The University of California Weighs Its Options. (March 24, 2009)

Of the ten campuses that make up the University of California system seven are listed as being in the top fifty research universities in the Shanghai Jiao Tong University rankings, with Berkeley holding down the number 3 position -- just ahead of the UK's University of Cambridge -- then come UCLA (13), San Diego (14), San Francisco (18), Santa Barbara (36), Irvine (46) and Davis (48).

According to a write-up last week in the News for Faculty and Staff of the University of California, Davis: "Employee furloughs and pay cuts are among the budget measures that UC is considering in the coming months as it attempts to grapple with a growing fiscal shortfall."

The budget adopted by the state of California this past February "includes US$115 million in new permanent cuts for the UC system" which increase the estimated  funding shortfall for the ten campuses to US$450 million over the coming two years.

To overcome the shortfall the Office of the President of the University of California (UCOP) released the following information:

Campus budget cuts: Campuses are curtailing faculty recruitment, in many cases by 50 percent or more; reducing staff hiring; severely limiting spending on non-essential costs such as travel; consolidating or eliminating programs...

Staff furloughs, pay cuts: UC President Mark G. Yudof is asking UC staff to begin developing a framework of policies and procedures that would be required to implement employee furloughs and/or temporary or permanent salary reductions [should that become necessary].

He tempered his request by noting: At the same time, I also am concerned about maintaining our ability to attract and retain the caliber of people we need to continue to serve the growing needs of the state.

Restricting management bonuses: The regents this week approved more restrictions on the payout of bonuses and incentive pay, on top of the senior-level salary freeze and bonus restrictions adopted in January.

Office of the President budget cuts: Yudof has proposed a 2009-10 budget for the Office of the President in Oakland that achieves another $12 million expenditure reduction since the last UCOP budget update four months ago. This reduction will bring the total expenditure reduction at UCOP to $67 million, and the total full-time-equivalent staff reduction to 628, since the beginning of the UCOP restructuring in 2007-08.

While the announcement made no mention of the effect US President Obama's economic stimulus package would have on the prospects of UC funding, it did point out that: "under the federal economy recovery package, the maximum value of federal Pell Grants will increase by $619, which will provide an estimated $33 million in new grant funding for UC students. The recovery package also expanded federal higher education tax credits, which will provide up to $88 million in additional tax credit eligibility to middle-income UC families. Higher education tax credits benefit students whose fees and other educationally valid expenses are not already fully covered by grants or scholarships."