Is it possible tens of millions of dollars were hidden from the University of California budget for undisclosed and discretionary spending?

A scathing new report from the state auditor’s office finds the UC system may have hidden up to $175 million just as campuses were going to implement a 2 percent tuition hike statewide this fall.

UC President Janet Napolitano argues the auditors’ report lacks key information and is drastically exaggerating the size of the reserves.

Capitol Bureau Chief Ben Adler has been following the story. Ben also has the latest on the single-payer health care legislation working its way through committee at the capital.