In an effort to force the University of California to make salary information more transparent, a Republican state senator has introduced legislation that threatens to strip the university of its operating independence unless it agrees to release executive salary figures to the public.
The measure, drafted by state Sen. Jeff Denham (R-Merced), would have the Legislature condemn the university’s past compensation practices and would give the state the power to take away the university’s constitutional autonomy, subject to voter approval.
It follows a report by the San Francisco Chronicle revealing that the university awarded employees nearly $871 million in unrecorded forms of compensation on top of their salaries and overtime last fiscal year.
In addition, Denham’s proposal demands that the UC Board of Regents “immediately discontinue the practice of holding secret meetings to award salaries and benefits to University of California management executives” and to fully disclose “any and all compensation” to the Legislature each year.
“The secret and outrageous salary and benefit scam for UC executives must end,” stated Denham, a member of the Senate Education Committee, in a press release. “Students face fee increases every year and UC rank-and-file workers face salary freezes, but UC top administrators keep getting secret salary hikes and benefits. We need to send a message that this will no longer be tolerated.”
The UC system, unlike the California State University and the California community colleges system, retains a semi-autonomous body explicitly protected by the state Constitution. Currently, the university does not need approval from the Legislature or the governor to set its budget or policy and is run by the Board of Regents, which is composed of state employees and appointees of the governor who serve 12-year terms.
Denham’s bill calls for the Legislature to amend the Constitution to “eliminate the independence of the University of California.” However, California voters would need to approve any changes made to the state Constitution.
“I appreciate the reason the UC system currently has an autonomous situation unlike other state agencies,” Denham stated. “However, when abuses such as those that have come to light the last few months appear to be systemic rather than isolated, then we must act to protect the taxpayers.”
Denham also warned the regents that if the pay practices were not made more clear, he would take action.
“UC leaders would be well advised to move quickly and decisively on their own to make solid, real changes, and stop the UC secret pay hike scandal,” he stated. “The UC leaders cannot keep claiming they must raise student fees while at the same time taking these huge pay hikes.”
Recent reports published by the Chronicle have revealed that almost 2,300 high-ranking university employees made more than $200,000 last year and nearly 500 employees earned annual salaries exceeding $300,000. These figures represent a 50-percent increase since last year in the number of university faculty and staff earning more than $300,000 annually.
At the same time, students have faced a 79-percent increase in mandatory student fees in the last four years.
UC spokesman Paul Schwartz said in the Chronicle that since the articles were published, the 10-campus system has been working to improve its compensation practices and that the university is still waiting for the results of legislative hearings and an audit into its compensation practices before it alters those policies.
“We welcome the opportunity to discuss with Sen. Durham his concerns,” Schwartz said. “But we would hope that the timing of any additional actions taken by members of the Legislature could come after the completion of these numerous efforts.”
UC President Robert C. Dynes called for the creation of a task force last December to explore the university’s compensation policies and make pay practices more transparent. The members, headed by Board of Regents Chairman Gerald L. Parsky, will present a preliminary report at a Jan. 18 meeting at UCSD. At least two UC regents have publicly agreed to the Chronicle that, in the future, the university needs to be more open about its compensation.
“I don’t think there is any disagreement by the regents that [salary information] should be disclosed,” Regent Judith Hopkinson said.
Regent John Moores also said he favored a more transparent pay system.
“I strongly favor transparency to both the public and the regents on a wide range of issues, including compensation,” Moores said.
However, some faculty members want to see an independent investigation rather than have legislators intervene.
“I am definitely an opponent of the legislators’ trying to get involved in running the university,” said UCLA sociology professor Maurice Zeitlin to the Chronicle, who helped organize a petition calling for the university to start an independent investigation. “I don’t like the precedent even if it involves something I agree with.”
