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THE FACTS: UC BUDGET BASICS The University of California's annual budget in 2009-10 HOW DO STATE FUNDING CUTS AFFECT UC? totals $20.1 billion. Nearly three-fourths of that budget State support for UC has steadily declined. In 2009-10, the comes from funding sources that restrict the revenue to state cut support for UC's operating budget by 20 percent. specific uses: state and federal research contracts and grants, enterprise income such as student housing and Since 1990, the state's contribution to educating each UC food services, and private donations to support specific student has dropped more than 50 percent in inflation- scholarships and other university programs. adjusted dollars. 2009-10 Projected UC Revenue by Source Per Student Average Expenditures for UC Education The remaining 26 percent of UC's total budget, $5.3 billion in 2009-10, represents UC's core unrestricted operating funds. These core operating funds come from three sources: state general funds (50 percent), student fees (38 percent) and UC general funds (12 percent). UC general funds include revenue from nonresident tuition, portions of the overhead on federal and state contracts and UC currently enrolls more than 15,000 students for whom it grants, Department of Energy lab management fees and receives no state funding. overhead, a portion of the patent royalties earned on UC Money from the restricted revenue sources cannot be used inventions, application and other fees and interest earnings. to fill the funding gap left by state cuts to UC’s core budget. HOW DOES UC SPEND ITS CORE FUNDS? HOW HAS UC DEALT WITH THE STATE CUTS? UC spends its core operating funds on financial aid, A systemwide 12-month furlough program reduced employee benefits and salaries, equipment, supplies and employee salaries 4 to 10 percent, with higher paid workers utilities. taking the biggest cuts. The program is expected to save $184 million. Almost all bonus programs have been frozen. 2008-09 UC Expenditures from Core Funds Campuses have deferred faculty hiring, eliminated staff positions and laid off more than 1,900 employees. They have cut academic programs, eliminated courses, increased class size and cut back student services such as counseling and library hours. UC curtailed freshman enrollment for fall 2009 by 2,300. Student fees were increased 15 percent for the 2010 winter term and another 15 percent for fall 2010. The Office of the President was downsized for a savings of more than $60 million. UC has instituted administrative efficiencies, energy savings and group purchasing programs to trim operating costs. UC Office of the President | April 2010 www.universityofcalifornia.edu/budget
"THE FACTS UC BUDGET BASICS"