July 2006

Dear UC Colleague:

I couldn’t begin this communication without mentioning UC Santa Cruz Chancellor Denice Denton, whose tragic death on June 24th has been a source of grief throughout the UC family. Hundreds of us came together on the Santa Cruz campus last week to celebrate Denice’s life, and tributes to Denice and her achievements have been coming in from across the nation. She was a person of courage, intelligence, and pioneering spirit, and I will miss her greatly.

Even as we were grieving for Chancellor Denton, we received word of a new state budget last week. It represents good news for the University of California, providing funding for student enrollment growth, faculty and staff salary increases, and continued support of our academic preparation programs, among other things. You’ll find more information about it below. My thanks go to the elected officials who approved this budget and the many people throughout the UC system who worked so hard on the University’s behalf.

This has been a challenging year for the University, and for me personally. But I am energized by the exciting work I see going on across the University every day, and I am greatly optimistic about this institution’s future. We have many more challenges and opportunities ahead of us, and I’m looking forward to tackling them with the incredible community of people we have at UC. Have a great summer, and I’ll be back in touch with you this fall.

Sincerely,

 Robert C. Dynes
 President

Gov. Arnold Schwarzenegger on Friday, June 30, signed a 2006-07 state budget that funds enrollment growth at UC, provides state funding to “buy out” student fee increases, and allows the university to offer much-needed salary increases to faculty and staff. The budget also preserves funding for UC’s academic preparation programs for K-12 students, and it includes new funding for UC efforts to encourage and assist community college students in transferring to a UC campus to achieve a four-year degree.

The final budget provides state funding above the minimum outlined in the governor’s 2004 “compact” with UC. The university’s state-funded budget in the fiscal year beginning July 1 will total $3.077 billion, an increase of $234 million or 8.2 percent above the 2005-06 level.

For faculty and staff, the state budget and other University revenue sources will fund an average 4 percent increase in employee compensation in 2006-07, subject to collective bargaining requirements where applicable.

In a press release, President Dynes said: “The salaries of UC faculty and staff continue to lag those at institutions we compete with, putting us at a serious disadvantage in recruitment and retention. This funding increase is very welcome because it allows us to reward our hard-working employees and prevent the further widening of the salary gap. This issue will need continued attention in the budget next year and for the next several years, however. This year’s increase is only a first step toward bringing all faculty and staff up to market-competitive compensation, as pledged by The Regents last November in adopting RE-61.”

Read details on the budget for UC at www.universityofcalifornia.edu/news/2006/jun30.html.

Remembering Chancellor Denton

A memorial fund has been established to honor Chancellor Denice Denton’s vision and priorities for UC Santa Cruz, in the wake of her death June 24. More information about the memorial fund and about Chancellor Denton’s life and achievements can be found on the UCSC web site at www.ucsc.edu/administration/denice_denton/. The web site also includes remembrances from colleagues across the country, the opportunity to submit an online remembrance of your own, and a webcast of the memorial service held on campus for Chancellor Denton on June 29.

New Regents’ staff advisor appointed

Lynda Brewer, assistant director of capital planning at UC Irvine, is the newly selected 2006-2007 Staff Advisor to The Regents. The two-year Staff Advisor pilot program was initiated last year by the Board of Regents with the strong endorsement of President Dynes. The program is designed to improve communication between UC employees and the Board and to facilitate staff input into the Board’s deliberations. Brewer began her term as Staff Advisor on July 1st; to assure continuity of expertise, one of the first year’s two Staff Advisors, Dave Miller of UCLA, has agreed to serve an additional year in 2006-2007. Read more: http://atyourservice.ucop.edu/news/general/lynda_brewer.html.

Update on pension contributions

The Board of Regents in May continued to review the long-term financial health of the UC Retirement Plan (UCRP) and heard an update on the funded status of the plan. Employer and employee contributions to the plan are currently expected to resume in July 2007, subject to funding availability, the budget process, and collective bargaining, but the board has not yet taken action on the details of the restart schedule or specific contribution amounts for both UC and employees.

UCRP has been over-funded in the past, and UC employees have not had to contribute to the plan since the early 1990s. However, since members stopped making contributions, UCRP’s funded status has declined, and it is expected to be under-funded in the near future. The University’s suggested approach is to gradually phase in contributions to the plan and to start early, so as to lessen the impact of restarting contributions on both employees and the University while ensuring UCRP’s long-term financial health. UC is continuing active consultation with faculty, staff, unions and retirees regarding the restart of contributions, and the Regents will consider specific recommendations at a future meeting. Read more: www.universityofcalifornia.edu/news/ucrpfuture/welcome.html.

Task force issues report on faculty diversity

The UC President’s Task Force on Faculty Diversity presented its findings and recommendations on the challenges related to recruiting and retaining a diverse faculty population during the President’s Summit on Faculty Diversity in Oakland on May 23. The task force found that the underrepresentation of minority faculty is a national problem not unique to UC. However, the task force noted that UC can make a significant contribution to increasing the national pool of underrepresented minority faculty by focusing attention on the diversity of graduate students at UC, and that campuses can do more to promote UC faculty diversity through recruitment, hiring, and retention practices. Read more: www.universityofcalifornia.edu/facultydiversity/report.html.

