ºÙºÙÊÓƵ

With the state budget continuing to deteriorate, UC President Mark Yudof declared a fiscal emergency June 17. UC officials calculate that the UC system faces cuts of $813 million in the fiscal years 2008-09 and 2009-10. Yudof asked the campuses June 17 to respond to three options for cutting payroll costs through some combination of furloughs and pay cuts. Each option would be equivalent to a cut of about 8 percent for most faculty and staff, and 4 percent for those paid less than $46,000 a year.

In March of this year, ºÙºÙÊÓƵ Provost and Executive Vice Chancellor Enrique Lavernia asked the deans and vice chancellors to identify $39 million in campus savings, but, under new budget estimates, ºÙºÙÊÓƵ faces much higher cuts of about $108 million — or a reduction of about 18 percent of core funds. (The ºÙºÙÊÓƵ budget totals about $2.8 billion, including $1 billion for the medical center and about $600 million in core support from state general funds and educational fees.) Part of the $108 million shortfall will be met through the furlough or pay reduction options released on June 17.

Dateline asked Lavernia and two associate vice chancellors, Kelly Ratliff (budget planning) and Karen Hull (human resources), about the state of the budget and what it means for faculty, staff and students.

UC Davis's Enrique Lavernia, Kelly Ratliff and Karen Hull respond to budget questions

Human resources

1. How many layoffs have occurred so far this year because of these budget cuts? How many more can we expect?

Through May 2009, there have been about 100 staff layoffs on the general campus and 15 staff layoffs in the health system. The number of staff layoffs is about 50 percent more than in a typical year.

Some additional staff layoffs will occur. We hope that by taking prompt action to implement cuts and make savings through furloughs and pay cuts, we can avoid a large number of layoffs. Layoffs of Senate faculty members (tenured or untenured) are not being considered.

2. Are there going to be furloughs or salary reductions?

Yes. On June 17, President Yudof declared a financial emergency and asked the campuses to respond to for a systemwide salary reduction and/or furlough program proposed for Aug. 1, 2009, through June 30, 2010. The three options are (1) a salary reduction, (2) a furlough, or (3) a combination that is equivalent to 4 percent for faculty and staff earning $46,000 or less per year, and 8 percent for all other faculty and staff.

It is anticipated that a final decision will be made by the Regents at their scheduled meeting July 14-16.

On Friday, June 19, ºÙºÙÊÓƵ faculty and staff were invited to provide feedback by completing a . Employees without computer access will be provided with hard copies of the survey by their managers or supervisors.

3. Will furloughs or salary reductions be applied equally to faculty, senior management and staff?

Yes. The options presented by President Yudof include both faculty and staff positions and will apply equally to all fund sources. Different parameters are proposed for lower paid workers (i.e., faculty and staff with annual earnings of less than $46,000).

ºÙºÙÊÓƵ furlough rules will be within parameters established by the Office of the President and approved by the Regents.

We expect that additional information, including all details related to implementation, will be provided to the campuses after the Regents reach a decision.

4. Do the proposed furlough or salary reductions solve the budget challenge?

No. The estimated shortfall at ºÙºÙÊÓƵ in 2009-10 is about $108 million, about 18 percent of the state general fund (core fund) budget. The March budget plan addresses about $40 million of the shortfall from student fee increases, budget reductions assigned to campus units and other cost savings. The furlough or salary reduction options are estimated to save about $30 million from state general funds. But, the balance of the shortfall — approximately $32 to $37 million — will require additional actions.

It may be possible to use savings from the furlough or salary reduction of faculty and staff paid by nonfederal funds to offset a portion of the remaining shortfall. We are taking immediate actions to identify additional cost savings (beyond those previously implemented in response to prior year cuts and the March 2009 budget reduction targets). And, we are also aggressively pursuing new revenue sources.

The reports that are due from the five budget subcommittees in late June will provide useful input along with other ideas and options that have been provided from across the campus community.

5. I'm paid from a federal grant, not state funds. Why should I take a pay cut or furlough, when it makes no difference to state funds?

