The state legislature’s policy advising agency assessed the University of California’s 2016 to 2017 spending plan in a report published Thursday.
The Legislative Analyst’s Office evaluated important UC budget components, such as compensation and resident and nonresident enrollment.
According to the LAO report, employee compensation is the largest UC expenditure in the 2016 to 2017 year, taking up more than 60 percent of its core budget. Much of the compensation expenses went towards paying employee pensions and salaries.
The LAO said the UC pays professors more than other public universities.
State budgets have set enrollment targets one year before the actual budget year, which is favorable because the UC makes its admission decisions in the early spring, the report said. However, state budgets are only enacted in June, so budgets issued on the same year cannot impact UC enrollment targets.
The LAO recommended that the legislature continue setting enrollment targets one year prior and not funding enrollment until needed.
The report also said setting the enrollment targets one year earlier allows the UC to follow the budget’s enrollment guidelines.
The LAO addressed growing concern over increasing nonresident enrollments and how it might displace resident students. The report recommended that the legislature request the UC’s proposed nonresident enrollment policy.