University of California, Riverside

UCR Budget News & Information



Chancellor's Update - Proposition 1A — 4/21/09


April 21, 2009

On May 19, California voters will consider several state propositions as part of a special election. I am writing to encourage you to learn more about them and to be sure to cast your vote.

The Governor and the state legislature have proposed six ballot measures as part of a package of actions to address a $42 billion state budget shortfall. One proposition in particular may have a direct impact on the University of California.

Proposition 1A, also known as the Budget Stabilization Act, would establish a “rainy day” reserve fund. Prop 1A would regulate the level of spending each year and increase the amount of funding held in reserve in order to guard against the dramatic ups and downs that have characterized state spending in recent years. If approved by California voters, Prop 1A could result in approximately $16 billion in additional revenue to the state’s general fund between 2010-11 and 2012-13. UCR will be especially impacted because we are more reliant on state general funds than most other UC campuses.

The UC Board of Regents endorsed Proposition 1A at the March meeting. The Regents took this action after concluding that its passage would enhance UC’s ability to secure more adequate state support to fund its core mission in future years by helping the state to achieve more financial stability. Prop 1A is designed to help avoid further deep budget cuts to higher education and other state agencies that are subject to discretionary funding actions of the legislature and the Governor.

Supporters say that, if Prop 1A is not passed, the state’s general fund may once again be in significant deficit, necessitating further cuts to state-funded programs. Opponents state that Prop 1A is a tax hike disguised as a spending limit that will cost Californians jobs, hurt small businesses, and weaken California’s ability to compete in the global economy. Opponents also argue that higher sales taxes will hurt low-income residents disproportionately, and the $200 per child tax credit will be eliminated if Prop 1A passes.

More information about Prop 1A is available at the University of California Web site.

You can obtain more information about the election as well as ballot arguments about all the propositions on the Secretary of State’s web site.

Sincerely,

Timothy P. White
Chancellor

The University of California does not support or oppose ballot measures. However, it does seek to objectively evaluate a ballot measure's impact on UC and higher education. Visit the University of California Office of the President Web site for legal guidelines for UC participation in ballot campaigns.

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

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4108 Hinderaker Hall

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

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