Parameters for implementing furloughs and/or pay cuts are from the Office of the President and assume consistent treatment across all fund sources. The University has a long-standing practice of implementing human resources actions without regard to fund source. This practice ensures that two employees in the same unit are not treated differently simply because they are compensated from different fund sources. Under the principle of equal treatment and University human resources practices, it is appropriate to apply a furlough equally to all employees, regardless of the source of salary.

The federal funds saved by furloughs or pay cuts may allow for the shifting of critical employees from other funds to federal funds, or may create opportunities to increase the percentage appointments for given employees. If so, a universitywide furlough — regardless of source of funds — would be entirely consistent with the spirit of federal recovery efforts. We might temporarily slow work on federal projects, to be sure, but there are usually options to rebudget the funds to meet other needs, or opportunities to pursue no-cost extensions.

6. If the University furloughs or cuts the pay of someone paid from a grant or contract, isn't that a breach of the University's contract with the funding agency?

No. It is true that a furlough of grant-funded employees may cause delays in grant-supported work, but such delays can be mitigated by re-budgeting and perhaps even by the hire of additional, temporary staff. Should a furlough cause a delay in deliverables under a grant, it is possible to apply for a no-cost extension from the National Institutes of Health — and similar considerations are generally available from other public and private funding entities. The program directors in our sponsoring agencies certainly understand that these are difficult times.

7. How will furloughs or pay cuts affect those in part-time or reduced-time positions?

The information provided to date by the Office of the President does not address this issue. However, we are aware that furloughs are particularly sensitive for employees who are not full time, because, depending on implementation rules, furloughs could impact eligibility for benefits as well as income.

Employees who have taken voluntary time reductions and who would potentially lose benefits as a result of furloughs might choose to increase their hours again before furloughs take effect.

We have raised these questions with the Office of the President and will share information as it becomes available.

8. Is there going to be an early retirement program of some kind?

There will NOT be a faculty or staff early retirement incentive program on the order of the VERIP that occurred in the 1990s. However, a new is available to nonprobationary, career employees with appointments of 50 percent or more, with some restrictions. The application period for the program runs from July 6 to Aug. 7, with separations occurring in the fall. Any employee opting for voluntary separation under the program is entitled to a severance package, but may not be rehired by the UC system, anywhere, for three years. In approving a separation, departments must agree not to refill the vacated position for at least 18 months.

The ºÙºÙÊÓƵ Health System launched its own Voluntary Separation Program in May. About 100 applications were filed and most will be accepted.

9. What about voluntary time reduction programs?

A voluntary time reduction program is being used on our campus (START) and has produced some savings. As of May 31, 2009, there were 243 employees from the general campus participating in the START program, generating about $1.4 million in salary savings from all fund sources. The relationship between the START program and pay cuts or furloughs has not been determined, but these questions have been raised with the Office of the President and are expected to be addressed before a final decision is made.

10. What effect is the budget situation going to have on employee benefits such as health care and retirement contributions?

The Regents and the Office of the President have authority for decisions regarding benefits and retirement contributions for all University employees. At this time, we do not have information about any changes in employee benefits, but it is possible that health care premiums paid by faculty and staff will increase. Or, the University may take other steps to reduce benefit costs.

With respect to retirement, the Regents decided at their February 2009 meeting that after more than 18 years of a contribution holiday, all faculty and staff must restart contributions to the UC Retirement Plan during the 2009-10 fiscal year. The Regents’ decision calls for contributions of 6 percent — 2 percent from all faculty and staff and 4 percent from the campus — effective mid-April 2010 (subject to normal collective bargaining processes). The campus budget plan includes $3.65 million to cover the core fund costs for the campus share of the initial 4 percent contribution in 2009-10. These costs will increase to more than $17 million the following year and are likely to continue to increase in connection with the multiyear funding plan that actuarial studies suggest is needed to ensure the long-term viability of the University retirement system.

