The budget situation in Sacramento is fluid, and in the next few days and weeks all sorts of proposals, many of them quite drastic, can be expected to be put into play. The University of California is actively engaged in sorting through the shifting scenarios, and is prepared to be a vigorous participant in the state's efforts to work through this fiscal crisis.

What can be said at this point is that we are gravely concerned. Under one scenario already being discussed, the UC is looking at a doubling of the $322 million in cuts contained in Gov. Arnold Schwarzenegger's revised state budget proposal for fiscal 2009-10. This would equate roughly to a 20 percent reduction in state support.

We also are extremely troubled that the Cal Grants program has been mentioned for possible elimination. More than 46,000 UC undergraduates receive Cal Grants, which bring in $293 million in grant aid for students from lower-income California families.

The university is weighing its options under a variety of budget scenarios. The choices are stark, and everything is on the table. We urge the strongest possible state investment in the continued development of our state's human capital, which is critical to California's economic recovery and long-term competitiveness.

Going forward, I will continue to do my best to keep you informed in a timely fashion on how the budget recommendations will impact the university.