Audit finds disparities in staff costs

By Andrew Edwards
DAILY BRUIN REPORTER
[email protected]

A recent state audit revealed that over the past two years, the
University of California’s payroll expenses and hiring rates
for support staff and administration outpaced academic staff.

The Bureau of State Audits’ report examined fiscal years
1999-2000 and 2000-2001 as requested by Assemblywoman Jenny
Oropeza, D-Long Beach, last September to determine if the UC was
meeting objectives outlined in its four-year Partnership agreement
with Gov. Gray Davis. Only the first two years of the agreement
were audited.

The Partnership commits the UC to a wide range of objectives,
including enrollment of all eligible applicants in return for a
steady supply of state funds.

Auditors found that 56 percent of salary increases were directed
towards support staff. The university hired 504 full-time faculty
for a 10 percent increase while hiring 2,075 fiscal, management and
staff personnel for a 43 percent increase.

The report did not allege mismanagement, though its findings
have fueled critics of the UC.

“(The audit is) basically what we suspected for a long
time, that the university has been diverting money from
instruction,” said Jeremy Elkins, president of the University
Council”“American Federation of Teachers, which represents UC
lecturers in collective bargaining.

The audit did not conclude whether hiring decisions were made in
accordance with the Partnership, as auditors found that many
objectives were too vague to analyze. Only nine of 22 objectives
have quantifiable targets.

The audit recommended future Partnership agreements contain
clearer targets.

Though auditors refrained from evaluating the university’s
progress towards objectives lacking clear targets, the UC maintains
it has fulfilled its half of the agreement.

The UC contends achievements are clearly visible even in the
absence of measurable targets.

One objective was to guarantee admission to students in the top
4 percent of their high school. The UC cites over 2,000 new
applications as evidence of progress toward this goal.

“In every objective classified as
“˜unassessible’ by the bureau, the University has made
demonstrable progress,” wrote UC President Richard Atkinson
in a letter to Elaine Howle, state auditor.

In a reply, the BSA stated 2,000 more applicants does not prove
success ““ the Partnership may have intended higher
numbers.

The Assembly Budget Committee also sees a need for clear
targets.

“There should be actual measurements,” said Max
Espinosa, a consultant to the committee.

The UC defends hiring decisions by pointing to goals shared with
the legislature.

“We were given money from the state to boost programs in
research and public service … that required an increase in
expenditure,” said UC Spokesman Paul Schwartz.

Deputy Auditor Philip Jelicich agreed some of the new hires were
necessitated by programs supported by the legislature.

“The legislature did give (the UC) a lot of programs to
administer that resulted in hiring of support staff, not academic
staff,” Jelicich said.

A UC statement asserts if public service hires are not counted,
academic hires would exceed support hires.

Elkins disputes claims outreach and related programs constituted
the majority of new hires and costs.

“I think it’s entirely misleading for the university
to suggest this is from outreach. It’s garbage,” said
Elkins. “Almost all of the significant increases are in the
area of management,” Elkins said.

Between October 1997 and October 2001, academic salaries
increased by more than $25.6 million, while support salaries rose
by close to $28.9 million.

Public service payrolls increased by about $3.8 million, of
which $3.2 million went to support staff.

The UC said it will address hiring issues and other concerns of
the audit. Also, the university hopes to raise salaries across the
board.

“That is a top budget priority,” Schwartz said.

The audit recommended the UC consider setting targets for staff
growth in any future partnership agreements, and that the
legislature should be included in the discussion.

The UC will negotiate any future partnerships with the governor
though, Schwartz said.