Update from UCOP EVP Lapp about possible furloughs/salary reductions

To: UCSC Community

From: Katherine N. Lapp Executive Vice President, Business Operations University California Office of the President

This is to update you about the planning process taking place regarding

possible furloughs and/or salary reductions for UC employees. Thus far, no

decision has been made regarding furloughs or pay cuts, but President Yudof

believes it is important for the University to be in a position to act if

additional reductions are necessary.

Currently, the University does not have clear procedures in place for

implementing such actions, and the goal of this planning is to clarify the

process by which decisions about furloughs or salary reductions would be

reached should the State budget situation necessitate such measures.

As another step in this process, the President will be discussing with

Regents at their meeting this week an amendment to the Regents'Standing

Orders that would enable implementation of furloughs and/or salary

reductions in the event the State budget challenges require additional

savings.

Specifically, the amendment will give the President the authority to

request the Regents to declare a financial emergency and, upon such

declaration, to implement furloughs and/or salary reductions that the

President deems necessary, for some or all categories of University

employees. A detailed consultation and review process, as well as

applicable collective bargaining obligations, must precede any decision to

implement furloughs or salary reductions.

The Regents are expected to take action on the amendment at a future

meeting following review, comment and consultation with the Academic Senate

and non-Senate academic and staff representatives.

The proposed amendment is available at:

http://www.universityofcalifornia.edu/regents/regmeet/may09/c7.pdf

President Yudof's statement on employee furloughs is available at:

http://www.universityofcalifornia.edu/news/article/20899