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University of California President Robert Dynes responds to Senate allegations of overspending in

University of California President Robert Dynes hopes to look ahead with a series of compensation reforms after facing state legislators in a Senate hearing last week, which marked the second time in just over a decade that the UC has had to answer to the state regarding its compensation practices.

The UC has been under fire recently for what critics have called questionable compensation practices after the San Francisco Chronicle reported last November that the UC paid its employees $871 million in unreported bonuses, raises, and other forms of compensation.

Last Wednesday’s hearing was the first of two Senate hearings in which UC officials will be questioned by state legislators regarding UC compensation practices.

In 1992, the UC faced a similar position when it was discovered that the university gave generous compensation packages to top UC officials, including a $1 million retirement package for then UC President David Gardner.

On that occasion, the UC promised reform after a state audit and a series of Senate hearings. The state audit cited about $2 million in questionable spending from a special administrative fund, including expensive stays at hotels and charity donations made in the names of UC leaders. Shortly after the audit, Gardner acknowledged changes were needed and promised to respond to the audit.

But Sen. Abel Maldonado, R-Santa Maria, said the UC is obviously still conducting business the old way and asked Dynes how he will ensure more compensation problems do not arise.

Dynes promised to make compensation reforms permanent with a periodic review process to ensure policies are being properly followed.

“Let me be clear: I intend to put things in place that will stick,” Dynes said during the hearing Wednesday.

While apologizing for what he admitted to be a lack of transparency in compensation matters, Dynes promised to investigate fully the extent of any policy violations and cited a number of reforms implemented to improve the university’s accountability to the public.

“We take these matters seriously, and took to heart our promise to correct some of the compensation-related policies and practices that appear to be problematic,” UC spokesman Paul Schwartz said.

But while admitting reforms are necessary, Dynes also emphasized the difficulty of the university’s need to attract the best administrators in order to remain a quality institution.

Schwartz said legislators are understanding of the challenges the UC faces in keeping the university competitive.

But members of the Senate Education Committee present at the hearing never stated that they accepted Dynes apology, and instead emphasized the need for the UC to reform its practices.

State Sen. Gloria Romero, D-Los Angeles, said someone in the UC must take responsibility if the questionable compensation deals were found to be more serious. Romero suggested that some UC administrators should be fired if serious violations of policy were turned up.

“I want us to go beyond mea culpa and exact some responsibility,” she said.

During the hearing, Dynes said no one has yet been fired as a result of the accusations and investigation, but some people have shifted to other positions within the UC.

UC Students Association President Anu Joshi, who attended the hearing, criticized the university for shortchanging students by making them believe that cuts to student services were the only solution to the budget problems the university has been facing.

Students now know executives were receiving large compensation packages while student fees were increasing and services were being cut, she said.

“We are concerned about how far the UC is willing to go to attract and retain top level employees,” Joshi sad.

Sen. Jeff Denham, R-Merced, introduced a bill in January which, if passed, could require the state to approve the UC budget if the university does not make its practices transparent.

A UC-ordered external audit of senior management compensation is underway and its results are expected to be released at the end of the month.

An independent taskforce has also been established to review what Dynes has called confusing and sometimes contradictory UC compensation policies. In addition, a new compensation committee formed by the UC Board of Regents was created to provide oversight of compensation matters on an ongoing basis.

A second Senate hearing in which board chairman Gerald Parsky will testify has been planned for Feb. 22.