Dear Colleagues,
I am writing to share an update on the work of the Executive Budget Action Group, which convened for the first time last week. During our meeting, we reaffirmed our focus on managing structural deficits, rising costs, and uncertainty in federal and state funding through disciplined stewardship and coordinated leadership.
Our discussions continue to be informed by the fundamental notion that the budget reflects our values. The decisions we make in the coming months must safeguard UCLA’s academic excellence, strengthen our research and clinical missions, and ensure fairness and transparency across our community.
Emerging Institutional Principles
The group has begun shaping a set of joint guiding principles that will anchor our decisions across the entire university, including UCLA Health. These principles affirm our shared commitments to:
- Protecting the academic core — teaching, research and health care
- Strengthening shared governance and transparency
- Ensuring equity and fairness in how adjustments are made
- Prioritizing long-term stability over short-term solutions
- Exercising operational discipline and improving efficiency
- Supporting the sustainability of our clinical enterprise
- Pursuing innovation, revenue diversification and strategic growth
- Managing risk and reinforcing institutional resilience
These principles will guide the difficult decisions ahead and ensure that our strategic planning reflects an integrated approach consistent with One UCLA.
Immediate Focus Areas
At our next meeting, the group will turn to two foundational questions:
- How must our budget change to support long-term stability?
Our current model is not positioned to meet today’s financial realities. We will focus on practical adjustments that can be implemented now — improving spending discipline, clarifying expectations for units, and strengthening our ability to assess new requests and program adjustments. This work will help us move toward a more sustainable, understandable and equitable framework.
- How can philanthropic policy contribute to institutional stability?
We will engage the group in a review of alternative structures that could provide a stronger and more predictable revenue base for campus operations with External Affairs partnership. This discussion will consider peer practices, donor expectations, and the need to balance philanthropic growth with core financial needs.
Our Charge Going Forward
The Executive Budget Action Group, which I chair, includes Darnell Hunt, Megan McEvoy, John Mazziotta, Steve Agostini, Michael Beck and Tony Bernardo. Julie Sina will coordinate agenda setting and follow up. Other persons will be added to each meeting depending on the issues to be addressed. We will meet every other week, supported by focused workstreams, to identify near-term actions and longer-range strategies.
In the coming weeks, I will continue to share updates. Transparency and clarity are essential, especially during times of adjustment.
A Moment for Steadfast Leadership
This is a defining moment for UCLA. We must demonstrate the discipline, coordination, and integrity that our mission demands. I am deeply grateful to the faculty, staff, and administrative leaders who are helping guide this work with thoughtfulness and resolve.
Together, we will ensure that UCLA remains a top comprehensive research university, which educates, discovers, heals and serves — not just today, but for generations to come.
We are One UCLA.
Julio Frenk
Chancellor