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Here is the semi-inside skinny--

Several things contribute to the culture of non-compliance in the UC system. In addition to the elitism previously mentioned, we have

* UC trying to maintain its world-class research institution status, but can't compete with industry for salary and raises

(There is some truth to this, especially with the low pay raise schedules over the years, so the tendency is to front-load at hiring time)

* UC + california state has a ballooning pension problem

They can't afford their own retirement benefits; they have offered many faculty and staff buy-outs for early retirement; Los Alamos has been cut loose in association with Bechtel, a notorious penny pincher on employee and retiree benefits (Livermore is next on the chopping block)

* cost-of-living compensation is out of whack with the rest of the country

(Some truth to this too, although it is in large part due to legislative mismanagement and attrition of industy tax base due to onerous state requirements, eg workmen's compensation, Cal EPA, etc., etc.)

* Gray Davis legacy on the Board of Regents

(Leftist elitists abound, as one might imagine) This gives rise to an effective lack of adequate oversight by the Regents.

* historical independence of Regents from legislative oversight

The UC system is wired to be independent by the California Constitution. Think of it as a little fiefdom where everyone is used to doing their own thing without having
to worry about consequences and oversight. This has been this way for several decades, to my knowledge (at least since the mid '70s).

Hoping this lends some perspective to the magnitude of the problem.