In a town hall forum held this past Thursday, July 9, UCSB faculty, staff, and students packed the 860-person capacity Campbell Hall to discuss the campus’s economic future, specifically the three salary cut and furlough proposals provided by UC President Mark Yudof. One of the options Yudof has proffered is 21 days of unpaid leave. The second option is a straight pay cut: Employees getting paid more than $46,000 annually would have their salaries reduced by 8 percent, while those making $46,000 or less would be have theirs reduced by 4 percent. The third is a combination: 12 unpaid days off plus reducing the higher salaries by 3.4 percent and the lower salaries by 1.7 percent.
These proposals have been met with much scrutiny systemwide, and UCSB Chancellor Henry Yang said the university will continue to review the opinions of all of its colleagues before reaching an official position. The pay-reduction proposals will address the university’s growing debt, which is currently in the neighborhood of $813 million.
Chancellors from each UC campus are scheduled to meet privately with Yudof on July 14, and the chancellors will make recommendations to the UC Regents at their July 15-16 meeting, when a decision on the salary cuts and furlough options may be made.
Before the July 9 forum, UCSB affiliates were given the opportunity to express their preferences in writing to the UCSB administration. Of the 331 opinions submitted, a large majority of faculty and staff stated that they preferred a furlough plan to any version of a salary cut, according to Yang. However, a large number of the responses offered alternative methods to deal with the UC’s budget shortfalls, beyond the UC president’s proposals.
Instead of using $46,000 as the dividing line for percentage salary cuts, many faculty and staff favor a three-tier model: salaries under $40,000; between $40,000 and $100,000; and more than $100,000. This plan, proponents say, better represents the pay demographic of UCSB, as 834 staff members straddle the $46,000 threshold and would change pay grade as a result of the reduction.
At Thursday’s forum, a panel of UCSB’s top administrators, including Assistant Chancellor of Budget and Planning Todd Lee, addressed the direness of the fiscal situation facing UCSB. According to figures outlined by Lee, the 9.3 percent increase in student fees approved May 7, 2009, and the proposed salary cut/furlough plans for employees will only make up half of the $813 million in budget shortfalls for the UC. “That leaves $400 million to be dealt with,” Lee explained. The remainder of the deficit will most likely be absorbed by each individual campus in its own way.
Q & A: Following presentations by the UCSB administration, audience members were given an opportunity to ask questions and offer their opinions to the administrative panel.
Nelson Lichtenstein, a professor in the history department, pleaded with UCSB administrators to protect what he characterized as the university’s academic integrity. “No decision should be made at the July 15-16 Regents meetings,” said Lichtenstein, representing nearly 50 staff and faculty members. “We want the UC Office of the President and the Regents to begin a process with the goal of defending, not de-funding, the university.” Lichtenstein submitted a proposal asking Yang to be outspoken against allowing Yudof to adopt emergency powers, which would essentially allow the UC president to act independently.
Former English department chair William Warner said Yudof and the UC Regents are moving too hastily with regard to pay reductions. “No one is thinking out of the box,” Warner said. “We don’t accept the framework to become compliant with the trashing of the university. The public uses the UC to propel themselves and if we remove that, we undercut out future.”
Other alternatives discussed at the forum included applying the proposed 21 days in furloughs to the last week of each academic quarter. Proponents of this method say that a diminishing of an entire academic week would help make the budget problem more visible to students and their parents and, in turn, bolster support against the continual slashing of the UC budget.
The Increasing UCSB Deficit: UCSB has a budget of approximately $740 million per year, of which $220 million is funded by the state. Student fees and state funds make up nearly 50 percent of UCSB’s entire annual budget each year.
In comparison to the past several years, the projected 2009-10 budget deficit is a result of not only the nation’s economic situation, but decision-making in Sacramento. In February 2009, the state adopted a UC budget for both the 2008-09 and 2009-10 fiscal years that reduced funding systemwide. UCSB received $16 million in permanent cuts for 2008-09, and another $12 million were projected for 2009-10.
However, those figures did not remain fixed, as Governor Arnold Schwarzenegger divulged new plans to deal with the growing state deficit. In May of this year, the governor proposed an additional 20 percent reduction for the UC system.
(To put these figures into perspective, UCSB saw a permanent budget reduction of $41 million in four years from 2003 to 2007.)
Although the UC budget has declined steadily over the last six years, the 2008-2009 academic year saw exponential growth in UCSB’s deficit. The deficit rose to $8 million in the spring of last year, $12 million in the fall, and $16 million beginning this January.