11. Why do faculty keep getting merit raises and staff do not? Why not have a faculty pay freeze?

Faculty merit reviews are on a three-year cycle. If merits were halted for one year, one-third of the faculty would not get merits, while the other two-thirds already received theirs. To be equitable across faculty, if merits were halted for one year, they would have to be halted for multiple years. The Office of the President is evaluating options to approach faculty merits differently, but no decisions have been made. We do not expect faculty promotion decisions to be linked to funding.

General outlook

12. What immediate, short-term impact can we expect to see from these cuts?

A program of furloughs and/or paycuts will help us address the immediate budget challenge, but will not cover the whole shortfall, or provide a long-term solution. There will also be significant budget cuts across the campus which will have an immediate impact. The list of likely impacts is extensive and includes the following:

• The 2009-10 freshmen class will be about 400 students smaller than the 2008-09 class because there are limited core funds to support instruction and services for a larger class.

• Students will pay higher fees.

• We will dramatically reduce new faculty recruitment and hiring; there will be staff layoffs, and vacant positions will be held open or eliminated; and there will be fewer employment opportunities for students, because departments will have smaller core-fund budgets than last year.

• Important maintenance such as painting and roof repairs, and upgrades to the campus computer network will be slowed or deferred to the extent possible.

• Support services for students and campus departments such as computing support may be available for fewer hours of the day.

• Library acquisitions will be re-evaluated.

13. Why do the numbers keep changing? Several weeks ago I read about a $39 million shortfall. Now I see it is a $108 million shortfall. Will there be a new number next week?

The changes to the numbers largely result from new or revised proposals coming from the state. Initial planning assumptions were based on the State Budget Act adopted in February 2009 and included a modest contingency to account for uncertainty. However, the voters' rejection of the five ballot initiatives in mid-May and worsening projections of state revenue caused the Governor to propose additional (and massive) reductions on two separate occasions in May. But, the Governor’s proposal is a proposal. Final decisions are subject to the legislative process and the Governor’s line item veto authority. And, the impact to the campus is also dependent on decisions made by President Yudof and the UC Board of Regents. Finally, the planning numbers are estimates built on various assumptions and the most current data available at the campus.

We simply cannot afford to wait for absolute certainty before taking actions.

14. How are the cuts going to be distributed between administrative and academic units?

The provost’s was preparing for a $39 million budget reduction. The plan assumed that $14 million would be covered by new student fees approved by the Regents, $6 million would be covered by reducing the number of new faculty hired and deferring centrally funded projects, and that the balance of the $39 million shortfall would be met by budget reductions in dean, vice chancellor and vice provost units.

Cuts to the core budgets (state general funds and educational fee funds) for the campus units were assigned as ranges: from $9 million to $11 million in administrative units (with cuts to individual units ranging from 5 percent to more than 12 percent of core funds), and from $8 million to $10 million in academic units (with cuts to individual units ranging from 1.4 percent to more than 8.5 percent of core funds).

Since it is now clear that our campus share of the state budget reduction will be much larger (about $108 million), the cuts distributed to academic and administrative units will be at the high end of these ranges. Additional reductions will be required in the coming months.

15. I see construction all over campus. Couldn't some of that money be diverted to prevent other cuts?

No, because most construction funding is restricted for this purpose. Capital fund sources include state construction bonds, gifts for specific construction, student fees — in most cases directed to specific projects by student referenda — and private-public partnerships (e.g., West Village, hotel). Although unrestricted campus funds support a small portion of some of the projects, we have determined that the benefit from diverting this small amount of money would be outweighed by the costs.

In fact, current new construction is meant to catch up with program and enrollment growth that occurred over the last decade. Moreover, we are leasing off-campus office and laboratory space for some programs; to the extent we can provide space for these programs on campus, we can relieve our annual operating budget by cutting the annual cost of lease payments.

