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The UC Budget Cuts

The UC Budget Cuts. How They Affect You. What Happened in the Past Year?. California provides $2.2 billion per year to the UC and Cal State State cuts $650 million in funding in 2011 and may further cut $200 million 2012 budget

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The UC Budget Cuts

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  1. The UC Budget Cuts How They Affect You

  2. What Happened in the Past Year? • California provides $2.2 billion per year to the UC and Cal State • State cuts $650 million in funding in 2011 and may further cut $200 million 2012 budget • For the first time, California spends less per student than the cost of tuition (“fees”)

  3. How the Cuts Will Affect Undergraduate Students

  4. Program Cuts • Fewer classes, and fewer sections • Larger classes, less individual attention • Cuts in library and custodial services • Online courses?

  5. Undergraduate Education: Getting Less, Paying More • Per student spending has fallen more than 40% since 1990 • State spends ~$10,000 for each student per year • State spends $49,000 per prison inmate

  6. How Do the Cuts Affect Faculty and Staff? • Faculty must take “furloughs,” or pay cuts • Fewer faculty hires despite increased enrollment • Massive Staff Layoffs

  7. The Humanities at UCI • UCI humanities is consistently rated one of the best in the school • Humanities nevertheless faces $1.8 million it cuts (30% of ‘moveable’ costs) • Potential cuts: • Humanities core • Graduate programs (teaching assistants and instructors) • Language departments • Interdisciplinary programs (especially ethnic studies and women’s studies, and special institutions like the critical theory institute (CTI)) • UCI will be less of a research university and more of a teaching university • UC campuses are not funded equally, and UCI has a lower priority than Berkeley and UCLA

  8. History of the UC • 1960: UC Master Plan • Establishment of the “principle of universal access and choice” • Reaffirmation of “California’s long-time commitment to the principle of tuition-free education to residents of the state” • 1978: Proposition 13 • Cut property taxes by 57% • Required 2/3 majority to pass a budget • 2004: Compact on Higher education • Shifts away from state funding of the UC system • 2009 – Present: state de-funding, fee increases, and fairly rapid ‘privatization’ of the UC

  9. Administrative Malfeasance Buildings and Executive Salaries over Students and Workers

  10. Headlines…

  11. Lack of Transparency • UC budgets not available to the students, staff, faculty, or taxpayers • Divisions of funds unknown • Campuses receive unequal amount of funding

  12. Construction Over Academics • UC has received A+ Credit Rating from Banks • UC uses student fees as collateral for construction bonds • Recently sold $1.3 billion in new bonds, pledged $6.72 billion in collateral • UC not allowed to use state funds as collateral, so they use fees • Wall Street Banks could force more fee hikes by threatening to lower bond ratings • Bond interest now at $300 million per year

  13. Meanwhile… • Number of UC executives earning over $200,000 has tripled • $390 Million in bonuses and perks paid to top UC administrators and staff last year • Top 1.5% of UC employees make 11% of its total compensation • “UC Gould Commission on the Future” includes no faculty from the arts and sciences, recommends increase in online courses • UC Regents are appointed to 12 year terms, instead of being elected

  14. Bureaucratic Growth 2.2 B (Actual)

  15. President Mark Yudof’s Housing Troubles • Refusing to live in presidential mansion, instead renting out private four story house for at UC’s expense, trashes place and loses security deposit: $13, 365/Month + $32,000 deposit • UC forced to pay to fix two-story elevator within residence: $22, 603 • Simple outdoor water leak goes unfixed, causing 1.2 million gallons of water to trickle into oakland hills: $5000 • New home paid for by UC: $11, 500/Month • Yudof’s Salary: $600,000/Year • “Instead, Mr. Yudof, 65, moved with his wife into a 10,000-square-foot, four-story house with 16 rooms, 8 bathrooms and panoramic views. He said he needed the house, which rented for $13,365 a month by the end of the lease and was paid for by U.C., to fulfill his obligation to host functions for staff members, donors and visiting dignitaries… • After the Yudofs vacated the property at the end of June, Brennan Mulligan, the landlord, informed university officials that he intended to keep the U.C.’s $32,100 security deposit. Mr. Mulligan requested an additional $45,000 to cover the repairs for hundreds of holes left from hanging art, a scratched marble bathtub, a broken $2,000 Sivoia window shade and other claims… • “To me it’s like, ‘Is this how they spend their time?’” [Landlord Brennan] Mr. Mulligan said… • He essentially turned the Office of the President into his personal staff,” a university official said.” • -New York Times 8/21/10 Blake House (Presidential Mansion)

