UC budget crisis

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Upcoming Events in January

Byuclafaculty

Under the state constitution, Governor Brown will release his budget proposal for 2014-15 at the end of next week.  In the past, bits and pieces were often leaked to the news media ahead of the formal announcement.  So far, that hasn’t happened – which might just mean that with the current budgetary calm, there is nothing shocking to leak, including about the UC budget.  There will also be a “state of the state” address to the legislature by the governor which will touch on whatever the governor has in mind – who knows? – in this election year. The UC…

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Yesterday’s news

Byuclafaculty

Christmas day tends to be a slow news day.  However, for those who didn’t see it, the LA Times carried a front page story about UC’s online offerings which allow cross-campus credits.  You can find the article at: http://www.latimes.com/nation/la-me-uc-online-20131222,0,6798231.story Blog readers will be familiar with these offerings.  We noted in a prior post that UCLA seems to be a taker rather than a giver in this endeavor.  That is, other campuses’ online courses are available to UCLA students.  But UCLA is not offering courses to the other campuses.  Berkeley, Irvine, Davis, and Riverside seem to be the offerers.   Now, how…

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Wait and See

Byuclafaculty

We posted earlier about general plans for the state budget by the legislative Democrats which promise “more” for higher ed and UC than the Legislative Analyst’s projections seemed to imply.  It is unclear if there is more than what the governor will propose in early January. Below are two slides from a presentation by the legislative Democrats.  But wait and see is probably the best advice at this moment.  Note that the projections all assume uninterrupted economic expansion which is hard to guarantee. You can find the full set of slides at http://asmdc.org/issues/budget-blueprint/images/2014-15-blueprint-for-a-responsible-budget-v7cw.pdf

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We Got a Mention

Byuclafaculty

Maybe not so fast An earlier post on this blog described the recent Legislative Analyst’s Office (LAO) report that projected that, with a combination of continued economic growth and Prop 30 revenues while they are in effect, California’s “structural” deficit had ended.  We also noted that included in the LAO projections was what me termed an ungenerous assumption about spending on UC.  We have also been posting excerpts from Regents meetings in which the governor and Speaker Pérez have also made ungenerous remarks.  [Pérez, however, is now in the race for state controller and indicated that a transition to a…

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New Normal for UC in the UCLA Anderson Forecast

Byuclafaculty

Above are two charts from yesterday’s UCLA Anderson Forecast. [Click on them to enlarge and get a clearer image.]  There is a much overused phrase nowadays: the “new normal.”  But when you combine those two charts with the chart below (slightly modified) from the recent Legislative Analyst’s report on the state budget outlook, the phrase takes on special meaning for UC. As can be seen on the Forecast charts, California’s economic base was hard hit around 1990 by the end of the Cold War.  Its population stopped growing relative to the nation as a whole.  And it lost jobs as…

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We’re Not Alone in Pointing to the Risks of Open-Ended Capital Projects

Byuclafaculty

Vannevar Bush From: The Endless Frontier: Reaping what Bush Sowed?   by Paula Stephan (pp. 33-34)* NBER working paper 19687 (Nov. 2013) Excerpt: Overexpansion of research facilities In recent years, universities have gone on a building binge, constructing a substantial amount of new research space which led to a 30 percent increase in net assignable square feet for research between 2001 and 2011. Most of this increase is for facilities in the biological, biomedical and health sciences—a response of universities to the doubling of the NIH. Some of this space has been paid for by private philanthropy. At MIT, for…

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Lessons from Berkeley’s White Elephant Stadium for UCLA, the Regents, and UC?

Byuclafaculty

People keep noticing Berkeley’s White Elephant money-draining stadium – one of the grand capital projects that the Regents routinely approve based on pretty slides and business plans offered by the campuses.  Peter Schrag in the San Francisco Chronicle today ties the low graduation rates of Berkeley athletes with the stadium: …Fueling the… issue is the chronic matter of cost – what the university kicks in to the sports program – and what someone called “its gold plated” spending. Brian Barsky, a Berkeley computer science professor and vocal critic of the athletics program, says between 2003 and 2011, athletics “drained campus…

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Maybe the Regents Finally Got the Attention of the Governor on the UC Pension Issue

Byuclafaculty

We noted in a post yesterday that the LAO was forecasting rosy budget times ahead for the state but nonetheless seemed to want a budget freeze for UC.  Today, the news media are full of statements by Gov. Brown warning the legislature not to party and to behave frugally.  We also noted in prior posts on the recent Regents meeting that the Regents were somewhat bolder with the governor.  After the usual thank-you-thank-yours for Prop 30, they passed a budget proposal with more money than the governor wanted and pointed especially to the imbalance whereby the state automatically funds the…

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LAO Puts Higher Ed in the Freezer

Byuclafaculty

The Legislative Analyst’s Office (LAO) released its budget outlook for the coming year and the next few years.  Good cheer generally, except for higher ed.  Revenue is up more than projected.  (Recall the governor insisted on “conservative” forecasts last June.)  Spending is up, too, but the net points to a rising state reserve.  Indeed, the LAO simulated a mild recession and thinks we could pull through without another calamity. However, when in comes to spending on higher ed, UC is frozen at $2.8 billion indefinitely.  No adjustments for inflation and enrollment growth (which LAO doesn’t think will happen based on…

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Listen to Regents Meeting of Nov. 14, 2013

Byuclafaculty

The November 14 meeting of the Regents opened with public comments.  These included concerns over staffing and safety at UC hospitals, a Berkeley city councilman who called for pension caps on high-paid UC executives, students advocating fossil fuel divestment, concerns about student costs and debt, and spending on “amenities” for students at UC. The Committee on Finance approved budgets for operations and capital after extensive discussion and back-and-forth with Governor Brown who said that UC was asking for $120 million more than it was going to get.  There was a bit more push back from Regents and administrators with regard…