Academic Senate Town Hall Meeting

June 11, 2009

UC Budget

• 2007-08 State Support– $3.25 billion

• 2009-10 Proposed State Support– $2.63 billion

UC

2008-09

Mandatory one-time savings target included in budget act $(33.1)

Mid-year permanent base budget reduction $(65.5)

One-time reduction in May revise $(510.0)

Proposed one-time federal stimulus funding $640.0

Additional one-time reduction (May 26) $(207.5)

Net State funding reduction -- 2008-09 $(176.1)

New revenue, 2008-09 student fee increases (net of financial aid) $84.9

Net impact on 2008-09 UC budget $(91.2)

UC2009-10Actions Approved in the February Budget ActOne-time reduction associated with “trigger” funding $(50.0)One-time Governor’s veto reduction $(255.0)

Governor’s May Revise Plan BPermanent unallocated reduction $(50.0)Permanent elimination of UC outreach programs $(31.3)

Governor's May 26 Proposal

UC budget reduction extended through 2010-11 $(167.5)

Net State funding reductions -- 2009-10 $(553.8)

New revenue, 2009-10 student fee increases (net of financial aid) $125.9

Net impact on 2009-10 UC budget $(427.9)

Net Two-year Impact of State Funding Reductions $(519.1)

UC

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UCPB/Academic Council Principles

• Shared governance calls for increased transparency and continuous faculty involvement

• UC’s communications need to emphasize what the state will lose

• Protect quality, affordability, and accessibility of UC’s teaching and research– Budget decisions should emphasize quality

Principles

• All units must have appropriate funding– Evaluating new programs requires evidence their

funding is sustainable– Existing programs should not be starved to start

new ones– Comparable programs should be comparably

funded across the system

Principles

• Furloughs and pay cuts are a true, last resort.– Temporary– Only after all other options exhausted (new SOR)– After a cost/benefit analysis– If they are necessary, make them progressive,

protecting UC’s lowest-paid workers– But note the effects on competitiveness• Cash compensation• Total remuneration

Principles

• Senior management compensation should be cut first.

• Cutting programs means layoffs; emphasize relocation/rehiring where possible

• UC needs greater efficiencies at all levels– Expansion of admin > enrollment/FTE growth

Principles

• Consider options for revenue enhancement– The “Michigan model”– Academic Council opposes privatization, but it

also may be unavoidable

• Decisions affecting more than one campus should continue to be systemwide, but allow local flexibility