UC Regents

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UCOP & Regents Out of the Loop on Public Pensions: Here is a way to get into the loop

Byuclafaculty

As has been noted on previous blog posts, UC is in danger of letting the pension issue get away from it. The governor has – according to news reports – agreed to a $106,000 cap on public pensions. Legislative Republicans have filed an initiative putting a cap of 60% of final pay on pensions. Both caps clearly apply to new hires and clearly do not apply to those already retired. There is uncertainty about what would be applicable to current employees. The initiative – which is poorly drafted – explicitly covers UC. We don’t know about the possible $106,000 cap…

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PART II: UCOP & Regents: Don’t Say You Weren’t Warned

Byuclafaculty

Someone asked yours truly yesterday whether the GOP pension initiative actually covered existing employees as well as new hires. Apparently, there was a report that the Republican legislator in whose name the initiative was submitted had denied it. The article below – as well as the language of the initiative – makes it clear that existing employees are to be included. The article also notes that Gov. Brown is willing to accept a pension cap of $106,000. That is different from the initiative which has a 60% final pay cap. But it is unacceptable for UC faculty and would override…

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UCOP & Regents: Don’t Say Later You Weren’t Warned

Byuclafaculty

Two initiative petitions were submitted earlier today. One, reproduced below, deals with pensions. It would explicitly cover UC and, thus, would override the pension changes enacted by the Regents last December. For example, it limits the final pension to 60% of final salary. It covers existing employees as well as new hires. The second is essentially a revival of the old GANN initiative that was passed by voters shortly after Prop 13. The GANN limit restricted the rise in state spending (general fund plus other funds) to the inflation rate plus the growth in population. GANN was essentially gutted in…

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Audio of Regents Meeting of 3-17-11

Byuclafaculty

At the Regents meeting of 3-17-11, the session started with open comments. (A student from a class co-taught by yours truly in winter quarter was a speaker.) There was then a presentation by the UC-Davis chancellor, Linda Katehi, about developments on that campus, including budget concerns. The Finance Committee approved options for borrowing for the pension fund from STIP and possible pension bonds. Oddly, but consistent with earlier presentations, the primary motivation is described as a kind of interest arbitrage. In fact, the original motivation for these options was the $2 for $1 issue; roughly each $1 of contributions by…

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UC ax doesn’t fall on Merced

Byuclafaculty

UC ax doesn’t fall on Merced: Regents hear about other campuses’ struggles to slash expenses further (excerpt): Yesenia Amaro, Merced Sun-Star, 3/17/11 University of California officials are preparing plans to meet the proposed “draconian” cuts the university system is facing. But UC Merced seems to have eluded the budget ax. Those plans were discussed during the UC Board of Regents’ regularly scheduled meeting at the UC San Francisco Mission Bay campus Wednesday. UC President Mark Yudof last month assigned the 10 UC campuses target reductions or other actions to help meet the $500 million reduction proposed by Gov. Jerry Brown….

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Pension train may roll through UC’s pension changes. Does anyone at UCOP even know where that train is?

Byuclafaculty

As noted in earlier posts, the pension train is rolling in Sacramento and could easily override the changes in UCRP made by the Regents last December. Is anyone from UCOP articulating a UC position? The kind of caps being discussed are too low for UC faculty. See below for the latest: Pension focus shifts: hybrid, caps and the big one (excerpt) Ed Mendel, calpensions.com As Gov. Brown seeks crucial budget votes, one reform proposed by five Republican senators would switch new hires to “hybrid” pensions, a cost-cutting combination of lower pensions and 401(k)-style individual investment plans. The governor, who also…

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Prius Public Pensions?

Byuclafaculty

An earlier post noted the ongoing negotiations between Governor Brown and certain GOP legislators as he tries to get a couple of Republican votes for his budget proposal. A 2/3 vote in the legislature is needed to put the governor’s tax extensions on the June ballot and at the moment he doesn’t have 2/3. (As previous posts have also noted, there might be a technical work-around the 2/3 rule, but is is more technical than practical.) One of the items for which Republicans are holding out is what is termed a “hybrid pension.” This notion surfaced as part of the…

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Regents Ponder Questions (With the aid of a management consultant)

Byuclafaculty

At the upcoming Regents session scheduled for the Ides of March, the Regents have invited a management consultant to help them ponder questions such as those below: * How can a more diverse student body be supported during a period of flattening or declining federal/or state appropriation? * How do we attract target students with the capacity to provide competitive tuition subsidization that is competitive with peer institutions? * Is the University effectively evaluating alternatives to traditional education practices (e.g. three year degrees, a multi-year tuition schedule) to help address student access and affordability issues? * How robustly is the…

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How Now Brown Budget? The Clock is Ticking

Byuclafaculty

As previous posts have noted, Gov. Brown needs a 2/3 vote to put his tax extension proposals – which are an integral part of his budget plan – on the ballot by June. (The current fiscal year ends June 30.) It is unusual for a governor to testify before a legislative committee but he did so yesterday. Most of the testimony was in fact aimed at legislative Republicans who have made no-tax-increase pledges. A video of the testimony from the Sacramento Bee is below. The references to dispensations and vows refer both to the pledges and the governor’s Jesuit background….

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Presidents Day Report: Party of Lincoln Pushes Change in Public Pensions to Defined Contribution

Byuclafaculty

As we have noted repeatedly, it’s potentially not over with regard to the UC pension. A ballot proposition could easily override the Regents’ action that was taken last December. The article below notes that pensions have become the negotiating point on the state budget and getting the governor’s proposed tax extensions on the ballot. Brown’s Countdown, Day 43: State pension cuts pushed (excerpts) Kevin Yamamura, Sacramento Bee, Feb. 21, 2011 Former Gov. Arnold Schwarzenegger hailed pension cuts last year as a major reform after Democrats and state worker unions agreed to concessions that ended a record-long budget stalemate. But Republican…