State Accelerates $30 M in UC Cuts

Exercising new, unilateral authority to redirect 5 percent of state agencies' funding, Gov. Arnold Schwarzenegger on Dec. 18 halted the transfer of $29.9 million into UC's operating budget. Instead, the mid-year cuts were folded into $150 million in scheduled state payments that were due to local governments late last month.

UC's mid-year cuts included $12.2 million from K-12 outreach programs; $2 million from UC labor institutes; and $15.7 million from other, nondesignated programs. UC officials said that they would not act "precipitously" on the reductions, and that programs and jobs in the affected areas would not come to an immediate end. (See <www.universityofcalifornia.edu/news/
budget/welcome.html for UC's response.>)

"We have an obligation to work with our employees and the people they serve in an orderly, deliberate, responsible way," said Larry Hershman, vice president for budget. "We do not want to act on (the announcement) in a precipitous way."

While the speed with which the governor pushed for the mid-year cuts surprised some state agencies—it was assumed that the Legislature, which reconvenes today, would have to approve these cuts—the targeted areas were announced in late November along with more proposed UC cuts in the 2004-05 budget.

Assuming all of Gov. Schwarzenegger's cuts occur over the next 18 months, UC's total state support would further decrease by $114.4 million. President Robert Dynes has said that 1,500 jobs have already been eliminated this past year.

The December edition of the Our University newsletter also covers budget issues.