16. Why doesn’t the campus do more to save energy costs? I see a lot of waste.

The campus continues to pursue aggressive energy conservation actions. For example, we recently replaced old gas-fired chillers with high-efficiency electric chillers at the campus Central Heating and Cooling Plant. (The chillers distribute cold water throughout the campus for cooling our buildings.) These and other projects completed over the last three years are saving approximately $3 million in annual gas and electricity costs. Currently we are replacing exterior lighting in parking lots with high-efficiency, state-of-the-art, bi-level lights. We also offer an incentive program that provides rebates to campus units who replace old refrigerators or freezers with new, high-efficiency models.

The campus is also participating in a new three-year program called the Statewide Energy Partnership that will allow us to leverage funding from the investor-owned utilities to implement over 100 energy efficiency projects, such as heating, cooling, and lighting retrofits in campus buildings. In 2009, we will complete 20 of these projects that are expected to reduce annual energy costs by another $1.7 million.

17. Is the campus going to scale back on fancy receptions, events, groundbreakings, etc?

Units should consider the cost, value and appropriateness of any such events. In 2008-09, some of the budget reduction calculations were based on travel and entertainment expenditures; preliminary review indicates that departments have indeed cut expenditures for these activities. As one example, the Academic Senate combined five awards ceremonies and saved more than $15,000. Many of our events this year have focused on celebration of our centennial year, but even these events have been relatively modest.

Long-term planning

18. What is being done about long-term budget planning? What is the timeline?

In January 2009, the campus established a Budget Advisory Committee and five subcommittees to examine different areas of University operations and make recommendations about possible long-term cost reductions. Initial reports from five subcommittees are due on June 30, 2009. The subcommittee recommendations along with other ideas that have emerged in recent months will be shared with the campus this fall, with final decisions to be announced early in 2010 for implementation in the 2010-11 fiscal year.

Unfortunately, we now know that we will be facing much larger reductions than were anticipated (about $108 million instead of $39 million) when the subcommittees did the bulk of their work this spring. As a result, we will need to develop additional reduction strategies in the coming months.

19. In the long term, is it possible that whole academic programs, departments, administrative units or even colleges could be closed?

It is clear, given the magnitude of these permanent cuts, that we have to fundamentally change how we conduct business, and we will have to downsize our operations. This is likely to involve closure of additional services, programs or departments. Strategic information about these decisions will emerge in the coming months and be subject of significant discussion and consultation with campus constituents.

20. You have noted the necessity of doing things in new ways and stopping doing some things. Can you give examples of things we might stop doing or do differently?

The budget subcommittees have been looking at a wide range of options for reducing costs over the long term. We will bring these ideas forward this summer. In the meantime, campus units are already taking significant steps to improve the efficiency of administrative services, including consolidation efforts within units and across units. This week, vice chancellors John Meyer and Stan Nosek announced plans to explore the consolidation of the Office of Resource Management and Planning, and the Office of Administration. Other units are also pursuing centralized service models for more efficient provision of administrative services such as desktop support, communication services and human resources.

Other examples make more use of software or online systems to improve efficiency. The campus is already implementing systems, such as MyInfoVault for faculty information, and SmartSite for instruction, research collaboration and grade reporting, and this trend is likely to accelerate.

Big picture/UC-wide questions

21. Why doesn't UC just close UC Merced?

We are not aware of any discussions about closing UC Merced or any other campus. The UC system is here to serve the state for the centuries ahead. The state and the UC system made a very deliberate decision to build the UC Merced campus, based on projected need and on underserved areas of the state. The suggestion to close UC Merced is generally viewed by state and University leaders as a shortsighted solution with long-term costs and minimal short-term savings (since expenditures at UC Merced are quite minor in the UC system totals).

22. Why is UC still awarding high salaries and perks to senior administrators?

The Office of the President froze salaries of senior managers in January and
recently implemented a 5 percent pay cut for top leaders, including President Yudof, the chancellors and the executive vice chancellors. These officials would have their salaries reduced by a total of at least 8 percent under the new furlough/pay cut options.

