December 10, 2001 Budget tops chancellor's list at staff forum By Jennifer McNulty Budget issues, including the hiring freeze, were at the top of the list of staff concerns discussed at last week's staff gathering with Chancellor M.R.C. Greenwood. Chancellor Greenwood said she doesn't anticipate a significant midyear budget cut but is bracing for cuts of 5 to 15 percent next year. Photo: Victor Schiffrin, UCSC Photo Services More than 300 people attended the Dec. 3 brown-bag lunch meeting, the first of three planned for this academic year. The events are cosponsored by the Staff Advisory Board and the chancellor. In her introductory remarks, Greenwood acknowledged the hardship everyone has experienced since September 11, and she spoke of the ways UCSC and other research universities are adapting to the changing times. "Our research universities are going to play a very important role over the next period of our history," said Greenwood. University scientists will be involved in the development of protections against biological weapons, and the UCSC language studies program will accommodate changing student interests, as well, she said. "We are all still suffering post-9/11 syndrome," said Greenwood, who reassured the audience that the campus has revisited its disaster plans and is prepared to cope with any emergencies. Protocols have also been adjusted, particularly in areas such as mail handling. "Campus security is everybody's responsibility," she said. "We must use common sense, be aware of our surroundings, and report any unusual things." Nevertheless, she added, "We are a substantially safer campus than many of our sister campuses around the country." On the budget front, the news is uncertain, Greenwood told the crowd. With the state facing "very serious fiscal problems" and a possible deficit of $14 billion or more next year, Greenwood said she does not anticipate a significant midyear budget cut but is bracing for cuts of 5 to 15 percent next year. The UC Regents are considering several steps to trim the budget, none of which are popular, noted Greenwood. They include raising student fees, cutting enrollment, deferring state support to the campuses, limiting staff and faculty salaries, and cutting targeted programs that are not part of the core mission of the university. The economic pinch affected the university system earlier this year when funding for salary increases was capped at levels below the proposed amounts. To help make up for the smaller increases, the Regents have funded a capital accumulation provision (CAP). These retirement plan augmentations set aside a small onetime percentage of eligible staff and faculty members' salaries for investment until the employee retires or leaves the institution. For example, a 40-year-old employee who earns $35,000 annually would have $1,050 set aside this year; by retirement, the account would total about $6,000. "It's a way of trying to compensate our employees," said Greenwood. The campus has implemented a general hiring freeze, although all UC campuses, as well as community colleges and the California State University system, were granted an "exceptions policy" by Governor Gray Davis to ensure their ability to remain operational. "He gave us flexibility he wasn't willing to give other state agencies," explained Greenwood. "Be very careful. Every penny you save this year may help buffer what happens next year." Campus Provost John Simpson emphasized the "cyclic" nature of economic downturns, however, and noted that the campus's long-range planning process will provide "priorities, aspirations, and directions" for UCSC regardless of the financial picture. "I think what you'll see is a change in the timing of the implementation of plans, not changes to the plans themselves," he said. As state support wanes, Greenwood said, a "big issue is going to be sustaining excitement about this institution so we'll be able to fill in those resources." Several foundations are "very interested" in UCSC, she said, and there is much good news to share. "About 60 percent of the growth we were expecting has already occurred," said Greenwood. "And $420 million in construction projects are currently under way, authorized, finished, or essentially paid for. . . . It's really coming together." Responding to a question about her salary, Greenwood clarified that she has received a 2 percent salary increase "just like everybody else." Although the Regents have authorized UC President Richard Atkinson to give chancellors and top systemwide administrators larger increases, Atkinson has not done so, a decision Greenwood said she was "quite comforted by. I didn't think this was the right time." Simpson, too, was approved for a greater increase, but he said he has conveyed his feeling via Greenwood to Atkinson and the Regents that it would be inappropriate to receive more than a 2 percent raise until the economy rebounds. "I thought it was a bad idea at this time," he said. Also on the salary front, compensation manager Judith Martin-Hoyt of Staff Human Resources reported that the campus is "whittling away" at making salary adjustments in the "most critical areas with severe recruitment and retention problems." As always, parking issues were discussed, and Greenwood acknowledged that because of an unresolved labor issue, faculty are continuing to pay much less than staff for "A" permits. "We're trying to get the faculty association back to the table, and we're hoping to come to resolution sometime in the not-too-distant future," she said. In addition, Wes Scott, director of Transportation and Parking Services (TAPS), said nighttime enforcement of parking regulations has been approved and will be implemented when TAPS is able to make infrastructure improvements, such as expanding kiosks at campus entrances. Greenwood mentioned the creation of a new task force--made up of representatives from UCSC and the Metropolitan Transit District--that she hopes will be able to improve the availability of bus service on campus. The chancellor's upcoming brown bag gatherings with staff are scheduled for February 20 and April 4. Return to Front Page