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Regents discuss Gov. Brown’s budget proposal for 2013-2014

By and

May 16, 2013 12:48 a.m.

The original version of this article contained information that was unclear and has been changed. See the bottom of the article for additional information.

SACRAMENTO — Several University of California regents expressed concern for the state of the University’s finances – in light of proposed changes in state funding and other internal issues – at the bimonthly UC Board of Regents meeting on Wednesday.

The regents also voted to create an organization involving industry insiders that will manage UCLA’s intellectual property. The organization, currently referred to as Newco, is a 501(c)(3) nonprofit corporation.

The regents held the meeting in Sacramento, for the second May in a row, to coincide with their lobbying efforts to the Calif. legislature for increased funding and support for higher education.

Their lobbying efforts on Tuesday alongside the UC Student Association, which is comprised of students to advocate on behalf of students, led to the tabling of some discussion topics to allow regents to meet with members of the legislature.

Gov. Jerry Brown released a revised version of his budget proposal for 2013-2014 on Tuesday, which shaped the regents’ discussion on Wednesday.

The regents discussed a range of concerns on Gov. Brown’s proposed 2013-2014 budget, from gaps in the UC retirement fund to tuition levels for undergraduate, graduate and professional degree students.

Patrick Lenz, vice president of budget and capital resources for the UC, said in a presentation at the meeting that the proposed state budget would allocate an additional $250 million to the UC.

The proposal includes $125 million in budget adjustments and another $125 million that was promised to the UC last year, if the University froze tuition rates and if Proposition 30 passed.

The UC Retirement Plan, which faces a $11 billion deficit, was another point of discussion at the meeting.

The University plans to use $67 million of proposed state funding to help bridge the gap in the retirement plan for the 2013-2014 year, said Nathan Brostrom, executive vice president of business operations, at the meeting.

The regents, however, expressed concern that campuses will have less for their operating budgets if the UC uses $67 million for the pension plan.

They were also concerned with legislators’ call to increase performance on certain academic performance indicators, like four-year degree completion rates, in light of uncertain funding for next year.

“The idea of holding back money, I thought, was punitive,” said UC President Mark Yudof, when asked about the tie between UC performance and budget.

One of the stipulations in Brown’s revised budget was a four-year freeze on tuition for undergraduate students at the UC.

Jonathan Stein, the UC student regent, said at the meeting that he is concerned about the proposed increase of professional degree student fees, which has been steadily increasing annually and is not included in Brown’s proposed tuition freeze.

The meeting on Wednesday morning was briefly disrupted by a sit-in protest by multiple members and supporters of the American Federation of State, County and Municipal Employees Local 3299, which represents UC service and patient care workers. Thirteen union members and supporters were arrested, escorted out by police and cited for unlawful assembly after police requested them to leave multiple times.

The union is currently embroiled in a conflict with the University regarding worker labor contracts and pension, and has planned a strike set to start at 4 a.m. this Tuesday said Dwaine Duckett, vice president for systemwide human resources at the UC.

Brown, an ex-officio regent, showed up for the end of Wednesday’s meeting in the state capitol, and briefly discussed his proposed academic performance standards.

Brown brought up concerns about using a six-year graduation rate as a major benchmark for academic performance instead of the four-year rate.

Robert Powell, chairman of the UC Academic Senate, said in response that sometimes students spend extra time in school because they are exploring their interests.

“Along the way they have found things significant in their lives to do that will enhance their education and enhance their lives,” Powell said. “That’s part of what makes our university a special place for students.”

In addition to discussing the proposed UC budget, regents also approved the authorization of a nonprofit organization – currently called Newco – to manage UCLA’s intellectual property. The idea for Newco was originally proposed by President Yudof.

Even though it is ranked 12th among global research universities, UCLA has historically underperformed in the more entrepreneurial aspects of intellectual property management, said Dr. James Economou, vice chancellor for research at UCLA.

Faculty, researchers and industry professionals will work together to manage Newco, which the regents will oversee, Economou said at the meeting.

Though the regents authorized the creation of Newco, some of them expressed concern that additional oversight on intellectual property might become an impediment to invention.

“If we want innovation, it has to be done at the local campus level, albeit with some oversight,” said Regent Alan Mendelson, at the meeting. “UC regents should have some kind of oversight – not stifling – but some kind of oversight.”

The regents plan to discuss collective bargaining and pending litigation at today’s meeting.

Clarification: Newco is a temporary name for the corporation approved by the UC Board of Regents.

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