A good FAQ about the budget crisis from UC-AFT:

Q.: If the UC is broke, why would the union resist a 5% salary reduction?
A: We do not think the university is broke, and we want them to prove to us that they need to make these cuts.

Q: Why do you think they are not broke?
A: The university brings in billions of dollars every year in profits from medical services, extension programs, parking, housing, research, patents, and fund raising. They are just trying to maintain a high level of disposable income, while they claim they are poor. See "Budget Lies (A Letter to the President of UC)."

Q: Why do they want to claim they are poor?
A: They want to justify raising fees and getting more money from the state. They also want to make sure that they have enough money to pay star faculty and administrators high salaries.

Q: Why do you think the UC has more money than it claims it has?
A: This year, the UC will be losing a lot of money due to state budget cuts, but much of this money will be covered by federal stimulus money ($510 million). They have also raised student fees 9.3% and have reduced enrollments(a target of 2,300) system-wide. All of these actions should help to balance the budget, but UC administrators never give an honest accounting of the actual budget.

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