By Donna Hemmila

The UC Office of the President's proposed 2008-09 budget and restructuring initiative includes a 20 percent cut in spending and a 23 percent workforce reduction. More than half the budget reduction - $26.3 million - will come through transferring programs from the president's office to campuses.

The $203.1 million budget presented to the Regents March 19 includes $51.7 million in cuts plus $5 million in one-time savings and a voluntary employee separation program for a total reduction of $56.7 million.

"We'll be smaller, and we'll spend less money," said Provost Rory Hume. "It's important we do this, so we can protect the academic work of the univesity."

The proposed budget cuts 404 full-time-equivalent positions from the Office of the President, a 23 percent reduction that includes 225 positions transferred to campuses and 179 positions eliminated at UCOP. When the first round of restructuring is completed in March 2009, the number of staff reporting directly to the UC Office of the President will shrink from 1,749 to 1,345, with further reductions in the 2009-10 fiscal year. Of the current 1,749 UCOP staff, only 350 directly support the Office of the President administration. The others work in important systemwide programs such as Education Abroad and other research and teaching programs.

At their March 19 meeting, Regents praised the proposed budget as a good beginning, but some indicated they expected more.

"You haven’t gone far enough – a $300 million budget is very large," said Regent Eddie Island. "We need more rigor and more than just nibbling at the margins."

Provost Rory Hume and Executive Vice President for Budget Operations Katherine Lapp, who presented the budget to Regents, both emphasized that this is just a first step in creating a new leaner systemwide administration.

The proposed budget, which Regents are expected to act on at their May meeting, includes a reduction of $3.5 million in one-time unexpended funds and savings from a voluntary separation program. About 250 employees signed up for the voluntary separation program. They have until the end of May to make a final decision about accepting the buyout. Lapp conservatively estimates a savings of an additional $1.5 million after the payout of severance pay to participants.

The restructuring plan also includes a consolidation into centralized units of functions that are now spread throughout various Office of the President departments. Those include budgeting, communications and computer support. Work groups, spearheaded by Lapp and Hume, have been exploring ways to enhance UCOP's efficiency and service to the campuses.

OP employees had a chance to learn more about the restructuring at two town hall meetings held March 14 in downtown Oakland. About 200 attended a morning session at the Kaiser Center and another 300 an afternoon meeting in the Elihu Harris State Office Building. (Listen to a recording or read the transcript of the afternoon town hall presentation.)

"I was very appreciative of the candor I thought came through," said Roger Howland, OP vocational rehabilitation counselor, after one of the town hall meetings. "The proposed organizational changes make a lot of sense to me. I know the whole situation has been stressful."

Geralyn Unterberg, an executive assistant in Agriculture and Natural Resources, also said she appreciated hearing about the restructuring details.

"Nevertheless, morale is pretty low because people don’t know what's going to happen to them," she said. "The people in the rank and file feel we're being asked to do so much with not many resources."

During a town hall question-and-answer session, Lapp and Hume acknowledged the difficulties OP employees are facing.

"It's a very scary time," Lapp said. "We're going to do everything possible to minimize the anxiety. There's a positive vibe starting to develop in the Office of the President. We're taking it upon ourselves to deal with the challenges – not just letting them happen to us – and that's a much better place to be."

To learn more about OP restructuring, visit www.universityofcalifornia.edu/future.

Donna Hemmila is editor of Our University.