Regents discuss UC budget, UCLA lab partnership in China

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The University of California Board of Regents met on Wednesday to discuss topics ranging from Gov. Jerry Brown’s budget proposal to expanding access for the University.

At their bimonthly board meeting at the UC San Francisco Mission Bay campus, regents discussed health care issues, the recent federal and state budgets and the California Master Plan for Higher Education, among dozens of other topics.

Health

The regents passed a proposal on Wednesday to establish a clinical lab in China that will be partially owned by UCLA.

The lab, to be located in Shanghai, would provide populations of clinical research subjects for diseases that are not common in the U.S., like certain forms of hepatitis, said Dr. David Feinberg, president of the UCLA Health System. He said it is an opportunity for UCLA to have a presence on the Pacific Rim, where there are other, similar medicalpartnerships taking place.

The lab will be a partnership between Centre Testing International, a publicly traded Chinese firm, and the UCLA Health System. UCLA will provide management and experience in running a clinical lab, while the company would be responsible for all of the capital investment, according to a UC document.

UC would receive 49 percent of the profits once the lab is running, which can only happen after it receives a permit from the Chinese government, according to the UC document.

Feinberg emphasized that the lab will cost the University nothing and that there are clauses in place to protect UCLA should the lab not get a permit to operate or go bankrupt. Regents will have the right to end the partnership at any time, Feinberg said.

Some regents, however, expressed concerns that the partnership would not advance the prestige or academic quality of the university.

Regent Eddie Island said that while the potential financial benefits to the Chinese corporation were very apparent, he was unclear about the benefits to the UC.

“I hope that our academic mission is the primary reason for (entering this agreement),” Island said.

This is the third partnership venture for the UCLA Health System in China, Feinberg said.

Budget

UC regents and officers said they were happy with the $142 million funding increase to the UC included in Gov. Jerry Brown’s budget proposal for the 2014-2015 year. Yet, they said they were concerned that Brown – who was not present during that portion of the meeting – did not give the University the $121 million in additional funding the regents have asked for.

“We are happy, but we are under-resourced compared to other parts of the budget,” said Nathan Brostrom, UC executive vice president of business operations, at the meeting.

Brostrom added that the governor’s proposal does not cover the UC’s increase in mandatory costs resulting from a rise in pension costs and other expenses. He said Brown’s budget only increases the spending on core education by only 2 percent.

Brostrom said the UC must also prepare for an increase in enrollment as the governor is providing the additional funding for enrollment growth at California community colleges.

Regents, although recognizing challenges ahead, also praised this year’s federal spending bill that was passed last week because it restores some sequestration cuts that would have been made to federal research institutions.

Because this year’s spending bill only restores some cuts, the UC will keep fighting hard to repeal all entire sequestration cuts to research, which may come back in 2016, said Gary Falle, UC associate vice president for federal governmental relations.

Education

The heads of the state’s three higher education systems met at the regents meeting to discuss ways to streamline the transfer process and increase the transparency of transfer requirements and accessibility of higher education in the state. The leaders of UC, CSU and California community colleges aim to expand access and diversity in state universities and colleges.

UC President Janet Napolitano announced plans for a website where community college students can create their own profiles and see the classes they need to take to transfer.

The “Student Focus” website could eventually be extended to college students in all three systems of higher education and remind them electronically when a class enrollment deadline is coming up, Napolitano said.

The three leaders stressed the importance of public awareness about accessibility and suggested using outreach and social media to encourage students to apply to college.

Among other things discussed were:

• Feinberg gave an update on how the newly approved affiliation between UCLA’s Jules Stein Eye Institute and the Doheny Eye Institute, formerly partnered with the University of Southern California, will integrate eye care and eye research.
• Napolitano said UC, CSU and California community colleges are considering a joint application for the $50 million Awards for Innovation in Higher Education program.
• The outline for the $1.21 billion Thirty Meter Telescope, one of the most powerful telescopes planned to be built by 2020, was discussed.
• Brostrom mentioned having a lobbying day for California’s higher education before May and during the regent meeting in May.

The regents meeting will continue Thursday morning with a closed session. Open session begins at 10:15 a.m.

Correction: Centre Testing International is a publicly traded Chinese company.