UCSC BUDGET UPDATE

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UCSC BUDGET UPDATE

• Sue Matthews
• Acting Assistant Vice Chancellor
• Student Affairs Business and Administration
• November 20, 2008

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STATE BUDGET UPDATE

• The states fiscal condition continues to be
  challenged.
• The Governor projects a 9.5 billion shortfall
  this year, growing to 22.5 billion through
  2009-10.
• The Legislative Analyst projects a 27.8 billion
  gap through 2009-10.
• The Governor called a special session of the
  Legislature to deal with the current budget
  problem.

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THE GOVERNORS PROPOSAL

• Raise the sales tax temporarily by 1.5 for 3
  years
• Extend the sales tax to certain services
  (repairs, sporting events, amusement parks, etc.)
• Impose oil production tax
• Add 5 cent tax per drink to alcoholic beverages
• Increase car registration fee by 12
• Reduce school funding by 2.5 billion
• (2.2 billion K-12 332 million community
  colleges)

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THE GOVERNORS PROPOSAL

• (Continued)
• Restrict Medi-Cal eligibility and reduce benefits
• Reduce Supplemental Security Income/welfare
  grants
• Parole/criminal justice system savings
• Reinstate UC and CSUs 10 budget cut
• Furlough state employees and reduce number of
  paid holidays

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LEGISLATIVE ANALYST OPTIONS

• Additional tax increases and budget cuts
• Do not provide additional cost-of-living
  adjustment funding in 2009-10
• Increase fees by additional 5 (above 10
  assumed) to offset state funding
• Increase student-faculty ratio by 10

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LEGISLATIVE ANALYST OPTIONS

• (Continued)
• Cut specific research programs by 25
• Eliminate excess course unit support
• Raise Cal Grant eligibility from 2.0 to 2.5 GPA

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MID-YEAR ACTIONS

• 7/1/08 4.5 million in unfunded mandates. 3.9
  million through budget reductions and 600k
  centrally.
• UC has already been assigned a 33.1 million
  mid-year budget reduction.
• Based on the Governors proposal, this will
  increase by 65.5 million to 98.6 million.
• This action would return UC (and CSU) to the 10
  base budget reduction proposed last January
  (98.5 million).

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UC BUDGET

• This week, the Regents will consider the
  Universitys
• 2009-10 budget request, which includes (515.1
• million)
• Base budget adjustment of 4 for salaries,
  benefits and other cost increases
• Enrollment funding for 5,406 FTE students for
  2009-10
• Enrollment funding for 5,408 FTE students in
  2008-09 that the state did not fund
• Additional 1 base budget adjustment for core
  needs
• Funding for the states share to restart
  retirement contributions

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UC BUDGET

• The budget is also based upon the following
  student
• fee assumptions
• 4.2 increase in the Registration Fee to help
  cover inflationary costs
• 10 increase in the Educational Fee
• 5-24 increase in Professional School Fees
  (depending on program and location)
• 5 increase to undergraduate non-resident tuition

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UC BUDGET

• (Continued)
• If approved (at a later date), these fee
  increases would amount to 178 million
• The budget also assumes a significant amount of
  fee increases would be used to support
• financial aid (33 for undergraduates and 50 for
  graduates)

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UC BUDGET

• Additional funding is also needed for the
  following initiatives (69.8 million)
• Restoring competitiveness in faculty salaries
• Augmenting graduate student support
• Restoring the instructional program
  student-faculty ratio

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UC BUDGET

• Reinstating UC Labor Institute funding
• Creating a medical school at UCR
• Supporting the California Institutes for Science
  and Innovation

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UC BUDGET
It is not realistic to expect significant funding
increases from the state in 2009-10. Additional
budget reductions are possible, depending on the
outcome of the special Legislative session and
the status of the economy.
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UCSC BUDGET

• The EVC agreed to cover the 2 million initial
  mid-year reduction on a one-time basis
• No commitment was made to do this for
  additional
• mid-year cuts
• Notified units that permanent cuts will be
  included in
• 2009-10 unit reductions

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UCSC BUDGET
Budget consultation is continuing and
information will be forthcoming as more is known
from the state level.