UC budget crisis

| | |

Budget Signed: Smile But Then Scroll Down

Byuclafaculty

It was generally all smiles and laughter at the state budget signing this morning as the photo above shows.  Contrast that photo with the one below at the 2011 budget signing when the governor had to sign a budget – after getting no GOP support for putting a tax measure on the ballot – that assumed a phantom $4 billion in revenue to make things seem in “balance.”  No smiles there. In any case, there appear to be no surprises for UC in the budget. [But see the updated post above on the governor’s veto of his own online education…

| | | |

Budget Enacted – Details & Vetoes to Come

Byuclafaculty

The legislature has passed a state budget which now goes to the governor for signature (he will) and line-item vetoes (some will likely be made).  Thereafter, there should be formal releases of the details by the Dept. of Finance and the Legislative Analyst’s Office (LAO). In the meantime, the Sacramento Bee has a summary of highlights.  It includes for higher ed: Proposes an average 5 percent general fund increase to California State University, the University of California and community colleges. No fee increases are envisioned through 2016-17. Authorizes scholarships, beginning in the 2014-15 academic year, for UC and CSU students…

| | |

Gov. Jerry Brown’s university plan is left unfinished in budget

Byuclafaculty

That’s what the headline in the LA Times says.  It goes on to say: [excerpt] The final spending plan does not include the governor’s proposal to tie new money for public universities to specific requirements like improving graduation rates and increasing the number of transfer students from community colleges. Nor will the plan automatically cut funding if tuition is increased. The changes emerged after negotiations with lawmakers and officials at the University of California and California State University, who resisted much of Brown’s proposal. For now, universities will simply be required to track nine different benchmarks… Full story at http://www.latimes.com/news/local/political/la-me-pc-jerry-brown-california-universities-20130612,0,6175034.story…

| | | | |

Want a Riverside Med School? Legislature Says (Commands?) Do It Yourself

Byuclafaculty

There has been ongoing agitation from UC-Riverside and UC for the state to put up money for a med school.  As bits and pieces about the state budget leak out, it appears that the legislature has not provided extra money but instead has told UC to take it out of its general allocation.  Apparently, the legislature doesn’t view this matter as a suggestion; more of a command. From the Riverside Press-Enterprise:The Legislature’s budget conference committee late Monday altered the funding mix for a school of medicine at UC Riverside, eliminating a $15 million augmentation but directing the UC system to…

| | |

Deal Reportedly Reached on the State Budget Between Legislature and Governor

Byuclafaculty

From the governor’s website: Governor Brown Issues Statement on Budget 6-10-2013: SACRAMENTO – Following action from the Joint Legislative Conference Committee on the Budget this evening, Governor Edmund G. Brown Jr. issued the following statement:  “The Legislature is doing their job and doing it well. It looks like California will get another balanced budget and, very importantly, educational funding that recognizes the different needs of California’s students.” Source: http://gov.ca.gov/news.php?id=18087 The Sacramento Bee indicates that a) the deal is based on the governor’s more conservative revenue estimates as compared to the Legislative Analyst’s numbers* and b) there is (some) money for…

| |

Legislative Deadline for State Budget is Saturday

Byuclafaculty

This week is deadline week for the legislature to pass a state budget.  The formal deadline is midnight, Saturday, June 15.  As we have noted in earlier postings, there is unlikely to be any budget surprise for UC.  Possibly, there could be some funding beyond the governor’s May revise proposal for student scholarships and Cal Grants.  As previously noted, most of the inconsistencies between the assembly and senate budgets involve K-14 and social programs.  The two houses are using a more optimistic projection of revenues than the governor. Nonetheless, as negotiations proceed, they could reach a fever pitch by Saturday night:

| |

Cheap, Cheap

Byuclafaculty

Poll results from today’s LA Times: …Among the registered voters who participated in the survey, 59% said they agreed with the idea that increasing the number of online classes at California’s public universities will make education more affordable and accessible. However, 34% expressed fears that expanding online classes will reduce access to professors, diminish the value of college degrees and not save money… The poll found substantial opposition to another possible campus change: increasing the share of students from other states and nations. Even though non-Californians pay much higher tuition, 57% of the poll respondents said that adding out-of-state students…

| | | |

The Three State Budgets

Byuclafaculty

Last Friday, there was a legislative hearing on the current three versions of the state budget for 2013-14.  There is the governor’s “May Revise” proposal and two separate proposals by the state assembly and the state senate.  The two legislative versions rely on a revenue forecast by the Legislative Analyst’s Office (LAO) which projects higher tax receipts than the governor’s Dept. of Finance (DOF).  However, the two legislative proposals use the extra revenue differently. From the UC perspective, there is no significant direct effect on the operating budget regardless of which budget is enacted.  However, the assembly version provides for…

| | | |

UCLA: It’s Tufts to Get Into

Byuclafaculty

The University of California system remains a popular destination for incoming freshmen – and getting into UCLA is now as hard as getting into Tufts and Cornell, at least for California students…  UCLA reported an in-state admission rate of 17.4 percent, Becker said, a level comparable to Cornell and Tufts, two of the nation’s most selective universities. Overall, the 10 campuses accepted 82,850 freshman, for an average acceptance rate of 59 percent. Berkeley and San Diego campuses were more exclusive than the average… But the prestigious public U.C. system is changing in one profound way: out-of-state students increasingly make up more…

| | |

Pension Promises and the UC Budget

Byuclafaculty

One of the issues facing UC is pension liabilities.  As we have noted in prior posts, although it may seem paradoxical, liability for the pension is a young person’s issue.  Old folks tend to worry about whether they will get their promised UC pension when the issue is raised.  However, the actual issue is that because they and everyone else will get what is promised, the UC budget going forward has to meet the promise in future years.  Dollars that will go to the pension won’t go to something else. Although you may read about this or that jurisdiction that…