October 31, 2001
To: Campus Community
From: Chancellor M.R.C. Greenwood and Campus Provost/EVC John Simpson
Re: Budget News
As many of you are aware, the current downturn in the state and national economy will have a direct effect on the budgets of public institutions, including the University of California. Although we do not yet have details about specific impact on UC Santa Cruz, we recognize that the situation is serious. The Governor has directed all state agencies, including the University of California, to consider how they would reduce their budgets in 2001-02 and 2002-03; the UC Regents have begun discussing a range of options for dealing with possible budget cuts.
Given the present uncertainty regarding the exact size of the state's budget problem and the steps the Regents and the Office of the President will take to respond to cuts at the systemwide level, it is premature to make campuswide policy decisions about our budget. As soon as we learn more information from the Office of the President, we will advise the campus community and act accordingly.
More specifically, Governor Davis has issued two Executive Orders, one imposing a hiring freeze and another directing the Department of Finance to identify general fund savings from all state agencies and departments. To realize these savings, the Governor has directed state agencies to consider a range of actions, including reduction of equipment purchases, personal service contracts, consulting contracts and travel. These Executive Orders remain in effect until June 30, 2003.
In the last week, Provost/EVC Simpson has met with the Principal Officers to notify them of the seriousness of the situation and to encourage them to exercise careful judgement before committing additional permanent funds. Provost Simpson and members of his staff also are consulting with the Academic Senate to ensure that its leadership is fully apprised of the situation. Indeed, this message augments correspondence last week from the Provost to Principal Officers. The Provost's correspondence is posted at:
We emphasize that the UC Office of the President is still determining exactly how these Executive Orders will apply to the University of California. Even so, there is consensus among the Principal Officers that the strategic planning process in which we are currently engaged must be completed, even if there may be delays in some aspects of its implementation. This planning is more important now than ever, as it will help us understand our current priorities and will position the campus to take advantage of opportunities, when the economy turns around.
These are times of challenge and change, given world events and their direct and indirect affect on us all. UC Santa Cruz has important work to do for the benefit of our students and our society. Our faculty and staff are engaged in crucial teaching, research and service, and we will continue to do so. We have persevered through difficult financial times in the past, and, working together, we will again.