By Susan Sward

The University of California surpasses its research university peers in enrolling and graduating more low-income students and first-generation collegians, according to the university's third annual accountability report.

But the state Legislature's continued cuts in funding for UC threaten the university's ability to maintain access, affordability and excellence.

These are the two major themes woven through the report, presented to the UC Board of Regents at its July meetings. UC has issued these reports annually since 2009, detailing how the university has met key goals across the system.

"UC's major strength continues to be [its] accessibility to low-income students and first-generation undergraduate students, and their subsequent success in attaining degrees and securing gainful employment post-graduation,'' UC Provost Lawrence Pitts told regents when he presented the report July 15.

That accessibility allows UC to serve as "a vehicle for social mobility," the report said.

Almost 40 percent of UC undergraduates — the largest percentage in UC history, and a greater proportion than at public or private comparison universities — now receive federally funded Pell grants, which generally are awarded to families with incomes under $50,000. Students also are helped considerably by UC's strong institutional aid program and the state Cal Grant aid program.

"Our student aid support is the envy of the country,'' Pitts said.

Graduation rates, time improve

UC's graduation rates best those of peer institutions: Eighty-two percent of entering freshmen in fall 2002 graduated within six years, compared with 75 percent at other public research universities in the Association of American Universities (AAU).

Students also are earning their undergraduate degree more quickly.

"One of the most heartening findings in the report is that the proportion of students graduating in four years — rather than five or six — continues to increase each year,'' said Todd Greenspan, director of academic planning and accountability in the Academic Planning, Programs and Coordination Department of the UC Office of the President. Over the last decade, that percentage has climbed from 41 percent to 60 percent. 

"Given the increasing costs of going to college, it is good news that more and more students are able to finish expeditiously and save themselves and their parents the extra costs associated with a longer time to degree,'' said Greenspan, whose staff produced the report.

Ramifications of funding cuts

Students' time to degree and completion rates, along with faculty distinction and research productivity, were praised by Pitts in his remarks to the regents, but he also cautioned that the university faces grave consequences from state budget cuts — $650 million this year alone.

"UC's major challenge is to sustain these very successes despite severe reductions in state support,'' Pitts said.

Over the years, state support for UC has shrunk considerably: Today UC receives about 3 percent of the state budget, compared with about 8 percent in the mid-1960s. "The relative decline in funding for higher education while prisons receive increases reflects a fundamental realignment of public priorities, with major consequences for higher education,'' the report notes.

Shrinking state support has meant an added burden for students and families. In the last decade, UC tuition and fees have risen 32 percent in inflation-adjusted dollars. For the first time, undergraduate tuition and fees paid in 2011-12 — nearly $12,200 per student — will be greater than the contribution made by the state. 

Though the proportion of students from low- and high-income families has grown on UC campuses, the proportion from middle-income families has declined. The report adds that this drop may be the result of a number of causes, including the possibility that "middle-class families perceive that UC is no longer affordable." 

Dwindling competitiveness of faculty pay

Another significant consequence of the budget cuts is "the weakening competitiveness of faculty compensation, which threatens both retention and new hiring in the face of an aging workforce,'' Pitts said. He added that the university "must and will emphasize recruiting and retaining the finest faculty. Our faculty is the heart of our quality and excellence.''

UC faculty salaries now rank between 13 and 16 percent below the benchmark the university has used to determine their competitiveness, presenting a potential challenge for the university's efforts to recruit and retain high-quality faculty.

Today's UC faculty is significantly older than it was in 1990. By 2010, 41 percent of the faculty were older than 55, compared with 28 percent in 1990. There also are fewer faculty and staff: Hiring fell in 2009-10, contributing to a 2 percent decline in full-time and equivalent-rank faculty between the fall of 2009 and fall 2010. Meanwhile, staff numbers also dropped by 4 percent in the last two years as UC responded to budget cuts.

In the face of these challenges, Pitts pledged the university would press forward.

"UC's quality — determined by its superlative faculty and staff — must not go down,'' he said. "The UC community knows how much our research and education mean in keeping California competitive, and we will work to enhance California's value in the world."

Susan Sward is a freelance writer in the UC Office of the President. For more news, visit the UC Newsroom or follow us on Twitter.