News

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Mystery Phrasing: Budget Calls for Minimizing Tuition and Enrollment Impacts But What Does That Mean?

Byuclafaculty

Excerpt below in italics from the UC portion of the governor’s proposed budget, page 150. See earlier blog entry for link to budget. What does the statement mean? Minimizing tuition and enrollment impacts is not the same thing as averting them (or trying to prohibit them). Targeted Reductions — A decrease of $500 million in 2011‑12 to reflect necessaryfunding reductions to help resolve the budget deficit. These reductions are intendedto minimize fee and enrollment impacts on students by targeting actions that lowerthe costs of instruction and administration. The Administration will work withthe Office of the President and the Regents, as…

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Budget Fallout Begins

Byuclafaculty

Not surprisingly, the budget released by Jerry Brown has produced responses. The prior post contains UC President Yudof’s letter of disappointment. The Brown strategy is to put tax extensions on the ballot before June. Normally, given the late date, putting something on the ballot would require a 2/3 vote and the Democrats – while a majority – do not have 2/3. Republicans have now announced they will not provide the missing votes. There has been a hint of some way of avoiding the need for a 2/3 vote by modifying a proposition that was previously passed. Whether the legal issues…

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Preliminary Overview of the Brown Budget

Byuclafaculty

The Brown budget, based on its budget documents, can be rearranged to break down the problem into manageable pieces. I cannot disentangle “revenue and transfers” – a mischievous term because of the word “transfers” – from what we think of as revenues (taxes, fees, and a few miscellaneous sources). Moreover, the “fund balance” in the general fund is not quite the same as a reserve. (To get the reserve, subtract $770 million from every entry below labeled “fund balance” on the tables.) But the breakdown below will help. (Apologies for odd formatting that the blog program creates.) Highlights First, Brown…

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Countdown to the State Budget and More Speculation on the Forthcoming Brown Plan

Byuclafaculty

In the final countdown to Governor Brown’s budget message at 11 AM today, Dan Weintraub – longtime columnist for the Sacramento Bee and now with healthcal.org – suggests that there could be a variation on the Budget from Hell strategy we have noted in earlier posts. Under that strategy, Brown presents a Budget from Hell which is all cuts and no added revenue. He then puts on the ballot by June, tax extensions of the Feb. 2009 temporary tax increases. (See the earlier posts for more on possible roadblocks and work-arounds to getting such a proposition on the ballot.) The…

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The Affirmative Action Controversy: Evidence of Strategic Behavior in Texas University Admissions

Byuclafaculty

Under Prop 209, affirmative action in public university admissions is banned in California. As many will know, Prop 209 evolved out of a UC Regents action in the 1990s. (Subsequently, after Prop 209 passed, the Regents dropped their regulation. But the change had no effect since Prop 209 remained in effect.) Over the years, various approaches have been proposed to increase minority representation in UC enrollment. One approach, found in Texas, is to take the top X percent of high school grads by high school rather than in all high schools combined. In Texas, X = 10%. A working paper…

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Drip Drop: More Leaks on State Budget Indicate UC is Targeted

Byuclafaculty

As noted in prior posts, governors typically leak out the outlines of their budget strategies in advance of the official unveiling. The official unveiling – by constitutional mandate – is Monday, Jan. 10. The leaked item below from the Sacramento Bee today indicates explicitly that UC will not be spared: Anatomy of Brown’s budget plan (excerpt) Jan. 09, 2011 The budget Jerry Brown will propose Monday includes deep program cuts, a June election to extend tax increases and a broad reordering of state and local government to close a deficit estimated at $25 billion to $28 billion, according to sources…

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Buried Lede: A way around the 2/3 barrier?

Byuclafaculty

From Wikipedia: Verb: to bury the lede: (idiomatic, US, journalism) To begin a story with details of secondary importance to the reader while postponing more essential points or facts. As prior posts have noted, thanks to the voter last November, a state budget – but not a tax or fee increase – can be passed by a simple majority of the legislature. The strategy for Brown appears to be to present a no-tax Budget from Hell, pass it, and then put a proposition on the ballot by June to extend the tax increases of Feb. 2009 that are due to…

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Will Controller’s Report Undermine Brown Budget Strategy?

Byuclafaculty

Gov. Brown will release his budget on Monday. Meanwhile, the state controller has issued figures on the state’s cash receipts and expenditures through December, i.e., half way through the fiscal year. The figures show revenues up almost a billion dollars relative to projections made when the budget was signed (late). You can find the figures and analyses at : http://www.sco.ca.gov/Files-ARD/CASH/fy1011dec.pdf http://www.sco.ca.gov/Files-EO/01-11summary.pdf There will be a temptation to say the fiscal problem is over or is getting better or will take care of itself. If so, the strategy of presenting a Budget from Hell and then putting tax extensions on the…

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LA Times Characterizes Pension Demand as “Gimme, Gimme”

Byuclafaculty

LA Times Editorial: Tone-deaf at UC (excerpt) UC is rightly balking at granting additional retirement perks to about 200 highly paid administrators. A group of highly paid executives at the University of California has adopted an unseemly attitude best described as “gimme, gimme.” Although each of them already earns at least $245,000 a year, along with generous pension benefits, they’re threatening to sue if the university, which has imposed hefty tuition increases on its students over the past two years, doesn’t give them more. …Legislation has been introduced to take away some of UC’s historic independence from state government. Those…