University of California, San Diego


November 26, 2001


SUBJECT:  Resource Management & Planning In An Era of Growth

Dear Colleagues:

Our series of internal communiqués on campus growth continues with this message from John Woods, Vice Chancellor for Resource Management & Planning. Much of the credit for UCSD's phenomenal 40-year ascension goes to wise stewardship of campus resources. Through boom years and lean years, we have marshaled our funds carefully, and we have created new mechanisms for cutting costs and raising revenues. Wise resource stewardship will help us navigate the current state budget crisis, and it will guide us through this decade of institutional growth.

                                                Robert C. Dynes



November 26, 2001

Tidal Wave II is the term often used to describe the tremendous expansion of UCSD's student body, faculty ranks, and staff rolls expected over the next ten years. The campus has planned for this growth, and we are excited by the opportunity it provides to build on our strengths. Nevertheless, growth also poses a number of challenges to our effective administration of the University. For example, we must attract the financial resources needed to compete successfully for the best faculty and staff, provide effective support to our growing research programs, and accommodate these growing populations.

Our operating budget - now roughly $1.4 billion annually - will continue to be met from a variety of sources, principally state allocations, federal and private research contracts and grants, medical center income, private gifts and grants, tuition and fees. Although our "core" support comes from the state, these funds represent only approximately 20% of our operating budget. To be successful, we need to generate new funding sources plus maximize the use of current revenues.

We will continue to press our case with the Office of the President that system-wide funding allocations should reflect the particular needs of enrollment-growth campuses and research-intensive campuses - characteristics that personify UCSD. Other revenue-generating strategies include:

* We have retained a private developer to construct a hotel and conference facility on our Blackhorse Farms site. We believe that this facility will not only address the campus' need for additional meeting space and facilitate our ability to host large events but will also generate new discretionary dollars.

* Our technology transfer function has grown significantly over the last five years because of the excellence of our research efforts. We continue to seek opportunities to leverage licensing fees and thus provide new incremental dollars for the campus.

Current budget constraints also spotlight the need for efficiency savings. As an example, we are committed to improving our contract and grant coordination. Changes will include a redefinition and/or clarification of roles and responsibilities, better training for support staff at all levels, and the introduction of an electronic system to improve the effectiveness of contract and grant proposal and post-award management.

Similarly, our audit staff has taken a proactive approach to internal controls. They are investing time and dollars to design tools that will enable staff to be more effective without compromising our risk management and compliance responsibilities.

To accommodate enrollment growth and expanding research programs, we anticipate the construction of 4.4 million gross square feet of new space - a 37% increase - at a cost of approximately $1 billion (current dollars) over the next ten years. We are updating our Long Range Development Plan to assure that it reflects the strategic direction of the campus. At the same time, our capital planners are working with campus units on a number of multi-source funding models to assure that we can take advantage of every available dollar. Ultimately, this construction program will provide classrooms, research space, student housing, recreational facilities and support space.

We continue to search for ways to contain the costs of new facilities. All of our capital projects undergo a rigorous peer-review and value-engineering process in an effort to balance programmatic, aesthetic, and financial obligations. In addition, we apply a battery of construction delivery approaches to manage project costs and timelines.

Despite a substantial state contribution to UCSD's capital program, we also will need significant funding from private foundations, donors, and the business community to fully meet the needs of our growing campus. The Development Office is actively pursuing an institutional campaign that is expected to contribute to both academic and capital needs. Additionally, we will engage in public-private partnerships like that used to fund Cal(IT)2. For example, we intend to solicit proposals from private developers to construct both undergraduate and graduate student housing. In addition, we will pursue novel investment strategies that leverage intellectual property generated at UCSD.

Another guiding principle of our approach is the recognition that to effectively administer the university, we must dedicate adequate resources to our staff. We must provide competitive salaries, progressive work/life strategies, and professional development and training so that we have the right skills and knowledge required for our increasingly dynamic and complex environment. Resource Management and Planning is actively participating in the Staff Retention and Support Steering Committee appointed by the Chancellor to address these issues.

We in Resource Management & Planning take seriously our responsibility to be effective stewards of the resources allocated to the campus and pledge to continue to do all we can in support of the University's academic mission.

                                                John Woods
                                                Vice Chancellor
                                                Resource Management & Planning