23. We seem to be in an endless cycle of cuts. When is this going to turn around?

Our state funding is controlled by the Legislature and governor. The amount we receive is affected by the state’s economic health and the state’s decision-making processes. The state’s trend over the last 20 years has been to appropriate a decreasing share of the state’s resources to UC and to higher education in general. Part — but by no means all — of this decrease has been offset by state and UC actions to increase student fees. State money is the primary funding source for the University’s instructional programs; many of our other fund sources are restricted for uses such as hospital operations, student financial aid, debt service or research.

We expect that sooner or later, the general economy will recover, and the state's political leaders will find their way to a more stable budgeting system. The state of California, the University and ºÙºÙÊÓƵ have been through difficult budget times before, and emerged well positioned to build on strengths, meet critical societal needs and positively impact the economy.

24. How long will this last? Aren’t there other sources that can be used to address the shortfall in the short term?

The budget challenges are the result of the severe economic crisis faced by many states and nations throughout the world. The circumstance in California is acute and unprecedented. As noted recently by Regents Vice Chairman Russell Gould, the state and the university must view this crisis as a reset. The reset requires a fundamental shift to spending less. Economic recovery, while anticipated in time, is not expected to restore these cuts. Instead, the campus must achieve fundamental, long-term savings and build new, reliable revenue sources. These actions take time. Furloughs or salary reductions provide immediate, short-term savings from the largest portion of the university’s budget, and are necessary to ensuring a balanced budget.

Communication

25. I have worked at the University for many years and have ideas about how we can save money. How do I provide suggestions or ideas?

The campus community has been a great source of ideas and has been asking many good questions. Please continue to share your ideas with us, through the budget@ucdavis.edu e-mail address. Staff who do not have regular access to e-mail should share ideas with their supervisors or managers.

Answers to questions submitted by email

(Added June 29)

The following is a selection of emails submitted to budget@ucdavis.edu, with responses by UC Davis officials.

Subject: Single Parent Families/Family Contribution and Proposed Salary Decreases

To Whom It May Concern,

Per today’s budget update from Chancellor Vandehoef, I have the following concern and proposal. The proposed 4-8% decrease in salary should take into consideration the total family contributions and dependents and should not be an across the board salary cut for staff/faculty who make less than or over $46000. For example, I am a single parent with 3 dependents and no additional family contributions. I make $ 46,740/yr - just barely over the $46k mark. My single income and dependents should be considered in such cuts and categorize me in the lower 4% rate. It’s simply unfair to cut my salary by 8% as compared to someone else who may have a double income and fewer dependents. I strongly urge you to take into account, family contributions to total household income and number of dependents before accessing the decrease in salary. Though, this may take some effort, income tax statements can be used to verify such calculations.

I urge you to strongly consider hardship cases and or family contributions and dependents before such decreases are made.

Reply:

Thank you for sharing your concerns and insights about constructing a fair and reasonable approach to furloughs or pay reductions. Your thought about a finding a way to consider personal circumstances in the imposition of these measures — possibly through household information or a hardship consideration process — has been echoed by many. I assure you that these and other concerns about fairness are at the center of ongoing discussions of these measures.

Regards,

Enrique Lavernia

Subject: A post doc who funds himself via the USDA

Hello,

I am a post doctoral researcher being paid by my own funding a USDA grant. I have my salary fully budgeted in my grant. I am wondering if my salary will be affected and if so why. I budgeted my salary into my grant and expected to get paid that amount for the duration of my grant. ºÙºÙÊÓƵ does not pay me, my funds come from my grant which ºÙºÙÊÓƵ already takes indirect costs from. It seems wrong that I would lose salary and be forced to use the funds for some other part of my research that they were not intended for as they still are going to be there for me to use. The funds do not belong to ºÙºÙÊÓƵ but to the USDA and ºÙºÙÊÓƵ is just holding and dispersing them, ºÙºÙÊÓƵ already gets their 25% so reducing my salary would not serve ºÙºÙÊÓƵ as they would not get the funds it would just hurt me. I understand the budget shortfall ºÙºÙÊÓƵ is having to deal with but do not feel I a person not being funding directly by ºÙºÙÊÓƵ and who did budget his salary into a funding source should be affected/penalized. Please respond and address my questions and answers.

