Budget Update for the Library

On Tuesday, I attended a briefing on the UCLA Budget Outlook.  While there will be campus-level information released shortly, I wanted to discuss with you the impact on the UCLA Library derived from the information presented in that meeting.

 For 2009-10 (the current year):  There will be no mid-year cuts to the Library’s allocation of state funds, but all reductions will stand.

  • A permanent reduction in state general funds of $1.8 million
  • From salary reductions and furloughs an amount of $1.1 million
  • Ongoing costs of charges for utilities, fringe benefit cost increases, deferred maintenance and employer contributions to UC retirement an amount of $1.1 million

This represented almost eleven percent of our state general funds. We have achieved the savings required to meet these targets by the end of this current budget year.

For 2010-11

UCLA is proceeding according to the following assumptions:

  • The Legislature will not restore the $305 million reduction in state general funds allocated to the University of California
  • There will be no new state general funds allocated to the university
  • It is unlikely that the proposed constitutional amendment can be passed in time to impact the 10-11 budget
  • UC retirement contributions will continue
  • There will be no more Federal stimulus funding
  • There will be no further legislative reductions in funding to the University of California

What this means for the Library

  • There is no plan, at this point, to request further new rounds of permanent budget reductions from the Library—THIS IS THE GOOD NEWS!
  • There will be no increase in the base of funding for the Library in 2010-11
  • There will be no restoration of state general funds previously reduced by UCLA for the Library
  • The costs for fringe benefit increases, utilities, deferred maintenance, and employer retirement contribution will continue at approximately the same level as previous years.  Note that retirement contributions will need to be made for the full year, instead of just three months in the current fiscal year, so the total figure will be higher

So—

  • The Library must permanently implement the 2009-10 funding reductions ($1.8 million)
  • We will continue to bear the previously unfunded costs for fringe benefit increases, utilities, deferred maintenance, and employer contributions to UC retirement
  • We need to plan for allocation of a smaller operating budget in 2010-11 based on these previous reductions in State general funds
  • Academic and administrative restructuring efforts must continue
    • Service hours reduction
    • Assessment of impact of closure of branch libraries
    • Library acquisitions
    • Staffing levels
    • Implementation of new models of service in Special Collections and IT infrastructure
    • Study of costs of inter-library borrowing and lending

The Cabinet will continue to refine our strategic plan based on these assumptions.

Overall, I am cautiously optimistic that we can begin to plan within this new, lower base of funding for next year and look forward to your continued support in that effort.  Please let me know if you have questions, comments, or suggestions.

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