BILL ANALYSIS
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UNFINISHED BUSINESS
Bill No: SB 86
Author: Yee (D)
Amended: 9/4/09
Vote: 21
SENATE EDUCATION COMMITTEE : 7-2, 4/29/09
AYES: Romero, Huff, Alquist, Hancock, Maldonado, Padilla,
Wyland
NOES: Liu, Simitian
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 35-3, 5/26/09
AYES: Aanestad, Alquist, Ashburn, Benoit, Calderon,
Cogdill, Corbett, Correa, Cox, Denham, DeSaulnier,
Ducheny, Dutton, Florez, Hancock, Harman, Hollingsworth,
Huff, Kehoe, Leno, Lowenthal, Maldonado, Negrete McLeod,
Oropeza, Padilla, Pavley, Romero, Runner, Steinberg,
Strickland, Walters, Wiggins, Wright, Wyland, Yee
NOES: Liu, Simitian, Wolk
NO VOTE RECORDED: Cedillo, Vacancy
ASSEMBLY FLOOR : 77-1, 9/8/09 - See last page for vote
SUBJECT : Public Postsecondary Education: executive
officer
compensation
SOURCE : Author
CONTINUED
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DIGEST : Assembly Amendments delete the Senate version of
the bill expressing the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009.
The bill now place the contents of SB 217 (Yee) which
prohibits the California State University Board of Trustees
(Trustees) from increasing the monetary compensation or
approving payment of a bonus for any executive officer in
any year in which the amount of General Fund monies
appropriated to that segment is less than or equal to the
amount appropriated in the immediately preceding fiscal
year and requests the University of California Board of
Regents comply with these provisions.
ANALYSIS : The University of California (UC) has 10
campuses, five medical centers, more than 200,000 students,
and over 100,000 employees. The California State
University (CSU) has 23 campuses, more than 400,000
students and over 50,000 employees.
This bill:
1. Prohibits the CSU Trustees from increasing the monetary
compensation of or approving payment of a monetary bonus
to any executive officer in any fiscal year in which the
amount of state General Fund monies appropriated in the
annual Budget Act to that segment is equal to or less
than the amount appropriated in the immediately
preceding fiscal year.
2. Defines "executive officer" as including, but not
limited to:
A. For CSU: The CSU Chancellor, a vice chancellor
or an executive vice chancellor, the general
counsel, the Trustees' secretary, or the president
of an individual campus.
B. For UC: The UC president, a vice president, the
treasurer or assistant treasurer, the general
counsel, the UC Regents' secretary, or the
chancellor of an individual campus.
3. Defines "monetary compensation" as including, but not
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limited to, a salary, a vehicle allowance, and a housing
allowance.
4. Applies these compensation restrictions only to
executive officers entering into a new or renewing an
existing employment contract on or after January 1,
2010.
5. Requests the UC Regents to comply with this prohibition.
Background
How is Executive Compensation set now ? Although it is
currently the purview of the institutions to set the
compensation levels for executive personnel, such levels
typically reflect compensation levels paid at comparable
institutions nationwide (the average of salaries at an
established set of comparable institutions, generally the
same set of institutions used to set faculty salaries).
An October 2004 report from the California Postsecondary
Education Commission titled "Executive Compensation in
California Public Higher Education, 2003-04", its' most
recent survey of executive compensation, found that
Presidents of the CSU lagged national comparators by 37.8
percent while UC Chancellors earned 37.5 percent less than
their colleagues in other states.
A November 2008 annual salary and compensation survey of
college presidents conducted by the Chronicle of Higher
Education found, in part:
1. The median (half above/half below) salary for presidents
of public four-year colleges was $427,000. All but one
of the UC and CSU presidents fell below the median.
2. Of the 184 public four-year institutions with student
enrollments of more than 10,000, 52 of the presidents
had total compensation which exceeded that of any UC or
CSU president. Those with the largest total
compensation included: University of Virginia
($797,048); University of Michigan ($760,196);
University of Colorado ($740,415); University of Florida
($731,811); (Arizona State ($728,750); Georgia State
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University ($727,487); Auburn University in Alabama
($725,684); and Ohio State University ($1,346,225).
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
Unknown, however, the Assembly Appropriations Committee
analysis of an identical bill stated that "Attempting to
isolate the potential fiscal effects of this bill is
speculative at best. Under the current circumstances, UC's
and CSU's General Fund appropriations have been reduced
significantly and the segments' actions to freeze senior
management salaries and implement furloughs go beyond even
the restrictions in this bill, thus one could argue that
the segments' severe budget constraints served the same
purpose as this bill without deleting all discretion."
SUPPORT : (Verified 9/9/09)
American Federation of State, County and Municipal
Employees, (source)
Local 3299
American Federation of State, County and Municipal
Employees, International
Associated Students, UC Davis
California Faculty Association
California Nurses Association
California State Employees Association
California State Student Association
State Employees' Trades Council
University of California Student Association
OPPOSITION : (Verified 9/9/09)
California State University
University of California
ARGUMENTS IN SUPPORT : Proponents of this bill indicate
this bill will assist in reigning in what they see as the
exorbitant executive compensation at the UC and CSU systems
while students are having their fees increased and the
lowest wage workers get minimal compensation.
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ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Brownley, Buchanan, Caballero, Carter, Chesbro, Conway,
Cook, Coto, Davis, De La Torre, De Leon, DeVore, Duvall,
Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Gaines, Galgiani, Garrick, Gilmore, Hagman, Hall,
Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, John A. Perez, V. Manuel Perez,
Portantino, Ruskin, Salas, Saldana, Silva, Skinner,
Smyth, Solorio, Audra Strickland, Swanson, Torlakson,
Torres, Torrico, Tran, Villines, Yamada, Bass
NOES: Charles Calderon
NO VOTE RECORDED: Furutani, Vacancy
DLW:do 9/9/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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