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UC Crisis of Priorities - Not Budget

Issues: 
Budget Crisis

 UC-AFT does not believe that the University of California has a budget crisis.  We believe that the UC has a crisis of priorities, and that the current attempts by President Yudof to address the shortfall in state funding will only compound this crisis by defunding an already badly underfunded instructional program at UC.  We also reject the rationale and process by which President Yudof was granted the power to declare a financial emergency and to implement furloughs and pay cuts.

 

UC-AFT believes this is a manufactured crisis for the following reasons:

1.     800 million dollars over two years equals around 4% of UC's total operating budget for those two years.  Put another way, 96% of UC's total operating budget remains intact!

2.     42% of UC's total annual operating budget comes from auxiliary services like the medical centers, housing, parking, etc.  The regents have the power to decide how this money is used.  They currently claim the money is restricted, but it is restricted by choice, not by law.  Some auxiliary money could be used to cover the state deficit with limited impacts to the university. 


3.     The university has recently bragged about its AAA bond rating, and its record breaking year securing federal research funding.  UC has billions of dollars in unrestricted funds and investments that it could use to partially cover the state funding deficit.

 UC-AFT rejects the furlough plan for the following reasons:

1.    According to President Yudof, the majority of the savings from the furloughs will be used to pay for financial obligations that have nothing to do with the shortfall in state funding.  UC is openly planning on using this funding to pay its share of UCRP contributions, and other operating expenses not traditionally paid for by state funding.  

2.   This plan exempts all salary given above base pay.  Many of the highest paid UC employees are paid the majority of their salary above their base pay.  This fact undermines the claim that the furlough plan is progressive and fairly distributes cuts. 

UC-AFT will continue to work hard to expose UCOP's deceptive accounting practices and the misguided priorities of President Yudof and the Regents, who would rather completely undermine UC's instructional mission than share resources generated by other sectors of the university.  

UC-AFT is very concerned about defunding of education at the state level.  We we will continue to work tirelessly to educate ourselves and our members about the problems contributing to the underfunding of education in our state.  We believe that a combination of reform of Prop 13 and the 2/3 majority requirement, along with a more progressive tax code would ensure consistent funding for education in the future.  We expect the university to be a leader in the reform movement, and as such to set an example by committing a small portion of its own funds to maintain UC's promise of access and excellence to the citizens of California during the current state funding deficit.

Here are links to all recent budget related communications from UC-AFT:

UC-AFT request for additional information re: furlough/salary reduction plan July 23, 2009 

E-mail from Bob Samuels to all unit members responding to furloughs July 21, 2009

E-mail from Karen Sawislak to all unit members re: UCOP request to bargain July 21, 2009

E-mail from Karen Sawislak to all unit members July 10, 2009

Letter to Shelly Nielsen at UCOP July 1, 2009

E-mail from Karen Sawislak to all unit members June 24, 2009

E-mail from Karen Sawislak to Librarians June 24, 2009

E-mail from Karen Sawislak June 18, 2009

E-mail from E-Board to all unit members June 1, 2009

Click these links to read the letters from UCOP Labor Relations requesting negotiations over the furlough plan for Lecturers and Librarians.