Surviving the growing economic crisis

With our nation facing its greatest financial challenges since the 1930s, the University of California is sharpening its survival skills. Like all Californians, we at UC must take dramatic actions to deal with this deepening economic crisis.

Some of the changes under way will make UC stronger and more efficient. The restructuring of the Office of the President has reduced UC's central administration staff by more than 600 and cut our budget by $67 million. Whenever possible we are diverting these administrative savings to the campuses to spend on students and research.

We have frozen senior management pay and eliminated bonuses. In addition, I've asked university staff to come up with procedures to institute employee furloughs and salary reductions. While I have not decided if these drastic steps are needed, the $437 million shortfall in state funding UC faces demands that we prepare for every possibility.

Every UC campus is making difficult choices. They are eliminating programs, laying off employees and cutting back significantly the recruitment of new professors. These measures affect not only our students and their families, but all Californians who depend on UC's innovation and research. Look at the pharmacy program at UC San Francisco as an example. At a time when there is a national shortage of pharmacists, plans to increase the number of students in the UC San Francisco pharmacy program have been put on hold.

Truly the most painful survival actions are the ones that directly hit students. UC Regents reluctantly agreed to curtail our fall freshman enrollment by 2,300. At their May meeting, they will set fees for the 2009-10 academic year, and inevitably fees will be higher since the budget the Legislature approved calls for a 9.3 percent increase.

In an effort to ease the impact of these decisions on our students, we have taken steps to boost the number of California transfer students, and we have launched the Blue and Gold Opportunity Plan to provide more financial aid for low-income students. Still, I can assure you that curbing enrollment and raising fees is a step backward for California's public higher education mission.

That, in part, is why UC Regents have endorsed Proposition 1A on the May 19 special election ballot. As you know, this measure would establish a rainy day fund for the state, set spending limits and extend for one or two years each of the temporary tax increases approved in the state budget. Despite reservations, the Regents are supporting this proposition because they believe these steps will help stabilize the state's finances and avoid further deep cuts for higher education. (More information about Proposition 1A, including arguments for and against it.)

All of us can be confident that UC will overcome these challenges and continue to be the best system of public research universities in the world. The critical dimensions are to remain focused on what we do best – teaching, research, clinical care and outreach.

Every day the exciting, transformative work carried on at UC serves as a reminder of the values we are fighting for:

UC Davis expanded a program to train doctors to work in underserved rural communities through a partnership with the Tahoe Forest Health System in Truckee.

Geron launched the world's first human clinical trial of an embryonic stem cell treatment – based on UC Irvine research that could mean people with spinal cord injuries will walk again.

And in May, the National Ignition Facility – the largest laser in the world – will open at the Lawrence Livermore Lab to both enhance national security and help end our nation's dependence on foreign oil.

We at UC continue to look toward the future and believe California can survive this recession with a renewed commitment to support public higher education.

Contact me at president@ucop.edu.