Friday, September 11, 2009

Fiscal Solutions for the UC

I have adopted these basic solutions to fix the current UC budget from AFSCME:

Reduce the Top 2% of Earners = $220 MILLION
Applying sensible reductions to the University’s top earners will free over $220 million to use for preserving essential services. The alternative—levying reductions on UC’s employees, including low-wage service workers whose families are one step from poverty—will ultimately cost more in public dollars.

Use Short-Term Borrowing as a Stop-Gap = $200 MILLION
If UC can borrow $200 million to lend to the state for continued construction, it surely can borrow $200 million to maintain essential services at campuses and medical centers. Prioritizing core services is a smart budget move that saves money by averting the liability and costs of unsafe campus conditions. UC can afford this extraordinary stop-gap measure during unprecedented times.

Utilize Medical Center Profits = $100 MILLION
UC’s five medical centers made significant profit gains in 2009. According to UCSF CEO Mark Laret, in FY 2009 that single campus “exceeded [the] outstanding level goal… with a bottom line that may exceed $100 million this year.” Other campuses report similar gains, averaging a 5.2% operating margin for the first three quarters of FY 2009 (California hospitals have averaged less than 1% over the last five years reported). If UC borrowed medical center profits above a 3% operating margin, this would free roughly $100 million for UC’s general operations.

Restructure Debt = $75 MILLION
We support the University’s efforts to restructure a portion of its bond debt service, and believe UC should continue with its plans to save $75 million through such means.

Utilize Unrestricted Investments = $50 MILLION
The University holds a massive, $8.5 billion investment portfolio, most of which is highly liquid, unrestricted funds. Although UC earmarks these funds for programs, some fraction is discretionary and designated at the will of the Regents. In FY 1993, UC and the State of California tapped into the University’s investments to fund $43 million of a shortfall in UC’s operating budget. Borrowing less than 1% of UC’s unrestricted investments would free $50 million to deal with critical operational needs in this unprecedented state budget situation.

Cut Wasteful Spending = $40 MILLION
UC must continue to cut non-essential spending—including, but not limited to, renovations of UC mansions, executive rentals of non-UC property, non-essential travel, and consultants’ contracts—before any consideration of cutting vital services. UC’s receipt of American Reinvestment and Recovery Act funds necessitates an especially judicious approach to reigning in excessive non-core spending.

Pressure must also be put on President Yudof to negotiate immediately with the governor to ensure UC funding for next year and the future. We also stand with our students and reject the possibility of the Regents approving a student fee hike of 15% for this January.

8 comments:

  1. Yet another stunner of a post. I wish you would add a button from blogger gadgets for easy sharing ~ emailing, bookmarking, blogging, tweeting, Facebook sharing and the like.

    ReplyDelete
  2. PS... friends & former colleagues at UC Davis are gobsmacked that I know more about what's going on than they do... I give credit where due & send them your way

    ReplyDelete
  3. Equally interesting is to read UCOP's reply to these proposals when they were put forward by AFSCME:

    http://www.universityofcalifornia.edu/budget/documents/duckett_to_afscme_081809.pdf

    A few points seem reasonable, but many are simply disingenuous. I have not seen the union's rebuttal anywhere, did they ever reply to Duckett?

    ReplyDelete
  4. I just wanted to comment on your blog and say I really enjoyed reading your blog here. It was very informative and I also digg the way you write! Keep it up and I'll be back soon to find out more mate.

    ReplyDelete
  5. http://www.burbagssale2013.com/ Burberry Outlet
    http://www.airmaxshoesfactory.com/ Air Max Shoes
    http://www.coachblackfriday2014.com/ Coach Black Friday
    http://www.coach-storeoutletonline.com/ Coach Black Friday
    http://www.coachcoachoutlet.com/ Coach Cyber Monday
    http://www.coachxfactory.com/ Coach Factory
    http://www.coach-factoryoutletonline.net/ Coach Outlet Factory
    http://www.coach-outletonlineusa.com/ Coach Outlet USA
    http://www.coach-pursesfactory.com/ Coach Purses Factory
    http://www.coachpurseusa.com/ Coach Purses USA
    http://www.coach-storeoutlet.com/ Coach Store Outlet
    http://www.coach-pursesonline.com/ Coach Purses On Sale
    http://www.monsterbeatsbydres.com/ Monster Beats Outlet
    http://www.louis-vuittonblackfriday.com/ Louis Vuitton Outlet
    http://www.lv-guccishoesfactory.com/ Louis Vuitton Factory
    http://www.marcjacobsonsale.com/ Marc Jacobs On Sale
    http://www.mcmworldwides.com/ MCM Outlet
    http://www.mcmoutlet-jp.com/ MCM 店铺
    http://www.oakleysunglassesfactory.com/ cheap oakley sunglasses
    http://www.michaelkorsmas.com/ Michael Kors Outlet
    http://www.michaelkors.so/ Michael Kors Outlet
    http://www.michaelkorsfactory-store.com/ Michael Kors Factory
    http://www.michaelkorsoutletr.com/ Michael Kors Outlet
    http://www.michael-korsfactoryonline.com/ Michael Kors Factory Online
    http://www.newcoachfactoryoutlet.com/ Coach Factory Outlet
    http://www.north-faceoutletonlines.net/ North Face Outlet Online
    http://www.polo-outletstore.com/ Polo Outlet Store
    http://www.ralph-laurenhome.com/ Ralph Lauren UK
    http://www.saclongchamppairs.com/ Sac Longchamp Pairs
    http://www.tcoachoutletonline.com/ Coach Outlet Online
    http://www.the-coachfactoryoutlet.com/ Coach Factory Oultet
    http://www.barbour-jacketsoutlet.com/ Barbour Jackets Outlet Online
    http://www.canada-gooser.com/ Canada Goose Outlet
    http://www.guccishoesuk-2014.com.net/ Gucci Outlet Online
    http://www.michaelkorsstates.com/ Michael Kors Outlet
    http://www.moncler-clearance.com/ Moncler Clearance
    http://www.moncler-jacketsoutletonline.com/ Moncler Jackets Outlet Online
    http://www.northsclearance.com/ North Clearace Outlet
    http://www.polo-ralphlaurensoutlet.com/ Polo Ralph Lauren Outlet Online
    http://www.woolrich-clearance.com/ Woolrich Clearance
    http://www.cvshopfactory.com/ shop.coachfactory.com
    http://www.mksfactoryoutlet.com/ Michael Kors Factory Outlet
    http://www.zxcoachoutlet.com/ Coach Outlet Online USA
    http://www.thebeatsbydre.net/ Beats by Dre
    http://www.newoutletonlinemall.com/ Coach Purses Outlet Online
    http://www.clickmichaelkors.com/ Michael Kors USA

    ReplyDelete