UC Berkeley Chancellor says trigger cuts are ‘assured’

Vice Chancellor for Administration and Finance John Wilton, Chancellor Robert Birgeneau, Executive Vice Chancellor and Provost George Breslauer speak on the current state of the university.
Taryn Erhardt/Senior Staff
Vice Chancellor for Administration and Finance John Wilton, Chancellor Robert Birgeneau, Executive Vice Chancellor and Provost George Breslauer speak on the current state of the university.

The University of California will be cut up to a further $100 million in state funding, UC Berkeley Chancellor Robert Birgeneau said Friday.

In an interview with The Daily Californian’s Senior Editorial Board Friday afternoon, Birgeneau said that when he and campus Vice Chancellor for Administration and Finance John Wilton met with Gov. Jerry Brown on Sept. 22, Brown “assured us (the cut) is coming.”

The governor’s press office would not confirm any statements he made while meeting with Birgeneau and Wilton.

An additional $100 million would bring the state’s total reduction in funding to the university this year to $750 million.

The burden of absorbing up to $15 million of that cut could fall on the campus, depending on whether the state legislature renegotiates the amount of the cut to the university and how the UC Office of the President divides the eventual funding reduction, according to Wilton.

To mitigate the cut, the campus will ask individual units to maintain current expenditure levels and utilize their financial reserves to cover the cut.

Using the reserves — which Wilton called a “very high opportunity cost resource” — to cover this cut could leave the campus vulnerable to potential future reductions in state funding. However, Wilton said campus administrators were “slightly ahead of the curve” in dealing with the budget crisis and had already implemented longer-term initiatives to improve the campus’s fiscal health.

Birgeneau pointed to changes in investment practices and increases in out-of-state student enrollment as policies that will increase the campus’s revenue to offset possible further funding reductions.

While the decision to enact the trigger cuts — included in the 2011 state budget as insurance against the state collecting about $4 billion in revenue — will not be finalized until Dec. 15, their implementation has looked inevitable for some time. At the end of September revenue collection, the state lagged $705.5 million behind its target, according to the state controller’s office.

“For better or worse, the potential for revenue shortfalls is precisely why the Governor and Legislature included trigger cuts in this year’s State spending plan,” said state Controller John Chiang in an Oct. 10 press release announcing the shortfall. ”September’s revenues alone do not guarantee that triggers will be pulled. But as the largest revenue month before December, these numbers do not paint a hopeful picture.”

Jordan Bach-Lombardo is the university news editor.

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17

Archived Comments (17)

  1. Thats Big Moolah says:

    Top 10 earners at UCOP in 2010:
    John Stobo $756,874.36  ($51,000 more than in ’09)
    Marie Berggren $686,674.68 ($49,000 more than in ’09)
    Mark Yudof $560,594.40 ($17,000 LESS than in ’09, score 1 for Yudof!)
    Timothy Recker $527,126.00 ($195,000 more than in ’09)
    William Coaker $502,672.68 ($215,000 more than in 09′)
    Randolf Wedding $473,786.01 ($97,000 more than in ’09)
    Melvin Stanton $446,703.01 ($45,000 more than in ’09)
    Peter Taylor $446,249.28 ($148,000 more than in ’09)
    David Shroeder $431,960.96 ($109,000 more than in ’09)
    Lynda Choi $416,473.00 ($17,000 more than in ’09)
    http://www.sacbee.com/statepay/?name=&agency=UC+UCOP&salarylevel=
    60 employees at UCOP made more than $200,000 in 2010.

    Real median household income in the United States in 2010 was $49,445, a 2.3 percent decline from the 2009 median.
    http://www.census.gov/newsroom/releases/archives/income_wealth/cb11-157.html

    • Anonymous says:

      Looks like 1%ers. Time for tents, thuggery and spray paint.

    • Somebody says:

      I was walking pass their underground garage of their UCOP headquarters in Oakland and the cars coming out were all German luxury cars.  Not a single Japanese or American car.  Modern dictators.  That’s where student’s tuition money is really going to.

      • Guest says:

        They get paid well below market.  Stanford’s president makes a cool $1.1 million.

        • Tony M says:

          Unlike, Cal, I don’t believe Stanford is funded by the state of California. There’s a difference between private organizations selected by those footing the bill, and a state bureaucracy funded by the taxpayers.

          • Dude says:

            You didn’t address my statement at all.

            Stanford and other elite privates are part of the higher eduation market.  Furthermore, Berkeley competes DIRECTLY with these institutions for faculty, staff, and students. 

            Sounds like you think Cal should become non-competitive in order to fulfill an antiquated promise to a state that has effectively orphaned it. 

      • Anonymous says:

        They must be 1%ers. Get your tents, spray paint, thugs and head for the garage.

