Posts Tagged: budget
Dear Friends and Colleagues:
I am very pleased to share with you the good news that the University has reached an agreement with Governor Brown to increase State support for UC. The agreement is part of the Governor's revised State budget proposal known as the “May Revise.” It provides UC with significant new revenue and stable funding that allows us to hold resident tuition at its current level for the next two years, with predictable tuition increases pegged generally to the rate of inflation beginning in 2017-18.
In exchange for State funding provided for the University's pension plan, UC would implement certain retirement benefit changes for future UC employees. These changes would be subject to consultation with UC Regents, faculty, staff, union leaders and other stakeholders. In addition, nonresident supplemental tuition and professional degree supplemental tuition would generally be increased in accord with the November budget resolution adopted by The Regents.
The Governor and I also agreed to expand a series of programmatic innovations already underway or under development on UC campuses to help campuses improve student success and use resources as efficiently as possible.
With this agreement, the Governor has recognized the need to reinvest in UC as well as the imperative to provide students, their families, and the University with a reliable way to budget for the cost of a UC education.
It is critical to note, though, that while this agreement provides the University fiscal stability and much-needed revenue, it does not fund California student enrollment growth – so our work is not done. The Governor's budget proposal now moves to the Legislature for consideration, and we will continue our discussions with legislators about ways to secure additional permanent funding to enroll more California students.
Below is a summary of the agreement, which I will be discussing with the full UC Board of Regents at their meeting next week.
I want to thank the thousands of UC students, faculty, staff, alumni and others who have joined our efforts in advocating for increased State funding for UC. Your voices have been instrumental in helping to bring about this historic agreement, and I sincerely appreciate your partnership. Please keep up your advocacy – we are not at the finish line!
We will keep you informed of the results of our upcoming discussions with the Legislature as we move toward a final State budget, which is expected next month.
Yours very truly,
Summary of UC-Governor Brown long-term funding framework
· Four percent annual base budget increases in each of the four upcoming fiscal years ($119.5 million in 2015-16) and a total of $507.3 million over the next four years. This extends the base budget increases planned for 2015-16 and 2016-17 by two additional years, through 2018-19.
· Nearly $500 million in one-time funding to help pay down UC's pension liability, to pay for critical deferred maintenance projects, and to support long-term, capital-intensive energy efficiency projects planned as part of UC's sustainability initiative.
Tuition and fees
· No resident tuition increases for the next two years. UC's systemwide tuition would remain at $12,192 through 2016-17, which would mean six consecutive years of no tuition increases.
· Beginning in 2017-18, resident tuition would gradually increase, pegged to the rate of inflation, which will allow UC to maintain its robust financial aid program, lower the student-faculty ratio, increase course offerings and student support services, lessen students' time-to-degree, and ensure that students and their parents are not subject to the tuition volatility of the past.
· UC's Student Services Fee will increase annually by 5 percent ($48) starting in 2015-16 to pay for enhanced student mental health services and other critical student services.
· President Napolitano is requesting authorization from the Regents at their May 21 meeting to increase nonresident supplemental tuition by up to 8 percent annually.
· The Professional Degree Supplemental Tuition (PDST) approach adopted by the Regents in November would remain in effect, except that PDST for the University's four law schools would remain at 2014-15 levels through 2018-19.
Programmatic innovations to improve student success
· The agreement expands a number of programmatic innovations underway or under development at UC, such as adopting systemwide transfer pathways, using data to support student success by eliminating course bottlenecks and improving academic advising, expanding three-year degree pathways, and better utilizing summer session and conducting a systemwide curriculum review to decrease students' time-to-degree. It also includes the university's plan to ensure that at least a third of its new students enter as transfers.
· The agreement's $436 million in one-time funding over three years to help UC pay down its pension liability recognizes the State's obligation to help support UC's pension plan.
· In exchange for the pension funding, UC would adopt, upon approval by the Regents, a new pension tier by July 1, 2016. The new tier, which would affect only new employees hired after it is implemented, would provide, at the employee's election, either:
-- A defined benefit plan with a pensionable salary up to the California Public Employees' Pension Reform Act of 2013 (PEPRA) cap (currently $117,020), plus a supplemental defined contribution plan for certain employees, or
-- A defined contribution plan.
· As with the pension reforms UC has already enacted, the additional pension reforms would be subject to consultation with Regents, faculty, staff, union leaders and other stakeholders.
· Currently, the vast majority of UC's comparator institutions offer employees only a defined contribution plan, rather than a defined benefit plan. A potential hybrid approach that combines a defined benefit and a defined contribution plan would offer future UC employees an attractive combination of security and portability.
· The $436 million in one-time funding, combined with internal financial management strategies, will enable UC to buy down its pension liability, reducing employer contributions for State-funded positions on an ongoing basis.
· UC will continue to pursue pension funding from the State to mirror the support it provides for the retirement benefits of California State University employees.
For more information about the funding framework, go to budget.universityofcalifornia.edu.
