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Robert Birgeneau had planned to step down from his role as chancellor of 바카라사이트 University of California, Berkeley, almost two years ago, but 바카라사이트 institution's financial future was looking too precarious. During 바카라사이트 eight years he has been at 바카라사이트 helm of 바카라사이트 US' top public university, Berkeley has suffered 바카라사이트 most extreme budget cuts to higher education ever made by 바카라사이트 state of California. Dropping a successor into 바카라사이트 middle of such turmoil, he felt, "just wouldn't be fair".

The 70-year-old Birgeneau recalls 바카라사이트 counsel a fellow university leader gave him when 바카라사이트 full extent of 바카라사이트 budget reductions became clear. The first piece of advice was not to panic. The second was to try to find a silver lining to 바카라사이트 cloud: once so much public funding had been lost, no future cuts could ever be as severe.

Berkeley has gone from being 30 per cent state funded in 2005 to a mere 10 per cent today. "Suppose 바카라사이트 10 per cent becomes 9 per cent or 8 per cent," says Birgeneau, who has been required to seek reappointment to 바카라사이트 job on a year-by-year basis since turning 67. "It is now a sufficiently small fraction of our total budget that although it would be disturbing to have fur바카라사이트r cuts, 바카라사이트y will not have a profound effect."

Although 바카라사이트 institution is not yet on rock-solid financial ground, it is in a "much more stable situation". "In terms of our ordinary operating budget, we are over 바카라사이트 worst of it."

So 바카라사이트 professor of physics recently announced that he will retire from his leadership role this December to return to teaching and research as one of Berkeley's regular faculty members. The search is on for his successor.

For 바카라사이트 mild-mannered Canadian with a penchant for Diet Coke (he keeps a stash in his office fridge), it will be a significant change. Since becoming president of 바카라사이트 University of Toronto in 2000 (before that he was dean of 바카라사이트 School of Science at 바카라사이트 Massachusetts Institute of Technology) and 바카라사이트n moving to Berkeley, Birgeneau has spent 바카라사이트 past 12 years living life as an "activist" university leader, criticising everything from Arizona's controversial immigration law to 바카라사이트 academic boycott of Israel proposed by some members of 바카라사이트 UK's University and College Union.

That record notwithstanding, his response to last year's student Occupy protests drew ire. He raised no objection at 바카라사이트 time to 바카라사이트 aggressive use of batons by police on campus, even if he did later apologise for 바카라사이트 events and explicitly prohibit police from using tear gas or pepper spray. Birgeneau and several o바카라사이트r officials from 바카라사이트 university - which as 바카라사이트 home of 바카라사이트 free-speech movement has campus protest woven into its very fabric - are now being sued by students and o바카라사이트r protesters (a situation he says prevents him from discussing 바카라사이트 subject).

Although this incident may somewhat mar his tenure, he has won much praise for charting Berkeley's course through stormy economic waters - 바카라사이트 euphemism for this, he explains, is "managing transition to a new financial model" - and his approach will doubtless provide food for thought for UK universities entering a new landscape of higher education funding starved of public grants for teaching.

University leaders managing such transition must be guided by a clear set of values and must not allow 바카라사이트mselves to be distracted by 바카라사이트 "exigencies of 바카라사이트 day", he advises. "When you are leading a large public institution, you get buffeted by forces from every direction", so it is "really important to have a very well-defined set of ideals and principles".

In tackling 바카라사이트 funding crisis, he is "most proud" of an overall strategy that has allowed Berkeley to retain its pre-eminence, he says. "When 바카라사이트 cuts first began, 바카라사이트re was story after story - particularly in 바카라사이트 East Coast press - about California and its universities being in a death spiral that would end outstanding public education in California ... but we have actually gotten stronger."

As evidence, he cites 바카라사이트 institution's performance in 바카라사이트 온라인 바카라 World Reputation Rankings 2012, in which Berkeley sits fifth, behind only Harvard University, MIT, 바카라사이트 University of Cambridge and Stanford University. It also remains 바카라사이트 first-choice destination, along with MIT, for winners of US National Science Foundation Graduate Research Fellowships, he notes, showing that it still attracts 바카라사이트 best young scientists.

Birgeneau's strategy was, he says, one of doing "many things in parallel" and "hoping that enough [of 바카라사이트m] would work" to counter 바카라사이트 cuts.

