Jul 04, 2009 | 08:23
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Oct 21, 2008
Final UC budget leaves $148.7 million gap
The UC regents approved today (Oct. 21) a final $3-billion operating budget for 2008-09 that calls for closing a $148.7 million budget gap, which amounts to a 4.9 percent reduction in state general funds compared to the previous year. UC and the campuses intend to close the gap primarily by belt-tightening.The total reduction includes a $15-million cut in the state budget. It also includes a $33.1-million cut that was authorized after the budget was signed. During prolonged negotiations on the state budget, Gov. Arnold Schwarzenegger and legislative leaders agreed that the Department of Finance would take an additional $340 million in reductions from state agencies once the budget was completed. UC's share of that cut comes to $33.1 million.
At least $28 million in savings will come from the restructuring of the Office of the President. As for the remainder, campuses are developing plans to help bridge the rest of the gap. Additional mid-year cuts in this fiscal year are also a possibility. In a letter to campus leaders, UC President Mark G. Yudof urged them to protect the student instructional program and student academic preparation programs as much as possible.
"I sent a pretty tough letter to the chancellors," Yudof told the regents meeting during a teleconference. Yudof wants to see not only the chancellors' plans for meeting the 2008-09 "bare-bones" budget, but to find out "what their plan is for systemically trying to deal with something that simply cannot be handled out of reserves or one-time savings," since the UC president envisions a prolonged downturn in state revenues.
To make these cuts, UC is suggesting that the campuses curtail hiring, travel and consulting services; reduce the use of leased facilities; evaluate business practices to make them more efficient; eliminate non-essential activities; and encourage employees to take advantage of the Staff and Academic Reduction in Time Program, effective now through June 30, 2010.
Said Regents Chairman Richard Blum: "Anybody who thinks we're going to come out of this anytime soon is not living in the same world that some of us live in."
Regents also voiced concerns that class sizes would increase and that faculty-student ratios would deterioriate.
With a delay in the regents' four-year plan to raise faculty salaries to a competitive level, Faculty Regent Mary Croughan, chair of the Universitywide Academic Senate, told the regents, "You need to know that faculty are not happy, but absolutely willing and supportive of these reductions … because we're all in this together. … Faculty tend to be longterm. Most of us have already survived two or three of these cuts in the past. And we know that someday it will improve again."
Regents said they were also worried about the UC pension plan. "It's become a real problem," said Blum. "Fifteen months ago, we were at 110% of funding. We're now probably down to 80% or below." The resumption of contributions, scheduled to start in July 1, 2009, has to take place, Yudof emphasized.
To read more about the campus budget, visit www.ucla.edu/about/budget/index.html.
