University of California Budget News

Archived entries for

May 22, 2009

Budget proposals threaten Cal Grants

Below is a statement from UC President Mark Yudof on the budget.

The budget situation in Sacramento is fluid, and in the next few days and weeks all sorts of proposals, many of them quite drastic, can be expected to be put into play. The University of California is actively engaged in sorting through the shifting scenarios, and is prepared to be a vigorous participant in the state’s efforts to work through this fiscal crisis.

What can be said at this point is that we are gravely concerned. Under one scenario already being discussed, the UC is looking at a doubling of the $322 million in cuts contained in Gov. Arnold Schwarzenegger’s revised state budget proposal for fiscal 2009-10. This would equate roughly to a 20 percent reduction in state support.

We also are extremely troubled that the Cal Grants program has been mentioned for possible elimination. More than 46,000 UC undergraduates receive Cal Grants, which bring in $293 million in grant aid for students from lower-income California families.

The university is weighing its options under a variety of budget scenarios. The choices are stark, and everything is on the table. We urge the strongest possible state investment in the continued development of our state’s human capital, which is critical to California’s economic recovery and long-term competitiveness.

Going forward, I will continue to do my best to keep you informed in a timely fashion on how the budget recommendations will impact the university.

Category: Uncategorized

May 20, 2009

Special election outcome will affect UC

Below is a statement from UC President Mark Yudof on the special election’s impact on UC.

The outcome of the May 19 state ballot propositions means that the University of California will be facing significant budget reductions in the 2009-10 fiscal year. Gov. Arnold Schwarzenegger’s revised state budget proposal alone calls for a cut of $322 million, and when combined with the state’s underfunding of student enrollments and inflationary cost increases, UC’s total budget gap would amount to $531 million.

Such a severe budget reduction, following years of chronic underfunding, would force the university to weigh a number of stark choices. Salary reductions, employee furloughs, decreases in enrollment, increases in class sizes, cuts to programs and student services, and, unfortunately, even higher fees — at this point, all options must be placed on the table for consideration at some point in the future.

Revised state budget scenarios

UC's Options UC President Mark Yudof said today (May 14) that the revised state budget scenarios released by Gov. Arnold Schwarzenegger would have serious consequences for the level and quality of service provided by the University of California system to students and taxpayers.

The scenario that assumes failure of the May 19 state ballot propositions would leave the UC system with a net budget reduction of $322 million, or 10 percent, in the 2009-10 year. Taken together with the state’s underfunding of student enrollments and inflationary cost increases, the scenario would leave the university with a total budget gap of $531 million in 2009-10. The university’s current state-funded budget is $3.2 billion.

“Additional budget cuts of this magnitude would have a devastating effect on the students, the faculty and the staff of the University of California, and ultimately on the service we provide to the state,” Yudof said. “The severe reductions envisioned in these scenarios, especially if the ballot measures fail, threaten a dramatic change in the quality and accessibility of the university.

“If these cuts are implemented, we will have to look at a wide variety of unpleasant options to close our budget gap in the coming years – from enrollment and student fee levels to class sizes, academic program offerings, and availability of campus services for students, in addition to pay reductions or furloughs for our employees.”

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