REGENTS BRIEFING

A recap of actions taken by UC Regents at the June 19-20 meeting at UC Irvine.

HIGHER EDUCATION FUNDING BILL CALLED CRUCIAL

UC President Richard C. Atkinson said the passage of the Higher Education Partnership Act of 1997 (Assembly bill 1415) is critical to public higher education in the state. The bill, introduced by Assembly Speaker Cruz Bustamante, D-Fresno, represents a commitment to provide the university with a funding policy it needs to continue offering excellent, affordable public education, he said on Thursday (June 19). The measure was approved by the Assembly in a 69-9 vote and now awaits action in the Senate. It would provide UC and California State University with at least the current percentage of the state budget they now receive. Under the plan, higher education would receive an annual budget increase equal to the annual growth of the California per-capita personal income. In addition, the state would provide funding to accommodate enrollment growth and to offset the need for mandatory undergraduate student fee increases.

In years when the state could not fully fund the partnership, student fees could increase by no more than the growth rate of California's per-capita personal income, UC budget director Larry Hershman told Regents. Since a high of nearly 7 percent in the early 1970s, UC's share of the state general fund has declined to little more than 4 percent. Given competing demands, the state Department of Finance has said UC's share of the state's general fund budget would likely continue to erode unless some action is taken.

The research excellence of the UC system is a tribute to California's Master Plan for Higher Education, which provided the most effective structure in the nation for building research universities, according to Hugh D. Graham, a professor of American history at Vanderbilt University. Graham and Nancy Diamond, an administrator at Goucher College, are the authors of a new book, "The Rise of American Research Universities: Elites and Challengers in the Postwar Era." Graham told Regents on Thursday (June 19) that the master plan created an environment of competition and protection. Competition meant competing against other leading universities as well as competing within the UC system. Protection was provided by its designation as the state's research and doctoral-training institution.

In the Graham and Diamond study, the UC system leads the nation in research excellence and productivity among public research universities. They cite the remarkable rise of UC's smaller, younger campuses as well as the success of its larger, established ones. In a ranking that combined the areas of science, social science and the arts and humanities, Berkeley is No. 1 and Santa Barbara No. 2. All other UC general campuses are in the top 26. Four UC campuses are among the top 10 "rising stars" of public research universities. Santa Barbara is No. 1, followed by Riverside, Santa Cruz and Irvine, ranking fourth, fifth and seventh, respectively. UC San Francisco, considered separately as a medical school, is No. 1 in federal funding among both public and private institutions, ahead of Johns Hopkins, Stanford, University of Washington and Yale.

Several Regents reiterated their concerns about the proposed merger of the medical services of UC San Francisco and Stanford University. Among issues raised on Thursday (June 19) were whether the governing board of the combined hospitals would be subject to state open meeting and public records laws and whether the board has received adequate information regarding Stanford's financial performance. Under the proposed merger, the two medical schools would remain separate, but their clinical services would be combined under an entity known as UCSF Stanford Health Care. President Atkinson and UCSF Chancellor Haile T. Debas spoke in support of the merger, saying it would place UCSF in a stronger financial position because of cost sharing as well as increased opportunities to obtain managed-care contracts and specialty referrals. In addition, the merger has the potential to enrich the teaching and research programs, Atkinson said. In July, the board will be asked to approve agreements necessary to merge the two medical services by Sept. 1.

Los Angeles surgeon Tirso del Junco was elected by Regents to a second consecutive term as chairman of the board. Regents also named Velma Montoya as vice chairman. Both terms begin July 1 and extend for a year. A Regent since 1985, del Junco has served on all seven of the board's standing committees, including 10 years on the Committee on Heath Services. He currently is serving a second term as chairman of the Board of Governors of the U.S. Postal Service. He is a founder and former chairman of the Los Angeles National Bank and a member of numerous medical, teaching and professional organizations. Montoya, a Regent since 1994, is a former member of the U.S. Occupational Safety and Health Review Commission. She has taught at California State Polytechnic University at Pomona and Pepperdine University.

