Dear Mr. Klein,

On behalf of Greenlining Institute, we would like to offer to you and the Independent Citizens Oversight Committee our views on two issues in which we have expertise and have been highly involved that have been raised in the Lee-Halpern petition.

First, an essential issue before the Institute is diversity. The issue is of great importance, particularly since the Independent Oversight Committee is admittedly not reflective of California's diversity. This has been compounded by the failure to ensure effective diversity on the first nine hires and apparently in the recommendation of the Interim President of the California Institute for Regenerative Medicine.

Greenlining believes that all regulations should be considered in the context of ensuring full diversity. This includes making diversity a crucial element in evaluating all grants, loans, contracts and hires.

Second, Greenlining has been involved in a wide range of excessive executive compensation cases, including a recent one before the California Public Utilities Commission in the PG&E rate case. Greenlining has also criticized excessive compensation at universities, including U.C.

We believe that there is no correlation between high compensation and diversity, as is evidenced by the composition of top leadership at U.C., including the medical schools. In fact, some might argue that a focus on diversity is weakened by high compensation. See, for example, the commendable efforts of President Bush to create the most diverse cabinet in American history. (40% of the cabinet are minorities, including two Latinos, two Asian Americans and two African Americans.) Yet the salary of all U.S. cabinet officials, including the Secretary of Health and Human Services, is only $171,900.

Greenlining therefore supports the Petition's position that a cap on salaries should be approved by the ICOC of a maximum of $290,000. However, Greenlining would argue that even this salary is unnecessary, since the Director of the National Institutes of Health, who directs 16,000 employees and administers a budget ninety times larger than the California Institute of Regenerative Medicine budget earns only $175,000.

We also believe that the salary of the California Secretary of Health and Human Services and other cabinet members should be an appropriate ceiling for all other employees. That is, $131,000 has enabled the Governor to attract a high number of qualified people and a similar number of highly qualified people will be attracted to the California Institute of Regenerative Medicine.

Staff Diversity Team

Given the lack of diversity at ICOC, including lack of staff diversity among new hires, it is urged that at least two staff top positions be created and dedicated to developing and enforcing diversity. This is especially important because U.C.'s diversity record is grossly inadequate and they will be competing for various grants.

The cost savings from reduced top-level salaries are likely to exceed $2 million a year. The addition of a diversity staff team will, in contrast, cost only a fraction of these savings.

Hearing Requested

Greenlining requests a hearing on these matters at the ICOC's March 1 meeting and the opportunity to discuss our position.

Respectfully submitted,

Robert Gnaizda
General Counsel

The Greenlining Institute