Nov 23, 2009 | 06:10
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Jan 13, 2009
Important questions and answers on UCLA's budget
UCLA Vice Chancellor Steve Olsen of finance, budget and capital programs, answers some important questions about the budget situation to address the concerns of faculty and staff.
How does the 2008-09 budget affect UC and UCLA?
This year’s state budget reduces UC’s state funding by $33 million on a one-time basis. In addition, Governor Arnold Schwarzenegger has proposed
a permanent cut of $65 million. While this last cut has not yet been signed into law, its eventual approval seems likely. UCLA’s share of the one-time cut is $6 million, and its share of the permanent reduction is $12 million. In addition, the budget contains no funding for mandatory cost increases for employee compensation, benefits, utilities and building maintenance. These unfunded cost increases total $31 million, bringing UCLA’s total budget shortfall to $49 million. This is about 6% of campus General Funds.
How are the budget cuts being implemented?
For 2008-09, $10 million of the cut is coming from campus central reserves. The remaining shortfalls are being absorbed from the budgets of our academic and administrative units. Chancellor Gene Block has provided $4 million in temporary funding to defray the immediate impact of these cuts on the instructional program.
UCLA is significantly reducing hiring of both faculty and administrative staff. Our deans, vice chancellors and managers have been directed to reduce spending on travel, entertainment, consulting services, office renovations and equipment purchases.
For 2008-09, $10 million of the cut is coming from campus central reserves. The remaining shortfalls are being absorbed from the budgets of our academic and administrative units. Chancellor Gene Block has provided $4 million in temporary funding to defray the immediate impact of these cuts on the instructional program.
UCLA is significantly reducing hiring of both faculty and administrative staff. Our deans, vice chancellors and managers have been directed to reduce spending on travel, entertainment, consulting services, office renovations and equipment purchases.
What has the governor proposed for 2009-10?
The State of California faces an unprecedented fiscal crisis. Both the Department of Finance and the Legislative Analyst project a budget shortfall of $40 billion over the next 18 months, and the state is running short of cash to pay its bills.
In response, Governor Schwarzenegger has proposed a combination of major tax increases, significant spending cuts and additional budgetary borrowing. As of early this month, the governor and the Legislature have yet to reach agreement on a plan to address the state’s fiscal problems.
For additional information about the state budget, see the following sites:
The Department of Finance and the Legislative Analyst's Office
The State of California faces an unprecedented fiscal crisis. Both the Department of Finance and the Legislative Analyst project a budget shortfall of $40 billion over the next 18 months, and the state is running short of cash to pay its bills.
In response, Governor Schwarzenegger has proposed a combination of major tax increases, significant spending cuts and additional budgetary borrowing. As of early this month, the governor and the Legislature have yet to reach agreement on a plan to address the state’s fiscal problems.
For additional information about the state budget, see the following sites:
The Department of Finance and the Legislative Analyst's Office
How would that proposal affect UC and UCLA?
The governor’s most recent proposals would make no further across-the-board reductions in state support for the University of California beyond those already proposed for 2008-09. While the governor’s proposal is encouraging, there are significant downside risks. The level of state funding for UC will depend on the approval of the governor’s overall budget proposal or an alternative with equivalent budget savings. In addition, state revenues could fall even further, requiring additional budget cuts.
How does UC view the governor’s proposal?
Please see President Mark Yudof’s statement on the budget proposal.
What is happening with the UC Retirement Program?
The UC regents have approved an overall plan to resume both employer and employee contributions to the Retirement Program in 2009-10. Both the timing and the amount of those contributions will be determined by the regents in early 2009, subject to appropriate notice and collective bargaining. For more information on this issue, see this site.
The UC regents have approved an overall plan to resume both employer and employee contributions to the Retirement Program in 2009-10. Both the timing and the amount of those contributions will be determined by the regents in early 2009, subject to appropriate notice and collective bargaining. For more information on this issue, see this site.