UC expands access for qualified students

A record number of California freshman applicants – more than 55,000 – were offered fall 2006 admission to UC, an increase of 5,225 students over the prior year. UC continues to offer a place on one of its campuses to all of the growing numbers of California students who meet UC eligibility requirements. Fall 2006 also shows another increase in the admission of community college transfer students; UC campuses offered admission to 16,620 transfer students from California Community Colleges for fall 2006, representing a 2.4 percent increase over 2005 and a 51.3 percent increase since 1998. Read more: www.ucop.edu/news/studstaff.html.

Reforms to compensation programs advance

To improve oversight and disclosure of compensation, the Board of Regents at its May meeting endorsed the recommendations of the Task Force on UC Compensation, Accountability, and Transparency, an external group commissioned to make policy recommendations to improve UC’s compensation programs. An Implementation Committee has begun meeting to guide the establishment of these reforms. The Regents also approved the creation of a “chief compliance officer” at the Office of the President, a position intended to function independently and objectively in assessing compliance issues and concerns within the University. In addition, President Dynes unveiled a five-point plan for reforming UC compensation practices, focusing on proper disclosure, adherence to the University’s 1993 compensation principles, improved information systems, improved working relations with the Regents, and cultural renewal within the institution. Read more: www.universityofcalifornia.edu/news/compensation/.

Infrastructure bond on November ballot

The governor and Legislature have placed an infrastructure bond package on the November 2006 California ballot. The education bond, Proposition 1D, includes $345 million per year, for two years, for construction and renovation of UC facilities. In addition, the bond includes $200 million over the two-year period for capital improvements to support expansion of UC medical education programs – focused principally on PRIME (UC’s Programs in Medical Education), which are aimed at improving health care for underserved populations and communities in California. Read more: www.universityofcalifornia.edu/news/2006/may20.html.

Leadership transitions

Wyatt R. (Rory) Hume has been appointed provost and senior vice president for academic affairs at the Office of the President…. UCLA Chancellor Albert Carnesale stepped down on June 30 and is being replaced on a temporary basis by Acting Chancellor Norman Abrams while a search for a permanent successor is conducted. UC Merced Chancellor Carol Tomlinson-Keasey steps down later this summer, and the search for her successor also has begun…. At the Lawrence Livermore National Laboratory, George H. Miller has been named interim director following Michael Anastasio’s departure to become director of the Los Alamos National Laboratory…. James E. Holst stepped down as general counsel at the end of June after 42 years of distinguished legal service to UC. University Counsel Jeffrey A. Blair has been appointed acting general counsel while a search is conducted…. Secretary of the Regents Leigh Trivette administered her final Regents’ meeting in May and retired from the University at the end of June. Associate Secretary Anne Shaw has been named acting secretary…. Marie N. Berggren has been appointed chief investment officer and vice president for investments, replacing departed Treasurer David Russ…. W.R. (Reg) Gomes has announced his retirement next February as vice president for agriculture and natural resources, and Winston Doby retired at the end of June as vice president for student affairs. Interim Vice Provost Joyce Justus is providing leadership for Student Affairs.

Dynes’ Desk is a way for anyone to email a comment, idea, or suggestion to President Dynes. While he is not able to respond personally in most instances, President Dynes does read each email submitted. In each edition of “Our University,” he will respond to a couple of Dynes’ Desk emails addressing issues of broad interest to the UC community.

To submit an email to Dynes’ Desk, visit www.universityofcalifornia.edu/president/desk.html. Below are President Dynes’ responses to a few recent submissions.

Email: Your argument that UC must put out top dollar to get the best people sends an unintended message that staff who are not receiving big bucks from UCOP are dispensable.

Bob Dynes: I understand how one might reach that conclusion, but I assure you that nothing of the kind is intended. Faculty and staff throughout the University are currently in “market gap” situations where they are paid less than what they might earn at comparable institutions. That is mostly the result of several bad budget years we went through in the first part of this decade. We need to narrow and then close these market gaps – for both the faculty and the staff, and at every income level. The funding for salary increases in this year’s state budget is a start, and we intend to make even more progress in next year’s budget. The Regents have stated very clearly in Resolution RE-61 that market-competitive salaries and benefits are an important priority for them, and we will be focusing on it intently each and every year.

Email: Just picked up the UC 2007-2008 booklet from our local high school’s counseling office. Why do you have so many out-of-state admissions? From what I can calculate using your material, the UC system has about 14,000 out-of-state students. This would not be a problem if you didn't have to reject 14,000 extremely qualified top California students to do so.

Bob Dynes: According to our publication, “Statistical Summary of Students and Staff,” in fall 2005 UC’s enrolled undergraduate population numbered 159,066, with 150,064 (94%) of them California residents. Offering a limited number of spaces to undergraduates from other states and countries enriches the education of California students at UC – by exposing them to some of the best and brightest minds from elsewhere in the world. But clearly, our first obligation is to California students, and every California student who meets our eligibility requirements is, in fact, offered a place in the UC system. Many students unfortunately cannot be admitted to their first-choice campus; that is a phenomenon directly related to the rapid growth in California’s college-age population. But students truly can receive an excellent education anywhere in the UC system, and they should shop carefully for the campus with the academic program that best fits their interests. They may find it where they least expect it!

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