The Crisis of Public Education California’s Budget Deficit: Budget Cuts: Tax Extensions: Other*: Total: - $28.7 Billion + $12.5 Billion (500M from UC) + $12.0 Billion + $5.2 Billion $1.7 Billion in reserve * Income increases yield more income tax, other revenue sources. Source: Office of the Governor: http://gov.ca.gov/news.php?id=16872 & 1/11 lecture by Prof. Dan Mitchell What If? • If Republicans refuse to put tax extensions on the ballot in special election in June or voters reject extensions, cuts will be more extreme. • UC’s cuts will total at least $1 billion. • To put that in perspective, half of that is equal to state support for UCSB, UCSC, and UCSF • Presentation to the Regents, January 2011: http://www.universityofcalifornia.edu/regents/regmeet/jan11/f1ppt.pdf And Yet… • Almost 66% of US corporations pay no federal income tax, due to loopholes and tax havens • CA is the only state that doesn’t tax oil drilling. Yes, even Alaska and Texas have one. • Prop. 13 (1978) limits property tax increases, to businesses & corporations as well as homes • • Sources: LA Times http://articles.latimes.com/2009/jun/15/business/fi-hiltzik15; CNN http://money.cnn.com/2008/08/12/news/economy/corporate_taxes/; UC fees have increased 6 times as fast as inflation since 1966. Sacramento Bee: http://blogs.sacbee.com/the-public-eye/2011/01/csu-uc-fees-outpace-inflation.html Students’ fee revenues fund the UC more than the state’s, for the first time in state history. Is a public school still public when over half its funds are private? http://www.dailybruin.com/index.php/article/2011/01/governor_browns_proposed_20112012_budget_cuts_500_million_in_state_funding_for_the_university_of_cal Threat to Pell Grants • 70,000 UC students got Pell Grants in 2010-11 • 36% of UCLA students received a Pell Grant • Republicans’ proposed budget would cut $845 from Pell Grants starting in 2011 • Obama’s budget proposal ends summer Pell Grants and subsidies for graduate students’ loan interest Sources: UC Access & Excellence Report 2010-11; usstudents.org; and http://money.cnn.com/2011/02/13/news/ economy/obama_budget_pell_grants/index.htm Rising Student Loan Debt • Total amount of loans doubled since 1997 • Average debt/B.A. borrower rose 18% to $22,700 • Average grad student credit card debt: $8,612 Sources: http://www.collegeboard.com/html/costs/aid/4_1_loans.htm ; http://www.amsa.com/policy/resources/stats.cfml UC Regents 18 Governor Appointees 7 Governmental “ex officio” officials 1 Student Regent - Students contribute +51% of the UC’s core funds - Students have 4% regental representation - Regents serve 12-year terms & cannot be fired or removed by the governor, students, or taxpayers Effects of Cuts to UC • Depts. bundled together or minimized • Libraries canceling magazine subscriptions • Larger class sizes = less personal attention, limited student discussion, and increased reliance on readers for grading • 1/5 of undocumented students dropped out due to fee increases • Commodification of knowledge • Ethnic Studies targeted for cuts and program terminations What’s Been Done • Schwarzenegger said Nov. 2009 protests were reason behind restoring $305 M to UC in 2010 • Schwarzenegger also backed a constitutional amendment (unpassed) that guaranteed CSUs & UCs would get 10% of state budget • Legislature considered bill (unpassed) that limited fee increases and calling for a waiting period before increases could take effect Source: Daily Bruin: http://www.dailybruin.com/index.php/article/2010/02/despite-flaws-governors-budget-proposal-uc-protest What’s Next? • Attend the Can You Hear Us Now? concert on 4/14: hearusnowca.com • Call a Republican CA legislator & ask the tax extensions to be put on the June ballot • Become Chancellor Block’s Facebook friend & ask for more student reps on budget committees • ASK QUESTIONS! – Ask your professors how budget cuts are affecting their departments