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Senate Budget and Fiscal ReviewCommittee HearingApril 14, 2011 Presentation on 2011-12 UC Budget Patrick J. Lenz Vice President for Budget and Capital Resources
State Actions On 2011-12 UC Budget • $500 million reduction for 2011-12 UC budget • $733.4 million or 22.5 percent below the $3.2 billion state investment in FY 2007-08 • Equal to state funding in 1998-99 fiscal year when UC served 73,000 fewer students • Equal to the combined state support for UC San Francisco, Santa Barbara, and Santa Cruz
2011-12 UC Budget Pressures • State Budget Reduction $500.0 M • Cost Increases $362.5 M • Total $862.5 M • State funds CSU employer retirement contribution • Uncertainty of voter approval for tax initiative • Need for long-term fiscal stability
UC Campus Actions Since 2007-08 • $3.2 billion peak state General Fund investment • More than 4,400 layoffs, more anticipated • More than 3,700 positions are unfilled or have been eliminated • About $155 million has been saved from programs consolidated/eliminated • Academic and administrative units have been assigned cuts generally ranging from 6% to 35%
Good Efficiencies versus Bad • Operational Improvements: desirable for the University: • Development of IT systems that reduce personnel effort • Strategic sourcing • Joint Procurement Efforts • Shared library collections • Energy savings programs • Austerity Measures: negative impacts on the health of UC: • Higher student-faculty ratios, larger class sizes, increasing time to degree • Reduced graduate student enrollments • Faculty and staff salary lags • Deferred equipment purchases and technology lags • Deferred facility maintenance • Reduced administrative oversight
California Economic Future • UC produces on average, 4 inventions per day for 1,000 R&D-intensive companies • Every $1 invested in UC returns $4 to California • Every $1 investing in UC Research returns $8 to California • California will need 1 million more graduates by 2025 (PPIC Study – 2009) • Information Technology, Biotechnology, Human Health, Green Technology
Addressing UC’s Budget Gap with State Funds and Tuition: Annual Increases Required to Generate $1.5B