Budget again stirs intercollegiate athletics funding controversy

Despite the fact that lawmakers have approved a budget that explicitly outlines that state funds cannot be used to fund intercollegiate athletics, university and UC Berkeley officials say concern surrounding funding for intercollegiate athletics is a moot point.

The budget has once again brought financing for UC athletics teams under scrutiny and has capped off a year marred by tumultuous changes for UC Berkeley’s Department of Intercollegiate Athletics.

In September, the department cut five teams from its intercollegiate roster — rugby, baseball, men’s and women’s gymnastics and lacrosse — to try to combat the department’s growing reliance on campus funding support. By April, all five teams were reinstated after major funding campaigns assured campus administrators each team could monetarily support itself for a set number of years.

But in June, lawmakers inserted a line in the state Democrats’ proposed 2011-12 state budget — which was passed by state lawmakers June 28 — that explicitly detailed state funds could not be used to fund intercollegiate athletics.

However, campus and university officials maintain that state funds were never used and that campuses will continue to use only campus-generated funds to support athletics.

“The only funds intercollegiate athletics departments use are campus-generated,” said Patrick Lenz, vice president of budget and capital resources for the UC Office of the President. “We have not and will not use state funds.”

At UC Berkeley, issues surrounding the legitimacy of whether to use campus funds to support the department have been an ongoing topic of contention among campus administrators, faculty and staff.

Within the past year, two final reports released from two separate campus groups — the Chancellor’s Committee on Intercollegiate Athletics and the Academic Senate Task Force on Intercollegiate Athletics — both revealed the department was falling deeper into financial strife and that measures needed to be taken to remedy the department’s reliance on campus support, which totaled about $13.7 million during the 2008-09 fiscal year.

“During the seven-year period 2003-2010, Intercollegiate Athletics at Berkeley has cost the campus $78 million, which is an average exceeding $11 million per year,” said Brian Barsky, a UC Berkeley professor of computer science who was one of eight faculty members to author a 2009 resolution recommending the campus end all funding to intercollegiate athletics.

Though the campus has not completely halted funding to the department, according to campus spokesperson Dan Mogulof, the department is on its way to meeting a goal set by the task force in late August — by 2014, the department would have a budget deficit of no more than $5 million, with an ultimate reduction to a deficit of zero, though the time frame for that second goal has yet to be determined.

Efforts being made to reduce campus financial support include the hiring of a new chief development officer to oversee all fundraising efforts for the department, which also meets one of the recommendations of the chancellor’s council, according to Herb Benenson, director of media relations for the athletic department.

Benenson added that the department is adding resources in its revenue-generating units, such as development, the Athletic Ticket Office and marketing to help the department become more capable of increasing revenues from donations, marketing opportunities and ticket sales.

Benenson said in an email the campus had reached its promised goal of reducing campus support to $10.5 million in the 2011 fiscal year. The schedule for the next three fiscal years, he said in the email, is $9.5 million in the 2012 fiscal year, $7.5 million in the 2013 fiscal year and $5 million in the 2014 fiscal year.

Another factor the department is examining to assist in the reduction of campus financial reliance is the new Pac-12 Media Rights Package that will take effect in the 2013 fiscal year and, according to Benenson, will provide additional revenue for the department.

In the first year, the department is expected to receive $1 million to $2 million over projections from the summer of 2010, which would result in a net gain of $5 million to $6 million, as opposed to $4 million, Benenson said in the email.

“This revenue will allow IA to meet unanticipated costs increases (such as additional required pension contributions and rising scholarship expenses noted above) without deviating from the step down to $5 million in campus support,” he said in the email.

But some still question how much money intercollegiate athletics could save once the media rights package takes effect.

According to Barsky, one repercussion of the new television package that “may not be apparent is that since money will be distributed to all teams in the Pac-12, there will be pressure on intercollegiate athletics at UC Berkeley to continue the spiral of increased spending so that it can keep up with the other Pac-12 teams in what is a fiscal ‘arms race.’”

“How much of this new Pac-12 TV money will Intercollegiate Athletics use to repay the Berkeley campus for the debt it has incurred by its repeated overspending above and beyond its annual subsidies from the Chancellor’s Discretionary fund as well as from student fees?” he said in an email.

But according to Mogulof, concerns surrounding whether the department will be able to repay the campus should not be an issue.

