Bain & Co. study at Berkeley draws fire

When consulting firm Bain & Company finished its study at UNC, it estimated that its recommendations could save the University up to $161 million a year.

Now, the University of California-Berkeley has hired Bain & Co., hoping for similar results.

But the cuts already made at Berkeley to help it cope with a $150 million budget deficit have prompted some strong opposition on campus from those upset with the cost of the hire.

Berkeley is spending $3 million to fund the study, which will review the university’s administrative organization and help it cope with the deficit, as well as $67 million in permanent reductions.

The study at UNC was funded by an anonymous donor, and its cost has been kept confidential.

The hire at Berkeley comes amidst hundreds of job cuts, causing concern that administrators hired the firm at the expense of employees and the quality of education.

“I’m outraged, shocked, disappointed, because we’ve just been going through cuts, an increase in tuition and laying off workers,” said Tanya Smith, president of the local chapter of the union University Professional and Technical Employees, which represents many university faculty members.

The university will have to pay half of the $3 million up front. The school plans to use funds controlled by the chancellor that are meant to be used for infrastructure investments. The other half has to be paid in the next fiscal year.

“This is a long-term investment that will minimize the cuts we have to make later on,” said Dan Mogulof, executive director of public affairs.

Berkeley expects to replace the funds spent on the study through the long-term savings that will be generated by making the cuts recommended by the study.

Mogulof said hiring Bain & Co. was necessary because of the lack of funding provided by the state.

“Though we continue our political advocacy, striving to convince Sacramento to reverse its disinvestment in higher education, we are also planning for what is likely to be even less state funding next year,” Chancellor Robert Birgeneau said in a statement.

Unlike at UNC, where University administration and faculty did not directly oversee the project, Berkeley’s study will be guided by a committee of faculty and administrators.

It will focus on the efficiency of non-academic departments, such as technology, finance and business services. UNC’s study included academic departments.

Smith said many employees are not convinced the study is in the university’s best interest and have planned meetings to protest it.

“Education is besieged by this problem of looking toward consultants instead of looking at the classroom and see what the needs are there,” she said.

But the protests will have little impact, Mogulof said.

“We are a large campus and known to have diverse opinions, Talk is one thing, but watch what we do,” he said.



Contact the State & National Editor at stntdesk@unc.edu.