University of California, Riverside

UCR Budget News & Information



Chancellor's Update: Furlough/Salary Reduction Options and General Fund Budget Update — 6/17/09


June 17, 2009

To the Faculty, Staff, and Students of the University of California, Riverside

Since my June 5 budget update to the campus community, we received thoughtful and substantive feedback from many of you, especially on issues related to potential furloughs or salary reductions.  We in turn have shared this feedback with Office of the President.  Based on input from the campuses, medical centers, national labs, and Academic Senate, UCOP has developed three options for generating salary savings of close to $200 million across the system in fiscal year 2009-10.  As described in the attached document, the options consist of:  (1) a salary reduction, (2) furloughs, or (3) a combination of salary reductions and furloughs.

We are seeking feedback from faculty, staff, and student employees on these options before July 8th.  We will transmit campus input to UCOP on July 9th.  President Yudof will then present the three options (or some variation of them) and make a recommendation to the Regents at their July 15-16 meeting.  Send your questions, suggestions, or concerns to budgetquestions@ucr.edu.

You will see that the attachment does not contain many specifics related to the kinds of questions you have raised to date.  Nevertheless, UCOP is aware of your concerns and is working to develop answers.  In the next week, UCOP will post a list of frequently asked questions (FAQs) on the UCOP website, along with responses.

One of the major issues that has been raised has to do with retirement credit.  The chancellors are pushing hard to ensure that employees remain "whole" in any of the three options.  This could be achieved by protecting service credit and the highest average plan compensation (i.e., HAPC), similar to what is now done for employees who are on the START program.  This policy decision will be made by the Regents.

Regarding the overall general fund budget reduction, we do not yet have a final target for the campus.  Based on interaction with UCOP, however, we believe that a $40 million overall reduction to UCR's state general fund budget will be the minimum.  The reduction may grow beyond that by several million dollars because of the continuing erosion of the state's economy and the political decisions being made.

In our earlier planning efforts (when the reduction target was half that size), we identified $15 million in specific unit reductions, plus another $2 million in chancellorial actions.  These cuts will be taken.

In very rough numbers, the proposed salary reduction/furlough decision will generate approximately $11 million in additional state general funds.  Even this will not be enough to meet our target.  The campus will also have to identify another $12 to $19 million to balance next year's budget, depending on what the final cut ends up being.

Consequently, the steering committee of the Budget Advisory Committee has been reconvened under the leadership of Provost Dallas Rabenstein.  The committee is working to make recommendations to me on the remaining $12 to $19 million in reductions.  I have directed their work to be as strategic and selective as possible, with some core functions being less affected than other areas.

Finally, I want to say that you are never far from my mind.  I am painfully aware of the many sacrifices you and your families are and will be making.  I have heard of young couples trying to purchase new homes, older parents whose children have moved back in with them, families with multiple children in college.  Each of these is heartbreaking, and I regret that we are faced with this difficult and distressing choice.  It is only as a last resort that the University is implementing furloughs or salary reductions that will affect so many families such as yours.

As always, I am committed to providing you with as much information as possible as soon as it becomes available to me.  I welcome your continued feedback as we move through this period of unprecedented retraction and uncertainty.

Sincerely,

Timothy P. White
Chancellor


More Information

General Campus Information

University of California, Riverside
900 University Ave.
Riverside, CA 92521
Tel: (951) 827-1012

Contact Information

Office of the Chancellor
4108 Hinderaker Hall

Tel: (951) 827-5201
Fax: (951) 827-3866
E-mail: budgetquestions@ucr.edu

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