President Napolitano analyzes options for ANR in UCOP structure

Dear Colleagues,

In my ANR Update message on Feb. 8, I shared a report released in January by the Huron Consulting Group on the UC Office of the President's (UCOP) organizational structure. President Napolitano's goal in commissioning that review was to improve the effectiveness and efficiency of UCOP, while aligning its work to best support the university's core mission.

As I mentioned last month, Huron offered options that we believe would harm ANR's ability to deliver our mission of research and extension and to bring UC to local communities in every part of California. We identified several issues with both options, chief among those were adding layers of administration between ANR and the UC president as well as between ANR and the public we serve. Those additional layers would likely increase administrative costs and reduce funding for program delivery. At the president's request, we have developed an alternative proposal that would strengthen ANR's ability to deliver our mission while also serving the needs of UCOP for better financial management and administrative efficiency.

A challenge we have faced for years is that about half of our budget flows through UCOP while we manage the remainder directly. ANR is the only major operating division at UCOP that directly conducts research and program delivery, with hundreds of employees throughout California deploying over $200 million in resources. This has caused a great deal of confusion for auditors and often led to budget cuts during calls to reduce UC administrative overhead. Our recommendation places the entire ANR budget into one operating unit/location within the UC Chart of Accounts and allows for more transparency to the public. It also improves ANR's opportunities to stabilize our funding, rebuild our academic footprint and enhance program delivery.

Unlike the institutions used as examples in Huron's report, there is no one flagship campus serving as California's land-grant institution; instead, the entire UC system is responsible for the land-grant mission. To effectively deliver that mission, ANR is structured as a large statewide operating unit administering over 300 Memoranda of Understanding with a wide array of public and private sector partners, including deployment of resources on multiple campuses across the UC system and in close partnership with local governments in every county. The Huron report recognized that housing ANR within one campus was suboptimal and could create perceptions of favoritism and inequities between the campuses. Our proposal calls for a collaborative relationship; injecting competition and administrative layers would not serve the UC system nor our stakeholders well.

Separating ANR's budget and FTE from UCOP offers many advantages to both entities. Under the proposal we have offered, the ANR vice president continues to report directly to the president, the ANR governance structure does not change and no people or infrastructure would be moved. The proposal does agree with the Huron recommendation that ANR funding should be changed to state appropriations and that reconnecting the UC Natural Reserve System to ANR offers improved research opportunities for both entities. We believe these changes would best achieve the president's objectives to better align UCOP support functions to campuses while enhancing the systemwide and statewide functions of a vital outreach and engagement arm of the university.

The president continues to analyze the different options before her to ensure UCOP is best serving the UC system as well as all Californians for the long term. We are excited to work closely with President Napolitano to strengthen UC as a premiere research and extension institute by giving these vital programs room to grow and better serve the critical needs of California's economy and communities. I will continue to keep you apprised as our discussions unfold.

Glenda Humiston
Vice President

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