Student fees likely will rise, UCOP is under pressure to be leaner and more efficient, and the university is investigating its legal authority for systemwide employee furloughs -- though "my current thinking is we won't need to go there," Yudof said in response to a question about whether UC employees would be furloughed like state workers.
Yudof said he has to prepare for the possibility -- and if so it would be systemwide -- but "right now I'm not persuaded we need to begin furloughs. ... I'm really hoping we can avoid this."
UCRP restart. The state budget could have been "a lot worse," but still creates a $450 million shortfall for UC over the next two years. The shortfall includes underfunded enrollments and unfunded mandatory costs for utilities, employee health benefits and other inflationary costs. Moreover, the state budget eliminates $20 million the governor had proposed for re-starting employer contributions to the UC Retirement Plan.
"We're OK for a while," Yudof said, but additional steps will be needed, even with contributions restarting next year. There could be differences for new employees and new vesting periods, he said. Yudof also urged employees to write to elected officials to encourage them to provide funding for UC's pension plan as they do for other state employees.
"It's an outrage, and we have to get it reversed," Yudof said. "My No. 1 goal is to maintain the pension benefits of all current employees."
The February town halls were the first for Yudof, who took office in June. The hourlong sessions, co-hosted by the UCOP staff assembly, included questions and answers that covered the budget, the retirement plan, UCOP reorganizing, the possibility of furloughs and senior management pay cuts, and issues such as keeping academic quality. Yudof also outlined his priorities: maintaining access to the university, increasing accountability, articulating the value of UC, stabilizing the retirement fund and restructuring UCOP.
Restructuring. UCOP already has reduced its headcount by several hundred to about 1,400. Restructuring continues with a focus on adding value and being efficient. While there could be some layoffs, decisions will be made on an office-by-office review and "there is no final number," said Yudof, who encouraged employees to submit any comments at the restructuring Web site.
"My hope is that most of this is behind us," he added. "I think I see the light at the end of the tunnel."
Yudof praised employees for their work and said they should be proud to be associated with UC, which he called "the greatest public university system in the world."
Cost-cutting strategies. When asked if he would consider another voluntary separation program, Yudof said he might but that it would be structured differently from the one offered last year.
UC has instituted a senior management pay freeze. Yudof said he would consider pay cuts for senior managers, though not at the 50 percent level suggested by a union member.
Campus efforts. Yudof has met with campus chancellors to discuss their budgets. The campuses are trying to preserve academic programs and student services, looking to areas such as trimming administrative costs, deferring IT and reducing faculty searches, he said.
While student fees will need to be raised, Yudof hopes to minimize the impact on low-income students with the Blue and Gold Opportunity Plan. The plan will fully cover systemwide UC fees of California students if their family earns less than $60,000 a year, and they qualify for financial aid.
What you can do. UC needs to persuade members of the public why the university and its economic, environmental, medical and cultural contributions are important to them.
"We have to connect the dots for them," Yudof said. But don't expect a national ad campaign, he said. "We can't buy one and a half minutes at the Super Bowl."
UC officials said they plan to have more employee meetings with Yudof, perhaps in smaller group formats.
"I'm glad he did it," said Teri Lee, MESA communications director. "I hope the lines of communication remain open."
To learn more about UCOP restructuring, visit www.universityofcalifornia.edu/future.
(Listen to a recording or read the transcript of town hall meetings: Feb. 19 audio, transcript; Feb. 20 audio, transcript.)