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I-Team: UC Execs Get Extra Payment During Budget Crisis

POSTED: 9:17 pm PDT May 5, 2010
UPDATED: 8:11 pm PDT May 6, 2010

University of California, San Diego student Sarah Pfeil needs $2,000 more for tuition this fall. That's how much it went up across the board for all in-state UC undergraduates. Tuition alone is $11,300 a year.

"I'm pretty angry about it," said Pfeil.

But while students pay more, UC executives -- those managing the system -- are still getting their six-figure salaries and benefits.

The 10News I-Team examined UC's compensation records and found one benefit that stood out as particularly generous called the "relocation allowance."

Despite its name, it's not for moving expenses. It's used for recruiting new executives or moving current executives to other locations in the UC system.

At UC San Diego, for example, the I-Team found that Henrietta "Penny" Rue, vice chancellor of student affairs, received a relocation allowance of $53,750.

As for her actual moving costs, Rue received an additional $27,893.

State Sen. Leland Yee (D-San Francisco) has long been a watchdog of UC funds and criticized this type of extra compensation.

"So what we have now is adults feasting, while our students are starving. And that is wrong," said Yee.

The relocation allowance can be up to 25 percent of the executive's salary. However, it's optional, and the university doesn't have to give that money away.

Despite severe budget problems, the university's Office of the President -- which oversees all UC campuses -- offered the perk to three of its executives last year.

Dwaine Duckett, vice president of human resources was given a $300,000 dollar salary, plus a $75,000 relocation allowance.

Marsha Kelman, associate vice president of policy and analysis, was offered a $248,000 salary, plus a $62,000 relocation allowance.

Peter Taylor, executive vice president and chief financial officer, was offered a $400,000 salary, plus a $64,000 relocation allowance.

According to UC records, the relocation allowance of these executives could have paid the salary of two full-time university professors.

"It is these kinds of extraordinary benefits that these administrators are getting that are just really out of proportion to what you find in other departments within the state of California," said Yee.

The shaky California economy convinced UC President Mark Yudof to propose freezing salaries and cancelling bonuses as early as last January. It passed. However, 10News learned that some bonuses were exempt, and the relocation allowance remained.

10News requested an interview with President Yudof's office. They declined, and a representative justified the relocation allowance by email: "... the University has to compete with other entities to attract the talent needed for the scope and complexity involved in an enterprise like ours ..."

"The UC officials will always argue that they need to give these high salaries and compensations in order to attract the very, very finest. We don't have the kind of data that would verify that," said Yee.

The finances of the University of California are currently being audited by the state, after Yee initiated the request. The state auditor expects to have the results by October.

To see the emailed questions and answers between 10News and the UC Office of the President, click here.
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