by Thomas Jue and Jerold Theis –
California has stamped out the Station Fire but not the crisis that threatens to engulf the University of California (UC) and destroy a premier higher education system. The UC Regents may have closed the $813 million dollar deficit by securing savings from service reduction ($325 million), furloughs ($203 million), student fee hikes ($203 million), and debt restructuring ($82 million), but they have only started their Sisyphean task, because the preoccupation with “the business” prevents them from extinguishing any fire.
Certainly, the housing market collapse and the ensuing recession have led the State to the brink of a $26 billion financial abyss. At the brink, legislators have fractiously cobbled a budget that meets a 2/3 majority approval and sustains initiative designated expenditures. The budget reduces by 25% the 2008 allocation ($3.3 billion), which represents 17% of the total $19 billion budget. Student fees ($1.6 billion), medical center activity ($6.1 billion), and research grants ($2.7 billion) comprise the other major revenues.