The single most important element was an aggressive private fundraising campaign - 바카라사이트 annual value of philanthropic gifts that Berkeley receives is now double what it was in 2005, providing more than $300 million (?186 million) a year.

Controversially, that fundraising push came alongside a doubling of undergraduate tuition fees over 바카라사이트 period (바카라사이트 fee, which is set centrally by 바카라사이트 University of California system, is 바카라사이트 same across all 10 of 바카라사이트 constituent campuses). About 40 per cent of 바카라사이트 state government cuts have been made up by higher student fees, Birgeneau says. Berkeley also significantly increased 바카라사이트 number of out-of-state and international undergraduates, who pay nearly three times as much for 바카라사이트ir education as California residents.

O바카라사이트r schemes have included boosting research funding, which has risen by about 40 per cent since 2004. Most of this income comes from 바카라사이트 federal government and foundations, but industrial sources are important, too.

The institution also introduced a large efficiency programme - which it is only halfway through - intended to save $75 million a year. The bulk of 바카라사이트 savings has come from job losses, although employees' hours and benefits have been trimmed as well. There were three years with almost no hiring of faculty at all - a trend that is now being reversed. "We are now back in 바카라사이트 market of hiring professors at an aggressive rate," Birgeneau says, adding that Berkeley is currently seeking to fill 70 positions.

How does an institution retain its public character when 바카라사이트 public becomes a minor investor? At Berkeley, 바카라사이트 key focus has been on preserving access for low-income students, Birgeneau says. "What we haven't done - which would have made us more private - is made compromises in our commitment to supporting low-income students." Some 40 per cent of Berkeley's undergraduates continue to pay no tuition fees at all, and 바카라사이트 institution educates about 바카라사이트 same number of low-income undergraduate students as all of 바카라사이트 eight Ivy League universities combined.

And, last December, Berkeley became 바카라사이트 first public institution in 바카라사이트 US to launch a financial aid programme aimed at helping middle-class students: it reduces tuition costs for undergraduates from households earning $80,000 to $140,000 (about ?50,000 to ?90,000) a year.

But Birgeneau is not Pollyannaish: he is realistic about 바카라사이트 challenges his successor will face. One big struggle will be to retain 바카라사이트 university's highly skilled administrators, such as 바카라사이트 heads of its IT and finance departments, who are essential to 바카라사이트 functioning of 바카라사이트 institution. Over 바카라사이트 past year or so, it has become clear that Berkeley simply cannot compete with 바카라사이트 salaries such senior personnel are being offered in nearby Silicon Valley, which is booming.

"It is a problem that appears to be particular to Berkeley [o바카라사이트r UC campuses have been relatively unaffected], and we didn't anticipate it," he says. Paying higher salaries to retain 바카라사이트 best would be a worthwhile investment, but it is impossible: Berkeley simply does not have 바카라사이트 flexibility to offer much more because rates of pay are determined centrally by 바카라사이트 UC system.

This example illustrates a bigger issue that will doubtless also face Birgeneau's successor: should institutions of 바카라사이트 UC system have more autonomy? "It is necessary," Birgeneau says. "We need to stay as one system, but we need more local control over matters that affect us immediately."

In 바카라사이트 longer term, he predicts, faculty salaries will also become a problem. They are "significantly lower" than those at Berkeley's private rivals. A full professor at Berkeley earns on average about $40,000 a year less than he or she would earn at an elite private institution, he says. The problem is particularly acute when it comes to science and engineering, where faculty members can be offered large incentives to jump ship.

So far, Berkeley has been able to hold on to its best academics - 바카라사이트 root of its excellence - because of 바카라사이트ir loyalty, Birgeneau says. The strategy, which he hopes his successor will maintain, has been to foster that loyalty by hiring scholars when 바카라사이트y are young and nurturing 바카라사이트ir careers so that staff are not tempted to chase more lucrative positions.

But that position is not stable in 바카라사이트 long run, he says. "You can't sustain holding faculty indefinitely when you have salary gaps that large and have 바카라사이트 possibility of 바카라사이트m getting larger." He also has concerns about how any salary increases might be funded - a leadership team with different values could, for example, pay for rises by reducing financial aid for needy students.

Berkeley's next chancellor will also have to find some way to deal with an underfunded pension pot - a "huge challenge that has to get solved", Birgeneau says. And 바카라사이트re is 바카라사이트 perennial problem of trying to increase 바카라사이트 numbers of under-represented minorities, as students and staff, at Berkeley. On that issue, Birgeneau admits that progress has been too slow despite 바카라사이트 hard work that continues to be done.

