August 3, 2004
Update on campus budget offered
Acting Chancellor Martin M. Chemers and Margaret L. Delaney, interim
campus provost and executive vice chancellor, have provided the following
message to the campus community on the state budget:
UC President Robert Dynes has issued a video letter for UC
faculty and staff regarding finalization of the 2004-05 UC budget.
As you may have learned from news reports, the governor and legislature
have reached agreement on a budget
for FY 04-05.
After both the Senate and Assembly voted to approve the budget last
week, the governor signed it into law on Saturday, July 31.
Even though the long-term fiscal problems of the state are not fully
resolved, we are very pleased that this budget includes no additional
cuts to the University of California beyond what was included in the
May revision budget. Among other provisions, this budget restores outreach
funding to 90 percent of FY 2003 04 levels, and it will provide
for offers of freshman admission to UC-eligible students who previously
were offered only a Guaranteed Transfer Option (GTO). (www.ucop.edu/news/archives/2004/jul29.htm)
With the provision to offer admission to students in the GTO program,
UC will be able to honor the Master Plan for Higher Education and offer
fall admission to all eligible students as it has done in the past.
Earlier this summer, our campus was able to offer admission to students
in the GTO program who had applied to UCSC. This occurred during the
regular admissions cycle and within our planned enrollment target. It
is too soon to know what impact this new systemwide GTO pool may have
on our freshman class size, but we will keep you informed as the new
academic year begins.
Given this budget and the new compact between the Governor and the
University of California (www.universityofcalifornia.edu/news/compact/),
we anticipate at least a temporary end to the budget reductions this
campus and the UC system have experienced over the past three years
and a return to a more predictable budget planning process. However,
we still face the challenge of institutional transformation to address
the permanent reductions in state funding we have received. This will
be the focus of much of our work over the next two to three years.
Since FY 01-02, UC Santa Cruz has experienced a total permanent reduction
in state funds of $23.5 million. Designated cuts in outreach, research,
student services, public service and summer session accounted for $12.4
million of this total. The remaining state budget cuts totaling $11.1
million directly affected our core budgets for both academic and academic
support units. When this amount is added to other permanent budget cuts
taken in order to fund rising costs of essential functions, the campus
has absorbed a total of $14.1 million in permanent annual reductions
in its core activities.
Our budget reduction planning process for 2004-05 was completed by
the end of June 2004. In the final analysis, we focused on preserving
core activities of research and teaching, despite cuts to the academic
divisions ranging from 3 percent to 5 percent. We were able to maintain
our operations, protect health and safety services, and keep our commitment
to minimize layoff of staff, despite cuts to academic support divisions
ranging from 5 percent to 10 percent. (See more detail, including examples
of budgetary investments, in the Campus
Provosts message from June 14. A complete retrospective of
this years budget processes and messages is available at
In addressing the undesignated budget cuts, only nine individuals funded
by state general funds and student fees were actually laid off, and
16 individuals experienced partial reductions in time, ranging from
less than 10 percent to 60 percent. In addition, 42.3 FTE vacant staff
positions were eliminated. This represents a relatively small percentage
of the approximately 3,000 UC Santa Cruz staff. Credit is due to senior
officers judicious use of the hiring freeze and other careful
planning decisions over the past several years.
These staff reductions are not trivial and their impact will be felt
in many ways. Yet, given the magnitude of budget cuts, there are many
fewer layoffs than would have been expected. We recognize the tremendous
impact these actions have had for remaining staff members, and we sincerely
appreciate their continued hard work and commitment.
We also recognize and appreciate the hard work of the deans and vice
chancellors and their engagement of members of their divisions in recommending
budget reductions. As well, we value the consultations with the Academic
Senate and its committees which informed our decisions.
Here are some points that underscore UC Santa Cruzs forward momentum:
Undergraduate applications to UC Santa Cruz this year were up
7.4 percent compared to last year; for the same time period, the UC-wide
applications declined 4.1 percent.
As of April 21, the average GPA of undergraduate students admitted
to UCSC was 3.81.
We are on target to enroll nearly 3,100 new frosh, a smaller
entering class than a year ago.
Overall enrollment projections appear to be close to our enrollment
target of 14,447 total students (three-quarter average), despite the
smaller entering class due to improved retention and an increase in
We will enroll 90 more graduate students than anticipated, due
in part to our commitment during admissions cycle to help offset graduate
student fee increases if they exceeded 20 percent. Total graduate student
enrollment in fall quarter is expected to be 1,525.
We anticipate the arrival of 37 new faculty in the coming academic
Deans have received authorization to recruit for 20 new faculty
A record-breaking $32.2 million was raised in private support
last year, setting the stage for continued achievement in the coming
We are proceeding with the construction of the McHenry Addition,
with approval of our capital budget.
We will open new facilities this fall: the Engineering 2 building
and student apartments at Cowell, Stevenson, and Kresge Colleges
The achievements reflect the ongoing dedication and hard work of faculty,
staff, and students. As we look forward to the new academic year and
its opportunities, we are convinced that the campus is well poised to
advance our collective aspirations. We sincerely thank you all for your
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