UC budget crisis

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Tax Initiative War Shaping Up Could Hurt UC

Byuclafaculty

There are three tax measures on the November ballot.  Prop 30 – the governor’s tax initiative – is a temporary increase in income taxes and sales taxes.  If it doesn’t pass, there will be trigger cuts including a $250 million cut to UC.  See prior blog posts for info including the Regents’ likely endorsement of Prop 30.  The tax proposition most in competition with Prop 30 is Prop 38 sponsored by Molly Munger.  Earlier in the game, the governor tried to make a deal with Munger so that her initiative would not appear.  That attempt failed.  Now it is being…

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A One-Sided Deal?

Byuclafaculty

At their July meeting, the Regents are likely to endorse the governor’s tax initiative in exchange for certain promises from “senior” people in the governor’s office.  Specifically, a four-year compact with UC is on offer assuming that the initiative passes in November.Below the relevant parts of the deal are described, taken from a document on the Regents’ agenda.  Note that a) the compact is unenforceable and we had a bad experience with a supposed compact with the previous governor and b) the legislature is seemingly not involved even though the legislature is where budgets are enacted.Although the deal encompasses a…

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Will the UCLA Hotel Pass the Sniff Test in November?

Byuclafaculty

We noted in a blog posting yesterday that the UCLA proposal for a 250-room hotel/conference center is back on the Regents’ July agenda.  Also on the agenda is discussion of the recently-enacted state budget and the governor’s November tax initiative.  The Regents are likely to endorse the ballot initiative which, as prior posts have noted, is not polling as well as it should at this stage. So an interesting question for the Regents is whether the hotel passes the sniff test for wise spending of UC (and UCLA) resources.  Given all the fiscal difficulties UC has faced in recent years,…

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Poll Shows Narrow (Maybe Too Narrow) Support for Governor’s Tax Initiative

Byuclafaculty

Above is an excerpt from a Field Poll released today that indicates 54% support for the governor’s tax initiative.  The Munger initiative (a different tax increase for schools) and the Steyer tax initiative (close corporate loophole) are losing.  Although 54% is sufficient to pass an initiative, the campaign pro and con has yet to begin.  Folk wisdom is that a controversial initiative should start with at least 60% support since some support will erode as the anti-initiative campaign develops.  So 54% at this time may not be enough in November.  If the initiative doesn’t pass, there will be trigger cuts…

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A Happy Fella

Byuclafaculty

In a June 29 report to the Regents, President Yudof recounts the impact of the new state budget on UC and notes other issues still pending at the legislature.  Presumably, all of these developments will be reviewed at the upcoming Regents meeting later this month. [Thanks to David Lopez for passing it along.] The Yudof report praises our friend in Sacramento (governor+legislator) for fiscal beneficence.  When you consider that we froze (or the Regents are about to freeze) tuition today for a promise of $125 million in next year’s budget, you might think the praise is a bit effusive.  You…

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Yudof on Tuition Freeze: We will find a way

Byuclafaculty

Statement on UC funding in budget legislation signed by Gov. Brown by Mark G. Yudof on Thursday, June 28, 2012 The budget legislation signed by the Governor is a significant step toward bringing stability to public higher education funding in California. Based on the incentives in this budget package, I intend to recommend to the Board of Regents that our current tuition levels remain in place for the upcoming year. As always, it is up to the regents to decide the matter. We would have preferred that state funds for a tuition buy-out begin with the coming budget year of…

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The New State Budget While in Transit

Byuclafaculty

Yours truly is currently in transit (traveling) through July 5 – hence, the transit picture at right.  Thus, I can only give the newly-signed state budget cursory attention.  As far as UC is concerned, however, there is no new news relative to prior posts on this blog.  If voters don’t pass the governor’s tax initiative in November, there will be trigger cuts with UC losing $250 million.  As noted in prior posts, UC tuition is frozen for the time being thanks to an added $125 million from the legislature. Below is a table from the official budget documentation.  In the…

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Playing Catch-Up on the State Budget

Byuclafaculty

As prior posts on this blog have noted, there are all kinds of last-minute developments going on regarding the state budget that affect UC including a tuition freeze in exchange for more funding – conditioned on voter approval in November of the governor’s tax initiative. While these developments were occurring, nothing seemed to be emanating from UCOP concerning what these changes in the budget might mean, what view UCOP had of them, etc.  As of this writing, there is still nothing on the UCOP website about the budget changes. However, a letter from President Yudof to the Regents began circulating…

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3rd Posting on Budget Deal With Tuition Freeze; The Aftershock

Byuclafaculty

This is our third posting on the budget deal now moving through the legislature that contains extra money for UC and CSU conditioned on a tuition freeze – all of which is conditioned on voters approving the governor’s November tax initiative. Concerns are being expressed by both higher ed systems about the proposed budget.  CSU has already enacted a tuition increase which it would have to undo.  UC has not made a tuition decision but doesn’t like its hands tied in principle.  In theory, both systems set tuition independently of the legislature with UC having constitutional authority.  On the other…