  16. Regent Richard Blum’s Conflicts of Interest • Blum is a UC regent, investment banker, and husband of Democratic Senator Dianne Feinstein • Conflict of Interest: Blum’s firm owns $700 in stock of two for-profit education companies ITT Educational and Career Education • Since Blum has been a regent, the UC has also invested in these firms • In addition, both firms have been investigated by the government for being “diploma mills” • Blum served on the board of URS Corporation, which in 2001 secured building contracts from the UC valued at $275 million (at least) • Blum has also been accused of conflicts of interest when large defense and real estate contracts were awarded to his firm, seemingly as a result of his wife’s legislation

  17. Protests and Police

  18. What’s At Stake

  19. The Value of Your Degree“The University of California will be at the top of your résumés for the rest of your life”- Catherine Cole, Professor at UC Berkeley, in an open letter to undergraduates • World-renowned faculty will leave • Average faculty salary 30% lower than peer faculty salaries at other institutions • “Texas Universities Should Capitalize on California’s Budget Crisis” -headline from a Texas newspaper in Austin

  20. The Excellence of the UCs • The UC has produced more Nobel laureates than any other university • U.S. News ranking of universities based on their contributions to society: UCB (1), UCSD (2), UCLA (3), UC Davis (10), UCSB (21) , UC Riverside, (26) • UCI ranked as 12th best public university • UCI: annual economic impact of $4.2 B in Orange County

  21. What is the “public good” • Both Excellence and Access If the budget cuts continue: • The value of a UC education will be devalued, and UC students will contribute less - economically and socially - to their communities • Funding will shift to professional schools that can get corporate grants, patents, etc • Student Body will be wealthier, with more students from out of state

  22. What You Can Do • Educate yourself, friends, and relatives about the situation • Attend Protests • Get involved with student organizations • Associated Students UCI • Register to vote Join “needs attention,” a group formed to address budget cuts in the humanities at uci. (“Needs Attention” is the school’s euphemism for programs that are scheduled to be cut or eliminated) http://www.facebook.com/groups/250804788326326/

  23. Sources and Linksnot in MLA format :( • General Budget Cut Info, including history and statistics: • Budget Crisis: http://sites.google.com/site/ucbudgetcrisis/ • Remaking the University: http://utotherescue.blogspot.com/ • Open Letter from Catherine Cole: http://berkeleycuts.org/?p=21 • Defend UCI: http://defenduci.blogspot.com/ • George Lakoff – “The UC Budget Crisis: Past History, Present Perils, and Future Implications” (saveuc.org/docs/TeachInKit.pdf) • Data on Tution Increases: http://www.data360.org/dataset.aspx?Data_Set_Id=9330 • Bob Meister - “Where Does UC Tuition Go?”http://www.cucfa.org/news/2009_nov10.php • Administrative Malfeasance: • Bob Meister - “UC on Wall Street - Another Reason your Tuition Goes Up”http://utotherescue.blogspot.com/2009/10/does-uc-raise-fees-to-help-sell.html • “They Pledged your Tuition http://www.cucfa.org/news/2009_oct11.php#_ftn4 • Steve Fainaru, NY Times - ” University Head’s Housing Raises Ire”: http://www.nytimes.com/2010/08/22/education/22bcyudof.html?_r=1 • Michael Hiltzik, LA Times, on Richard Blum: http://www.latimes.com/business/la-fi-hiltzik-column-20100714,0,4328845.column • Wikipedia page for Richard Blum:http://en.wikipedia.org/wiki/Richard_C._Blum • Larry Gordon – “State Auditor Calls for Transparency in UC funding”http://articles.latimes.com/2011/jul/29/local/la-me-uc-audit-20110729 • http://californiareview.net/2011/08/24/graph-of-uc-administrative-growth/

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