Rare news of spending cuts and cost-saving efforts came from the University of California Office of the President recently when the body announced proposals that could save up to $56.7 million in one year alone ““ about 20 percent of UCOP’s annual budget.
UCOP, the office that houses the highest-ranking UC administrators, has decided to restructure some of its operations in hopes of making its mission “smaller and more focused.”
What a relief ““ it only took the currently desperate state budget, diminishing federal funding and some of the largest student fee hikes we’ve seen in years before some definitive action was taken to counteract the crisis.
Of course, with downsizing, there will be a large wave of personnel who will be put out of jobs.
It is a shame that 400 people will be out of work, particularly in light of recent controversy surrounding the approximate doubling in value of the compensation package being given to the new president.
This sacrifice is large but an unfortunate and necessary consequence of such measures.
The state is facing a $16 billion deficit; clearly the state cannot continue to function with the number of people it currently employs.
As most people are aware, student fees have skyrocketed in recent years, so hopefully a leaner UCOP will decrease the financial pressure that has caused the fee hikes.
And though the job loss is an unfortunate side effect of UCOP’s “streamlining,” more education funding and cuts where appropriate will ease the burden on thousands of families hoping to fund their children’s educations.
It is important to know that most of the people being let go do not directly support the UC president, which is the job of the organization.
Other programs that were being housed within UCOP were the Education Abroad Program, Continuing Education of the Bar program and benefits administration for retired UC employees.
While each of those programs perform an important duty in the UC system, they do not fall under UCOP’s key role and therefore should not be part of the office.
By downsizing the central administration, UCOP will be able to salvage millions of dollars and allow some of its funding and operations to be housed elsewhere, including local UC campuses.
Basing some of the relevant operations to be housed on UC campuses, as opposed to their current office in Oakland, would invite localized and immediate interaction with each campus.
This relocation would save the UC system roughly $26 million a year.
With the announcement of the big cutbacks came news for the future. UCOP intends to continue reorganizing through the coming year and will continue to trim the budget through the 2009-2010 school year.
State funding is rapidly declining each year. Between the higher costs and the private universities that are offering more “free rides” to their students, it will be difficult for the UC system to maintain its competitive reputation and successfully recruit California’s best and brightest students unless it makes more funding available.
We understand why some people will be upset by these budget cuts, but we feel they are in the best interest of the UC system as a whole.