Yang said UCSB now projects a budget shortfall for the 2009-10 fiscal year of at least $40 million, with a “real possibility of this increasing to closer to $45 million or more.” Gene Lucas, executive vice chancellor, said the continual rising in deficit levels for UCSB may prompt staff and faculty layoffs if left unaddressed. “The size of the budget cut is so large, that we are looking at not being able to operate efficiently without cutting down on our staff,” Lucas said at last Thursday’s forum.
To date, UCSB has siphoned between 5 and 12 percent from its various administrative departments in order to cope with the diminishing amount of state funds. Both the Chancellor’s Office and the Vice Chancellor's Office of Student Affairs saw the highest reduction level, decreasing funding by 12.2 percent and 12.1 percent, respectively. Other departments seeing sizable budget reductions include an 8.5 percent cut to Administrative Services, 7.9 percent from Institutional Advancement, and 7.6 percent from the Vice Chancellor’s Office for Research. The Executive Vice Chancellor’s Office incurred the smallest reduction to date of 5.3 percent.
4•1•1
Previous coverage of the UC budget crisis, including an explanation of the three pay reduction plans, can be found here.
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Many Californians have endured 10% or greater pay cuts since the Bush-Obama-Pelosi economic meltdown began. The UC retirement system is still fairly intact, while numerous private-sector employees have lost their entire retirement held in employer-based stock funds and 401Ks. The pay cuts are tough especially for lower-paid UC employees, but must be viewed in the context of the overall economy. Some of the complaints above about the furloughs sound pretty arrogant.
Just this week, Chevron in Richmond CA announced 1000 plus layoffs after a judge ordered refinery expansion stopped based on a complaint by a small environmental group. Hundreds more jobs will probably be lost at the NUMMI auto factory in Richmond due to GMs ending production there. The fanatic environmental and tax policies of the Left-dominated state government are chasing tax-generating jobs and businesses out of California. At the same time, the state continues to be flooded by poorly educated and poorly paid (if working at all) immigrants. But we are not allowed to question the adverse economic impacts of current unbalanced immigration policies without being condemned as racist by some UC Professor. A large percentage of UC faculty hold the job-killing political views that have led to the loss of tax revenue and resulting budget cuts. In the words of Reverend Wright -- "The chickens have come home to roost."
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revisionist (anonymous profile)
July 11, 2009 at 6:49 a.m. (Suggest removal)
Revisionist - what an apt name.
Funny that Bush blamed all his problems on Clinton. Now, hardly six months in, Bush's eight years of failure are suddenly Obama's fault. Forget the greed and corruption on Wall Street, especially Goldman Sachs, thanks to deregulation. Forget the impact of Enron and Prop 13 on California, and the 2/3rds rule that leaves any change impossible. Forget that GM is reaping the results of their shortsightedness - which is supposed to happen in "free-markets" - i.e. that companies that perform poorly should fail.
Don't pay attention to the effect of health companies who preach free market theories but practice monopolies. A large number of personal bankruptcies over at least the last 8 years are because of medical costs, the highest in the world with unimpressive statistics.
And there is more.... all there for those who like to be informed.
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tabatha (anonymous profile)
July 11, 2009 at 9:16 a.m. (Suggest removal)
University employees are lucky. Their paid holidays are the most generous of the state and local government agencies. Health and dental benefits are also excellent and are offered to employees on a sliding fee schedule, depending on employee income. UCRS is one of the best retirement systems in the nation and all campuses are sited in the most desirable geographic areas of the state. Hard to figure why employees thought they needed unions to improve on the benefits and working conditions.
There is waste on every campus, in particular the embarrassingly poor work ethic, mediocre work productivity and the existence of a country club atmosphere. There are hardworking employees but there are also employees who put in the minimum effort, year after year, yet get paid more than fairly for just showing up and sauntering around the paradises these campuses are. Political infighting wastes a tremendous amount money and productive energy. Policies and procedures protect the poorest performing employees and the misuse of university assets.
Furloughs may be necessary in the short run and why should the UC be exempt from the affects of the economic free fall going on in California and the nation? The chickens have come home to roost.
University leaders, not necessarily those with leadership titles, need to conduct an objective self-study and figure out how to revitalize and streamline the institution. It wouldn't take much creative thinking to correct some of the glaring inefficiencies, ludicrous policies and procedures that treat administrators like independent contractors, and reduce the costs of running these gold-plated ivory towers.
