is available on the web at www.ucop.edu/news/budget/issue7.html.
7 April 2003
Regents adopt UC budget request for the coming year and send
it to the state for consideration
Special legislative session on the budget begins
Governor introduces state budget proposal for 2003-04
Legislature holds hearings on the budget; each house develops
a budget proposal of its own
State revenues are updated and governor issues the "May
Revision" to his original budget proposal
Legislature sends final budget to governor for action
June: Governor signs budget
1: New fiscal year begins
Regents update original UC budget request to conform to final
budget adopted by the state
Dear UC Colleague:
is another of our periodic updates on the California State
budget. As I have reported in my previous messages to you,
the State is continuing to seek ways to close a budget gap
estimated as high as $35 billion, and substantial cuts have
been proposed in most areas of State spending.
hearings on the 2003-04 budget proposed last January by Governor
Davis are now occurring in Sacramento. The next milestone
in the process is the May Revision, in which the Governor
updates revenue estimates and expenditure proposals for the
coming year. A final budget is not expected until this summer.
are making a strong case in Sacramento for the University’s
needs, highlighting the tremendous impact our faculty, staff,
students, and alumni have on the State of California. We continue
to emphasize the importance of quality in the University’s
instructional program and access to ensure that UC-eligible
students are not turned away. We also continue to stress the
importance of competitive compensation for UC faculty and
staff, and you will read below about some of the ongoing challenges
we are facing in this area.
addition, we are exploring various options for saving money
across the UC system. In that context, we are considering
a new program – Staff and Academic Reduction in Time,
or START – that would allow employees to reduce their
working hours on a voluntary basis. This program would help
the University achieve temporary salary savings during the
budget crunch, and it would provide some flexibility in working
hours for many employees seeking it. Further details about
the proposal are provided below.
will continue to be in touch as budget developments occur.
In the meantime, thank you again for your service to the University
and to the people of California.
| Fiat Lux,
continues on 2003-04 state budget
hearings are underway on the Governor’s 2003-04 budget proposal,
which contains a variety of cuts to programs at the University of California.
Details about the Governor’s proposal can be found here.
heard an update on the state budget on April 3, and they will continue
to discuss the budget at their May meeting. More information will become
available in mid-May, when the Governor will issue the “May Revision”
updating revenue forecasts and expenditure proposals.
funding for UC salaries: While maintaining competitive compensation
for faculty and staff remains a high budget priority for UC, our ability
to achieve this goal has been significantly hampered by the current state
budget deficit. As has been previously announced, the Governor’s
current budget proposal provides no state funds for UC salary increases.
month’s Board of Regents meeting, Vice President for Budget Larry
Hershman said the University still hopes to find ways of addressing this
issue in 2003-04. He said the University believes it needs to continue
funding faculty merit increases, as well as to identify some way to financially
recognize staff employees, particularly lower-paid staff.
said systemwide faculty salaries are expected to lag UC’s comparison
institutions by approximately 9 percent next year, and that this continued
erosion of competitive faculty compensation is putting real pressure on
the University’s recruitment and retention efforts. He also noted
that faculty undergo extensive peer reviews every three years to determine
merit and promotion status, and that a serious inequity would occur for
the one-third of the faculty scheduled for review in a given year if faculty
merit increases were not paid in that year. On the staff side, Hershman
indicated that several employee groups also lag the market. He stated
that one way the University could help staff employees – especially
UC’s lower-paid employees – would be to again help defray
for employees a portion of the rising cost of health insurance. More information
about these issues will become available as the budget process progresses.
reassured the Board that University leaders will continue to emphasize
with legislators the critical importance of adequate state funding for
UC salaries in order to maintain institutional quality.
fees: At their May meeting, the UC Regents are expected to set
student fee levels for fall 2003. The Governor’s budget assumes
that mandatory systemwide fees will rise $795 per year for resident undergraduates,
in addition to the $405 annual increase taking effect in the spring 2003
term. There would be similar increases for graduate and professional students.
