CA and UC budget information

by Joe Kiskis

The long-overdue State budget finally signed into law appropriated to the University almost the same amount of money in current dollars for 2008-2009 that it received for 2007-2008. After accounting for inflation and other unavoidable cost increases, that is the equivalent of a budget cut of over $100M. As a result, most of the priorities of the faculty and Regents will not be funded as wide-spread cuts to University units are implemented. As discouraging as this is, it represents a restoration of almost $100M relative to the cuts in the Governor’s original budget — a restoration that can be attributed to the vigorous advocacy of many supporters of higher education including CUCFA.

In recent days, we have heard from UCOP that an additional midyear, post budget process cut of $33M has been imposed on the University. (The UC Davis share of the cut is $5M.) Statements to this effect are documented below. However, they are a mis-characterization of the situation. The Governor and the Director of Finance have no authority to impose a midyear cut on the University. In reality, this reduction is a voluntary giveback on the part of President Yudof and the Regents — a giveback of one third of the hard-won restoration; a giveback that carries with it the implication that the University does not really need this money to educate the growing number of students already not funded in the state budget.

For many years the UCOP strategy has been to accommodate the politics of Sacramento and put the best light on the budget cuts of hard times with the hope of being later rewarded for such complicity. Unfortunately this has proved to be a failed strategy. The cuts made to the University in difficult years are not restored in good times. As a result, the UC budget is now $1B to $2B less than is needed to maintain the levels of quality, access, and affordability of the early 1990’s or even of 2001. The Regents have desperately attempted to compensate by imposing huge increases in student fees while strangling instructional programs. Students and their families are paying more and getting less.

We repudiate this failed strategy that abandons the promises of the Master Plan. We call upon the Regents to accept no less than the full budgeted amount that was duly appropriated to the University.

Notes:

Yudof to Regents (Oct. 14):

“On Friday, we received word from the State that the Governor was imposing mid-year reductions totaling $190 million across all State agencies. We have been advised that UC’s share of the reduction is $33.1 million.”

Yudof to Chancellors (Oct. 13):

“The Department of Finance has informed us that the University’s share of this cut is $33.1 million.”

UCOP press release (Oct. 21):

“However, the state Department of Finance recently informed UC of an additional $33 million cut.”

Donnelly to CUCFA (Oct. 24):

“Additionally, the University has recently been informed by the State that it will need to achieve another $33 million in savings to offset reduced state funding, creating a total of $148 million in budget reductions the University will need to make the 2008-09 year as a result of the final state budget.”