Reply:

I assure you that the campus and systemwide policy makers who are determining whether and how to employ a furlough or pay reduction are actively considering all of the points made in your email below concerning employees paid on sponsored programs. There is no question that a furlough or pay reduction will cause difficulties for everyone it affects. Our task is to determine whether accepting these problems will allow us to minimize--at least in the short-term--more profoundly troubling difficulties, such as layoffs and program closures.

At the present time, it appears that if we decide to apply a furlough or pay reduction to state-funded workers, we will be required by the principle of equal treatment, University human resources policy, and state law to apply a furlough equally to all employees, regardless of the source of salary. A furlough or pay reduction for grant-supported employees may be necessary to secure the benefits of a furlough for state funded employees.

A furlough or pay reduction for grant-funded employees may cause delays in some grant-supported work or necessitate rebudgeting, insofar as the granting agency permits the latter. In the extreme case, should a furlough cause a delay in deliverables under a grant, it is often possible to apply for a no cost extension from the granting agency. These are difficult times, and program directors in our sponsoring agencies certainly understand that. As you may know, the University receives indirect cost funds only when a direct cost is actually incurred. If a furlough or pay reduction causes the salary budget of your grant to be under spent, and you are not permitted to rebudget to address another legitimate expense, the University's indirect cost recovery would be reduced. While the furlough of employees supported by sponsored programs may delay the expenditure of grant funds and the receipt of indirect cost funds in some extreme case, I doubt that it will cause the campus to lose grant funding or indirect cost recovery funds.

I hope that we can continue the dialog about these matters and others as we move forward through this very trying process. We will need everyone's perspective and advice to keep our efforts pointed in the right direction.

Regards,

Enrique Lavernia

Subject: Budget query

Hi,

Is there a possibility that the Retirement Program contributions by employees of 2% could be deferred from April, 2010 to July 2010, should salaries be cut by 4 to 8% for the next academic year? That would keep the cuts at the 4% and 8% levels, rather than lifting them to 6% and 10%.

Reply:

Given the pending salary reduction, there is a possibility that retirement program contributions could be delayed. This would be a Regents decision. However, given the funding requirements for the retirement program and the importance of maintaining its viability, we know it is critically important that employee and employer contributions be initiated soon. However, when the retirement contributions are restarted, the initial employee contribution will reflect a redirection of the DCP so there will be no net loss to employee income associated with this move.

Karen Hull

Subject: voluntary separation, furloughs

First I want to express my disappointment that there is a cap on the maximum number of weeks (16) for the voluntary separation. I feel it cheats the people who have been here much longer. I also don’t understand why managers and people in higher paying positions get a higher maximum number of weeks (6 months). They’ll receive more money anyway because they make more money. It’s another example why lower paid staff feel that their roles here are not viewed as important and that we are expendable. Then there’s the articles in Dateline with the voluntary separation on one side and the 4 million refurbishment of the Rec Hall on the other side. We can spend 4 million on a building but we’d love to get rid of as many people as possible with a voluntary separation offer. I don’t mind furlough days, but not on our regular holidays. If I’m not getting paid but I’m not expected to be here that’s fine. I’m afraid pay cuts will hurt morale more and probably impact productivity. If you’re here working knowing you’re getting less money for the same job you’ve always done that will probably be constantly on your mind. On the other hand if you have a day off without pay at least the day is yours to do with as you please. I understand that we all have to make sacrifices, but since we do let’s give as much advantage to the employee as possible. Thank you for allowing me to express my opinion.

Reply:

Thank you for taking time to express your concerns regarding issues of importance to you. Regarding the voluntary separation program (VSP), the severance amounts associated with this program are consistent with existing policies and union contracts with the exception that higher paid employees may have a maximum severance of $75,000, which is lower than policy allows. It is important to also note that MSP employees have no preferential rehire rights as are found in other employee groups. Preferential rehire is an important advantage to many employees because in many instances it allows employees to retain employment at ºÙºÙÊÓƵ. The lack of preferential rehire is an important limitation for MSP employees. Because a separation under the VSP is an employee initiated activity (that must be supported by management), it is not a strategy to get rid of people. It is really a program designed to retain our valued staff. It allows individuals with flexibility the opportunity to leave ºÙºÙÊÓƵ in exchange for a severance and helps avoid layoffs of colleagues. I am sorry that this approach with the VSP appears to devalue lower paid staff. This is not our intention. We value every employee.

