University of California, San Diego
CAMPUS BUDGET OFFICE
November 15, 2007
ALL ACADEMICS AND STAFF AT UCSD (including UCSD Medical Center)
The University of California Board of Regents approved a 2008/09 budget
proposal for the University on Thursday, November 15, 2007. For your
information, below is a press release from the Office of the President. The press release may also be accessed online at
If you have any questions concerning this notice, please contact me at extension 4-5357 or Blair Stephenson at extension 4-6590.
REGENTS APPROVE 2008-09 BUDGET PROPOSAL
The University of California Board of Regents today (Nov. 15) approved a 2008-09 budget proposal that includes new funding for student enrollment growth at both the undergraduate and graduate levels; new research and public service initiatives, most critically to help address issues in K-12 education; new money for student mental health; and salary increases for faculty and staff.
Under the University's budget plan, UC's state-funded budget for the fiscal year beginning July 1, 2008, would total $3.46 billion, an increase of $378.2 million or 7.2 percent above the 2007-08 level.
"This budget is a roadmap for turning vision into action," said UC President Robert C. Dynes. "The vision is to meet the growing and changing needs of California. With adequate funding support, we can turn that into action by building and maintaining the quality of UC's teaching and research core; bringing UC's research and educational capacities to bear in health care, research and K-12 education; and restructuring the way UC does business."
UC Executive Vice President Katherine N. Lapp, in presenting the proposed budget to the Regents, underscored this commitment to meeting the needs of California, but also sounded a note of caution.
"The state is facing significant fiscal constraints, which may limit its ability to meet all of the University's current budgetary needs," she said. "Therefore, UC has a responsibility to fund other critical needs and investments through cost-saving reforms identified as part of an ambitious and sweeping multiyear restructuring initiative."
The budget anticipates redirecting $28.1 million of initial savings from University efficiencies to other needs.
The University's budget plan also includes a several new initiatives, including one to address the growing crisis of K-12 educational attainment.
"Throughout its history, UC has mobilized its teaching, research and public service mission to respond to crises that have confronted California's economic prosperity and the quality of life of its citizens," said Provost and Executive Vice President Wyatt R. (Rory) Hume. "The University's recent long-range planning efforts have resoundingly concluded that it must now do the same to meet today's K-12 education crisis."
The Regents will withhold action on student fees until after the governor's state budget proposal is issued in January.
While state funding and student fees pay for the core educational program at UC, the University's total budget from all sources for all activities, excluding the UC-managed national laboratories, is roughly $18 billion.
The Regents' budget plan serves as a budget request to the state. Regents at their meeting indicated they will continue reviewing the University's budget priorities in the coming months.
Highlights of the Budget
The budget plan is based on the University's compact with the governor, an agreement that outlines state funding expectations and UC accountability expectations over a multiyear period. Below are highlights of the 2008-09 budget plan. These items would be funded both from state resources and from other revenue to the University, including student fee revenue:
Enrollment growth: The budget proposes funding for a 2.5 percent enrollment increase, or 5,408 full-time-equivalent students. This funding would allow the University to keep up with undergraduate enrollment growth driven by continued growth in California's college-age population, as well as continue increasing graduate and health sciences enrollments that historically have not kept pace with the state's needs.
K-12 "Educational Imperative": The budget includes $5 million to launch a new initiative, the Educational Imperative. Working in collaboration with public and private sector organizations, UC proposes a new research-based, technology-focused, policy-informing approach to meet California's educational attainment challenge.
Research initiative: The budget proposes $10 million to fund a coordinated response to the challenge of climate change to agriculture and the coastal and marine environment.
Student instruction: The budget proposes $10 million to help restore instructional budget cuts made in the first part of the decade. This is the fourth increment of funding over a multiyear period directed toward improving the student-faculty ratio at UC.
Faculty and staff compensation: A 5 percent pool is included for employee compensation increases, including merit-based and equity-based salary increases, health and welfare benefit cost increases, and related cost increases. (Distribution of salary funding is subject to collective bargaining requirements where applicable.) A portion of this state money will help fund a $263 million program recently launched to close the faculty salary gap by 2010.
Graduate student support: Over the last four decades, graduate enrollment at UC has not kept pace with industry demands. To address the problem, UC is proposing $10 million to provide financial support to attract the best graduate students. This will continue a multi-year effort by the Regents that has already increased graduate student support programs by $30 million from within compact and other funds.
Student mental health services: Amid a growing nationwide crisis of students in distress and at risk, the Regents have made adequate funding of student mental health programs a top priority. The University proposes to increase funding for student mental health services by an additional $8 million in 2008-09, for an increase over two years of $12 million.
Academic preparation: The budget continues current state and UC funding levels for student academic preparation and educational partnership programs, which work to improve the academic performance and college preparation of K-12 students.
UC Merced: The budget provides $10 million in one-time funding needed for continuing startup costs for UC's newest campus at Merced. One-time funding for faculty hiring and other startup costs has been provided in the last seven budgets, including $14 million in 2007-08. By agreement with the Department of Finance, the amount requested for 2008-09 will phase down to $5 million in 2009-10 and will be eliminated in 2010-11.
Fees and Financial Aid
The budget does not include a proposal for undergraduate or graduate student fees. The Regents will await the governor's January state budget proposal before taking action on student fees; the budget as adopted by the Regents assumes $70.5 million in funding from either state revenue or student fee income.
It includes $16.6 million in professional school fees already approved by the Regents.
The Regents also approved a 2007-08 budget for state capital improvements, including projects to improve the earthquake safety of UC buildings, construct new facilities to accommodate student enrollment growth, and renew outdated infrastructure.
The capital budget also includes funding for projects to expand UC medical school efforts to address statewide shortages of healthcare provides in several major health professions, including through the Programs in Medical Education (PRIME) being developed on several campuses to improve the delivery of health care to underserved Californians.
The total capital budget is $488.8 million. That includes $359 million for general capital outlay and $129 million for projects associated with expansion of the medical school programs, both from general obligation bonds approved by the voters in Proposition 1D.
Note: The Regents' operating budget request is available at