Included thereafter was a presentation on the coronavirus situation and UC Health and its strategic plan. In discussing the latter subject, the Regents got off on a tangent related to affiliations with other institutions. (This topic seemed related to past discussion of affiliation with Catholic hospitals that don't provide certain procedures such as abortion.) After some discussion, there was a sense that they had gone off on a tangent and were discussing an item that hadn't been placed on the agenda and the matter was dropped. There then followed a discussion of small business purchasing policy.
The main item of controversy was a cohort-based tuition plan which would have regular hikes in tuition pegged to inflation but fixed nominal tuition for each entering class for up to 6 years. This item was for discussion only with a decision to be made in July. EVP Brostrom noted that at present, the core funding for the educational program is supported roughly 40% from the state, 40% from state resident tuition, and 20% from other sources - mainly out-of-state tuition.
The LA Times had a summary of the discussion:
...Regents Eloy Ortiz Oakley and Lt. Gov. Eleni Kounalakis expressed dissatisfaction with UC’s branding of the plan as a way to enhance college affordability. Oakley said tying tuition increases to the rate of inflation, for instance, could result in steep new charges if consumer prices soar. Some regents questioned whether this was the right time to consider a tuition increase when UC is receiving substantial federal recovery funds and also is expecting more support from the state’s unexpected surplus of $75 billion. But Regent Cecilia Estolano said the possibility that more financial aid revenue could help lower the debt burden on students was nudging her from being initially “super skeptical” about the plan to possible support. She also noted that the plan amounted to a progressive tax, which would be a fair way to raise money for the additional faculty, staff, mental health counselors and other support that students need.
“It makes sense that those who have more ability to pay more, pay more,” Estolano said. “You can’t get the best public education in the world on the cheap and you actually have to pay for it. And you can’t educate the people of California from all walks of life without actually investing” in faculty, staff and support services. Two campus chancellors — Carol Christ from Berkeley and Kim Wilcox from Riverside — helped make that case. Christ detailed how her campus, which is heavily dependent on tuition because it lacks a medical center, has struggled to close a structural deficit for the past five years and is now facing threats to its academic excellence without small, reliable tuition increases. Wilcox, whose students are among the most diverse in the UC system but receive fewer services than many of their peers, said costs rise by 3% every year but his campus can’t cover that without more tuition dollars.
The majority of leaders at the UC system’s nine undergraduate campuses have called for tuition increases as they’ve slashed budgets, dug into reserves, borrowed funds and substantially halted hiring to address what they call one of the worst financial crises they’ve ever collectively faced, fueled by the pandemic. Regents have increased tuition just once since 2011.
Drake, who oversaw a similar tuition plan at his previous presidential posting at Ohio State University, said “real world experience” showed it increased financial aid for students and lowered their debt burdens. “UC has been a national leader in providing opportunities for students from all income levels,” he said, “and now we can be an adopter of a model that creates stability and predictability for all of our students and for the university.”
Board chair John A. Pérez told regents that they can always go back and revisit the tuition plan if it doesn’t deliver the expected benefits.
Full story at https://www.latimes.com/california/story/2021-05-13/uc-weighs-limited-tuition-increase-for-next-year
On the last point, it might be noted, Regent Cohen indicated that were the Regents to adopt such a plan, he would be very reluctant to revisit it for a long time. He would regard it as a de facto compact with students considering applying to UC.
Note: The contemplated tuition plan would go into effect in Fall 2022, not this coming fall.
As usual, we preserve the recording of the Regents meeting indefinitely, since the Regents - for no good reason - preserve it for only one year. You can watch the May 13 meeting at the link below:
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