Will there be incentives for early retirement for faculty or staff as there were in difficult budget years in the 1990s?
There are no plans to offer early retirement incentives.
There are no plans to offer early retirement incentives.
Will there be layoffs?
Each organization will be reviewing its staffing in relation to meeting budgetary requirements. Any reductions in staffing would depend on the level of funding available. In order to minimize the need for layoffs, the University has implemented the START program, which allows voluntary reductions in time. Additionally, departments have been encouraged to reduce other expenditures, such as travel costs. Responsibility for determining staffing levels rests with department management. Check with your supervisor or manager for further information.
Each organization will be reviewing its staffing in relation to meeting budgetary requirements. Any reductions in staffing would depend on the level of funding available. In order to minimize the need for layoffs, the University has implemented the START program, which allows voluntary reductions in time. Additionally, departments have been encouraged to reduce other expenditures, such as travel costs. Responsibility for determining staffing levels rests with department management. Check with your supervisor or manager for further information.
Can faculty and staff expect salary increases in 2009-10?
Faculty eligible for merit increases will continue to be reviewed as part of the formal merit review process. At present, no COLA adjustments are planned for 2009-10. Although President Yudof has asked the regents to approve salary freezes for senior managers in 2009-10, no decisions have been made on staff salaries. Any increases for represented employees would be subject to collective bargaining, but no funding is budgeted for that purpose.
Faculty eligible for merit increases will continue to be reviewed as part of the formal merit review process. At present, no COLA adjustments are planned for 2009-10. Although President Yudof has asked the regents to approve salary freezes for senior managers in 2009-10, no decisions have been made on staff salaries. Any increases for represented employees would be subject to collective bargaining, but no funding is budgeted for that purpose.
Will student fees increase?
The governor’s budget anticipates that the regents will approve an overall increase of 9.3% in mandatory fees for California resident students in 2009-10. This consists of a 10% increase in the Education Fee and a 4.2% increase in the Registration Fee. Fees for certain graduate professional programs would increase by amounts ranging from 5% to 24%. Tuition for nonresident undergraduates would increase by 5%. Fees are subject to change. Please see this site for additional information:
What will happen to student enrollment and admissions next year?
The regents will consider possible changes in student enrollment on Jan. 14. At present, it is likely that there will be little change in UCLA’s planned level of student enrollment. Please see this site for further information.
How is UCLA planning for 2009-10?
UCLA is preparing for the likelihood of reduced state funding in 2009-10. Chancellor Block has directed deans and vice chancellors to prepare alternative plans assuming reductions 3, 5, and 8 percent of General Funds. These scenarios also assume that UC will resume retirement contributions beginning July 1, 2009. The plans are due in February and will be reviewed as part of the campus budget process.
What is the Budget Toolbox Project?
Executive Vice Chancellor/Provost Scott Waugh has appointed three task forces to examine long-term options for setting of academic program priorities, reducing administrative expenses, and increasing campus revenue. The task forces will report their recommendations in April 2009, and their work will be considered as part of campus planning processes for next year and subsequent years.
I have ideas for saving money. How can I communicate them to these task forces?
Send your ideas to one of the following e-mail addresses:
Ideas to save money: efficiencies@ponet.ucla.edu
Ideas about academic programs: academic@ponet.ucla.edu
Ideas to generate new revenue: revenues@ponet.ucla.edu
I heard that the governor has ordered layoffs and furloughs of state employees. Could I be affected by that action?
The University of California is not directly affected by the order, but the governor has asked UC to cooperate with overall state efforts to reduce spending. For the text of the governor’s Executive Order, see this website.
I’m interested in supporting the University’s advocacy efforts in Sacramento. How can I help?
The Office of Government and Community Relations has many ways in which we can involve UCLA faculty, staff, and student as advocates for the University and public higher education. Your voices are important. We encourage you to visit this website on advocacy. Or you can call (310) 794-6823 to find out how to become involved.
