SUBJECT:

Impact of May 19, 2009 Special Election Ballot Initiatives

Students, faculty and staff have asked about several state propositions that California voters will consider on the May 19 special election. While there are six ballot measures that have been proposed to address a $41.6 billion state budget shortfall, one proposition in particular may well have a direct impact for the University of California: Proposition 1A – The Budget Stabilization Act.

Proposition 1A would establish a “rainy day” reserve fund, regulate the level of spending each year, and increase the amount of funding held in reserve to help guard against the dramatic ups and downs that have characterized state spending in recent years. If approved by California voters, Proposition 1A could result in approximately $16 billion in additional revenue to the state’s general fund between 2010-11 and 2012-13.

The UC Board of Regents has endorsed Proposition 1A, determining that its passage would enhance UC’s ability to secure more adequate state support to fund its core mission in the future by helping the state to achieve a more stable financial picture. Proposition 1A is designed to help avoid further deep budget cuts to higher education and state agencies that are subject to discretionary funding actions of the Legislature and the Governor.

If Proposition 1A is not approved, supporters say that the state’s general fund may once again be in significant deficit, which likely would necessitate further cuts to state-funded programs including UC.

The state budget approved in February contained $115 million in new permanent funding reductions for UC and, by virtue of other growing costs not addressed in the budget, extends the university’s total immediate state budget challenge to $450 million. The total shortfall consists of the $115 million in new cuts, $122 million in underfunded enrollments and $213 million in unfunded mandatory costs over the two-year period for utilities, employee health benefits and other inflationary costs.

We encourage you to learn more about Proposition 1A and how its passage would affect the university during these very challenging times. You can do this, as well as learn about all of the propositions, at http://advocacy.ucsd.edu/. Please vote on May 19. Our ability to uphold UC San Diego’s mission of education, research and public service depends on it.

Marye Anne Fox Chancellor Paul Drake Senior Vice Chancellor