Promise of $500-Million in Savings at U. of California Will Be Tricky to Achieve

Promise of $500-Million in Savings at U. of California Faces History of Cost-Cutting Flops 1

The University of California is proposing to cut $500-million in costs by, among other things, expanding regional data centers like one at the system's San Diego campus.

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close Promise of $500-Million in Savings at U. of California Faces History of Cost-Cutting Flops 1

The University of California is proposing to cut $500-million in costs by, among other things, expanding regional data centers like one at the system's San Diego campus.

Joel Michaelsen has no trouble identifying money-wasting practices at the University of California at Santa Barbara. For instance, he says, some of the university's core student- and business-information systems are run on decades-old computers.

"We're getting to the point where there's nobody left alive who knows how to deal with them," says Mr. Michaelsen, a geography professor who is chair of the university's faculty senate. "We've got stuff that's on IBM mainframes from the

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