CSUN University News Clippings

Facing $813 million in cuts, UC president presents budget details

(July 13, 2009)

by Ben Young Landis
Published: 7/10/09

University of California President Mark G. Yudof outlined the details of his budget proposal and future collaboration plans at a press conference this morning, ahead of next week’s UC Regents meeting.

UC needs to offset an anticipated $813 million reduction in support from the state general fund.

“Virtually everyone will be affected,” said Yudof.

The UC Regents will receive Yudof’s recommendations on July 15 and has the final say on the budget proposal, which includes the following provisions:

* Some $300 million or 40 percent of the cuts will be spread across the 10 UC campuses, through layoffs and “whatever it takes.” Decisions will be left to individual chancellors, who will also make presentations to the regents on July 15.
* 25 percent of the $813 million gap will be filled in the form of a previously approved student fee increase.
* Another 25 percent will be gained through what a “modified furlough plan” to be detailed.
* Through debt refinancing and other cost controls, UC will gain another $100 million offset against the $813 million shortfall.

The system has a roughly $19 billion budget, and gets far more funding from its health care services and from federal sources than from the State of California. But the system must absorb the $813 million cut in one year.

“The potential of this cut is devastating. Obviously, we’re going to try to maintain quality,” Yudof said. “But there is no way we can look every student in the eye and say UC today is the same as it was yesterday.”

“We will begin immediately to engage in good faith with [our] unions … if we can’t reach agreement we will have to consider alternatives.”

UC Irvine last estimated its cuts at $70 million. It has already notified 32 lecturers that their contracts may not be renewed in 2010.

One casualty of the cuts is the continued shutdown of UC Irvine’s professional Doctorate in Education degree. The part-time curriculum is geared to train K-12 teachers and progress them into administrators. UC Irvine has not admitted new students to this program for two years, and will continue to do so.

“It’s an unfortunate position we are in … we will know more next week after the Board of Regents review the president’s recommendations,” said Laura Rico, communications officer for UC Irvine.

The press conference did not provide new details regarding how cuts will be assigned across pay scales, reported last month to involve up to 8 percent cuts for some faculty.

Furloughs to begin Sept. 1

Yudof’s proposal addressed furloughs, a controversial topic amongst UC faculty and staff:

* Furlough days will not be holidays, so furloughed staff can work other jobs.
* Faculty whose time is spent entirely on research will not be subject to furloughs, including the staff of the Lawrence Berkeley and Los Alamos national labs or those on industry funding.
* UC hospitals will have to absorb some furlough responsibilities, but will be given greater flexibility in reductions required.
* On Sept. 1, the furloughs will be administered systemwide, with some exceptions, and progressively scaled to ease the burden on those who earn less.

Yudof thanked the cooperation of the UC community. Yudof initiated a consultative process with employees, who indicated a clear preference for furloughs rather than across-the-board pay cuts.

“I’ve now received tens of thousands of comments … faculty are telling me it’s OK not to penalize people who are on research leaves.”

Mary Croughan, chairwoman of the system-wide Academic Senate, praised Yudof for seeking faculty consultation. But she admits that instituting furloughs will affect recruitment of new faculty.

“We’re already 10 percent behind the market on salary,” says Croughan, who says the senate’s main concern was to protect its retirement program, a remaining advantage UC has over comparable institutions like Harvard or MIT.

Long-term strategy

The UC Regents also announced this morning the creation of a UC “Commission on the Future,” which will include California State University and community colleges as partners.

Yudof will co-chair the group with Board of Regents chair Russell Gould. The commission will chart UC’s role in mind of limited state resources, focusing on four areas: 1) access to quality; 2) the best education model for the future; 3) appropriate size and shape of UC; 4) how alternative and traditional revenue streams can be incorporated into UC’s mission.

In a press statement, Gould reached out to partners within and outside of the UC system, “[we] ask that they use this moment of crisis to re-examine, reset and take a hard critical look at how we face the future.”

Publication: Orange County Register