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The policy brief, released by AFSCME Local 3299, analyzes publicly available UC financial statements and shows the 10-campus system has nearly doubled its revenues over the past decade—from $29 billion in 2015 to $61 billion in 2025. The report suggests UC may be "in the strongest financial position in its 150-year history."
"The complex and expansive nature of the University of California often results in an opaque and incomplete understanding of the system's overall financial health," said Claudia Preparata, AFSCME 3299 research director. "This policy brief provides a comprehensive independent analysis of the University's overall financial performance."
The report comes as UC continues negotiating with more than 40,000 frontline patient care and service workers who have been without a contract for over a year. The union represents custodians, food service workers, groundskeepers and patient care technicians across the UC system.
UC's five medical centers have seen revenue increase 167% over the decade, from $9.5 billion to more than $25 billion, now comprising 42% of total annual revenues. In 2025, medical centers generated $1.9 billion in net operating income and project continued financial surpluses, according to the analysis.
The system's unrestricted capital reserves have grown to $24.5 billion, with total endowment and working capital pools reaching $41.5 billion. Investment returns added $4.5 billion to UC's bottom line in 2025, while stronger than expected pension fund performance erased $2.5 billion in long-term liabilities.
UC's expansion includes acquiring eight hospitals across California since 2023 for nearly $1.6 billion. The system completed 150 capital projects worth $3.2 billion in 2025 and has $27 billion in capital investments planned over the next six years.
The report highlights growing compensation disparities within the system. Average base salaries for UC's top executives—including the president, chancellors and medical center CEOs—more than doubled from $540,000 in 2015 to $1.2 million in 2025.
In 2023, UC San Diego Chancellor Pradeep Khosla received a $500,000 pay increase. Last year, UCLA CEO Johnese Spisso received a "market-based salary adjustment" of $317,000. UC's chief investment officer was awarded a nearly $2 million cash bonus in 2025 to complement his $1 million salary.
The median salary for UC service workers is $54,000, while patient care technical workers earn a median of $76,000—roughly 20 and 15 times less than average executive compensation.
The analysis shows AFSCME-represented frontline workers have seen real wages fall by up to 6% since 2017 as inflation increased 36%. In contrast, the purchasing power of the UC president increased more than 90% during the same period.
Following recent tuition increases approved by the UC Regents, undergraduate tuition now stands at $15,588 for California residents and $54,858 for non-residents—increases of 39% and 53% respectively over 10 years.
Nearly half of UC undergraduates—48%—experienced food insecurity in 2024, the highest rate since surveying began in 2018, according to UC's own Basic Needs Annual Report. Between fall 2014 and fall 2024, UC added nearly 53,000 students without proportional housing increases. As of fall 2024, the system could house just 41% of its students.
"The University of California has all the resources it needs to address the affordability crisis plaguing its frontline workers and students," said Liz Perlman, AFSCME Local 3299 executive director. "UC's failure to act reflects a lack of respect and morality, not a lack of money."
The report also notes UC expanded its mortgage assistance program in 2023 to allow chancellors to purchase second homes with low-interest loans, despite already receiving free university-provided housing. UCLA Chancellor Gene Block received a $2.4 million loan at 3.25% interest before retiring in 2024.
“While AFSCME’s memorandum disproportionately and inaccurately highlights some of the University’s funding increases, it fails to acknowledge that UC’s expenses have grown over the last decade,” said Heather Hansen, a UC spokeswoman, who added that the increased expenses “include the rising cost of health care and wage increases for UC’s valuable employees, such as the 5% increases provided to UC team members represented by AFSCME, SEIU, CNA and UPTE in 2025.”
Hansen added: “UC is proud to support its employees; however, the growth of UC’s expenses, coupled with a reduction in key funding sources, has resulted in structural deficits at many UC locations, necessitating tough budget-saving measures, such as hiring freezes.”
The three major bond rating agencies continue to affirm UC's financial position and resilience, according to the AFSCME analysis.