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gsjoh (anonymous profile)
July 11, 2009 at 1:14 p.m. (Suggest removal)
Tabatha, I agree with you wholeheartedly!
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elaz (anonymous profile)
July 11, 2009 at 2:56 p.m. (Suggest removal)
"Just this week, Chevron in Richmond CA announced 1000 plus layoffs after a judge ordered refinery expansion stopped based on a complaint by a small environmental group."
- Revisionist
Irrelevant to UC budget. The judge in that case found Chevron's EIR to be heavily flawed. If Chevron is going to be emitting heavy metals, local government has a right to know so public health decisions can be made. Counting those construction jobs as real jobs is like counting eggs before they hatch.
"Hundreds more jobs will probably be lost at the NUMMI auto factory in Richmond due to GMs ending production there."
- Revisionist
Again, not relevant. GM dug its own grave.
"The fanatic environmental and tax policies of the Left-dominated state government are chasing tax-generating jobs and businesses out of California."
- Revisionist
One could say its really the minority Republicans who are holding the state economy (and tax policies) hostage via the 2/3rds rule in Prop 13.
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EastBeach (anonymous profile)
July 11, 2009 at 5:21 p.m. (Suggest removal)
"There are hardworking employees but there are also employees who put in the minimum effort, year after year, yet get paid more than fairly for just showing up and sauntering around the paradises these campuses are."
-gsjoh
As for myself, I prefer the sauntering of nubile coeds :)
Difficult to tell whether those are facts or perceptions you're dishing up. Have you been in a professor's office lately? Most are nothing to write home about.
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EastBeach (anonymous profile)
July 11, 2009 at 5:43 p.m. (Suggest removal)
The UC Retirement Plan (UCRP) is in deep trouble. It is worth remembering that California taxpayers haven't contributed anything to it since 1990... in sharp contrast to just about all other public employee pension systems in California.
Like 401(k)'s, the UCRP has lost about 1/2 its assets since the economic meltdown started. Actuaries say a 17% of payroll contribution is due this year. At most the State will make a 4% contribution. This situation is in sharp contrast to other public employees in California, where payments into their retirement systems will be breaking budgets in the next few years.
But for other State and local government employees, there is no talk of reducing the pension contribution due this year. UC is unique in this respect... a 13% of payroll cut to pension contributions is being made to UC employees only. Haters of public employee pensions should be applauding this situation and crediting UC, not deriding it.
Many inside UC believe their pensions are toast and have been contributing significantly to their 403(b)'s and 457's (which are like 401(k)'s).
UC, unlike other state employers, does comparisons of compensation with other public institutions. Salaries are now about 15% low, but if the pension stays and does not go bankrupt, UC overall compensation is in parity with other institutions.
Those who believe that the UC pension system is toast and are contributing to their 403's are thus 30% below comparison institutions. these cuts take them down to like 40% below comparisons. That does not take into account the increased cost of living in California compared to, say, Buffalo, NY.
For most public employees in California, like, lets say, Prison Guards, no comparisons with other states is made, and cost of living in California is usually taken into account.
UC has been an incredible engine of growth for California. Amgen grew out of UCSB research. Silicon Valley and engineering in the Bay Area have been heavily stimulated by Berkeley and Santa Cruz (and of course, Stanford and Santa Clara too). That a small minority of humanities and social science professors may (or may not) have growth constraining views is really immaterial.
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sevendolphins (anonymous profile)
July 12, 2009 at 1:31 a.m. (Suggest removal)
"That a small minority of humanities and social science professors may (or may not) have growth constraining views is really immaterial."
Professors in the sciences may not have "growth constraining" views, but I would bet the majority of them also vote for "Progressive" Democrats regularly, and thus contribute to the problem. Just drive around the side of campus with the science departments and look at the bumper stickers.
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revisionist (anonymous profile)
July 12, 2009 at 7:10 a.m. (Suggest removal)
So if you found Digital Instruments or Amgen and happen to have a bumper sticker on your car that says `stop global warming' you are a drag on the State of California?
What do you have to do to be viewed as a positive contributor to the State? Where a lapel-pin that says `I heart Sarah Palin'? Or, perhaps, `I think the heads of large health insurance companies and Bear-Stearns *earned* their $200 million a year'.
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sevendolphins (anonymous profile)
July 12, 2009 at 8:51 a.m. (Suggest removal)
"So if you found Digital Instruments or Amgen and happen to have a bumper sticker on your car that says `stop global warming' you are a drag on the State of California?"
