University of California President Releases Furlough Plan to Save US$184 Million. (July 11, 2009)

University of California President Mark Yudof yesterday released a furlough plan to cut US$184 million from the university's projected US$813 million shortfall in state funding over the next 2 years. Initially one option being considered by president Yudof was an across the board 10% salary cut which evoked serious objections from the UC faculty, for example it was pointed out that a large percentage of funding, including faculty salaries is derived from non California state revenue.

According to ScienceInsider's Greg Miller: "The new plan from Yudof appears to take some of researchers' concerns into consideration. It calls for furloughs (preferred by most staff over salary cuts) to be scaled according to pay grade—from 11 days, equivalent to a 4% cut, for those making less than $40,000 a year to 26 days, or a 10% cut for those making more than $240,000. Employees funded entirely from non-state sources would be exempt, as would employees at the Lawrence Berkeley National Laboratory, who are under contract with the U.S. Department of Energy. But faculty and staff who receive even a fraction of their salaries from state funds would be furloughed."

The proposed pay cuts, higher tuition, and administrative cost-cutting will save the university system only about US$500 million. The ten UC campuses must still come up with another US$300 million in savings. UC Berkley is expected to recruit 10 additional faculty per year rather than the 100 it had anticipated.

The proposals are to be considered by the UC Regents this coming week.