03 August 2009

Would you buy a used car from this man?

The way the University of California is managing its financial resources and implementing the salary cuts and furloughs approved by the Regents appears increasingly shady and underhanded.

There are some questions that the California Professor would like to see answered. These are simple, straightforward questions that should have simple, straightforward answers.

  1. Why are the salary cuts calculated on the base salary instead of total compensation?
  2. The salary cuts will generate upwards of $500M in savings for the university, i.e., more than $300M above the advertised $200M to offset decreased state funding. Where is that extra money going?
  3. According to Moody's latest Bond Rating for UC, the University has between 5 and 6 billion of "unrestricted financial resources" on their balance sheet. Why is that money not being used to offset decreased state funding?

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