UC budget crisis

UC Consequences of the DC Chicken Race

Byuclafaculty

Like so many political debates, the standoff in the nation’s capital over federal spending has been somewhat of an abstraction for months on end. That could change, though, starting next week. With just about everyone now agreeing that the March 1 deadline for avoiding automatic spending cuts — sequestration — will be missed, the real question seems to be how long before those cuts are felt and where will they hit hardest. In the Sacramento region, the impacts could be numerous: less money for community policing programs that rely on federal cash, $42 million less in research funding at UC…

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The Less the State Pays, the Better Our Credit Rating

Byuclafaculty

From the UC-Berkeley Daily Californian: Fitch Ratings announced Thursday that bonds issued by the University of California have been rated AA+.The UC Board of Regents has issued $1.7 billion of AA+ bonds with a stable rating outlook to be sold by negotiation the week of Feb. 25. Fitch cites the university’s exceptional reputation and successful fiscal management as primary reasons for the bonds’ high rating…  In addition to (other) positive indicators, Fitch has stated that it regards the university’s diverse revenue base as a favorable credit factor. Decreasing reliance on state funding has provided a measure of safety against future…

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More on Oil Severance Tax for Higher Ed Bill

Byuclafaculty

An earlier post on this blog noted an announcement of a bill in the legislature that would impose an oil severance tax dedicated to the three segments of higher ed.  It was noted on that post that the actual text of the bill was not available at that time.  Now the bill is available.  As it turns out, some of the funding (7%) goes to the Dept. of Parks and Recreation.  At present, that department is mired in a scandal about hidden funds. If you are unfamiliar with that scandal, you can start with http://www.sacbee.com/2013/02/15/5192590/california-state-parks-had-hidden.html and then Google your way…

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Grading the LAO Report on Higher Ed

Byuclafaculty

We summarized the Legislative Analyst’s report on higher ed funding in a post yesterday and provided a link to the document.  One thing that faculty do is evaluate and give grades.  In this case, the grade for the report would have to be an “incomplete.” Pensions: The LAO continues its assertion that the state has no legal liability for the UC pension.  It wants the legislature to say so.  The legislature can say the Moon is made of green cheese if it wants.  But the Moon will be what it is.  The question of state liability is a legal matter…

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Oil tax for higher ed?

Byuclafaculty

Back in the day at Huntington Beach A debate that’s been raging now for several years in California is headed to the Legislature, as two Democratic lawmakers introduce legislation to impose an oil extraction tax, with the proceeds earmarked for higher education and state parks. SB 241 by state Sen. Noreen Evans, D-Santa Rosa, and state Sen. Mark Leno, D-San Francisco, brings front and center a long simmering discussion about whether California should impose a tax on oil production similar to other states. “California is the largest — and only — oil producing state in the nation that does not…

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LAO Critique of Governor’s Higher Ed Budget Proposals

Byuclafaculty

The Legislative Analysts’ Office (LAO) has a new report out critiquing the governor’s higher ed budget proposals.  It comments on his online higher ed proposals but relative to all the attention paid to that topic at the most recent Regents meeting, it appears that the LAO doesn’t see them as the solution to budget problems for higher ed)  Much of the report involves recommendations that the legislature base future funding increments on meeting performance targets.  Because most of the report deals with all three segments of higher ed, the target discussion largely is focused on concerns involving CSU and community…

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It could be a timing-is-everything-situation

Byuclafaculty

The state controller released his January cash statement for the state.  For the first seven months of the fiscal year, revenues are running over $4 billion ahead of what was anticipated in the original budget.  More than all of this amount is coming from the personal income tax.  I say more than all because sales tax has come in below forecast – suggesting that the underlying economy is not booming.  So why the jump in income tax revenue?  It may be that because of the fiscal cliff, etc., wealthy folks – who account disproportionately for the income tax – did…

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Magical Thinking on Online Higher Ed to Spread to Legislature

Byuclafaculty

From the Sacramento Bee Capitol Alert blog we learn that legislative Democrats are going to be educated on online higher ed: (excerpt) Senate Democrats will be gathering for a policy retreat at the Stanford Mansion today…  Democrats will be mapping strategy for the year ahead, and Capitol Alert has learned that online education guru Sal Kahn will be speaking. Kahn’s presence underscores the serious attention online education has been getting, including from Gov. Jerry Brown and Senate President Pro Tem Darrell Steinberg, as a way to educate more students for less. The University of California regents have lent their support to the idea as Brown pushes the university system…

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The Moral: It’s a Good Idea to Avoid the Rush

Byuclafaculty

From Inside Higher Ed today… Maybe it was inevitable that one of the new massive open online courses would crash. After all, MOOCs are being launched with considerable speed, not to mention hype. But MOOC advocates might have preferred the collapse of a course other than the one that was suspended this weekend, one week into instruction: “Fundamentals of Online Education: Planning and Application.” Technology and design problems are largely to blame for the course’s problems. And many students are angry that a course about online education — let alone one offered by the Georgia Institute of Technology — wouldn’t…

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Listen to Radio Interview with President Yudof on UC Future

Byuclafaculty

Yesterday, KPCC’s Airtalk with Larry Mantle featured an interview with the heads of the three segments of higher ed in California: President Mark Yudof of UC, Chancellor Timothy White of CSU (and until recently Chancellor of UC-Riverside), and Brice Harris, Chancellor of the community colleges. The full broadcast ran about three quarters of an hour.  I have pulled out just the Yudof excerpts which run about one third as long. As blog readers will know, Yudof has resigned as UC president, effective August.  So he may now be a bit freer to say what he wants – but, of course,…