Budget update from Campus Provost and Executive Vice Chancellor David Kliger

To: UCSC Campus Community

From: Campus Provost and Executive Vice Chancellor David Kliger

Last month I reported that UCSC faces $17.5 million in permanent budget reductions over a two-year period - $4.5 million in reductions this fiscal year and another $13 million anticipated next year (fiscal 2009-10). These are in addition to $6.5 million in one-time cuts already incurred this year. I am writing to update you on what has happened since my last communication.

Magnitude of cuts impacting all areas of campus: To put this in context, we have incurred a 9.5 percent reduction in the state-funded portion of our budget (excluding the educational fee and non-resident tuition). This reduction is of such a magnitude that no area of campus can be spared from permanent budget reductions.

To date, academic divisions have been asked to absorb slightly less than one-third ($5.5 million) of the $17.5 million total of permanent cuts, with the major burden assigned to administrative divisions ($11.4 million), and the rest taken from central funds. Deans and Vice Chancellors have been informed of the reduction assigned to their units. They are now determining what actions will be needed to reduce expenditures. For matters relating to academic programs, there will be full consultation with the Academic Senate as appropriate.

I have also asked deans and vice chancellors to keep people within their divisions fully informed about their respective budget-reduction plans.

Conditions may worsen; May election key: On May 19, California voters will consider several budget-related ballot measures. The outcome of this election will have a significant impact on the state budget that was approved in February. Further information on the propositions can be found on the Secretary of State's Web site. I urge you to become informed, and vote.

Meanwhile, California's economic conditions remain uncertain. The state's legislative analyst has estimated that revenues next year could fall $8 billion short of targets contained in the budget stabilization measure approved by the legislature and governor in February. Although it is too soon to predict exactly what this means for the University, I believe we must be prepared for the possibility of substantial further reductions in state support.

New information resource available: The budgetary landscape will continue to evolve over the next several months. The uncertainty is troubling and I understand that regular and transparent communications about our budget is important to you. Toward that end, a budget web site has been created to provide you the latest news on the budget. There you will find detail on the distribution of the current cuts by division, and an updated Frequently Asked Questions (FAQ) summary. I hope you'll bookmark and visit this site regularly.

Reality setting in: Although we all knew cuts of this magnitude would be difficult, we are now beginning to encounter some of the realities of these tough decisions. Some valued colleagues are losing their jobs. Service levels in some areas are sure to decline. I share, with you, anxiety and worry surrounding the future of various programs and the people who serve and support them. I assure you that all programmatic decisions are being and will continue to be made carefully and deliberately.

I am grateful for the daily efforts you continue to make on behalf of this campus-and for your patience and perseverance as we meet the extraordinary challenges before us.