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January 30, 2004
To: Campus Community
From: Chancellor M.R.C. Greenwood and Interim Campus Provost/EVC Martin M. Chemers
Re: Update on cuts proposed to UC in governor's 2004-05 budget
Dear Colleagues:
We are writing to provide an update on the $372 million in cuts that have been proposed for the University of California in Governor Schwarzenegger’s budget plan for 2004-05.
It is much too early to assess the impacts of this budget proposal, because the political process is ongoing--the release of the Governor’s budget marks the first step in a process that should result in a final state 2004-05 budget by sometime in the summer.
As presented, however, the budget would reduce freshman enrollment by 10% systemwide; increase the student/faculty ratio; raise student fees (including a significant increase for graduate students); scale back financial aid; eliminate funding for K-12 outreach programs; and make deeper cuts in state-funded research and in academic and institutional support.
The Governor’s budget proposal is predicated upon voter approval of Propositions 57 and 58 in March. Propositions 57 and 58 would authorize the state to borrow $15 billion in bonds to pay the current deficit, place a cap on future spending, and build a reserve. Without voter approval of these two propositions, the state will need to make far deeper cuts.
While we understand the gravity of the state’s fiscal situation and recognize that the university will need to participate in the effort to restore the state’s fiscal stability, we are deeply concerned about the impact of these cuts. The Regental decision to raise student fees in 2003-04 has kept many of the previous cuts away from the instructional program. The Governor’s proposal to reduce enrollments and increase the student/faculty ratio means that we now will need to look carefully at all aspects of the university’s budget.
Although there remains a great deal of uncertainty about the budget and the outcome of the budget deliberations in Sacramento, we are initiating a process that will allow us to make informed decisions on how the campus will accommodate the proposed cuts. To begin this process, we are developing, in consultation with Deans, Vice Chancellors, and our colleagues in the Academic Senate, a set of principles to guide these decisions. We plan, in the next several weeks, to provide principal officers with a planning target so that they can develop reduction options for their respective divisions. This will give us a better understanding of our options and the impact of the reductions.
The key dates and estimated timeline for this process follows:
• January:
- Governor’s budget proposal for 2004-05 released
• February:
- Planning targets provided to principal officers
• March:
- Voters take action on Propositions 57 and 58
- The Regents consider fee increases and enrollment options for 2004-05
- Preliminary budget-planning scenarios due from Deans and Vice Chancellors
• April:
- Campus consultation on reduction options
• May:
- Governor’s revised budget released mid-May
- Campus consultation process continues
• June:
- Campus consultation process continues
• July (est.):
- State budget finalized
- Budget decisions announced
- Campus implements permanent cuts to budget
We will keep you informed as we learn more information and gain a better understanding of what the impact will be on our campus -- and on you, our faculty, staff, and students. Along with our colleagues at the Office of the President and our Governmental Relations staff, we will do our best during the budget-negotiation process to minimize the impact of cuts to the university.
We are proud of the progress UC Santa Cruz has made over the last several years. Now, more than ever, we must not lose sight of our goals. To the extent that the budget situation will allow, it is imperative that we continue to build upon our strengths and our many successes.
If you are interested in learning more about UCSC’s 2003-04 budget, “The UCSC Budget--A Birds Eye View” can be viewed on the web at: planning.ucsc.edu/budget/reports/profile2003.pdf . Also, the following site includes links to budget messages from President Dynes, UCOP news releases, budget messages specific to UCSC, and other information: www.ucsc.edu/news_events/budget_impact/.
Thank you, each of you, for your support, understanding, and continued good work during these challenging times. Together, we will make the best we can of the current situation, and when the economic cycle improves, we will pursue even more vigorously our campus’s aspirations.
Cordially yours,
M.R.C. Greenwood
Chancellor
Martin M. Chemers
Interim Campus Provost/EVC
Maintained by:pioweb@ucsc.edu