I very much appreciate your willingness to make sacrifices on behalf of the University. As we are formulating our response to the Office of the President regarding the furlough/salary reduction options, I will note your preference for furloughs versus a straight salary reduction.

I know these are very difficult times and I appreciate your perseverance. Thank you for taking time to express your concerns and frustrations.

Take care,

Karen Hull

Subject: Question

Good afternoon, I have a question. I’ve been working for the university for 21 years. My present job is 75%. If I were to find a full-time job, is it too risky on terms of layoffs? It may be a good idea to apply for a full-time job to help with the salary cuts we will be facing.

Reply:

You ask a very good question. Your layoff status is based on total years of service not the service you will have when entering a new position on campus. I encourage you to consult with an Employee & Labor Relations specialist who can help you understand how seniority plays into the layoff process. I have copied Elizabeth Meyer, Director of Employee & Labor Relations, on this message. She will be able to direct you to someone who can help you answer your specific question.

Although no position on campus is certain at any time, departments who are recruiting at this moment have made a very thorough analysis regarding their ability to maintain the position in the near term. I encourage you to explore these opportunities and assess whether one might be right for you. Asking questions about the longer-term viability of the position is completely appropriate and expected by hiring authorities.

I wish you the best!

Karen Hull

Subject: suggestions

I would like to offer a suggestion/comment concerning the budget. Would it be cost effective if the University discontinued contributing to employee retirement accounts? If so, maybe these contributions could resume when the budget does return again (similar to the CAPS program that was instituted during the last budget crunch), or these contributions could resume when the employee does in fact retire, in case the budget takes years to return.

Also, maybe University retirement contributions could be reduced by the amount planned for employee salaries.

Reply:

Thank you for sending in your suggestions to help us manage our budget challenges. We appreciate receiving all of the thoughts and ideas of our employees. Regarding your suggestion, you may be surprised to know that there have been no contributions made to our retirement system by either employees or the UC system for almost 20 years and during these years we have maintained a healthy retirement system. However, our ability to maintain this healthy retirement system without employee or employer contributions is not longer viable because of the increasing number of retirees and the recent devaluation of the stock market. While there will be limited employer and employee contributions in 2009-10, we should anticipate the need to make contributions in the future. I hope you share my commitment to maintaining a healthy retirement system which will include both employer and employee contributions.

Sincerely,

Karen Hull

Subject: Postdocs

Hi. My husband is a postdoc and I can’t find anyone that has been able to answer this question for us. Are postdocs included in the pay reduction (cuts/furloughs)?

Reply:

The office of the President is evaluating this issue. At the moment, we do not have an answer to this question, but we expect some guidance shortly. If postdocs are included in the salary reduction, this will be negotiated with the UAW, the exclusive representative for university postdocs. Please stay tuned. As soon as more is known, this will be broadly communicated.

Karen Hull

Subject: Post Scholars

I heard that the Graduate Studies Division is trying to classify the Post Scholars as students to avoid furloughs. I think this is extremely unfair because they are at the Post Scholars level which gives them the latitude to work when they want, they are allowed to take off when they want and not claim any vacation or sick leave. The Post Scholar level allows them this latitude because they are supposed to operate at a higher level but then to change them to a student is unfair because student classifications are supervised.

Could you please pass this message on to the appropriate person?

Reply:

Thank you for sharing your concerns. Our Graduate Studies Division does not have the independent ability to classify post-docs as students. The determination as to whether or not post-docs are considered students is made by the Office of the President based on a careful evaluation of their employment status. We expect to hear more definitive word on this issue from the Office of the President within a week.

