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UC Press Release on Governor's Proposal for Special Session

The Governor proposed a mid-year budget correction plan Thursday, November 6th, 2008, to address a projected $11.2 billion state revenue shortfall in FY 2008/09. For your information, below is a press release from the Office of the President. The press release may also be accessed online at http://www.universityofcalifornia.edu/news/article/18916.

If you have any questions concerning this notice, please contact Blair Stephenson at the Campus Budget Office, extension 4-6590.

Gary C. Matthews Vice Chancellor - Resource Management & Planning

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GOVERNOR’S MID-YEAR CUTS INCLUDE NEW REDUCTION FOR UC

Mid-year state budget cuts proposed by Gov. Arnold Schwarzenegger today (Nov. 6) include a proposed further budget cut of $65.5 million for the University of California in the current fiscal year.

The $65.5 million cut for UC would come on top of the $48 million year-over-year reduction for UC that was included in the final 2008-09 budget. The final 2008-09 budget also left the university to achieve an additional $100 million in savings to cover student enrollment growth and increases in fixed costs that were not funded by the state.

The state’s per-student spending for education at UC, adjusted for inflation and enrollment growth, has fallen nearly 40 percent since 1990.

“We are of course disappointed to be facing another potential budget cut on top of the reductions we are already making this year. We believe higher education is crucial to California’s ability to grow its way out of this economic downturn, and we ultimately need to be talking about ways to improve investment in our state’s human capital,” said UC President Mark G. Yudof.

“We also recognize the severity of the state’s immediate fiscal condition and understand the need to play a constructive role in the solution. Actions that we take will of course be dependent on the budget actions ultimately approved by the Legislature and governor, and the Board of Regents will need to discuss these issues at their November meeting as well.”

In total, the governor is proposing $4.5 billion in spending reductions across state government and $4.7 billion in revenue increases to help close the state’s budget shortfall.

To address budget cuts already enacted, UC has reduced expenses at the Office of the President and campuses have been asked to consider curtailing hiring, travel, consulting services, use of leased facilities, energy costs, and similar expenditures. UC expects that deeper budget cuts would force campuses to turn to options such as hiring more lecturers and fewer ladder-rank faculty, offering fewer course sections and larger class sizes, reducing operating hours for libraries and student services, and paring back other academic and administrative programs. All of these actions would have an impact on the quality of the educational experience for students.

UC receives approximately $3 billion in state funding for operations.