The answer is yes. The bumper sticker says I'm entitled to fly in a jet and drive my hybrid SUV, while everyone else should ride the bus. The elite thinks we're only good enough to work in Abel Maldonaldo's strawberry fields or Nancy Pelosi's vineyards, instead of in factories building automobiles and aircraft for decent wages and benefits. This isn't a Republican or Democrat issue -- its the transnational progressives versus what's left of America.
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revisionist (anonymous profile)
July 12, 2009 at 9:45 a.m. (Suggest removal)
Nearly everyone is the the same boat. Even Harvard is cutting positions and looking at pay cuts as well.
The silver lining is home prices, rent cost, cars, and most consumer goods are now available at large discounts.
10% pay cuts seem to be the norm. I would do the 10% cuts and not give days off as I do not think this is a short term thing.
Santa Barbara has never paid a premium because of the cost of living here. The premium the employee gets it the weather and lifestyle.
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loneranger (anonymous profile)
July 12, 2009 at 11:44 a.m. (Suggest removal)
Wow, revisionist, you are way out there... you presume an awful lot from a single bumper sticker. You might examine your connections a little, or perhaps ride the bus a few times with Walter Kohn, who, yes, regularly rides the MTD even though he's got a Nobel Prize.
There are hypocrites on all political sides. But there is a Californian way, and it is to focus on the real contributions and ignore what is immaterial. A fantastic breakthrough can come from anywhere... from a communist, a conservative, or especially a kook.
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sevendolphins (anonymous profile)
July 12, 2009 at 5:11 p.m. (Suggest removal)
Most UCSB employees are not resisting these cuts...perhaps there are some that go to these meetings - but most realize that considering how much everyone else has already given up - we have to take a cut too.
Personally I think there does need to be some targeted layoffs. Hopefully the unproductive employees will be cut. But unfortunately it will probably be the newer employees that get cut. That means me. Oh well... Hopefully I can make use of the furlough time to go out and find a new job somewhere...I hate to leave California but I guess I'll have to look.
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snapolis (anonymous profile)
July 13, 2009 at 12:54 a.m. (Suggest removal)
Revisionist is right. the rest of you are too brainwashed to know better. perfect products of the UC system, they need and want more like you! Keep voting for the "system" and learn how to pick berries and pedal your bikes. Cause there ain't gonna be much left of Cal-EEE-for-NEEE-AH if we keep voting the Leftist-Obama path. And I say that as a homegrown native. If you insist on being as ignorant as the illegals and commie-leftists, you will get your "paradise." And those of us with good jobs who don't want to pay for all your "programs" will leave the state. PS - GM dug its own grave on the back of UNIONS - where benefits - not industry innovations - were paramount. YES - they deserved to fail, but not for the reasons Revisionists' detractors point out. Jeez folks. WAKE UP!
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maximum (anonymous profile)
July 13, 2009 at 10:36 a.m. (Suggest removal)
Good post sevendolphins. Its the rare post these days that informs rather than spews invective.
On the other hand, let me summarize the previous post:
- I agree with Revisionist.
- Those who don't are brainwashed.
- UC graduates are brainwashed.
- I hate the President, illegal immigrants & communists.
Quite the contrast indeed.
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EastBeach (anonymous profile)
July 13, 2009 at 11:40 a.m. (Suggest removal)
Yo, spewing invective. Me thinks thou dost "project" too much. Come on people. Where is the beef? Y'all are the reason this state (courtesy of your hallowed Democratic leftist representatives and union leaders) is the WORST PLACE IN THE NATION to do business! And the UC system trains the "workers" who are not even able to find jobs now! Yikes. I'm glad I lived here for over 50 years when it was still the Golden State, not a fading pipe dream.
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maximum (anonymous profile)
July 13, 2009 at 1:24 p.m. (Suggest removal)
UCSB should cut an entire week from each of the three "quarters" thus showing the public that you just can't keep starving the U. and imagine the quality of education hasn't been deeply affected. As Prof. Lichtenstein suggests, in order to defend the University not just defund it "the people" need to see the vicious impact on students, especially incoming undergrads, from these budget cuts/furloughs/reductions.
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DrDan (anonymous profile)
July 13, 2009 at 8:15 p.m. (Suggest removal)
"Yo, spewing invective. Me thinks thou dost "project" too much."
It's an objective fact that you repeatedly spew invective, and EastBeach didn't.
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JayB (anonymous profile)
September 2, 2009 at 4:54 a.m. (Suggest removal)
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