing money due to the situation. But some of it has been recovered from the federal government. Other federal money may yet come. The problem is that UC tends to cite gross losses without the offsetting federal receipts. What is relevant is the NET loss after federal reimbursement. How about a simple table by fairly detailed category showing the gross loss, federal offsetting receipts received, federal requests pending, and reasonable potential future federal reimbursements? By "fairly detailed," we mean more detailed than the health vs. "campus" division in the Bruin article. Example for the "campus": Tuition (international, other out-of-state, in-state), dorm rent, food service, etc.).

The University of California is pursuing federal funding to alleviate its nearly $2 billion revenue loss caused by the COVID-19 pandemic.

The UC system has incurred high costs since the beginning of the pandemic and hopes to obtain additional funding if the federal government passes new stimulus packages, said UC spokesperson Stett Holbrook in an emailed statement.

The Health and Economic Recovery Omnibus Emergency Solutions Act, which is currently stalled in the United States Senate, could give states a total of $27 billion to help public universities offset costs incurred from the pandemic. These funds would be allocated to institutions based on each institution’s proportion of Pell Grant recipients and total student enrollment, according to the HEROES Act. The amount of funding the UC could get from the HEROES act is not yet determined.

The UC already received $761.1 million from the Coronavirus Aid, Relief, and Economic Security Act as of July, Holbrook said. The act allocated $137.4 million to the campuses, $130 million toward student financial aid and $493.7 million toward UC Health.

From the beginning of the pandemic in March through July 31, the UC lost $1.9 billion in expenditures and revenue, Holbrook said. Nearly $900 million of losses came from the UC campuses and $1 billion came from the UC Academic Health Centers, Holbrook said...

Full article at https://dailybruin.com/2020/09/17/uc-system-experiences-nearly-2b-loss-as-a-result-of-pandemic-seeks-federal-aid

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