UC DAVIS: OFFICE OF THE PROVOST
January 11, 2008
Dear Colleagues,
I write today to provide a brief update on the budget and the campus academic planning process in response to the 2008-09 state budget proposed by the governor yesterday. We again find ourselves dealing with budget challenges that will require us to consider a wide range of possible solutions. There will be opportunities over the coming months to learn more about the specific challenges faced by the campus and provide input about the approach that we will take to strategically address them.
BUDGET UPDATE
Yesterday Governor Schwarzenegger proposed a 2008-09 state budget that includes across-the-board cuts in state spending, including at the University of California, to address a projected $14.5 billion state budget deficit.
The governor's proposal would increase funding under his "compact" with the UC system but then apply a reduction of $332 million, or 10 percent - the same percentage reduction proposed for most state General Fund programs. That would leave UC with a state funding shortfall of more than $400 million below the level in the Regents' proposed budget for 2008-09.
The governor's proposal is for the fiscal year beginning July 1, 2008. His proposal does not include mid-year budget cuts for UC in the 2007-08 year.
This budget proposal is very challenging for the university and the campus. Discussions will begin immediately to develop a full range of options. To facilitate campus planning, I am appointing a task force to help me develop principles, planning parameters and a process to address these challenges. The recommendations from this group will be shared broadly with campus constituents to ensure a consultative decision process.
The Board of Regents will begin discussing the state budget and possible responses to the governor's proposal at its regular meeting next week, and the chancellors will meet the following week. We should know more about the impact to the campus in early February.
As new information becomes available, I will post updates and announce budget planning parameters on the UC Davis Budget News webpage at http://www.news.ucdavis.edu/special_reports/budget/ . Campus and Regents' budget activity will also be reported to the campus in Dateline. You may send any questions you have about the budget to budget@ucdavis.edu.
ACADEMIC PLANNING
I will consult soon with the deans and the Academic Senate about the impact these budget changes will have on the academic planning process we began last November to meet systemwide and campus planning goals. I have heard concerns from the faculty and others about proceeding with our planning process when we know that the state's budget crisis creates a fiscal challenge for the campus. It may indeed seem incongruous in some respects to talk about program development and new opportunities when resource restrictions and reductions appear almost certain. However, I believe that we would make a serious mistake if we let the threat of this immediate fiscal austerity deter us from fully and actively considering what we must do to ensure the long-term vitality of our academic missions. A sound and current academic plan provides us invaluable perspective and guidance in any budget circumstance.
Therefore, I have concluded that our planning should continue. However, I do believe it would be wise for us to consider what changes in planning assumptions and other aspects of the process may be necessary in order to address the new budget realities. Accordingly, I will consult with the deans and the Senate leadership regarding any new planning parameters, adjustments to the timeline, or changes to the process that may be necessary. I will send a follow-up communication that addresses these issues in the next few weeks.
Based on past experience, I am confident that the campus will meet the challenges with innovation and commitment.
Barbara A. Horwitz
Interim Provost and Executive Vice Chancellor