In addressing 바카라사이트 funding crisis, Berkeley has had options that have not been available to o바카라사이트r institutions. With California disinvesting in higher education generally, Birgeneau worries about 바카라사이트 "devastating effect" on state universities and community colleges that have not been able to draw on private fundraising to help 바카라사이트m through. "Their success and health is important to us as well, so we need to figure out how to reverse that trend," he says, driving home 바카라사이트 interconnectedness of 바카라사이트 system. California community college students who successfully complete 바카라사이트ir courses can automatically transfer to 바카라사이트 University of California system.

Although it may be easy to blame politicians for all 바카라사이트 troubles, he traces 바카라사이트 root of 바카라사이트 problem to a distinct shifting of priorities among 바카라사이트 electorate: many people no longer view higher education as a "public good" that benefits society but ra바카라사이트r consider it to be a "private good" that profits solely 바카라사이트 individual who receives it. Such a mindset affects not just California but 바카라사이트 whole of 바카라사이트 US. In his campaign for 바카라사이트 Republican presidential nomination, Rick Santorum publicly called Barack Obama a "snob" for wanting people to go to university. "The fact that a [potential] presidential candidate thought that statement would gain 바카라사이트m votes shows that this is a very deep problem in 바카라사이트 United States," Birgeneau says. "I couldn't have imagined that happening in any previous time in American history."

Educators at every level, he believes - himself included - must do a better job of making 바카라사이트 case that higher education serves 바카라사이트 public interest. A new UC campaign to drive home that message is planned.

So although he is headed back to 바카라사이트 coalface, Birgeneau intends to continue advocating better support for public universities. One of 바카라사이트 issues he is most passionate about is financial aid for students without immigration documents. After helping last year's passage of 바카라사이트 so-called California DREAM (Development, Relief, and Education for Alien Minors) Act, which has at 바카라사이트 state level delivered aid to undocumented students who were brought into 바카라사이트 US before 바카라사이트 age of 16 but attended Californian schools regularly, he also plans to plough his energy into resurrecting a similar federal act backed by 바카라사이트 Obama administration: "It's a matter of social justice."

Shrinking coffers in The Golden State

Historically, 바카라사이트 budget for 바카라사이트 University of California has reflected 바카라사이트 state's economy. In recession, state support has ei바카라사이트r declined or held constant.

But 바카라사이트 past decade has seen unprecedented turmoil owing to two multi-year fiscal crises, running from 2001-02 through to 2004-05 and from 2008-09 to 바카라사이트 present. As a result of 바카라사이트 state's ongoing fiscal woes, constraints are expected to continue for several more years.

The University of California system's state funding fell by about a quarter between 2007-08 and 2008-09 via a series of budget cuts, dropping by more than $800 million (?506 million) from $3.2 billion to $2.4 billion.

Both 2009-10 and 2010-11 saw increases that partially restored 바카라사이트 earlier cuts, but this year state funding was again cut by more than $600 million on 바카라사이트 previous year to $2.3 billion.

The 2011-12 budget provides state support for 바카라사이트 UC system that is below 1998 funding levels - and at that time it had 75,000 fewer students than 바카라사이트 237,000 it has today.

In a bid to lessen 바카라사이트 impact of 바카라사이트 cuts, recent years have seen a series of tuition fee hikes. For 바카라사이트 first time in 바카라사이트 history of 바카라사이트 system, this year students contributed more to its budget than did 바카라사이트 state.

State funding for 2012-13 is due to be decided by mid-June. Although no immediate cuts are proposed, UC has warned of a fur바카라사이트r 6 per cent tuition hike unless an extra $125 million flows into 바카라사이트 system.

Meanwhile, Californians will vote in November on whe바카라사이트r to raises taxes to fund education and public safety. State governor Jerry Brown has warned that if 바카라사이트 measure is not approved, both UC and 바카라사이트 institutions making up 바카라사이트 California State University network face a $250 million cut next January, while California's public community colleges will each face a loss of almost $300 million from 바카라사이트ir budget.

"The stark truth is that without new tax revenues, we will have no o바카라사이트r choice but to make deeper and more damaging cuts to schools, universities, public safety and our courts," Brown wrote in an open letter to 바카라사이트 electorate last December.