Karen Hull

Subject: Furloughs and Pay Cuts

I'm very unhappy that the University is again thinking that employees making more than $46,000 have deep pockets. I am already subsidizing healthcare via higher premiums to support lesser paid employees. Now you are asking that I take a 4% higher cut in pay through furloughs and pay cuts than them. I've worked hard to gain my pay grade and have not had an increase in 2 years while the people making less than me have negotiated and been awarded big raises because they belong to a union and threaten to strike at every turn. What the heck?

Perhaps the University should be looking at these contracts in a new light and telling these people who always seem to hold us hostage that there are a lot of unemployed people in California just begging for a job of any kind. Maybe if they were faced with concessions or no job, they'd be more willing to negotiate. I'm particularly unhappy that the nurses here at the Med Center are making more than $45/hour to start and seem get everything they want with no cuts - excuse me, but without all the rest of us to wash sheets, make meals and run computer systems, would they be able to do anything at all?

I don't mind pitching in my fair share, but let's be realistic... just how much more can you make the "middle class" (wages between $46k - 85K) pay. Where is the equity. You raise my health insurance premiums every year to a level that requires me to subsidize other employees, UCD has raised my parking permit - also inequitably in comparison to other permits, we are being forced to pay into our retirement again to support the people drawing now, and NOW you want me to take 8% cut while other employees only have to take 4%? What's wrong with this picture.

If you're going to furlough me, then do it for goodness sake and get it over with. I'd rather have the time at home with my family than to work for less money. I have no trust that should you reduce my pay, I will EVER get that back. Kind of like saying if I suffer a tax hike that they will ever go down again or if the city or county tacks on a fee or levy to my utilities that it will ever be removed. I'm broke, but I'm not stupid.

I already work a 9-80 schedule, just make my 10th day in a pay period be with no pay - keep my holidays intact & be done with it. At least this way I only will lose 1 day a pay period instead of working on some convoluted method that Lord knows if I'll ever be able to budget from. I hope you know that my contributions to UC charities via payroll deductions will immediately cease when all this happens too. I simply will no longer be able to spare any amount of money that will not directly benefit my family situation.

I know I am a small voice. You have but to delete this e-mail and be done with it. At least I have had my say for whatever it's worth, even though tomorrow it will be worth (apparently) 8% less.

Reply:

Thank you for taking the time to voice your concerns and ideas associated with salary reduction proposals from the Office of the President. I assure you that your opinion does make a difference and it will be included in the feedback we provide to OP regarding our campus' perspectives. I also appreciate and note your frustration on many levels with our current circumstance . Although I am sure it is small consolation, I understand and empathize with your feelings.

Take Care,

Karen Hull

Subject: (fairness)

As a long-time campus/UCDHS employee, I feel I've done my fair share of going without increases and promotional opportunities over the years. I am willing to endure an across-the-board furlough to help reduce layoffs, but as someone who also sees departments get around salary freezes with equity increases, stipends, and reclassifications after laying off other employees, I hope there will be a freeze on such practices as well. For the sake of employee morale, the savings from these furloughs should not go toward subsidizing just a few to offset their reduction in salary. We all have to make sacrifices by doing more with less.

Please do the right thing.

Reply:

Thank you for taking time to express your concerns. I appreciate your support of the University and your colleagues during these very difficult budget times as demonstrated by your understanding that we can avoid layoffs through the proposed furlough/salary reduction.

I agree with you that there needs to be caution and due diligence exercised related to requests for stipends, equities and reclassifications. We cannot use our human resource policies and practices as a workaround for the salary reduction program. At the same time, I recognize that many employees will be assuming significant additional duties because of staff reductions and reorganizations. These situations will be carefully evaluated to determine if a salary or classification action is warranted.

Thank you for being part of the feedback process.

Karen Hull

Subject: Money-saving suggestions

Hi. Is there a place to submit suggestions for ways the university can save money?

Reply:

Submit your suggestions right here at budget@ucdavis.edu. We appreciate hearing your money saving ideas!

Karen Hull