UC would no longer be ‘above the law’ under Constitutional change

SACRAMENTO – State legislators, along with University of California (UC) students and employees, today responded to a number of egregious actions by the UC Board of Regents, including recent exorbitant executive pay hikes, by introducing a Constitutional Amendment to allow greater public oversight and accountability of the institution. 

SCA 21, authored by Senators Leland Yee (D-San Francisco), Roy Ashburn (R-Bakersfield) and Gloria Romero (D-Los Angeles) and ACA 24, authored by Assemblymembers Brian Nestande (R-Palm Desert) and Anthony Portantino (D-La Cañada Flintridge), would remove the Regents autonomy and allow the Legislature to enact statutes affecting UC policy, similar to authority granted over the California State University.  If approved by two-thirds of the Legislature, the measure would be put before the voters for final approval.

In 1879, UC Regents were granted autonomy on all issues related to the management of the institution and thus subject to legislative control only on fiduciary regulations.  Thus, statutory laws are generally not binding over the University.

“Enough is enough; it is time for the UC administration to stop acting like a private institution,” said Yee, who is an alumnus of UC.  “Only five other public universities in the country have a similar status, with UC receiving the greatest level of autonomy.  This completely outdated model results in the Regents thinking they are above the law.  They continuously violate the public trust and disrespect students and taxpayers.”

“It’s obvious that leaders of the University of California are out of touch with the real world,” said Ashburn.  “By approving big salaries and benefits, UC Regents showed they are oblivious to the State’s economy and state budget realities. While California’s families and businesses are cutting back, UC paychecks are getting fatter.  SCA 21 will hold UC Regents accountable to the people of California. My goal is to restore the luster of the University of California as a gem, while protecting the taxpayers from lining with gold the pockets of university bureaucrats.”

“At a time when the University has raised student fees and is considering cutting the pay of its lowest-paid workers, it is simply wrong to be giving the two new chancellors more gold-plated benefits,” said Nestande.  “If students have to tighten their belts, then everyone in the UC system must also tighten theirs.  If UC’s leadership does not get this, then perhaps it is time for the Legislature to review the autonomy that our state Constitution grants them.”
 
“ACA 24 and SCA 21 will fill the need for greater accountability and oversight of the UC Board of Regents,” said Portantino, Chair of the Assembly Higher Education Committee. “If enacted, these Constitutional Amendments will provide the appropriate amount of oversight by making the Regents directly accountable to the public. This will ensure the decisions they make are in the best interest of students and the State.”

“The University of California has flagrantly abused its power,” said Romero, Chair of the Senate Education Committee.  “The mere fact that we are compelled to introduce a Constitutional Amendment forcing oversight and accountability stems from the UC’s continued arrogance.”

The University has been plagued by several scandals over the years, most recently when the Regents approved double digit compensation hikes earlier this month to two new chancellors earning over $400,000 each.  In the same meeting, they significantly raised student fees and squelched public comment by holding the meeting via teleconference.

Since 2004, there have been several attempts to reign in egregious actions by the UC.  However, the questionable conduct continues:
 
• the UC approved several executive compensation packages behind closed doors, resulting in SB 190 (2007) to require such actions to be done during public session.

• the UC continues to hold closed door meetings to discuss executive compensation packages.

• low-wage workers were forced out on strike after receiving no relief from their poverty wages and were later threatened with retaliation by UC administrators.

• the University conducts research on teen smoking cessation funded by the tobacco industry.

• campus auxiliary organizations fail to comply with the state’s public records act, resulting in SB 218 (2009).

• public contracts have often been kept secret, including financial audits at UCSF, resulting in SB 1696 (2008).

• workers have been disenfranchised during elections to a pension advisory board.

• UC Regents ignored a legislative resolution, SCR 52 (2007), requesting employees be given shared governance of their pension plan.

• the Legislature approved AB 2581 (2006) and SB 1370 (2008) to grant student speech rights and protect journalism advisors from retaliation.

• the UC has handed out several “golden parachutes,” including individual severance packages in the hundreds of thousands of dollars.

• after receiving generous severance packages, some high level executives have been immediately rehired at their previous salaries.

• it has become the yearly norm for Regents to approve double digit student fee increases.

• despite the state’s budget deficit, Regents frequently provide exorbitant pay hikes for top executives, resulting in SB 217 (2009).

• employees have been retaliated against for reporting waste, fraud, and abuse and given no legal protections, resulting in SB 219 (2009).

• some campuses have contracted with businesses that have violated wage and hour laws and failed to put contracts out to a competitive bidding process, resulting in SB 1596 (2008).

• for the past several years, the Regents have increasingly contracted out the management on the UC Retirement Plan to a number of high-priced pension consultants and money management firms, rather than stick to the decades-old and highly successful practice of using professional university financial staff to trade stocks themselves.

• a number of the management contracts of the retirement plan have been awarded to firms owned by members of the UC Investment Advisory Committee. 

Joining the legislators in support of the Constitutional change are the Associated Students of the University of California (Davis), American Federation of State, County, and Municipal Employees (AFSCME), University Professional and Technical Employees (UPTE), University Council of the American Federation of Teachers (UC-AFT), California Nurses Association (CNA), and Service Employees Trades Council (SETC).

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Contact:
Adam Keigwin, 916- 651-4008