Nov 07, 2009 | 11:44
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Jan 09, 2009
Regents to consider freeze on senior management pay, reductions in freshman enrollment
In response to the worsening state budget crisis, the UC Board of Regents will meet Wednesday, Jan. 14, to consider proposals to freeze the salaries of top administrators, significantly restrict compensation for a large group of senior leaders and curtail undergraduate enrollment growth.
In addition to freezing salaries for senior managers, President Mark G. Yudof is also proposing to restrict the university's systemwide employee recognition and development program and similar campus-based bonus programs. Pending payments under these programs for senior management group members and others with annual salaries in excess of $205,000 would be canceled. As part of the plan to deal with continuing cuts to UC's budget, the regents will also consider Yudof's plan to reduce enrollment of new California resident freshmen by 2,300 students systemwide for 2009-10, but increase transfer enrollment by 500 students systemwide. Graduate enrollment would remain at this year's level.
Under the plan, 2009-10 freshman enrollment at UCLA and UC Berkeley would remain the same, but it would be reduced at six other UC campuses — Davis, Irvine, Riverside, San Diego, Santa Barbara and Santa Cruz. At UC's newest campus in Merced, enrollment could grow.
The president's plan "is not going to have too much of an effect on UCLA," said Thomas Lifka, associate vice chancellor of student academic services. "So we're planning to replicate what we did last year, but we will make sure we definitely do not go over that number." To make sure, that UCLA does not exceed last fall's enrollment, the university will probably have to cut back on the number it admits to next fall's freshman class, he explained. Admission letters typical go out sometime in March. If the regents decide Wednesday to make more drastic cuts than Yudof is proposing, that would change the plan, Lifka said.
Yudof said these actions are necessary to bring enrollments more in line with state resources, while continuing to provide access to UC-eligible California resident applicants. UC will continue to offer a place to every UC-eligible California resident applicant, officials said.
"I have always been reluctant to constrain freshman access to the university, but the absence of state funding for enrollment growth and continuing budget cuts have left us no choice if we are to protect the quality of the instructional program we offer," Yudof said in a statement. "The enrollment reductions in the proposal are both modest and gradual and are intended to bring enrollment into closer alignment with our resources over a period of years.
In 2008-09, the state provided no new funding for additional students; Gov. Arnold Schwarzenegger's proposed 2009-10 budget also does not include this funding. UC officials now estimate it enrolls approximately 11,000 California students without the requisite state funding to support these students.
"As much as possible," the president said, "I want to limit the disruption for students who have worked hard to make themselves UC-eligible. Also, as families and students face uncertainty during this severe economic downturn, we need to keep open cost-effective paths to UC, such as the community college transfer route."
Details of proposed pay freeze plan
The regents will decide whether to approve recommendations by Yudof to immediately freeze the salaries of 285 top administrators and significantly restrict compensation for an expanded group of senior leadership. If approved, the proposal would remain in effect through the 2009-10.
Those in approximately 85 senior-level executive positions will have their current compensation frozen, disallowing any consideration for merit, equity and retention increases, including the president; chancellors; vice chancellors, vice presidents and above; medical center chief executive officers; chief investment officer/vice president for investments; senior vice president/chief compliance and audit officer; and the general counsel/vice president for legal affairs.
For the roughly 200 remaining positions in the senior management group, salaries will be frozen, with no consideration for merit or equity increases. For both groups, there may be cases when stipends or promotional increases may be considered. But they will be subject to review by the president and approval by the regents.
If the regents approve Yudof's plan, this action will follow the recent suspension of merit and equity increases for senior managers and senior professional staff for an estimated savings of $1.3 million annually. That suspension was the latest in a series of actions taken by the university to deal with a significant funding shortfall.
"These are extremely difficult times, and we must make difficult decisions," said Yudof. "Although I regret very much the impact of these actions on our very dedicated and valuable employees, I believe they are consistent with our obligation as a public institution, and are warranted given the historic economic crisis confronting us."
The full proposals going to the regents on enrollment and senior management pay can be seen at this website.
