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January 13, 2003
To: Campus Community
From: M.R.C. Greenwood, Chancellor
Re: Budget Update
Dear Colleagues,
As we begin this new calendar year, we are faced simultaneously with serious budget challenges and a need to keep momentum as we advance our goals as a campus. I am writing to invite you to help us maintain our UC Santa Cruz aspirations, even while we address the budget cuts.
We Face Serious Budget Cuts
This effort will not be easy. On Friday, Governor Davis released his proposal for the 2003-04 state budget which includes $299 million in new funding cuts for the UC system and, when added to the mid-year cuts, brings the university's total cuts over an 18-month period to $373 million. With this proposal UC will have taken $533.3 million in state funding cuts since the beginning of fiscal year 2001-02.
It will be some time before we have a clear sense of the way in which many aspects of these cuts might be allocated among the campuses. What we do know at this time is that the governor has made proposals for major cuts targeted to administration, student services, outreach, and research. Of course, these proposals may still be modified. As discussed in President Atkinson's letter to the campuses, the University will consider offsetting the proposed reduction for instructional programs with an additional increase in student fees. http://currents.ucsc.edu/02-03/01-13/atkinson_budget6.html
Our web site now contains a special budget update page, providing an ongoing compilation of related information, including correspondence from UCOP. Please refer to the site for details of what we know at this time: http://www.ucsc.edu/news_events/budget_impact/
We will update this site regularly, in order to keep you apprised as the Office of the President and the Regents evaluate options to address the reductions in state funding for the University.
Although this is disconcerting news heralding difficult budget decisions for our campus, I want to emphasize that this is only the first step in what will be a lengthy and highly politicized process, not likely to be concluded before mid-summer at the earliest. We must prepare for severe cuts, but at the same time we will strive for the best possible final outcome. You can be certain that all of us will be working with our UC counterparts to advocate vigorously for the funding we need.
The Campus Has in Place a Budget Reduction Process
Later today, a memo from Campus Provost and Executive Vice Chancellor John B. Simpson will be forwarded by email and posted online. As I announced last December, Provost Simpson has initiated a comprehensive process that will identify options for saving money. Provost Simpson's memo will provide the operational details of this important effort, which will commence with working group meetings and task force meetings this week.
There will be opportunities for general campus input into this discussion. Divisional meetings and open forums at which these issues will be discussed are already scheduled, and we expect to set up an interactive link, a "hot line," on our special budget web site. Throughout the process, the campus community will be regularly apprised of progress by a series of email and web postings.
There's Good News, Too
You may find it reassuring to note that there is some good news also, including the fact that the governor proposed that enrollment increases be funded. To name just four other examples of positive progress:
(1) The capital budgets are still intact, so that we are continuing our construction program for academic buildings. The Physical Sciences and Engineering II buildings are progressing, and, with the passage of Proposition 47 last November, other projects are advancing as well, such as the new Humanities and Social Sciences Building and the McHenry Project.
(2) Our faculty and student housing programs continue. The student housing in-fill projects are on schedule, and a third-party developer has been identified for the faculty and staff housing project near the base of campus. Now dubbed Ranch View Terrace, the area known as Inclusion Area D will provide for-sale and rental housing units, with occupancy expected in a couple of years.
(3) Several new academic programs have been approved, including the new Ph.D. in education and the new bachelor of science degree in health sciences.
(4) The much-needed University Center is nearly ready for general use. This wonderful facility is a major new asset for the campus and a delightful venue to be enjoyed by all of us. Please look for the invitation to the campus open house set for Thursday, January 30, 11:30 a.m. - 1:30 p.m.
In short, although we know we will have to effect significant budgetary adjustments over the next year or two, we must continue to focus on the future. The economy will turn around in time, this period of fiscal constraint will end, and UC Santa Cruz will still be here. Let's pull together, maintain our resolve, and advance our strategic plans as much as we can through this difficult time. If we do so, we will emerge even stronger and more prepared to achieve the full potential of our campus.
Maintained by:pioweb@ucsc.edu