UC Berkeley To Pay Consultant to Find Cost Cuts

Nanette Asimov:

UC Berkeley has agreed to pay a consultant $3 million to help the school find new ways to save money – an agreement that has irritated some faculty members whose pay is being cut this year.
The university is facing a $150 million budget deficit for the 2009-10 year, a consequence of less state funding and higher operating costs. Like all 10 UC campuses, UC Berkeley has cut faculty pay through furloughing workers, laying off employees, reducing course offerings and raising student fees.
These short-term fixes, however, “are an unsustainable long-term financial strategy,” Chancellor Robert Birgeneau said Friday in an announcement posted on the campus Web site. “We are now planning for a future that relies less on volatile state funding.”