SUBJECT:  Governor's Proposed Mid-year Budget Cuts

For your information, the following is a statement from University of California President Robert C. Dynes regarding the mid-year budget cuts proposed by Governor Schwarzenegger.

We will post updates, as we receive them, to the campus budget website: http://www-avcrm.ucsd.edu/cbo/home.htm. The office of the President also maintains a budget website at http://www.ucop.edu/news/budget/.

If you have any questions concerning this notice, please contact Mary Polytaridis at extension 4-8553.

Margaret F. Pryatel
Assistant Vice Chancellor

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FOR IMMEDIATE RELEASE
Tuesday, November 25, 2003
Brad Hayward (510) 987-9200
brad.hayward@ucop.edu

STATEMENT

University of California President Robert C. Dynes issued the following statement today regarding the mid-year budget cuts proposed by the Schwarzenegger Administration.

"California is facing a major budget challenge, and as a result, pain and sacrifice will have to be spread widely across the state. We at the University of California recognize that we need to play a role in the state's solution to its budget gap.

"At the same time, it is important for all to recognize that every additional budget cut to the University of California is a painful cut. We already have taken deep cuts in previous budgets, leaving us with a 14% decrease in state funding while our enrollments have increased 18%. Our ability to preserve this institution's world-class quality and continue making a major contribution to California's economy will be compromised by these growing budget cuts.

"I am particularly concerned by the proposal to eliminate state funding for UC outreach programs to the public schools in California. Improving student achievement throughout the public schools remains a major challenge facing our state, and UC outreach programs are making an important contribution to the effort. Part of our mission as an educational leader in California is to help integrate educational efforts across the K-16 system, and our outreach programs have a proud legacy of doing so. I hope to have further discussions in Sacramento about this issue, and about the overall support we need to maintain quality programs for the people of California."

BACKGROUND

The mid-year budget reductions proposed by the Schwarzenegger Administration for the UC system include the following. All would require action by the Legislature before taking effect.

· An unallocated reduction of $18.4 million in the current year,
   growing to a $55.1 million reduction in 2004-05. UC's current
   state-funded budget is $2.9 billion.

· Elimination of funding for K-12 outreach programs, effective
   January 1, 2004, representing a $12.2 million current-year and
   $33.3 million full-year reduction.

· Reduction of funding for UC labor institutes, effective January 1,
   2004, representing a $2 million reduction in the current year,
   growing to $4 million in 2004-05.

KEY FACTS

Below are just a few of the University of California's impacts on California and its economy:

· UC provides an education for the managerial and professional jobs
   that are the fastest-growing occupations in California. Most of
   these new jobs require at least a bachelor's degree, and many require
   a master's degree or doctorate.

· More than 290 companies have been founded on UC-developed
   technologies.

· If the current pace is maintained, more than 34,000 UC undergraduates
   over the next 10 years will enter science and engineering industries
   driving California's economy.

· Between 370,000 and 433,000 jobs in California are directly dependent
   on UC expenditures - more than 2% of all employment in the state.

· UC has the largest health sciences education and training program in
   the nation, with 13,000 students. UC is the second-largest Medi-Cal
   provider in California.

· UC research and Cooperative Extension are critical to California's
   nation-leading, $27 billion agricultural industry.

Source: UC Impact Report
www.universityofcalifornia.edu/itstartshere/