The flood of news concerning the UCOP audit slowed to a trickle this week, though the repercussions of an earlier audit made news. The Regents approved a cap on nonresident undergraduate enrollment, a policy change spurred by a 2016 audit that found in-state students were disadvantaged in the admissions process as UC sought the financial benefits of out-state-students. System-wide, UC’s undergraduate student body is about 16.5 percent nonresident. The cap will allow the proportion to grow to 18 percent at five campuses currently below that threshold. Four campuses—Berkeley, UCLA, San Diego and Irvine—exceed that limit. Instead of being forced to cut down on the proportion of nonresident students, these campuses will be capped at their current level. The Regents considered an even more lax plan, but withdrew it from consideration after lawmakers expressed exasperation, citing constituents with high-achieving high schoolers who had been denied admission to the state’s premier higher education system. As part of a deal with Gov. Brown, the system should now receive an additional $18.5 million in funding, money that will be used to fund the enrollment of additional resident undergrads, according to the Sacramento Bee.
News about the more recent UCOP audit focused on a Regents meeting which protestors briefly shutdown. The protestors were there to criticize UCOP for what the audit characterized as excessive compensation. The Regents voiced their support for President Napolitano at the meeting, pushing back against some aspects of the auditor’s characterization of UCOP’s budgeting practices. In an op-ed, Assembly Speaker Anthony Rendon (D-South Gate) urged the Regents to more closely monitor UCOP.
In other news, Gov. Brown’s May budget revision makes the receipt of $50 million contingent on three conditions:
- State Auditor Recommendations: In an April 2017 report, the State Auditor identified a number of problems with the UC Office of the President (UCOP), including the office’s staffing size and costs, spending on systemwide programs, and overall budget. The Auditor’s report included dozens of recommendations designed to enhance transparency, operational performance, and state oversight. The Auditor called for these recommendations to be implemented over a three-year period (between April 2018 and April 2020). The May Revision would link budget-year funding with UC’s implementation of the April 2018 recommendations.
- Transfer Enrollment: The May Revision also expects all but two campuses (Merced and San Francisco) to enroll at least one new transfer student for every two new freshman students for the 2018-19 academic year. That is, at least one-third of each campus’s new resident undergraduate enrollment would need to be transfer students. This target is intended to align with policies called for in the 1960 Master Plan for Higher Education. In 2015-16, 31 percent of UC’s incoming resident undergraduates were transfer students.
- Activity-Based Costing: The May Revision’s final condition is for UC to pilot activity-based costing at three campuses. The purpose of activity-based costing is to identify program- and course-level costs of providing instruction and other services to students. Currently, one pilot is underway at the Riverside campus, and two campuses (Merced and Davis) have completed scoping studies for pilot programs
The Legislature is debating the budget, which has a June 15 deadline for passage.
5/18 – UC pulls back welcome mat for nonresident students with first enrollment cap (SacBee): The article notes that nonresident enrollment increased rapidly during the recession, when the UC system saw its budget sharply cut. However, as the budget has recovered, nonresident enrollment has not slowed. Two Regents voted against the measure, with at least one casting their vote to signal support for more out-of-state students and the diversity they bring.
5/19 – UC leaders to cap nonresident student enrollment in 2018 (SFGate): The article notes UC enrolls more resident students than peer public universities.
5/18 – UC regents defend Napolitano, thank auditor for probe (SFGate): The Regents pushed back on the auditor’s characterization of funds being hidden.
5/17 – UC students protest hidden funds, shut down regents meeting (SFGate): Protestors briefly shut down the Regents meeting, calling out President Napolitano for the perceived excesses of her office.
5/17 – UC regents meeting disrupted by protests over state audit finding of undisclosed surplus (LATimes): “Shame on you, Janet Napolitano. Shame on you, UCOP,” one student said at the meeting.
5/16 – Op-Ed: Speaker Rendon: In wake of audit, UC Regents need to wake up, better oversee President Napolitano and roll back tuition hike (SJMN): In his op-ed, Rendon wrote:
Regents must also demand transparency. We must receive clear, quality information and timely answers to our questions. That’s the only way to make informed budget, personnel and policy decisions.
I am frustrated with what Napolitano’s office has communicated and not communicated to the State Auditor, the public and the students. I will be ready with tough questions at the meeting. Legislators have to hold the Regents accountable, and the Regents have to hold the President accountable. That is what will bring lasting change.
5/15 – State of California: LAO Budget Revision Analysis (LAO): The UC information is on page 26 of the report.