Nathan Brostrom, executive vice president of business operations for the University of California, said the system was now in the middle of the worst financial crisis since the Great Depression. In the last year, the state has cut $750 million from the system’s budget. This year, for the first time, the system receives more money from tuition than from state aid — but that only makes up for roughly a quarter of the cuts from the state. Over all, the budget is the same as it was in 2007, when there were 75,000 fewer students enrolled.
In recent years, many campuses have made a more concerted effort to recruit out-of-state students, who pay more in tuition. But some have criticized the practice, and last month one state lawmaker introduced legislation to cap the number of out-of-state students.
Part of the problem, officials say, is that the amount of money provided by the state has been unpredictable, making long-term planning difficult.
“If we don’t get some kind of change this year, we are going to have an immediate unfathomable situation that really has the potential to completely change the university,” Mr. Brostrom said. [end quote; emphasis added]