To minimize the impact of anticipated state budget cuts on campus programs and people, Provost and Executive Vice Chancellor Virginia Hinshaw said this week that, where possible, permanent reductions will be delayed until 2003-04 and plans will be devised for preferential rehire of staff working in programs identified for cuts.

The governor's revised budget proposal for 2002-03 proposes additional reductions for UC, including the elimination of many K-12 outreach programs, a 10 percent reduction in state funding for research programs, cuts in graduate and professional school outreach, and a one-time reduction in funding for library materials, equipment, deferred maintenance and instructional technology.

Other state funding cuts could also adversely affect UC. Reductions in health and welfare programs, for example, could reduce UC Davis Health System funding and cuts in state agency budgets could result in reduced or eliminated contracts and grants.

"These budget reductions create a substantial challenge," Hinshaw wrote in a May 29 directive to campus administrators. "However, we must take aggressive actions to limit the effects of budget cuts on staff. We will work with staff who may be subject to budget cuts to identify positions elsewhere in the organization whenever possible."

Hinshaw has directed Human Resources officials to develop plans that allow preferential rehire of staff whose positions may be affected by program cuts.

"The knowledge gained by the campus during the recession of the 1990s will serve us well as we put into place an array of services to assist these employees," she said.

The governor's recommendation is subject to change as it wends its way through legislative subcommittees, the full Assembly and Senate and to a budget conference committee before returning to his desk for final action. Though the state constitution requires the budget to be adopted by July 1, the difficult budget choices facing lawmakers could extend the discussion and delay final decisions till well into the summer.

"I believe that, if we delay our planning while we wait for the state's final decisions, we will compromise our ability to react to these cuts in a way that minimizes their long-term effect on the campus," Hinshaw said.

Deans, vice chancellors and vice provosts should continue preparing plans for accommodating an earlier-announced 1.7 percent one-time, across-the-board cut in their 2002-03 state general-fund budgets, Hinshaw said.

To provide as much flexibility as possible, the campus will address as many of the anticipated targeted reductions as possible on a one-time basis in 2002-03 to allow time for broad consultation and strategic planning, she said. Permanent decisions will be delayed till 2003-04 to the extent possible.

"When possible, we will also strive to implement budget reductions in a phased process to allow all affected units to develop appropriate transition plans."

Hinshaw noted that the governor's budget, while targeting areas for reduction, still includes funds for enrollment growth to enable the university to accommodate growing numbers of UC-eligible students.

"This will create a seemingly awkward circumstance where some aspects of our mission are responding to cuts while others receive additional support," Hinshaw said.

Similarly, the state's capital budget was not targeted for reductions and will continue to fund many of the facilities needed for increased growth. And merit increases remain a priority in the governor's budget, she said. "While we clearly require more than has been proposed, the governor's revised budget continues to include funds creating a pool equal to 1.5 percent for merit awards."

Hinshaw reiterated several principles that will guide the campus's budget process: broad-based consultation in decision-making, open communication, a strategic rather than across-the-board approach to reductions, and recognition of the fundamental contributions of both faculty and staff to the campus's academic mission. "While our task is substantial, I am confident that we will approach it with the sense of community that sets UC Davis apart from other institutions."

For budget updates, consult www.news.ucdavis.edu/budget. In addition, questions can be sent to budget@ucdavis.edu.