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UCI budget cut rises again — to $70 million
June 26th, 2009, 8:18 am · 26 Comments · posted by Gary Robbins, science writer-editor
Budget cuts might force UCI to offer far fewer courses this fall. Image courtesy of UCI.
UC Irvine said today that it may have to cut as much as $70 million to help the state balance its budget, a figure that could lead to bigger classes, fewer courses, deeper lay-offs and the elimination of some academic programs.
The political science department has already trimmed class offerings for the fall, and financial support might be cut for UCI’s research in Alzheimer’s disease.
Today’s news comes less than a month after UCI said that it would have to reduce spending by $40 million to help the state. That figure rose to $55 million, then to $70 million.
“As the state’s true fiscal situation becomes clearer, the cuts to the UC system become bigger,” says Cathy Lawhon, director of media relations at UCI, Orange County’s largest employer, with a full and part-time workforce of 20,000 (including students).
The full extent of the cut backs probably won’t be known until the UC Board of Regents meets in mid-July.
UC President Mark Yudof says the overall cuts to the 10-campus system will result in major pay cuts or furloughs, and possibly both. The pay cuts, for those earning $46,000 or more could amount to 8 percent of their pay. Those earning below $46,000 would experience a pay cut of 4 percent. The size of the cuts have not been finalized because the state Legislature has yet to pass a budget, and the UC must do some bargaining with its unions. (Read earlier pay cut story.)
Gov. Schwarzenegger says California must close a $24.3 billion budget deficit.
The proposed cuts have infuriated many UCI workers, including union members who say that such cuts are unnecessary because the UC system supposedly has $5.3 billion in unrestricted funds.
Yudof responded to the criticism Friday, saying that the budget crisis doesn’t represent a one year problem. Rather, the problem could last 2-5 years and that UC must keep the reserve funds to maintain liquidty.
Yudof says it’s also possible that the UC will have to further raise student fees for the 2009-10 academic year. Fees were raised by 9.3 percent in May. (An earlier version of this story incorrectly said the figure was 10 percent.) UCI has already reduced the size of the freshman class for this fall. (Read full story.)
The situation concerns David Lumb, editor of New University, UCI’s campus newspaper.
“As a student, I’m paying $662 more in tuition a year, and I hope for my fellow Anteaters’ sake that the Regents won’t approach student fee raises in order to close the gap …I hope all UC students understand that their education is being stressed and strained by forces that threaten some of the services the UC provides and, in a perfect situation, should be providing for much less.”
UCI neurobiologist Frank La Ferla. Image courtesy of UCI.
Also expressing concern was Frank La Ferla, a noted UCI neurobiologist who is worried that funding of will hurt the Irvine branch of the Alzheimer’s Research Centers of California.
“I think the main focus of the story should be the devastation that the cuts will have to our community,” La Ferla said by email. “Right now, there are 60,000 individuals suffering from AD in Orange County, and essentially we are the only memory assessment clinic that is able to differentiate among the different forms of dementia and that also conducts clinical research.
“I think the citizens of OC need to decide if they want to lose a clinic like ours (which is non-profit), particularly as we are facing an epidemic of Alzheimer’s disease. In OC, it is anticipated the number of new AD cases will grow by 99% over the next 20 years.”
It’s unclear whether the $70 million figure will rise further; the precise condition of the state’s finances is not known. In fact, Chapman University president and economist James Doti recently said that the state deficit is about $12 billion, or half the figure claimed by Gov. Arnold Schwarzenegger. (Read story about Doti’s claim.)
Click here to read explainer from UC President Yudof about budget cuts
Click here (and scroll to the bottom) to read a UC system story about the size of President Yudof’s personal compensation package.
Salary factoids: UCI Chancellor Michael Drake’s salary, before recent budget cuts, was $378,791, or $21,209 less than the salary of President Barack Obama.
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Recall Arnold Schwarzenegger!
Arnold is not the issue. The biggest problem is legislation by proposition. The tough and difficult legislative decisions are passed off to the proposition process so nobody has to take credit for making them. Thus we have a state budget that is full of untouchable earmarks and % allocations. The budget thus cannot be looked at as a whole with budgetary priorities being set.
Legislation by proposition is one of the major parts of the problem. However, Arnold has been part of the problem, not part of the solution.
That’s a good thing. It’s healthy and cleanses the system. Keep those cuts coming. Chop off the deadwood. Let the forest grow back to it’s healthy state. It’s been collecting alot of underbrush and weeds over the last decade or so. Clean it all out. Cut, cut, cut!
Do I trust Doti? ha. About as far as I could throw him.
That’s vague. What do you mean?
The UC campus system has long been too preoccupied with becoming a prestigious university system. They should instead focus on producing the highest-caliber graduates with an education available to all that qualify.
U.C. Riverside should be the model, not U.C. Berkeley.
UCI Alum: I’m surprised to hear you say the UC is “preoccupied with becoming a prestigious university system.” The UC is already widely considered to be the top public research system in the world.
UCI Alum, that is why we have the Cal State system as well as the UC system. The Cal States are more focused on teaching rather than research.
I agree that the many of the UCs have too many big lecture classes, but you are not going to solve this problem by damaging their ability to do world-class research. A university is not going to be able to provide a strong education at the graduate level unless it is strong in research.
UC is already the top public research system in the world. Other countries are basing their fledgling systems on the one that California has produced. We should be proud of that and supporting its continued growth. Instead, the state’s own failings may serve to bring this institution to its knees and diminish its great accomplishments.
