Dive Brief:
- The University of California at Berkeley is responding to consistently lower state funding with a series of initiatives meant to solidify the institution’s financials in the face of a $150-million deficit.
- The Chronicle of Higher Education reports that the deficit represents 6% of the university’s budget, and Chancellor Nicholas B. Dirks is considering new revenue opportunities through brand power, land, and other assets; academic department restructuring; and streamlining of work processes to increase efficiency.
- The New York Times reports the committee will also explore changes to intercollegiate athletics spending, the university will focus more on alumni donations, and changes are set to be implemented this summer.
Dive Insight:
The University of California has struggled with finances like much of the rest of the country. Last year, system President Janet Napolitano went head-to-head with Gov. Jerry Brown over state funding. She won millions of extra dollars for the system, but Brown demanded a tuition freeze for in-state students. Berkeley and UCLA capped the portion of out-of-state students in their freshmen class this year under pressure that the flagship institutions were not fulfilling their responsibilities to talented in-state students, though the out-of-state tuition revenue has greatly helped both universities' finances.
The University of Wisconsin-Madison has gone the other direction, getting a waiver this fall so a cap doesn’t apply to them. Nationally, state flagships have almost all begun enrolling more out-of-state students in the last decade. Just seven have resisted this trend.