For the tidy sum of $3million dollars, Bain & Co. has identified ways in which UC Berkeley could cut $75million from its annual operating budget.
From the SF Chronicle:
For a world-class university studded with Nobel laureates and innovative research, UC Berkeley manages its finances a bit like a sloppy undergrad, a new report suggests.
The campus could save about $75 million a year by streamlining purchases, concentrating job duties and laying off "redundant" managers, according to consultants hired last fall to help the school become a leaner operation.
The campus has five big areas of bloat, according to Bain & Co., the Massachusetts consulting firm being paid $3 million to identify waste.
The biggest, say the consultants, is too many managers. The human resources department alone has one manager per 63 employees, compared with an average of one per 127 employees across other universities.
Next up is purchasing. Instead of negotiating universitywide contracts with bulk discounts, for example, it's every department for itself.
The campus could also consolidate tech services, find ways to save energy, and improve or eliminate student services from graduate student housing to child care.
If that $75 million in annual cost savings doesn't sound significant, then consider this. The tuition for the entire freshman class amounts to about $50million. Getting ANYWHERE near those targeted cost cuts would enable the entire freshman class to go to school for free.
But then what would they riot over????
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