A lot of recent activity in Sacramento that could hurt UC faculty. Ian Kennedy, DFA Chair, has asked me to send out this quick summary.
First of all, the Governor professes to take from the special election results that Californians want to balance the state budget without any new taxes or borrowing. A “cuts only” budget. He released his budget proposal, called the May revise, followed almost immediately by two rounds of further proposed cuts (to compensate for shrinkage in the revenue forecast). UC has prepared a spreadsheet that explains the cuts:
| University of California | |||||
| 2009-10 Budget | |||||
| Fiscal Impact of Governor’s May 26 Proposals | |||||
| May 26, 2009 | |||||
| (dollars in millions) | |||||
| Budget Actions for UC 2008-09 and 2009-10 Fiscal Years | |||||
| 2008-09 | |||||
| Mandatory one-time savings target included in budget act | $ (33.1) | ||||
| Mid-year permanent base budget reduction | $ (65.5) | ||||
| One-time reduction in May revise | $ (510.0) | ||||
| Proposed one-time federal stimulus funding | $ 640.0 | ||||
| Additional one-time reduction (May 26) | $ (207.5) | ||||
| Net State funding reduction — 2008-09 | $ (176.1) | ||||
| New revenue, 2008-09 student fee increases (net of financial aid) | $ 84.9 | ||||
| Net impact on 2008-09 UC budget | $ (91.2) | ||||
| 2009-10 | |||||
| Actions Approved in the February Budget Act | |||||
| One-time reduction associated with “trigger” funding | $ (50.0) | ||||
| One-time Governor’s veto reduction | $ (255.0) | ||||
| Governor’s May Revise Plan B | |||||
| Permanent unallocated reduction | $ (50.0) | ||||
| Permanent elimination of UC outreach programs | $ (31.3) | ||||
| Governor’s May 26 Proposal | |||||
| UC budget reduction extended through 2010-11 | $ (167.5) | ||||
| Net State funding reductions — 2009-10 | $ (553.8) | ||||
| New revenue, 2009-10 student fee increases (net of financial aid) | $ 125.9 | ||||
| Net impact on 2009-10 UC budget | $ (427.9) | ||||
| Net Two-year Impact of State Funding Reductions | $ (519.1) | ||||
| Two-year Fiscal Impact to UC Budget | |||||
| Reductions and Unfunded Cost Increases | |||||
| Overall budget reduction based on February Budget Act | |||||
| and May revise proposals | $ (519.1) | ||||
| Overenrollment (11,000 FTE) | $ (121.8) | ||||
| UC mandatory cost increases | $ (213.2) | ||||
| (health benefits, collective bargaining agreements, utilities, | |||||
| faculty merits, non-salary price increases, etc.) | |||||
| Total Fiscal Impact | $ (854.1) | ||||
Next, on May 27, five state legislators proposed legislation that would strip the UC Regents of the autonomy they have enjoyed since 1879. The revision to California’s constitution (SCA 21 in the state Senate and ACA 24 in the Assembly) is backed by Senators Leland Yee (D-San Francisco), Roy Ashburn (R-Bakersfield) and Gloria Romero (D-Los Angeles) and by Assemblymembers Brian Nestande (R-Palm Desert) and Anthony Portantino (D-La Cañada Flintridge). The legislators are apparently primarily angry with UC’s executive compensation practices. Their press release is available at http://cli.gs/qnAV0H
UC responded with an unusually strongly worded rebuttal, which begins: “It is absurd that Senator Yee and his co-sponsors want to rewrite the California Constitution to strip the university of its historic autonomy and place it under direct control of the state Legislature. Given the current $25 billion hole in the state budget and the political paralysis that chronically plagues Sacramento, tossing a 10-campus public research university that is the pride of California and the envy of the world into the Sacramento mix should be a non-starter.” The full press release is available at: http://www.universityofcalifornia.edu/news/article/21252/
Then, on May 29, UC President Mark Yudof sent a letter around announcing a 5% pay cut for UC senior managers. The pay cuts will apply to about 30 positions and will start with the next fiscal year – July 1. Ominously, Yudof said in his letter “Given the magnitude of the budget shortfall, all options need to be considered, and, unfortunately it is likely that every member of the UC community will be affected negatively.”
President Yudof is scheduled to attend the state legislature’s Conference Committee on the Budget meeting tomorrow. CUCFA Vice President Joe Kiskis will also be attending. We will notify you all of any issues of note that arise.