I recommend this article from the Reclaim UC blog. Most illuminating on how UC has seriously turned to serving larger financial and economic interests rather than those of the students and public (especially Californian public) is this paragraph from the bond report by Fitch (be patient when loading the full text):
>UC continues to benefit from one of the most diverse revenue streams in higher education, and Fitch notes positively its low and declining reliance on state aid as a revenue source (12.1% in fiscal 2011). The university’s other significant funding sources include revenue derived from the operation of its five medical centers (27.1%), grants and contracts generated by its substantial sponsored research activities (24.5%), and student-generated revenues, including tuition, fees, and auxiliary receipts (16.6%).