  2. Administrative Negligence says:

    “UCLA’s system of hospitals and clinics warned more than 16,000 patients
    that their personal information was on a computer hard drive stolen in
    the burglary of a doctor’s home, officials said Friday. The information was encrypted but the password was on a scrap of paper near the computer that also was missing.”
    Why does UC allow it’s medical center staff to take patient data off the hospital premises?
    “The hospital did not release the name or details about the doctor who
    was burglarized, but said the person had to maintain the information to
    perform necessary job duties.”
    http://www.nytimes.com/2011/11/05/us/ucla-health-system-warns-about-stolen-records.html?_r=1&hp

    UC has already suffered the pilfering of 97,000 social security numbers from an unsecured network on the Cal campus:
    http://www.adamdodge.com/esi/stolen_laptop_recovered_fate_98000_records_unknown
    you’d think they would learn to take that sort of thing more seriously.
    and 800,000 SSNs before that… at UCLA:
    http://www.adamdodge.com/esi/ucla_breach_exposes_almost_one_million_identities

    But the medical centers are self-supporting financially so no biggie, amirite?
    http://m.ocregister.com/news/grow-273430-employees-salary.html

  3. Somebody says:

    More out-of-state students to fix their financial woes is creating an annual backlog of qualified in-state students waiting to apply another year while tuition inevitably goes up.  The UC should be facing class-action lawsuit any day now demanding the UC must make CA residents the only priority and outlaw this discriminatory practice.  With the UC now in direct conflict with federal immigration laws by funding illegal immigrants and catering to the wealthy out-of-state students, the UC is quickly losing national credibility as a respectable university that once was a fierce defender of the nation’s moral compass.
    The UC continued neglect of its duty to community and CA residents makes it unfair as it is a public institution taking taxpayers money.  It’s embarrassing that the UC ask for high GPAs when they should be really asking how high is the student’s bank account.  This type of “prostitution” of education only convinces many that CA should complete pull out of the education business and let UC go completely prioritization and on their own.  Taxpayers don’t need to fund this ridiculous UC anymore that turns it back continuously on it’s own students.

    • Somebody says:

      “privatization” 

    • Guest says:

      Out of state students are far more qualified than the dumbs educated in California.  If anything, Berkeley needs to INCREASE out of state representation.  It’s time to go national/international rather than being a crappy parochial school.

      • Somebody says:

        That’s stupid.  Out-of-state students are more likely to default on loans, and more likely to drop out due to rising credit card and college loan debt.  As soon as they drop out, they have to pay back the loan immediately without a degree working minimal wage, like forever.  In-state students are better positioned to finish by keeping their costs down.  There’s not much “meat left on the bone” for future cuts, so we’ll see what other drastic measures the UC will do next.  A suggestion would be to sell off a couple campus to the private sector, Merced, Riverside, party school Santa Barbara, Santa Cruz.

  4. Sara says:

    Everyone saw this coming, and Operational Excellence is doing good things. However, with California unemployment over 10%, tuition up for students, scores already layed off, and more to come, at least demand integrity in telecommuting practices. Other UCs explicitly state in their telecommuting agreements that employees are not serving as childcare providers, or other conflicts of interest in their rules. It is fraud that employees are allowed to telecommute when they have young children at home, perform side consulting, or attend school. It is simply fraud. With everyone in the system feeling the burden of dire times, the UC can at least demand integrity and honest work free of these conflicts of interest. 80% of the staff show up to work,  where there is oversight, and they deserve a life/work balance as well. Being onsite provides checks and balances and insures equity. At least make the systematic freeloading against the rules.

    • Crazyisascrazydoes says:

      UC demand integrity… laughable.
      The UC is as corrupt as they come.

      Sounds like you’ve just defined a working version of maternity leave as fraud and systematic freeloading. If so, you are beyond help.

      “Operational Excellence is doing good things”?
      Ahahahahahaha! You’re in need of a 5150.

      • Sara says:

        “Working version of maternity leave”?  Employees are rightfully entitled to maternity and paternity leave. That’s about 3 months. Enjoy your time off and your new baby, really!   

        The sense of entitlement where many think they should be allowed to “Work” at home while they take care of your infant and toddler for three years is the problem.  If you kid is home sick one day, sure stay at home. However, the government should not be paying for your childcare while it doesn’t for the 80% of parents that show up to work.   To think that the UC is getting productive hours from a childcare provider to toddlers is absurd. Yes it is freeloading. When scores are allowed to do it, it is systemic.   If you don’t like a boss and coworkers and working as a team player, go consult and make big money! You will have all the flexibility you desire.

        Other UCs clearly prohibit this in their telecommuting agreements.

        What is 5150?

    • Anonymous says:

      Jerry Brown is a hard core Lib so what’s the problem ? Oh ya, after 25 years of Lib SACTO domination, Cali has become a third world state.