University of California Budget News

Archived entries for

January 23, 2012

State higher education spending sees big decline

From Associated Press (via Boston.com):

State funding for higher education has declined because of a slow recovery from the recession and the end of federal stimulus money, according to a study released Monday.

Overall, spending declined by some $6 billion, or nearly 8 percent, over the past year, according to the annual Grapevine study by the Center for the Study of Education Policy at Illinois State University. The reduction was slightly lower, at 4 percent, when money lost from the end of the American Reinvestment and Recovery Act was not taken into account.

The funding reductions, seen across nearly every state, have resulted in larger class sizes and fewer course offerings at many universities and come as enrollment continues to rise.

Read the complete article.

Category: FYI

January 23, 2012

UC cuts administrative costs, seeks new revenue

The University of California Board of Regents met Jan. 18-19 at UC Riverside to discuss savings from cost-cutting and development of new revenue to fill a looming budget gap… During the two days of meetings, senior administrators outlined for the board the latest state funding proposal and discussed a variety of initiatives now under way, including efforts to pare operational costs and enhance revenue opportunities from new inventions.

Read the complete article in UC Newsroom.

Category: State budget, UC budget, UC's options

January 23, 2012

State budget cuts for research universities imperil competitiveness, report says

From the Chronicle of Higher Education:

States have cut funds for public research universities by 20 percent in constant dollars from 2002 to 2010, according to a report issued on Tuesday by the National Science Foundation… The findings in this year’s report demonstrate a continuing trend in scientific innovation. While countries like China and India have increased their spending on technology and education, the United States has found itself hamstrung by a weakened economy since 2008. Adjusted for inflation, the drop in state funds for the top 101 public research universities in the United States from 2002 to 2010 was 10 percent, with nearly three-quarters of the universities losing some state support.

Read the complete article…

Category: FYI

January 9, 2012

Statement on Gov. Brown’s proposed budget

Patrick Lenz, UC vice president for budget and capital resources, made the following statement Thursday, Jan. 5, regarding Gov. Jerry Brown’s proposed state budget for 2012-13:

We’re gratified that Gov. Brown is proposing an additional $90 million in funding for the University of California — an ongoing increase that the governor said can be used to address costs of employee retirement. We applaud the governor’s willingness to grant UC leadership maximum flexibility in navigating these fiscal times, and also his recognition that, after a 20-year hiatus, the state has a responsibility to resume paying for a portion of retirement costs.

The administration’s focus on protecting higher education from further budget reductions is a welcome relief, and the governor’s stated desire for a long-term state investment is encouraging. It appears the governor is moving in the right direction after cuts totaling $750 million this year alone.

His proposal is only the first step toward a state budget for 2012-13. We will continue to make the case that public higher education is not a cost but the best investment an innovative state like California can make.

We will continue to seek out and implement administrative efficiencies that already are saving hundreds of millions of dollars a year — savings that go straight to our core mission. We also are working hard to identify alternative revenue sources that could help us preserve quality and access.

Finally, we intend to press forward with the governor and legislature to develop a long-term plan that would give the university much-needed financial stability, help the families of students and benefit Californians in every part of the state.