Former UCLA Chief Financial Officer Stephen Agostini alleged that UCLA is running an annual budget deficit of more than $400 million, in a recent interview with the Daily Bruin.
He also claimed that our financial system has been suffering from mismanagement. While UCLA has denied the accuracy of his allegations, students should take Agostini’s claims seriously.
While many UCLA administrators have likely had an impact on our financial woes, one administrator in particular commands both an incredible amount of spending power and an alarming lack of transparency with students.
Michael Beck, UCLA’s administrative vice chancellor, oversees housing, dining, transportation, IT and oversaw– until May 2024 – campus safety. His choices about spending impact students at a larger scale than many other departments.
Students should have access to information about how their money is being spent, especially when it comes to Beck’s student services-oriented departments – yet Beck has repeatedly failed to comprehensively answer questions about his choices.
Beck was an executive sponsor for a major financial software upgrade project that spent at least $213 million, but resulted in no concrete accomplishments.
“It is disappointing when they know that some student services desperately need funding, desperately need more staffing, they choose to take risky investments,” said Diego Bollo, president of the Undergraduate Students Association Council.
Beck has not fully answered questions about this spending choice.
In 2020, Beck was part of rejecting a proposal to designate a safe space for students experiencing homelessness to sleep in their cars.
“They offered to have me sit on committees that never were formed and never met,” said Grayson Peters, a UCLA alumnus who was heavily involved in advocating for that parking plan. “UCLA has not really embarked in a comprehensive and effective way to address the student homelessness problem.”
After rejecting the parking initiative, Beck instead suggested spending money to create a hostel that could house these students – but never submitted actual plans to build that hostel.
Beck has not completely answered questions about this spending choice either.
Beck’s department is also involved in leading another IT consolidation project that could affect staff hiring and spending on IT. Faculty members have alleged that they were not fully informed on the costs and benefits of the project.
The project, which aims to increase efficiency in spending through creating modern IT solutions, has the potential to result in more failed investments by UCLA.
Beck has also not fully answered questions about this spending choice.
One official cannot be blamed for the entire failed state of our financial management. But the problem is not Beck’s mistakes – it’s that he fails to comprehensively answer questions about them.
This is especially concerning given Beck’s reputation before coming to UCLA.
Prior to his role as administrative vice chancellor, Beck was city manager for Pasadena. During his tenure, it was discovered that another city employee had embezzled $6.4 million from the city – most of it during Beck’s time in office, according to the Pasadena Star News. For a man who failed at one of his most important jobs – managing fiscal accountability – Beck deserves an increased level of scrutiny.
And as students, we deserve answers.
Sharing financial information with students is not a new concept.
California State University Dominguez Hills has a webpage dedicated to outlining financial priorities and spending decisions, a media spokesperson for CSUDH said in an emailed statement.
“Transparency around student services is critical to demonstrating how our spending aligns with student needs and institutional priorities,” the spokesperson added in the statement.
UCLA and Michael Beck can follow CSUDH’s example and start directly answering questions about their spending choices.
It is time for Vice Chancellor Beck to sit down with UCLA students. His spending decisions impact us and we deserve responses to the questions that he has left widely unanswered.
The alleged $425 million budget deficit makes his silence even more inexcusable. We can – and will – demand more accountability from Beck.
Beck did not respond in time to a request for comment for this article, despite being given more than six weeks to do so.
He must do better.
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