Budget Updates - UC Merced Faces Budget Challenges

This site is maintained in order to keep the University of California at Merced campus
community up to date with information regarding the budget situation .

We want to provide the answers to questions regarding how this current budget situation does and could impact our campus community:

Q. Why has the latest cut to date been implemented?
A. The State of California is experiencing real financial pressures.  While the Governor signed a state spending plan for the current fiscal year, it is already expected that State revenues will be less than predicted. Therefore, proposd State expenses must again be cut.  Addtionally, the Governor had asked for another $65.5M in mid-year cuts.  There has been no action by the Legislature to date, however.

Q.  What does this mean to UCM?
A.  President Mark Yudof informed the Chancellors that UC's share of the cut to date is $33.1 million. UCM's portion of the cut is $293,000.While the campus has been notified of its share of the cut, the President has indicated the possibility of protecting Merced. At the same time, it is important to be proactive and to prepare for the possibility of additional cuts for the current year, as well as
look ahead and plan for 2009-10.

Q. Will the budget picture improve?
A. The state's fiscal troubles are serious and it is likely that California and UC will continue to face tough times in the next fiscal year.

Q. What can faculty and staff do to help?
A. Identify ways that the campus can successfully reduce expenditures.  The campus welcomes any feedback on how best to conserve resources. Any proactive measures that the campus can take will be in our collective best interest. This is important for both the current fiscal year and for planning for 2009-10. Please send suggestions to budget@ucmerced.edu

Q. What areas could be reduced?
A.  The President's letter to the Chancellors indicated several major actions to consider, including reducing spending for travel,
equipment, energy, and leased facilities. It also stressed the need to evaluate business practices and eliminate non-essential
activities.  Units on campus have been asked to submit ideas of their own to share with leadership.

Q. Is there news on salary increases?
A. UC received no increased funding for core costs in the final State budget for 2008-09, including employee compensation. UC will not be able to offer salary increases to employees this year, and the university will need to defer progress on changes to the faculty salary scales for 2008-09. (Wages for union-represented employees are subject to collective bargaining.) Ladder-rank faculty members who are eligible for merits and promotion this year will receive their approved increases.

Q. Will UC employees have to pay for increased benefit contributions?
A. As announced recently, UC is contributing a one-time subsidy of $5.2 million to help offset the rising cost of medical insurance and keep employees' premium costs in check. Thanks to the UC contribution, for most employees and most plans, monthly costs will go down or go up slightly when
new rates take effect in January 2009. Dental and vision benefits will continue to be free for employees, and fees such as co-pays will remain the same.

Q. What about the UC Retirement Plan?
A. As you are aware, UCRP is no longer fully funded.  The details of the amounts and the timing of the resumed contributions are still being discussed. The Regents are expected to continue their discussions of UCRP and the possibility of employee and employer contributions resuming
next year. 

Q. What does this mean to UCM for planning for 2009-10?
A. For UC Merced, next year's enrollment target is significant.  As we are in a very different situation from the other campuses, we will work closely with UCOP on how the campus continues to build on a successful foundation, while functioning effectively given the State's troubled fiscal climate.

Q. Where can campus personnel get more information on the budget?
A. Please refer to the Latest Budget News page periodically for the latest information. Also, check our University and State Resources links for updates on the state's situation, as well as UC Merced campus news.

Please send any questions and suggestions to budget@ucmerced.edu