UCLA fires top finance offer, saying he made inaccurate claims about campus budget

[ad_1] In a uncommon motion in opposition to a high administrator, UCLA on Tuesday fired its chief monetary officer, saying he inaccurately described the campus deficit, which has come below scrutiny by school leaders amid rising operation prices, assaults by the Trump administration and weaker-than-promised state funding.

Vice Chancellor and Chief Monetary Officer Stephen Agostini, who had overseen UCLA’s $11-billion finances since Could 2024, “will not serve in his function, efficient instantly,” Chancellor Julio Frenk wrote in a short campuswide message, asserting an interim appointment and a nationwide seek for a alternative.

The abrupt change got here days after Agostini gave an interview to the Every day Bruin scholar newspaper saying the campus had “monetary administration flaws and failures” predating his arrival, resulting in what he stated was a $425-million deficit. Within the interview, Agostini blamed monetary woes on school and workers raises, tutorial departments’ requests for brand new positions and expanded packages, and UCLA athletics, which has run within the pink for a number of years.

Agostini recommended that UCLA’s annual monetary studies going again to 2002 had been incorrect, saying he noticed “very severe errors” — a cost UCLA officers deny. UCLA’s final posted monetary report covers the 2022-23 fiscal 12 months.

Agostini didn't reply to requests for remark from The Occasions.

In his campus letter, Frenk didn't state a motive for Agostini’s dismissal.

A supply with information of the state of affairs informed The Occasions that the firing was tied to Agostini’s public statements concerning the finances and long-term monetary administration, which had been made with out Frenk’s approval. The particular person requested to have their title withheld as a result of they weren't licensed to talk to the media about administrative issues.

In a separate assertion, Mary Osako, UCLA’s vice chancellor for strategic communications, dismissed Agostini’s feedback straight.

“Current claims of a projected $425-million deficit for UCLA’s fiscal 12 months 2025–26 are inaccurate,” Osako stated. “The determine consists of funds that aren't dedicated for expenditure, together with gadgets which have been proposed or mentioned however not authorized. As such, it doesn't characterize the college’s projected working deficit.”

Osako stated the deficit was “considerably decrease,” however didn't say by how a lot. A UCLA spokesperson on Tuesday additionally declined to launch a deficit quantity.

Osako stated finances challenges had been induced not by tutorial packages however as an alternative “replicate broader institutional and exterior elements affecting greater training.”

“The college’s monetary technique has developed below successive campus leaders in response to altering financial circumstances, state funding ranges and operational priorities,” she stated. Additionally, “despite present strains, UCLA has the monetary power to take care of its excellence whereas adapting to new monetary realities and alternatives.”

She additionally stated allegations suggesting long-term monetary mismanagement had been unfounded. “Chancellor Frenk is assured within the integrity of UCLA’s management, previous and current, and their monetary oversight and decision-making processes. Statements suggesting in any other case are unfounded and don't replicate his or UCLA’s place.”

Monetary challenges are widespread at U.S. universities, which have grappled with shifting enrollment, rising prices and funding pressures in addition to lingering results of pandemic-era monetary declines. Harvard, which has confronted main federal funding clawbacks since final 12 months, just lately stated it has a $113-million deficit. UC Santa Cruz — the place the working finances is a fraction of UCLA’s — just lately reported a $95-million deficit.

UCLA leaders say the college is dealing with growing prices and unpredictable state and federal assist — together with $584 million in federal analysis grant suspensions from the Trump administration which are presently blocked in court docket. The UC initiated a systemwide freeze on most hires final 12 months and UCLA has made a number of cuts since then.

At UCLA, adjustments embrace layoffs on the extension faculty, and diminished courseloads or a scarcity of contract renewals amongst some part-time school. The cuts are usually not uniform, with areas of the campus scaling again in numerous methods. Final 12 months, the maths division reported reducing paid graders and instituting diminished hours for instructing assistants. Decrease-enrollment and fewer generally taught foreign-language programs have additionally confronted reductions. School in different departments stated their journey and convention budgets had been diminished.

UCLA, which is getting ready to host the Olympic Village in 2028 and has invested tens of thousands and thousands into athletics since becoming a member of the Huge Ten, has additionally confronted inside criticism for heavy spending on sports activities packages which have run within the pink.

A UCLA Tutorial Senate report launched final month known as for a “phased plan towards break-even or considerably diminished subsidy” for college cash funneled towards athletics. The senate represents 1000's of college members.

Total, the report stated there was “incomplete knowledge” and “main gaps in transparency” over monetary issues.

Talking Tuesday, Megan McEvoy, a professor within the Institute for Society and Genetics who chairs the Tutorial Senate, stated she was, “heartened that Chancellor Frenk took significantly the continued and severe considerations raised on campus in regards to the now-former CFO.”

However McEvoy stated she and her colleagues nonetheless had questions.

“Senate school want full, reliable accounting of selections and insurance policies that induced the present campus finances deficit,” she stated. “With out accountability, we're involved that the administration might repeat the identical kind of choices that led to the deficit. Senate school need to perceive how the administration will stability the finances in ways in which protect the educational mission. The current allegation that we will’t belief prior monetary statements is worrisome, if true.”

Anna Markowitz, president of the UCLA School Assn. — an unbiased campus group that sued the Trump administration over its $1.2-billion UCLA settlement demand — stated she had related considerations.

“We need to know the way a lot cash has been paid to subsidize athletics; on policing prices that haven't any clear objectives or accountability constructions; on actual property purchases; administrative consultants; and for high-level management who didn't take motion final 12 months when our faculty was below grave risk,” stated Markowitz, an affiliate professor in UCLA’s College of Training and Data Research.

UCLA just isn't the one Southern California campus to face monetary hurdles. Final 12 months, USC laid off roughly 1,000 workers because it confronted down a $230-million deficit. Chatting with The Occasions this month, USC President Beong-Soo Kim stated the college was in a “a lot stronger monetary place now” and that he was “optimistic” about its monetary outlook.