Akos Rona-Tas, UC San Diego

Annual general operating budget of UC is $19 billion -- a little less than the entire economy of countries like Panama,

El Salvador or Jordan, -- a little more than the entire economy of Bolivia, or Paraguay or

Iceland The “Core Funds” that pay for the core mission of UC:

instruction, research and public service is $5.6 billion Originally, in 2008-2009, $3.2 billion of that was expected to

come from the State of California UC has 220,000 students

CSU has 433,000 and CCC 1,628,000 (http://www.cpec.ca.gov/SecondPages/DetailedData.asp)

UC has 170,000 faculty and staff -- size of Walgreen and Pepsi Co., it would be in the top 25

biggest US companies

UC has been defunded since 2001Slow, gradual cuts 2001-2008

Dramatic, giant cuts 2009-2010

HEPI=Higher Education Price Index

UC Core FundsThe University’s “core funds,” comprised of State General Funds, UC General Funds, and student fee revenue, provide permanent support for the core mission activities of the University: instruction, research, and public service, as well as the administrative and support services needed to carry out these activities. Totaling $5.6 billion in 2008-09, these funds represent 28% of the University’s total budget.

UC General FundsIn addition to State General Fund support, certain other fund sources are unrestricted and provide general support for the University’s core mission activities. Collectively referred to as UC General Funds, these include:- a portion of overhead on federal and state contracts and grants;- DOE laboratory operations overhead and management;- nonresident tuition;- fees for application for admission and other fees;- a portion of patent royalty income; and- interest on General Fund balances.Based on recent trends and nonresident enrollment projections and tuition levels, the University expects to generate $594 million in UC General Funds during 2008-09. The largest sources of UC General Funds are nonresident tuition, accounting for $257 million, and indirect cost recovery on federal contracts and grants, totaling $252 million in 2008-09.

Comment: In the chart to the left student fees are net of financial aid.

The Funding of UCComment: The UC charts do not reflect the big cut in 2009Source: http://budget.ucop.edu/rbudget/200910/2009-10BudgetforCurrentOperations-BudgetDetail.pdf

Student Fees

Comment: Aid includes loans and gift aid.

Return-to-Aid

the total cost of attendance: resident student fees, living and personal expenses, costs related to books and supplies, transportation, health care

Access

Since 1994, the University has maintained a budgeted student-faculty ratio of 18.6:1. Before the cuts of the early 1990s, the University’s student-faculty ratio was 17.6:1; the deterioration in the ratio represented about 500 faculty members.

Student-Faculty Ratio

Comment: This does not reflect the 2009 cut the green line shows what should have happened but did not.

Comment: This chart was compiled around October 2008 and it does not reflect recent losses.

Faculty Pay and Pension

Eight percent pay cutHiring freezeSlow loss of top facultyCut in staff

Administration (Institutional Support)

Institutional Support Services provide the administrative infrastructure for the University’s operations. Grouped into five broad categories, institutional support activities include:- Executive Management — offices of the President, Vice Presidents, Chancellors, and Vice Chancellors; planning and budget offices;- Fiscal Operations — accounting, audit, and contract and grant administration;- General Administrative Services — computer centers, information systems, and personnel;- Logistical Services — purchasing, mail distribution, and police;-Community Relations — development and publications.

Comment: Institutional Support does not include academic support or operation and maintenance of plant.

Comment: The text indicates elsewhere that the budget of UCOP is around 280 million (p.107). Of that 57 million is being cut but 26 million of the cut is redirected to the campuses.

Source: http://www.ebudget.ca.gov/pdf/Enacted/BudgetSummary/FullBudgetSummary.pdf

Note: UC and CSU excluding Community Colleges

Notes: IHSS (In Home Supportive Services) -- in home care,DDS (Department of Developmental Services) – disability care,Medi-Cal -- healthcare for the poor

Higher education has been underfunded to compensate for increased funding needs in two main areas:

Healthcare Rising healthcare costs, large uninsured population

Prisons In 2009: 173,000 inmates

1977 [before the War on Drugs] 20,000 inmates, in 1994 [before the Three Strikes law] 125,000 inmates

31,000 correctional officers – highly organized lobby $46,000/year is spent on one inmate

Compare: $9,560/year spent on one UC student Average gross pay of a correction officer is $72,000

This is the pay of an Associate Professor at UC

At the end of 2008-09 the state cut $814.1 million, but gave back $716 million from the stimulus package. After adjusting for cost increases on the expense and fee increases on the revenue side, the total cut to the core funds was $240.7 million.This year, there will be another $637.1 million cut.After adjusting for everything, including fee increases ( $452.9 million), in two years, $776 million was taken from the core funds.

This is $3,500 per student on top of the tuition increase.

Numbers are on UC’s side:1.California is 48th in the proportion of high school graduates going to 4-year college2.Number of high school graduates is stable and high

Washington Monthly’s ranking UCB, UCSD, and UCLA are top in, based mainly on Social Mobility (recruiting and

graduating low-income students), and Research (cutting-edge PhDs). U.S. News and World Report ‘s ranking of public schools

UCB 1st, UCLA 2nd, UCSD 7th, and 3 more in top 20 The Academic Ranking of World Universities by Shanghai Jiao Tong University

Four UC campuses in the top 20 in the world (UCSD ranked 14th) Excellence in research

10 Nobel Prizes in the last 10 years 2009 Elizabeth Blackburn, UCSF, biology 2008 Roger Y. Tsien, UCSD, chemistry 2004 Irwin Rose, UCI, chemistry, Finn Kydland, UCSB, economics, David Gross, UCSB, physics 2003 Clive Granger, UCSD, economics, 2001 George Akerlof, UCB, economics, 2000 Herbert Kroemer, UCSB, physics, Alan Heeger, UCSB, chemistry, Daniel McFadden, UCB, economics

Currently 32 Nobel prize winners, the highest at any university (8 @ UCSD) , 5 Field Medalist (1 @UCSD), 13 National Medal of Science laurates (3 @UCSD), 25 McArthur fellows (8 @UCSD)

UC library system has 34 million items and is one of the largest collections in the world

UC researchers create 3 new patents a day

Proposals to increase revenue: Tax on oil drilling -- $1-2 billion Raising the vehicle license fee -- $0.5 billion Tax on tobacco -- $1 billion Restoring tax breaks given to large corporations in

February 2009 – $2.5 billion Restoring budget priorities

Pass healthcare reform! Criminal justice reform

Abolishing the 2/3 majority rule established by Prop 13 in 1978 – by a new proposition

To put a proposition on the ballot: 8% (for a constitutional amendment) or 5% (for a statute) of the number of people who voted in the most recent election for governor must sign a petition.

Federalization of some campuses (Birgeneau-Yeary plan)

Raising revenue Raise tuition

-- to $23,000 to make up the large recent cuts and -- to $28,000 to make up the slow losses from 2001-

2008 Differentiate tuition

Increase number of out-of-state students Increase other revenues

Summer utilization of campuses EAP Foreign campuses

Cutting costs Larger classes More non-ladder rank faculty Distance learning

UCSD http://savingucsd.ning.com/ http://blink.ucsd.edu/sponsor/budgetline/index.html

UCLA http://savingucla.ning.com/

UCOP http://www.ucop.edu/

Professor Christopher Newfield’s blog http://utotherescue.blogspot.com/ Professor Charles Schwartz’s site http://universityprobe.org/