View or leave comments for ANR Leadership at http://ucanr.edu/sites/ANRUpdate/Comments.
This announcement is also posted and archived on the ANR Update pages.
April 14, 2015
I am writing to ask that you join me in our efforts to secure full State funding for UC.
As you know, we are engaged in a serious conversation with Gov. Brown and legislative leaders regarding full State support for UC, including discussions about what a modern UC should look like, how much it should cost, who should pay for it and who should be able to attend. This conversation is crucial to the future of UC and, thus, California.
As a UC employee, you know first-hand about the countless contributions that UC makes to the people of California every day, from educating students and treating patients to scientific and medical innovations that help address some of our most pressing challenges. And as a member of the UC community, you also know that we are doing our part and working hard to control costs, operate more efficiently and develop new sources of revenue. But UC cannot cut its way to continued excellence. The State must do its part, and reinvest in public higher education so UC can keep its promise to the people of California.
For almost 150 years, UC has played a central role in the economic and social vitality of this great state. Indeed, California would not be California if it weren't for UC. We cannot lose sight of that fact, nor can we take our success for granted. We must continually protect and invest in those things that will ensure a healthy and prosperous future for us all. Full investment in UC is ultimately a full investment in the California dream.
Today UC is funded by the State, in constant dollars, at the same level as we were in 1999, even though we educate 83,000 more students and have one more campus. That's like adding an additional UCLA and UC Berkeley — without receiving a dime more from the State.
The California economy is improving. The February 2015 state controller's report found that the revenue estimates underlying the governor's proposed 2015-16 budget actually have increased by more than $1 billion — 18.3 percent higher than the original projection. Given the increased revenues available, there is an opportunity for the governor and the Legislature to put the university budget on track to recover from the deep cuts that came amid the Great Recession, and set UC on a financial course that will allow it to serve future generations of Californians as well as it has those of the past.
We need to make sure our elected leaders fully understand the contributions UC has made to California and to its citizens, continues to make today, and must make to future generations.
To this end, I ask that you join me in this all-important effort and contact Gov. Brown and your legislative representatives to let them know that investing in UC must be a top priority for the State.
The stakes are high, and we need your energy to be felt and your voice to be heard.
Yours very truly,
According to the Independent article, written by Mary Thieleke Jackson, director of the Santa Barbara County 4-H Management Board, a draft budget released Friday, May 10, does not include a county contribution to UC Cooperative Extension. Budget hearings are expected to take place the week of June 10-15.
Because the county faces a $10.5 million budget deficit, the board of supervisors is considering all options. If the proposed cut carries through to the final budget, 4-H will cease to exist in Santa Barbara County, the stories said.
"We have to set priorities and figure out what programs work and what programs don't," said Fifth District Supervisor Steve Lavagnino.
He says the board has to make up the budget losses somewhere and he hopes it doesn't include cutting funding for 4-H.
"I can't think of a better place to spend it than on our kids and teaching them about leadership and hard work," said Lavagnino.
California Gov. Jerry Brown's proposed $97.6 billion general fund budget for fiscal 2013-14 boosts spending on education, implements health care reform and eliminates what was a $25 billion state deficit when the governor took office, reported Tim Hearden in Capital Press.
The governor's proposal increases funding for both public schools and higher education, adding $250 million for the University of California and California State University systems. The increases come after voters approved higher income and sales taxes in Proposition 30 in November, bringing relief to UC Cooperative Extension officials who feared further cuts if the measure hadn't passed, the article said.
The budget proposes a multi-year stable funding plan to strengthen the California higher education system, ensure affordability and reduce student indebtedness, according to the news release issued by Gov. Brown's office.
UC ANR will soon be hiring a UC Cooperative Extension term area advisor specializing in table grapes in Tulare, Kern and Kings counties. Thanks to an $840,000 gift from the California Table Grape Commission, the advisor position will be funded for six years by the $1.4 billion annual table grape industry.
"The UC Cooperative Extension farm advisor system is an integral part of the growth story of the table grape industry in California,” said Kathleen Nave, president of the California Table Grape Commission. "Continuing that growth is critical to the industry but also to the rural communities in which table grapes are grown. With this gift, the University will be able to expand its ability to help growers cope with challenges such as pests, diseases, water quality and quantity, and a host of known and unknown issues that could negatively impact the industry's ability to compete in a worldwide marketplace.”
The California Table Grape Commission-funded position will be headquartered in Tulare. UC ANR will also be hiring a UC Cooperative Extension area viticulture advisor who will be based in Kern County.
"This generous gift by the California Table Grape Commission will enable UC ANR to begin recruitment immediately,” said VP Barbara Allen-Diaz. "As state funding has dramatically decreased in recent years, private-sector support is becoming a critical component of funding important positions essential to the long-term health of agriculture throughout California.”
This new funding model will enable UC ANR to hire outstanding academics to continue to conduct research and deliver new knowledge that is critical to the sustainability of farmers and to California's future.