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July 2017

Higher Education

University of California: Conditions Attached to $50 Million General Fund Increase

The University of California shall take all possible actions to achieve the following expectations:

  • Activity-Based Costing. Complete activity-based costing pilot program currently underway at the Riverside campus and implement pilots at two more campuses in three departments each.
  • Transfer-to-Freshman Ratio. Enroll at least one entering transfer student for every two entering freshmen for the 2018-19 academic year at every campus except Merced and San Francisco.
  • Senior Management Compensation. Adopt a policy that does not provide supplemental retirement payments for any newly hired senior managers.
  • Budget Transparency. Beginning with the 2018-19 fiscal year, report to the legislative education policy and budget committees on (1) the UC Office of the President's revenues and expenditures, including carryover funds; and (2) UC's systemwide and presidential initiatives, including a full description of each program, the sources of revenue, and explanation of how the programs further the mission of the university.
  • State Auditor Recommendations. Implement the State Auditor's recommendations regarding budgeting for the UC Office of the President.
    • Review existing funding streams and identify which ones are restricted.
    • Develop a reserve policy.
    • Adopt a budget presentation that reports all of the office's funding, spending, and reserves.
    • Form a committee of campus stakeholders to gather input on the office's annual budget.
    • Develop a method for weighing comparable public- and private-sector pay when establishing salaries for all positions.
    • Revisit existing salary ranges to ensure they encourage employee development and pay equity.
    • Identify needed changes in employee benefit policies to ensure they include reasonable safeguards to control costs.
    • Complete phase one of the California Department of Human Resource's workforce planning model.
    • Develop clear definitions of "systemwide initiatives" and "administration" in budget documents.
    • Develop comprehensive list of systemwide and presidential initiatives, including their purpose and actual cost.