Regents approved the following personnel matters:

• An amendment of the Special Supplemental Retirement Agreement of Jan. 30, 1992 with UCLA Chancellor Charles E. Young to change the date of retirement to July 1, 1997, from the originally projected July 1, 1999. The income from the supplemental retirement agreement will amount to about $2,000 a month, bringing his total monthly benefit to an estimated $15,500 a month.
• A supplemental annuity and capital accumulation payment for former UC Santa Cruz Chancellor Karl S. Pister to compensate him for the reduction in retirement benefits that resulted because of changes in the Internal Revenue Code after he agreed to postpone his retirement and serve as chancellor. Regents agreed to restore the estimated $2,900 per month to his retirement benefit, bringing his total payment to $14,303 a month, and to pay his one-time, lump sum capital accumulation payment of $29,452.
• An annual salary of $200,000, effective Aug. 1 for Eugene M. Spiritus as senior medical director for quality and utilization management of the UC Irvine Medical Center.
• An annual salary of $218,900, retroactive to April 1, 1997 for Fawzy I. Fawzy as medical director for the UCLA Neuropsychiatric Institute and Hospital. He also will receive $81,000 as a member of the Medical School Clinical Compensation Plan.
• An annual salary of $242,000, effective July 1 for Joseph Silva Jr. as dean of the UC Davis School of Medicine. He also will receive $78,000 as a member of the Medical School Clinical Composition Plan.
• An annual salary of $165,000, effective July 1 for David K. Levine as professor of economics at UCLA.

Regents approved the following construction and real estate matters:

• A ground lease to Ronald McDonald House Charities for transitional patient housing for children at the UC Davis Medical Center.
• A ground lease to Catellus Residential Group for student apartments at the Davis campus.
• The design of a seismically safe facility at the Davis campus to replace the existing Walker Hall, which will be demolished. The new building will house engineering, applied science, biomedical engineering and central receiving.
• The design of student apartments at the Davis campus. The complex will include 180 units and 300 beds.
• An amendment of the budget for capital improvements and the capital improvement program to increase the project cost for UCLA's Parking Structure 4 expansion to $16.2 million, up from $12 million, and to include the second phase of the project, estimated to cost $11.8 million, in the 1996-97 budget and program.
• The design of the Morgan Center expansion and renovation project at UCLA. In addition, amend the campus long range development plan to reflect the project.
• The design of the Westwood Plaza Office Building at UCLA. In addition, amend the campus long range development plan to reflect the project.
• The design of second phase of the Northwest Housing and Parking project at UCLA. In addition, amend the campus long range development plan to reflect the project.
• A change in the source to repay the $7.8 million cost to renovate the classroom, office and support space for University Extension at UC Riverside. Funds will be generated by fees for University Extension and campus summer sessions.
• The design of the Aldea student housing redevelopment project at the San Francisco campus. The existing Aldea San Miguel student family housing structures will be demolished in part because of safety code deficiencies and their overall poor condition.
• Financing for the modular student housing project at the Santa Cruz campus. Funding of up to $4.1 million will include $3.9 million in external financing and $185,000 from the UC Housing System Net Revenue Fund.

Regents approved the following items:

• An increase in the Associated Students fee at the Riverside campus to support KUCR, the campus radio station. The fee will increase quarterly by $1 to a total of $3, effective in the fall 1997 quarter.
• A mandatory recreational sports fee at the Santa Barbara campus of $7 per student per quarter, effective in the fall 1997 quarter. The fee will replace the current mandatory club sports fee of $3 per student per quarter.
• An increase in the graduate student health service fee at the Santa Barbara campus. The fee will increase by $9 per graduate student per quarter to a total $29, effective in the fall 1997 quarter.
• An increase in the Associate Students fee at the Santa Barbara campus. The fee will increase by 75 cents to $40.80 per undergraduate student per quarter to provide support for the MultiCultural Center, effective in the fall 1997 quarter.
• An agreement for the UC treasurer to manage and invest funds on behalf of the American University of Armenian Corp. to support the American University of Armenia. The university was founded with UC's assistance in the aftermath of Armenia's earthquake of 1988.

Compiled by Communications Services, Office of the President, laurie.itow@ucop.edu or (510) 987-9195; phillip.torrez@ucop.edu or (510) 987-9205.