The fiscal challenges we face, including the likelihood of reductions in pay for UC employees, are weighing heavily on our campus community. I want to update you on the status of budget planning activities on our campus and system-wide.

Later this week we expect details on the pay-reduction plan that UC's Office of the President will submit to UC Regents for consideration at next week's meeting in San Francisco. As soon as those details are available, we will share them with you.

The UCSC community contributed hundreds of comments on the three proposed pay-reduction scenarios. Chancellor Blumenthal and I were gratified to see so much thought-leadership from our campus on this important decision. A summary of campus input is available here.

On our campus, discussions continue each week with Academic Senate leaders, Deans, and principal officers on plans for making the expected additional $16 million in one-time and permanent cuts to our 2009-2010 budget. (These cuts do not include $12.5 million that would be realized through our portion of system-wide pay reductions.) While these decisions must be made very soon, we must also be deliberate in seeking to minimize, where possible, adverse impact on core academic programs and support services.

Today, we are convening campus academic, administrative and undergraduate and graduate student leaders in the first of three full-day budget planning sessions taking place this month. These sessions will help us develop a strategic framework for keeping UCSC moving forward in an era of declining public support. I will update you next week on our progress.

Finally, and importantly, two budget forums will be held this month to brief staff and faculty on budget issues and provide an opportunity for questions and discussion. The staff forum will take place on Thursday, July 23 from noon to 1:30 pm. A session for faculty will take place on Friday, July 31 from 2 to 3:30 pm. Both will be held in the Media Theater. Chancellor Blumenthal and I encourage your attendance and participation.