Regional Oral History Office University of California the Bancroft Library Berkeley, California
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Regional Oral History Office University of California The Bancroft Library Berkeley, California Lawrence C. Hershman UNIVERSITY OF CALIFORNIA VICE PRESIDENT, DIRECTOR OF THE BUDGET, 1978-2007 Interviews conducted by Ann Lage in 2008 With an appended interview conducted by Germaine LaBerge in 1997 Copyright © 2012 by The Regents of the University of California ii Since 1954 the Regional Oral History Office has been interviewing leading participants in or well-placed witnesses to major events in the development of Northern California, the West, and the nation. Oral History is a method of collecting historical information through tape-recorded interviews between a narrator with firsthand knowledge of historically significant events and a well-informed interviewer, with the goal of preserving substantive additions to the historical record. The tape recording is transcribed, lightly edited for continuity and clarity, and reviewed by the interviewee. The corrected manuscript is bound with photographs and illustrative materials and placed in The Bancroft Library at the University of California, Berkeley, and in other research collections for scholarly use. Because it is primary material, oral history is not intended to present the final, verified, or complete narrative of events. It is a spoken account, offered by the interviewee in response to questioning, and as such it is reflective, partisan, deeply involved, and irreplaceable. ********************************* All uses of this manuscript are covered by a legal agreement between The Regents of the University of California and Lawrence C. Hershman, dated April 23, 2012. The manuscript is thereby made available for research purposes. All literary rights in the manuscript, including the right to publish, are reserved to The Bancroft Library of the University of California, Berkeley. Excerpts up to 1000 words from this interview may be quoted for publication without seeking permission as long as the use is non-commercial and properly cited. Requests for permission to quote for publication should be addressed to The Bancroft Library, Head of Public Services, Mail Code 6000, University of California, Berkeley, 94720-6000, and should follow instructions available online at http://bancroft.berkeley.edu/ROHO/collections/cite.html It is recommended that this oral history be cited as follows: Lawrence C. Hershman, “University of California Vice President, Director o fthe Budget, 1978- 2007” conducted by Ann Lage in 2008, and Germaine LaBerge in 1997, Regional Oral History Office, The Bancroft Library, University of California, Berkeley, 2012. iii Larry Hershman with University of California Presidential Medal, at retirement celebration, Blake House, October 2007 iv v Table of Contents—Lawrence C. Hershman Interview 1: May 1, 2008 [Audiofile 1] 1 Overview of University’s achievements in past forty years: growth of campuses, enrollment, and total budget, and improvement in quality—Importance of providing incentives to campuses—View that working things out with governors and legislators is better than hard-line positions—Seven or eight crucial decisions, backed by university community, shaped the outcome. Family background, education: Immigrant family, public education, UC Berkeley for graduate degree in finance—Importance of providing opportunity to lower income students, coupling fee increases with financial aid. Director of the budget at UCSF, 1968-1974, Philip Lee, Frank Sooy, chancellors: Lessons learned about value of compromise in face of community opposition to growth, striking a deal with Willie Brown. Budget director for Health Sciences in Office of the President, 1974-1978: Governor Jerry Brown’s opposition to expansion of health sciences programs, enormous power of governors over UC— Resolving health sciences budgets with help of Department of Finance staff, importance of willingness to compromise—Brown’s near-recommendation to close UC Davis School of Medicine. Organizational turmoil in president’s office during David Saxon’s presidency: conflicts with vice president Chester McCorkle—McCorkle’s elimination of budget office and proposal to freeze UC enrollments and budgets in perpetuity, McCorkle’s dismissal. Hershman’s appointment as budget officer on eve of Proposition 13: falling faculty salaries, potential 30 per cent budget cut, considerations of merging or closing campuses— Saxon’s intervention to convince Jerry Brown to oppose another tax-cut initiative. [Audiofile 2] 32 More on David Saxon as president: Saxon and difficult legislative hearings over student diversity, Saxon’s difficulties with Assemblyman John Vasconcellos—Saxon’s outburst with Governor Deukmejian—Saxon’s efforts to