These increases would replace state funding being cut from the student
instructional program at UC. Financial aid would increase to protect low-income
students from the fee hike, and UC is looking at options for increasing
financial aid to some middle-income families, too. More information on
student fees is available here.
budget cuts: Meanwhile, most of the 2002-03 mid-year budget cuts
proposed by Gov. Davis for the UC system have been approved by the Legislature.
All $74 million in proposed cuts, described here,
were approved, with one exception: a $3.3 million proposed reduction to
reduction-in-time program proposed
In an effort
to relieve some of the financial pressure the current state budget deficit
is exerting on the University, UC is considering for implementation this
June a temporary, voluntary reduction-in-time program called the Staff
and Academic Reduction in Time (START) program.
campuses and departments are being impacted differently by the current
budget challenges, participation in START will be determined at the departmental
level according to budgetary and operational needs.
approval, the proposed program would allow employees the opportunity to
reduce the amount of time they work between 10 and 50 percent of their
full time.* Employees would be able to enroll in the program beginning
May 1, and actual time reductions could begin as early as June 1. At the
conclusion of any period of reduced time under START, participants will
return to the percentage of time they were working prior to the program.
Departmental participation may begin at any time after May 1, and the
program will continue through June 30, 2005.
for a voluntary reduction in time, program participants will:
on a month by month basis, vacation and sick leave credits at the rate
accrued prior to the commencement of START;
on a month by month basis, UCRP service credit at the rate accrued prior
to commencement of the program (provided that the employee is on pay
status for at least 50 percent of full time during each month of participation);
UCRP pension, death, and/or disability income based on their pre-START
- Be protected
from any mandatory salary reduction plan during their participation
in START, should such a plan become necessary.
As is UC
custom, the START proposal is currently undergoing formal institutional
review. Complete details and information on how you may comment on the
proposed program are available through your local Human Resources office.
is working with unions regarding represented employees' participation
archive: Browse recent
questions and answers on UC employee issues.
How can the University continue to advertise for job openings in
the midst of a hiring freeze, not to mention layoffs in certain
A. Consistent with Executive Orders from the Governor,
the University has instituted systemwide hiring restrictions. While
the University expects to achieve budget savings by not filling
vacant positions and from other actions such as the START program,
layoffs in some specific program areas are unavoidable given the
depth of budget cuts targeted for those areas.
In keeping with the Governor’s intent for
hiring restrictions, the University has excluded positions that
are needed to meet the University’s educational mission and
to provide certain specialized skills. Accordingly, campuses have
the discretion to recruit for select individual positions as they
deem necessary and as their personnel budgets allow.
What kinds of raises are top administrators receiving this year?
A. For the current 2002-03 year, all senior administrators,
including the president and chancellors, received the same 1.5 percent
general salary increase that other staff employees received. At
present, the Governor’s 2003-04 budget provides no funding
for salary increases for administrative employees, including top
I understand that some employees get paid from state funds while
others get paid from other types of funds, such as research grants.
Even though there may not be state funds for salary increases, will
employees not paid out of state funds still get a salary increase?
A. Historically, and as a general rule, UC does not differentiate
among fund sources in setting staff salaries. This helps promote
fairness across the UC system by ensuring that employees doing the
same work receive the same general salary increase regardless of
What can I do to help?
A. Currently, the state Legislature is evaluating the Governor’s
proposed 2003-04 state-funded budget for the University. One of
the things you can do is to write your legislator, stressing the
importance of continued strong state investment in UC by sharing
your personal experience of how specific programs or services to
students or the public are being or may be impacted by budget cuts.
You may obtain the mailing or email address of your legislator from
the following web site: http://www.leginfo.ca.gov/yourleg.html.
a budget question? Use this
form to submit it. Due to the volume of submissions, we can't
provide an individual answer to every question — but the feedback
is important, and we will do our best to answer some frequently
asked questions in our next edition.
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