California University System Crying Foul on Cutbacks -- Nothing to Do With the Bakken

Full story here.

The headline says that Governor Brown's proposed cuts to the University of California would imperil California's dream that resulted in Hollywood and Silicon Valley. 

You have to read to the end of the article to find out the cuts are minimal:

The $500 million reduction is relatively small compared with the University of California’s overall budget, a spokesman said.

The system’s spending plan for the 2010-2011 academic year is $21.8 billion, including revenue from hospitals and federal contracts, which are restricted and can’t be shifted to make up for state cutbacks, according to budget documents. The core educational budget is $6.28 billion. 

I can't fathom such large numbers, so as I usually do, I change the billion to simply numbers I can adjust to. Let's say as a teenager, my parents gave me $6.28 in allowance every week. Due to loss of income, they tell me my allowance will be cut by 50 cents. Something tells me I could continue, especially if I managed my money differently.  For the entire budget, that includes federal money, my allowance would be almost $22 a week, and I would be asking to give up 50 cents to help the family.

But this is the emotional hyperbole we hear:

"It’s ass-backwards, it’s upside-down, it’s stupid,” said Robert Ackerman, whose firm has investments in computer networking and software companies including Allegiance, Inc., and Solera Networks, Inc.,  both in South Jordan, Utah. “We’re reducing the ability to create the next generation that is going to create the jobs that’s going to pay the pension obligations that this state has, let alone create the jobs we need.”

Oh, by the way, William Gates, who is probably the biggest benefactor of Silicon Valley, with net worth of $54 billion could close the University of California's $500 million gap for 108 years, assuming no inherent growth in his current portfolio.

The biggest concern, according to Ackerman (above) is tuition costs. Obviously the $500 million is not entirely related to tuition and fees, so Bill Gates could probably make up the difference for 120 years. And Ackerman is only worried about engineers. The UC system is a liberal arts community; engineers make up a very small percentage. The amount of cuts coming to engineering departments is so small (as a percentage) it's not worth worrying about.

My hunch is that Robert Ackerman's companies could also help out. Just saying.