March 11, 1993
Subject: Proposed Cost Saving Measures Under Consideration
for 1993-94
At the upcoming Regents' meeting on March 18-19, 1993, a plan will be proposed for The Regents to authorize the President to take all steps necessary to meet the serious State budget shortfall confronting the University for fiscal year 1993-94.
The plan will be subject to notice, consultation, and meeting and conferring as appropriate in accordance with the University's obligations under the Higher Education Employer-Employee Relations Act (HEERA) and applicable collective bargaining agreements. To that end, the following proposals will be among the options discussed to help generate savings and to minimize the need for involuntary workforce reductions in the coming year.
It will be proposed that salaries be reduced by 5 percent effective July 1, 1993. It will further be proposed that University of California Retirement Program (UCRP) members subject to the mandatory reduction be eligible for an equal percentage to be credited to their individual UCRP Capital Accumulation Program (CAP) account, which they will be entitled to receive upon retirement or separation. Some employees, for example, students employees in academic titles or staff casual restricted positions, will be exempted from the proposal.
Providing merits for employees will continue to be among the highest priorities for 1993-94. For eligible staff employees, it will be proposed that at least a half-year merit increase, effective January 1, 1994, be provided. It may be necessary to suspend merit increases for Executive Program members at the higher levels for a third year.
It will be proposed that The Regents approve planning for a third Voluntary Early Retirement Incentive Program (VERIP) in order to generate permanent payroll savings through voluntary workforce reductions. Such a program would be implemented no later than January 1, 1994 for staff; and July 1, 1994 for faculty.
Another cost saving measure that is under review is extension of the Time Reduction Incentive Program (TRIP) offered in 1992-93, under which employees volunteer to reduce their appointment percentage and thus salary by at least 10 percent for a minimum of one year.
Special Briefings have been scheduled where I will discuss further available details on the plans listed above. You are encouraged to bring your questions to one of these sessions. They are scheduled as follows:
Monday, March 15 3:30 - 4:30 p.m. Garren Auditorium Thursday, March 18 10:00 - 11:00 a.m. Med. Ctr. Auditorium Thursday, March 18 2:00 - 3:00 p.m. Price Ctr. Ballroom A
If you wish to comment on these proposals, please write to
Judy Johnson, Compensation Manager, mail code 0922, or via email no later than Monday, April 12, 1993.
Quelda M. Wilson Assistant Vice Chancellor