“Here’s the bottom line: Cal Athletics remains on course to meet the goals determined by the department’s new financial model, in terms of both revenue and costs,” he said.

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  1. Anonymous says:

    University
    of California Berkeley
    tuition, fee increases are an insult. Californians face mortgage defaults, 12%
    unemployment, pay reductions, loss of unemployment benefits. No layoff of UC
    Chancellors, Faculty during greatest recession of modern times. Yudof curb wages,
    benefits for sons and daughters of Californians! If wages better elsewhere,
    chancellors, vice chancellors, tenured, non tenured faculty, UCOP apply for the
    positions. If wages are what commit employees to UC, leave for better paying position.

    UC wages must reflect California’s
    ability to pay, not what others are paid. There is no good reason to
    raise UC tuition, fees when wage concessions are available.

     The sky will
    not fall on UC.  

    ‘Pitch in’ UC President, Faculty, Chancellors, Vice Chancellors,
    UCOP:

    No furloughs   

    18 percent reduction in UCOP salaries & $50
    million cut.

    18 percent prune of campus chancellors’, vice chancellors’ salaries.

    15 percent trim of tenured faculty salaries, increased teaching load

    10 percent decrease in non-tenured faculty salaries, as well as increase research,
    teaching load

    100%
    elimination of all Academic Senate, Academic Council costs, wages.

     

    (17,000
    UC paid employees earn more than $100,000)

     

    However,
    rose bushes always bloom after pruning.

     

    UC Board of Regents Chair Sherry Lansing can bridge the public
    trust gap with reassurances that UC salaries reflect depressed wages in California. The sky will
    not fall on UC

     

     

  2. Anonymous says:

    UCBerkeleyNews. When UC Berkeley announced
    its elimination of student sports including baseball, men’s, and women’s
    gymnastics, women’s lacrosse teams and its defunding of the national-champion
    men’s rugby team, the chancellor sighed, “Sorry, but this was necessary!”

    But was it? 
    Yes, the university is in dire financial straits. Yet $ 7 million was
    somehow found by Chancellor Robert J Birgeneau ($500,000 salary) to pay the consulting
    firm to uncover waste, inefficiencies in UC Berkeley (Cal), despite the fact that a prominent East
    Coast university was accomplishing the same thing without expensive consultants.  

    Essentially, the process requires
    collecting, analyzing information from faculty, staff.  Apparently, Cal senior management believe that the faculty,
    staff of their world-class university lacks the cognitive ability, integrity,
    energy to identify millions in savings.  If consultants are necessary, the reason is
    clear:  the chancellor has lost
    credibility with the people who provided the information to the
    consultants.  Chancellor Robert J
    Birgeneau has reigned for eight years, during which time the inefficiencies
    proliferated to $150 million.  Even as
    Bain’s recommendations are implemented (‘They told me to do it’, Birgeneau),
    credibility, trust, problems remain. 

    Bain is interviewing faculty, staff, senior
    management and academic senate leaders to identify $150 million in
    inefficiencies, most of which could have been found internally. One
    easy-to-identify problem, for example, was wasteful procurement practices such
    as failing to secure bulk discounts on printers.  But Birgeneau apparently has no concept of
    savings:  even in procuring a consulting
    firm he failed to receive proposals from other firms.

     

    Students,
    staff, faculty, California Legislators are the victims of his incompetent
    decisions.   Now that sports teams are
    feeling the pinch, perhaps the California Alumni, benefactors, donors, will
    demand to know why Birgeneau is raking
    in $500,000 a year while abdicating his work responsibilities.

     

    UC
    Berkeley reprimand, censure: NCAA places Chancellor Birgeneau’s men’s
    basketball program on two years probation.

     

    Let
    there be light for transparency to UC Berkeley Chancellor Birgeneau’s inept leadership

     

    The author, who has 35 years’ consulting experience,
    has taught at University
    of California Berkeley,
    where he was able to observe the culture and the way the senior management
    operates.

    Ranking drops for world class preeminent public research,
    teaching University of California Berkeley (Cal).  In 2004 the London-based Times Higher Education ranked Cal
    the 2nd leading research university in the world, just behind Harvard; in 2009
    ranking tumbled to 39th. By 2011 Cal
    had not returned to 2nd place. Cal below top ten in tuition to
    Return on Investment (ROI)