News

| |

Now We Get Bipartisan Legislation on Pension Caps

Byuclafaculty

Assembly bill caps public worker pensions (excerpt)January 7, 2011, San Francisco Chronicle,Nanette Asimov Spooked by the University of California’s pension revolt – in which its highest paid executives are threatening to sue unless UC fattens their retirement benefits – a Democratic state lawmaker introduced a bill Thursday to prevent all public employees from gaining dramatically increased pension benefits. And Republicans are applauding. “You’re witnessing a moment of bipartisan joy,” said Assemblyman Tim Donnelly, R-San Bernardino, vice chairman of the Higher Education Committee. “I’m ashamed that I didn’t think of this myself.” The UC executives, some of whom earn more than…

| | |

Media Continues Anger on UC Executive Pension Issue: Flogging a Dead Horse?

Byuclafaculty

PropZero blog, KNBC LA, Joe Mathews, 1/6/11 University of California President Mark Yudof this week rejected a demand for a boost in pension from some of the university’s systems highest paid employees. That was the right move, but it didn’t go far enough. The request came from executives who said it was unfair their pensions would be calculated only on their first $245,000 in income. They make more. Such a request — at a time of state budget cutbacks, cuts in university offerings and big tuition hikes — was so out of line that it deserved not just rejection, but…

| |

Jerry Brown’s World May Collide With Legislative GOP World on State Budget

Byuclafaculty

As a result of last November’s election, only a simple majority is needed to pass a state budget. However, a 2/3 vote is required to raise taxes or fees. Legislative Democrats have a majority but not a 2/3 supermajority. Gov. Brown’s plan is apparently to propose a budget constrained by current revenue – which would feature major cuts – and then put a measure on the ballot that would extend temporary tax increases the legislature adopted in Feb. 2009 that will soon expire. To put a measure on the ballot, however, he needs a 2/3 vote – which means some…

|

Groundbreaking for Jules Stein Eye Institute at UCLA in 1964

Byuclafaculty

Hollywood stars – Bette Davis, Cesar Romero, Gene Kelly, and Bob Hope – turn out with architect Rodney Hemsworth at the Groundbreaking Ceremony for the Jules Stein Eye Institute. Maybe it was not surprising that Hollywood types would be prominent in the ceremony since Jules Stein headed MCA. Note: Yours truly will be out of town at a meeting Jan. 7-9 so blogging will be light in that period. The state budget will be unveiled on Jan. 10. Once you see it, you may find your eyes filling with tears. A visit to Jules Stein probably won’t help.

| |

Brown Indicates He Will Protect K-12 (or is it K-14?) From Budget Cuts If Voters Approve Tax Extension

Byuclafaculty

Reports are leaking out that Gov. Brown says he will protect funding for K-12 (or maybe K-14) if voters approve extending tax increases that were put into effect in Feb. 2009. Voters rejected extending those tax increases in an election in May 2009. But the strategy appears to be to confront voters with a Budget from Hell and then offer a repeat of the May 2009 choice as a way out of Hell. Prop 98 of 1988 has various formulas for K-14 funding which the legislature can suspend. So what is unclear in the leaking reports is whether the Brown…

| | |

Pension Rejection Hits the Press

Byuclafaculty

In an earlier post, the press release from UCOP rejecting the lifting of the pension cap for high-paid execs was reproduced. So now the story is in, where else?, the press: UC’s top leaders reject bigger pensions for top earners: Thirty-six highly paid employees have threatened to sue if benefits were not based on full salaries. The UC president and the regents board chairman support the $245,000 limit. (excerpt) Larry Gordon, LA Times, Jan. 5, 2011 The University of California system’s two top leaders on Tuesday rejected a politically controversial demand by some of the university’s most highly paid employees…

| |

Gall and Chutzpah: The Pension Editorials Continue to Flow

Byuclafaculty

The tone of the editorial below makes it clear which definition of chutzpah (see right-hand box) the newspaper is using. Monday, January 3, 2011, Editorial The Riverside Press-Enterprise Pension gall The tallest ivory towers at the University of California apparently have no windows, or top administrators would see that they are wildly out of touch with reality. UC executives should drop their insulting quest for bigger retirement benefits. And if not, the university’s Board of Regents should flatly reject a proposal the university cannot afford. A group of 36 UC executives sent a letter to regents last month, in advance…

| | |

Yudof Declares There Is No Legal Pension Obligation to Raise Ceiling for High-Paid Execs

Byuclafaculty

The following news release was issued today by UCOP:UC Newsroom Statement on executive pension benefits http://www.universityofcalifornia.edu/news/article/24746 Date: 2011-01-04Contact: University of California Office of the PresidentPhone: (510) 987-9200 In light of recent media reports about a letter by 36 University of California executives regarding pension benefits, Board of Regents Chairman Russell Gould and University President Mark Yudof today (Jan. 4, 2011) issued the following statement: Ten years ago the University of California sought a determination from the IRS that a proposed new method for calculating pension benefits complied with federal tax rules. The new method would have resulted in higher pension…

| | |

UC Executive Pension Issue Discussed on Local Radio Program

Byuclafaculty

KPCC’s Patt Morrison interviewed Nanette Asimov of the San Francisco Chronicle who broke the story on the demand by high-paid UC executives for lifting the cap on their pensions. One tidbit that comes out is that – so far at least – no one has located a Regents vote in 1999 that said the pension cap would go up if the IRS approved. (The IRS did approve several years later.) Apparently, a committee of the Regents endorsed the idea back then, but if there was no vote of the full body, it is difficult to see how a legal commitment…