State Budget

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The Regents Are Coming; The Regents Are Coming

Byuclafaculty

The Regents will be meeting next week, May 17-18. By way of a preview, here are some excerpts from background documents for the Regents Committee on Finance, slated for May 18. Excerpt 1: Full document at http://www.universityofcalifornia.edu/regents/regmeet/may11/f6.pdf Compensation. The baseline model assumes annual compensation cost increases of three percent for both represented and non-represented staff and faculty, in addition to the regular academic merit salary increase program, totaling $533 million by 2015-16. While compensation likely will continue to lag substantially behind the market, three percent increases are critical to retain and recruit the faculty and staff needed to maintain UC’s…

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If You’ve Got a Few Hours to Spare Staring at Your Computer Screen: 2 Suggestions

Byuclafaculty

The Economist magazine and the Lewis Center of the Luskin School of Public Affairs sponsored a forum at UCLA on April 26 on governance problems in California. You can see a video below (which runs about an hour and a half). Yours truly is at minute 45 to minute 51 and at later points. The forum centered on the Economist issue of that week which focused on California and tended to put the blame for current dysfunction in Sacramento on direct democracy – the initiative process. Earlier, former UCLA Chancellor gave the 2011 Bollens-Ries-Hoffenberg lecture in which he outlined his…

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State Spending Cap Initiative: Is It for Real?

Byuclafaculty

Related to the prior post is a second initiative – also one that was submitted in connection with GOP legislative negotiations with the governor – that would cap state expenditures based on a formula linked to inflation and population growth. As with the pension initiative, it is unclear whether there is funding to obtain the needed signatures. This initiative in effect proposes to return to the Gann limit that was approved by voters in 1979 as the “son of Prop 13” that had been approved the year before. The Gann limit on state spending was largely gutted by Prop 98…

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Chancellor Block Radio Interview on the UCLA Budget

Byuclafaculty

On May 4, Chancellor Gene Block was interviewed on “Which Way LA?” concerning the UCLA and higher ed budget. He had written an op ed in the LA Times with the charge that folks in the legislature who had benefited personally from subsidized California educations were not adequately providing funding now. In his radio interview, he took a softer line. You can hear the program at the link below. The Block portion runs from minute 7 to minute 14:17:

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Severance Pay from Oil?

Byuclafaculty

A new ballot initiative is going into circulation which imposes an oil severance tax for education, including higher ed. It apparently has some level of endorsement from community colleges. However, there is no money at this point for signature gathering. Hiring signature-gathering firms for an initiative costs $1-$2 million. The backers say they will use students, Facebook, etc. So far, no one has gotten anything on the ballot in recent memory without hiring signature-gathering firms. Of course, getting something on the ballot is only a first step. You then need lots more money for TV ads, particularly if you take…

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Time to Kick the Can Down the Road?

Byuclafaculty

When he was governor, Arnold Schwarzenegger use to speak pejoratively about “kicking the can down the road” when considering state budget remedies. In fact, when he came into office in 2003-04, he basically borrowed his way out of the budget crisis of that time that he inherited. Such borrowing effectively kicks the can down the road. Right now, no one in Sacramento seems to have a Plan B after Governor Brown’s plan to put tax extensions on the ballot seems to have failed for lack of a 2/3 vote. The governor is being pushed, as an earlier post noted, to…

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Where’s the Money?

Byuclafaculty

The legislature is in the habit of recommending what UC should be doing, but not offering to pay for it. Below is a recent example which yours truly became aware of from an article in the “educated guess” blog today (excerpt): (Darrell) Steinberg, the Senate president pro tem, is the author of SB 611, which would write into law the mission of a new UC institute charged with overseeing the design of career tech courses satisfying the entrance requirements to UC and the California State University system. It’s in a package of three Steinberg bills that would significantly reshape K-12…

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PPIC April Poll Suggests Uncertain Outlook for Tax Propositions

Byuclafaculty

Here are two charts from the latest PPIC poll. The poll dealt mainly with issues of K-12 education and finance. However, Californians have long had a warm spot for K-12 and so framing budgetary issues as linked to K-12 (which they are, of course) probably makes voters more likely to support taxes than otherwise. There remains majority support for calling a special election as proposed by the governor. However, such an election can no longer be called before the end of the fiscal year (before June 30). So that means what were to be billed as tax extensions become tax…

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Lonesome Travelers at UC?

Byuclafaculty

The governor just issued an executive order banning non-essential travel of state employees under his direct authority. UC is not under his direct authority but the order contains the following language: IT IS REQUESTED that other entities of State government not under my direct executive authority conduct an analysis to determine the discretionary nature of their travel in order to reduce unnecessary costs. The full order is at http://www.gov.ca.gov/news.php?id=17008 Exactly what UC will do in response is not known at this time. But you might assume UC travelers will be lonesome as fewer folks take trips:

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The Economist Takes On California

Byuclafaculty

The Economist magazine – from which the photo on the left derives – offers its solution to California’s governance and budgetary woes this week. Basically, it says there is too much direct democracy – ballot initiatives, etc. A conference this evening at UCLA – on which yours truly is a panelist – is devoted to the Economist’s proposition (pun definitely intended!). See our earlier post for details at: http://uclafacultyassociation.blogspot.com/2011/04/andreas-kluth-of-economist-leads-ucla.html Links to the Economist’s California report are at http://www.economist.com/node/18586520 and http://www.economist.com/node/18563638