Tuesday, June 13, 2017

Legislature & governor punish UCOP over state audit

Gov. Jerry Brown and legislative leaders announced a budget deal Tuesday that strips University of California President Janet Napolitano's office of some of its financial autonomy...

The main budget bill, AB97, includes $296.4 million for Napolitano’s office in the upcoming fiscal year that begins July 1 and another $52.4 million for UC Path, the university’s payroll and human resources system.

Currently, the office receives state funding indirectly through fees collected from all 10 campuses, which give the president’s office exclusive control over how to spend that money. The state would instead directly send money to Napolitano’s office and eliminate the campus fees, so that lawmakers could oversee and control how that money is spent. UC opposed the change.

Lawmakers moved to wrest control of spending by Napolitano’s office after a state audit found a litany of problems there, including hidden funds and misleading accounting practices. The budget bill also includes other strings on the president’s office, such as barring it from providing supplemental retirement payments for new senior administrators.

The state would withhold $50 million in funding if UC doesn’t fix financial problems the state auditor identified in the review...

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