Legislative control of UC (& its AAA credit rating) is NOT the answer. Reform of the legislative proposition process, the 2/3 majority, and term limits is. Unfortunately, this does nothing to protect the mostly under-paid, definitely under-appreciated employees at UC who will be (actually already have been) bearing the weight of the cut-backs ALONG with the students.
to UCI Alum
You are so absolutely wrong it is unbelievable. UC is one of the best, if not THE best public research university system in the world. All for less than 4% of the state’s annual budget. Think about that - for less than 4% of the total annual state budget there are 10 campuses of a world renowed research university contributing far more than that to the local and state economies. To even contemplate cutting them further is absolutely stupid!
The fees charged the students don’t come close to covering the cost of education.
We need to deal with that issue first. Should the students pay for the full cost of that world class education or should the taxpayers continue to subsidize part of it? And to UCI Alum - do you want UC to stay top-flight or become just an example of LAUSD for higher education?
The answer is that taxpayers should continue to subsidize part of it. As Gary and others have pointed out, the UCs benefit the state as a whole, not just the students who attend them.
What is Yudof proposing?
Fractional equality & percentages of Human Capitol
Yudof s options include salary cuts for all staff and faculty:
” 8% for those making above $46,000/year
” 4% for those making below $46,000/year
” 12 to 21 unpaid Holidays and furlough days
How would Yudof s salary be affected?
$828,000 8% = $762,000/year! PLUS&
Yudof s Post-Retirement Supplemental Agreement would remain intact!
Supplemental pension funding will be provided to produce a vested single life annuity.
At the end of each of the first 7 years of employment Yudof will receive approximately:
Year 1-$29,554; Year 2-$60,217; Year 3-$92,029; Year 4-$127,307; Year 5- $230,000;
Year 6-$300,000; Year 7-$350,000. For years 8 & beyond - funding will occur in accordance with the normal UCRP funding policy that is applicable to funding the benefits of all UCRP members. The University s contribution to Yudof s supplemental retirement for 2008 was $228,000!!!
What is the TRUTH?
” Salary cuts are NOT necessary.
” The state of California has a financial emergency NOT UC.
” State appropriations to UC are only 19% of the UC total revenue.
” There is a $570 Million budget shortfall.
” UC has $5.3 billion in unrestricted reserve funds;
” UC can redirect money from the Medical Centers & Hospitals to the Campuses.
” $390 Million in bonuses was paid to UC top executives last fall,
” CUE employees are almost 25% below market
” Healthcare & Parking rates will go up in 2010.
UC is financially strong, and is capable of making up any shortfall by stopping unnecessary construction, and using some of its approximately 5.3 billion dollars in its legally unrestricted reserves….and by stopping the excessive abuse of the system by giving executives outrageous compensation packages.
Cut Health care to pay for administration. Makes perfect sense.
Halara
And this is why Sen Leland Yee and others want to get their hands on UC and put it under direct legislative control. They want access to the $5 billion reserve to spend on their favorite social welfare program.
Halara,
If the compensation of UC top executives was cut drastically, it would still barely make a dent in the budget shortfall.
Their 6-figure salaries are a fraction of what executives in private industry who supervise comparable numbers of employees and amounts of money get paid.
CSU Long Beach, ranked one of the top public institutions of higher education in the western United States, attracts thousands of students from Orange County. Now they just won’t be able to get in — even with a 4.0 gpa. CSULB’s student population will be “managed down” from almost 35,000 in 2006 to 25,000 in 2010. We are downsizing due to the worst budget crisis since the Great Depression. Unlike UCI, we rely solely on California’s infamous “general fund”. We compete with prisons and social services to the disabled for our funding. At the very time the state needs highly educated workers in math, science, engineering, and medicine to help the State out of a deep financial morass, the legislature is cutting the CSU around $585 million dollars, enough to wreck the institution. Doesn’t the public care? Where is the outcry about such stupidity?
The State has spent its way to oblivion. Now it is stealing from the UC system (which is solvent) and Cities.
The public has the strange idea that most UCI employees are parasites.
In LA county alone 20% of the population is on welfare. Someone has to pay for that.
Students should pay full cost. Those who really want to go will find a way to pay for it.
Raise the bar cream floats.
You forgot Zetner’s retirement package.
Dina
What about Maureen Zehntner’s retirement package? She received the standard retirement package for Senior Management Group employees (SMG). Are you trying to imply something else? Better have your facts lined up. Ms. Zehntner was one of the best things to happen to UCIMC is decades.
500k er year?
Dina
Her retirement is no where near $500K/year. That was her ending salary. Which is below market for CEO’s of major academic medical centers. Get your facts straight and stop slandering Ms. Zehntner.
Halara
So you want to take money from the Medical Centers to give to the campuses? Check your facts more closely - there already is a transfer of funds from the Medical Centers to the Colleges of Medicine. A seven figure transfer annually. What is left is needed by the Medical Centers for capital improvements and new technology/equipment to maintain their stature as some of the countries top Medical Centers.
And let’s get off the Yudof compensation envy train. He is paid less than other comparable University Presidents - just like you point out CUE is paid less than market. Yudof is paid less than market too. So are the majority of UC employees. Stop whining about it.
The sheer stupidity of this proposal is made clear in detail in these letters:
http://www.uclafaculty.org/FASite/UC_Budget_Crisis.html
For those of you who are keen to promote the general looting of our property, take a look at the arguments - the cut will cost you money too, as it actually COSTS tax payer money.
Something needs to be done and soon. This is getting WAY out of hand!