The Executive Vice-Chancellor and Provost issued a memorandum to campus officials today noting that the University may be faced with a further reduction imposed by State actions. The Governor has called a special session of the legislature and has proposed $4.5 billion in increased revenue and $4.5 billion in increased expenditure reductions. The impact on UC in his proposal is $65.5 million in additional cuts for 2008-09 for a total mid-year reduction of $98.5 million. We are all waiting for the legislature to respond to this.
Based on the campus projects, UCLA’s share of the total $98.5 million mid-year reduction is $17.8 million. The Chancellor has agreed to absorb $11 million of this reduction and will allocate the remaining $6.7 million as a 1% across the board general fund budget reduction target. While it is possible that the Regents may discuss a mid-year increase in student fees, and the legislature may not support the governor’s proposal, it is prudent to further reduce expenditures this year. Should the additional reduction not materialize this reserve may help ameliorate further reductions in 2009-10.
The Library will move immediately to reserve the 1%, and we should all be careful to make no expenditures that are not critical.