Budget would impact UC's service to California
Gov. Arnold Schwarzenegger has proposed a 2008-09 state budget that includes across-the-board cuts in state spending, including at UC, to close a $14.5 billion state budget deficit. At their January meeting, members of the UC Board of Regents expressed dismay at the magnitude of the cuts and their potential impact on students, employees and California's economic future.
The governor's proposal would increase funding under his "compact" with UC but then apply a cut of $332 million, or 10 percent. The true challenge facing UC, however, is $417 million – the difference between the governor's plan and the Regents' budget request for 2008-09.
UC leaders acknowledge the severity of the state budget situation but note the importance of state investment in UC research and education to job creation, economic competitiveness, and continued innovation in California.
While Regents did not make any budget or fee decisions at their January meeting, closing a $417 million gap – the equivalent of state funding for two of UC’s smaller campuses – could potentially require all of the following, or alternatives that would save equivalent dollars:
- No enrollment growth, affecting up to 5,000 student applicants;
- A student fee increase of 10 percent or more, up from the 7 percent already budgeted;
- Elimination of most 2008-09 increases for employee salaries and health benefit costs (subject to collective bargaining where applicable);
- A halt to a multiyear plan to rebuild the competitiveness of faculty salaries and support for graduate students, instruction and physical plant improvements;
- No funding for inflationary cost hikes, meaning all programs absorb those costs;
- $68 million in administrative savings, up from the $28 million in the Regents' budget.
There could be other, or deeper, impacts than those listed above. A task force of campus and systemwide leaders has begun meeting regularly to discuss budget options, and the university will continue working cooperatively with the Legislature and Schwarzenegger administration to address the budget challenge.
For UC budget updates visit: http://www.universityofcalifornia.edu/news/budget/