UC's Hidden Wealth: Why is UC Pleading Poverty?

Donohue points to UC's unrestricted assets at CUE event at UCI. Photo © Daniel C. Tsang 2009.

UPDATED 9/28/09 with audio link: To listen to the show, click here: .

Irvine -- It sure sounds like the University of California is in financial crisis, with layoffs, paycuts/furloughs, massive student fee increases and campus protests. But economist Peter Donohue thinks otherwise.

Looking at the UC's own financial reports, he has discovered billions hidden away in its unrestricted reserves. The UC likes to say these funds are already committed, but Donohue says these are not legally restricted. They could be freed up to offset the massive loss of state funding. But unlike the CSU system, UC funding is only 13% -18% dependent on state sources. On Subversity, we talk to Donohue about why the UC is pleading poverty.

Subversity airs Monday 28 September 2009 from 9-10 a.m. on KUCI, 88.9 FM in Orange County, California, and is simulcast via kuci.org.

Peter Donohue is an economist and head of San Francisco’s PBI Associates. Since 1982, he has assisted union, nonprofit, community and business groups with research, financial analysis, bargaining, arbitration and government relations. He advises clients in transport, construction, semiconductor, utility, printing, health care, retail, design, engineering, hospitality, transit, insurance, education and government. Donohue has taught at Portland State University, San Francisco State University, the University of California, Berkeley, the University of Texas at Austin and University of Missouri-Columbia.

He is currently compiling, for CUE (Coalition of University Employees), an updated analysis of the UC budget; see his earlier 1992 study: UC's Hidden Wealth: An Analysis of 10 Years of UC's Financial Reports.

See also Prof. Emeritus Charlie Schwartz's web site that tracks UC budget issues: UniversityProbe.org.

CUE's website, contains links to other resources, including our 20 July 2009 Subversity interview with CUE local president at UCI, Dianna Sahhar, and with Juan Castillo, union organizer with AFSCME local 3299.

Meanwhile, UC janitors are seeking to be in-sourced and represented by SEIU-United Service Workers West. A noon rally at UCI's flag pole is slated for October 2, 2009. 37 UCI janitors are under threat of layoff by cleaning contractor ABM. With workers laid off, UCI Labs are slated to be cleaned weekly only, but UCI offices only three times a year!

On the broadcast show, we also aired a clip from the 24 September 2009 rally at UCI of popular Sociology lecturer Chuck O'Connell talking about
neoliberealism.