Kim Polese, Silicon Valley entrepreneur and innovator, offered ideas about how to improve public education and combat the skills gap in her presentation at TEDxBerkeley.

The campus a cappella group Golden Overtones performed “Eye of the Tiger.”

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While enrollment in public universities has increased by 23 percent since 2000, state appropriations have remained constant, prompting universities across the nation to look to belt-tightening strategies, according to the report.

“Budget cuts have had a big effect on our education, specifically class offerings, making it hard to get the classes we want and graduate on time,” said UC Berkeley student Johnny Garcia Vasquez.

Among the 17 states suffering the largest cuts, per student funding has fallen by almost 20 percent in the past five years, according to the report.

In California, funding for financial aid had has been stretched among a larger body of students as higher education enrollment among low-income students has increased, while the total amount of funding available has remained relatively constant.

At the federal level, funding for financial aid has declined as the requirements for Pell Grant eligibility have tightened. Additionally, interest rates on federal student loans are set to double on July 1.

Ethan Senack, the higher education fellow at U.S. Public Interest Research Group, suggested that interest rates on federal student loans be more responsive to market borrowing rates.

“What young people and students must do is speak up about rising interest rates,” he said.

Public universities are coping with shortfalls in state funding in a number of ways, including consolidating or cutting programs or outsourcing bookstores and housekeeping, according to the report.

“Ninety-eight percent of university leaders are conducting strategic reviews to better manage costs, particularly the costs associated with academic programs and administrative structures,” the report stated.

At UC Berkeley, the campus has endeavored to reduce administrative costs through its Operational Excellence program. The College of Natural Resources has been able to eliminate millions in annual operating costs by centralizing services across departments, according to College of Natural Resources Dean Keith Gilless.

In the last year, public universities have played a significant role in the nation’s economy, particularly in research and development. According to the report, in 2011, universities and research institutes were responsible for 4,700 reports, supported or assisted 671 startup companies and helped develop 591 new commercial products.

Public universities award 1.1 million undergraduate degrees and 400,000 graduate degrees annually. Among those degrees, more than 200,000 came from the fields of science, technology, math and engineering, according to the report.

“Education, including research, is a public investment that provides both a social and an economic return,” the report stated. “Achieving these commitments will ensure greater economic security for America and the next generation of citizens.”

Contact Christine Tyler at ctyler@dailycal.org.

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What does this mean for the university? The initiative presents an opportunity to pursue financial stability. While the initiative is far from perfect, it provides students with immediate relief. Students have carried the burden of inadequate state funding for far too long. The initiative would provide funding to ensure that students do not experience another fee increase in the 2012-13 academic year. Additionally, the governor’s administration has stated an intention to enter a multiyear funding agreement with the UC and CSU systems to provide steady increases to each university’s budget over a four-year period. Alternatively, if the initiative fails, the UC system will face an enormous budget deficit, which could lead to cuts and fee increases. In short, passage of the initiative could redirect the trajectory of the university for the better, while its failure could lead to business as usual.

Finally, the initiative serves as an opportunity for Californians to reclaim the university. In recent years, the state Legislature has significantly cut funding for higher education, yet there has not been a unified statewide response. The initiative provides Californians with the opportunity to demonstrate their support for the university. The initiative’s passage depends on the collaborative efforts of UC students, staff, faculty, employees and Californians. Students must mobilize on each campus and lead effective voter registration drives to build student vote power. UC faculty and staff must emerge from behind their office desks to voice their support for the initiative. UC workers must continue to support higher education and garner support from their constituency. Californians from every city across the state must reclaim their stake in the state by casting a vote in favor of its future. The initiative’s passage would mark an electoral victory, but, most importantly, it could foster a greater sense of ownership from California’s public.

The university has reached a critical point. If we do not act now, it will face incredibly difficult times. Californians must act for university to continue to fulfill its mission to educate the state’s best and brightest, to produce cutting-edge research, to employ hundreds of thousands of workers and to produce national leaders. The university’s success depends on Californians as much as California’s success depends on the university.

Cinthia Flores is the UC student regent-designate.

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