Ucop Responds To Our Financial Solutions
Sunday, August 9, 2026
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Last calendar week I posted a lay of option budget reductions that AFSCME has presented to the University of California, Office of the President (UCOP) (seehttps://gettingoldest.blogspot.com//search?q=who-are-high-earners-in-uc-system), inward exactly 2 years, from 2006-2008, the let out of people making over $200,000 inward the UC organization most doubled, together with this increment of people at the acme terms the academy $358 million. Moreover, the average salary increment for these acme earners over the two-year menses was 40%. I am surely a lot of other employees would experience happy alongside a 10% reduction after getting a 40% increase.
In or together with hence other touchstone UCOP response, Duckett goes on to fence that the argue why the UC was able to lend $200 1000000 to the state, piece it was cutting the salaries of its lowest paid workers, was that it would endure “imprudent” to borrow coin inward social club to pay for “short-term needs without a repayment rootage identified.” According to this argument, when you lot lend money, you lot tin terminate larn the cash dorsum alongside or together with hence interest, but if you lot operate the same coin for things similar salaries for teachers, the coin exactly disappears. If nosotros follow this logic, the academy should only exactly terminate the unprofitable project of undergraduate pedagogy together with boot the bucket an investment bank. Moreover, nosotros 1 time over again notice the catch hither that exclusively the people who select inward exterior coin should endure rewarded, together with the other people who exactly exercise their project should endure punished.
Like a skillful investment banker, Duckett claims that inward social club to maintain the shareholders happy, the academy must boot the bucket along to increment revenue together with lower salaries. In this case, the shareholder is Moody’s, which exactly gave the UC a high bond rating. As nosotros are seeing inward the greater economy, investors together with credit rating firms similar the catch of companies increasing their productivity past times decreasing their labor costs, together with this ideology explains why nosotros are at 1 time witnessing a jobless recovery. Once again, coin is existence shifted to the acme every bit the lowest earners are either existence lay off or are having their salaries reduced.
Duckett adds that it would endure unwise to borrow coin to pay for electrical flow expenses because Moody’s would lower the UC’s credit rating, but isn’t this how universities operate their endowments? The whole catch of a academy having investment funds together with endowments is to operate the coin when it is needed. However, UCOP seems to intend that the academy should exclusively generate revenue together with salve coin together with hence it tin terminate borrow to a greater extent than coin inward the hereafter inward social club to afterward brand a turn a profit on the savings. When did our academy boot the bucket an investment bank?
It seems that Wall Street has come upwards to Main Street, together with the UC is bent on turning the academy into a corporate giant alongside multiple revenue streams together with a reduced workforce. Yet, the academy is non a profitable trouble concern together with because of its tax-exempt status, it cannot generate profits, together with and hence it must funnel its “positive income flows” into the high salaries of the wealthy minority. Duckett makes this signal past times insisting that the hundreds of millions of dollars the medical centre makes inward internet income should non endure called “profits,” together with because these centers select earned their money, they should endure able to maintain it. Furthermore, Duckett points to uncertain costs inward the future, which forcefulness the medical centers to agree onto their cash together with non part it alongside others. Yet, isn’t the introduce already uncertain for an employee making $40,000 together with facing escalating mortgage payments?
In the final rejection of option terms saving measures, Duckett returns to the UCOP favorite excuse/myth/lie that most all of the UC coin is restricted legally. I approximate they experience if they maintain on repeating it, it volition boot the bucket true, but it only is false. The UC is exclusively restricted past times its priorities, together with it should endure clear past times at 1 time that the guiding priority is to guarantee the high compensation of the few who select been determined to endure marketplace position worthy.
In or together with hence other touchstone UCOP response, Duckett goes on to fence that the argue why the UC was able to lend $200 1000000 to the state, piece it was cutting the salaries of its lowest paid workers, was that it would endure “imprudent” to borrow coin inward social club to pay for “short-term needs without a repayment rootage identified.” According to this argument, when you lot lend money, you lot tin terminate larn the cash dorsum alongside or together with hence interest, but if you lot operate the same coin for things similar salaries for teachers, the coin exactly disappears. If nosotros follow this logic, the academy should only exactly terminate the unprofitable project of undergraduate pedagogy together with boot the bucket an investment bank. Moreover, nosotros 1 time over again notice the catch hither that exclusively the people who select inward exterior coin should endure rewarded, together with the other people who exactly exercise their project should endure punished.
Like a skillful investment banker, Duckett claims that inward social club to maintain the shareholders happy, the academy must boot the bucket along to increment revenue together with lower salaries. In this case, the shareholder is Moody’s, which exactly gave the UC a high bond rating. As nosotros are seeing inward the greater economy, investors together with credit rating firms similar the catch of companies increasing their productivity past times decreasing their labor costs, together with this ideology explains why nosotros are at 1 time witnessing a jobless recovery. Once again, coin is existence shifted to the acme every bit the lowest earners are either existence lay off or are having their salaries reduced.
Duckett adds that it would endure unwise to borrow coin to pay for electrical flow expenses because Moody’s would lower the UC’s credit rating, but isn’t this how universities operate their endowments? The whole catch of a academy having investment funds together with endowments is to operate the coin when it is needed. However, UCOP seems to intend that the academy should exclusively generate revenue together with salve coin together with hence it tin terminate borrow to a greater extent than coin inward the hereafter inward social club to afterward brand a turn a profit on the savings. When did our academy boot the bucket an investment bank?
It seems that Wall Street has come upwards to Main Street, together with the UC is bent on turning the academy into a corporate giant alongside multiple revenue streams together with a reduced workforce. Yet, the academy is non a profitable trouble concern together with because of its tax-exempt status, it cannot generate profits, together with and hence it must funnel its “positive income flows” into the high salaries of the wealthy minority. Duckett makes this signal past times insisting that the hundreds of millions of dollars the medical centre makes inward internet income should non endure called “profits,” together with because these centers select earned their money, they should endure able to maintain it. Furthermore, Duckett points to uncertain costs inward the future, which forcefulness the medical centers to agree onto their cash together with non part it alongside others. Yet, isn’t the introduce already uncertain for an employee making $40,000 together with facing escalating mortgage payments?
In the final rejection of option terms saving measures, Duckett returns to the UCOP favorite excuse/myth/lie that most all of the UC coin is restricted legally. I approximate they experience if they maintain on repeating it, it volition boot the bucket true, but it only is false. The UC is exclusively restricted past times its priorities, together with it should endure clear past times at 1 time that the guiding priority is to guarantee the high compensation of the few who select been determined to endure marketplace position worthy.