protect quality of the university in era of severe budget cuts, Berkeley campus a priority. Budget turnaround with Gardner presidency: decisions to work for budget increases, Gardner’s developing relationship with Governor Deukmejian—Hershman’s coffee shop meeting with Department of Finance staff member, sketching out a multi-year budget plan on a napkin, eventually resulting in 16 per cent increase in faculty salaries in first year—Importance to budget of good personal relationships between the president and the governor. vi Interview 2: May 7, 2008 [Audiofile 3] 46 Further reflections on Governor Jerry Brown, the property tax crisis, and Brown’s failure to support education, mitigated by support for UC from his Department of Finance—David Gardner’s commitment to growth in enrollments and to opening doors to minority students. Changes in the budget’s development and allocation over time: establishing a consultative process with campus officers and Academic Senate committees and Academic Council, students—Gardner’s attention to and knowledge of the budget—The process of developing and getting approval from the state for the operating budget—Going to a five-year program for the capital budget—Changes in methodologies for allocation of state money and student fees to the campuses in Gardner years, developing a complicated formula basis, including a weighted student/faculty ratio, easier to implement in an era of plentiful resources—Increasing allocation of overhead money to campuses which generated it under Gardner and completed under Atkinson—Developing comprehensive budget formulas with DOF and legislature during Peltason presidency, and using same formulas for allocating budget increases to campuses in early Atkinson years, with increases coming primarily from enrollment growth or inflation—Disadvantages to Santa Cruz and Riverside campuses of allocation adjustments, with no discretionary money to build up less distinguished, still developing campuses—End of weighted formulas disadvantageous to campuses growing graduate student programs—Atkinson’s strong views on changing budget and allocation formulas. More on Gardner presidency: his intimate knowledge of the budget, success in Sacramento based on growing enrollments. More on working out the formulas with the state on per student basis, and refining over the years, covering all but research and public service—Legislators’ interests in specific research programs—Atkinson’s interest in university/industry cooperative research. [Audiofile 4] 74 David Gardner’s commitment to growth and planning for three new campuses—Effect of economic downturn in early 1990s—Early retirement programs helped avoid salary cuts—Reluctance of Gardner to consider student fee increases. Jack Peltason’s presidency: Importance of Academic Council in holding university together during hard times—UCOP reorganization, budget under academic vice president Walter Massey—Budget cuts allocated to campuses proportionally—Massey’s disenchantment with regents’ attack on affirmative action—Compact with Governor Wilson, initiated by Director of Finance Russ Gould—Differences between president’s office and regents over siting of Merced campus, affirmative action—Improvement in state budget and booming enrollments at end of Peltason presidency and into Atkinson presidency—Accommodating Tidal Wave II enrollment growth. Choice of Dick vii Atkinson as president, Chuck Young’s role, preference for an internal candidate—Working on a deal with Cruz Bustamente for a legislative compact on the budget, in return for moving Merced campus forward, Pete Wilson vetoes— Opposition in the Senate to UC Merced and struggle to get it funded— Repercussion of Atkinson’s delay in implementing SP1 and SP2, measures to end affirmative action in hiring and admissions—Importance of admission issues throughout this time period. Interview 3: June 18, 2008 [Audiofile 5] 102 Working on the budget formulas and accountability measures during the Gray Davis governorship, cooperation with CSU, focusing on adequate salaries and funding for enrollment growth—Building student fees into the formula, building in maintenance under Dynes—Complaints from the campuses about budget formulas—Success in meeting accountability measures—Dot-com boom and support from Gray Davis: additional state money, student fee reductions, funding for Merced campus startup, science institutes, hospitals—Simplifying allocation to campuses under Atkinson, based on COLAs and enrollment growth. Enrollment planning for Tidal Wave II: encouraging UCLA and Berkeley to take more students, Atkinson’s move to year-round operation, legislative interest in summer operation. Dot-com bust and budget restrictions beginning in 2001, legislative budget cuts beyond the governor’s budget, in crisis as Dynes takes presidency during recall of Governor Davis.