State Budget Crisis and Special Election

Financial Stability

Chancellor Block expresses concern over the two scenarios presented for the 2009-10 state budget.

Last Thursday, Governor Schwarzenegger released two scenarios for the 2009-10 state budget. University of California President Mark Yudof has said that the scenarios outlined by the governor “would have serious consequences for the level and quality of service provided by the University of California system to students and taxpayers.” I share President Yudof’s great concern.

The two scenarios are based on whether California voters approve Propositions 1A through 1E in tomorrow’s special election.

In light of the seriousness of the vote and its tremendous implications for state funding for the University of California and UCLA, I again want to remind all registered voters to learn about the ballot measures and vote in this important election.

Proposition 1A would continue temporary tax increases for two years. If approved, it could result in approximately $16 billion in additional revenue for the state’s general fund between 2010-11 and 2012-13. The UC Board of Regents has endorsed Proposition 1A, saying that its passage would enhance UC’s ability to secure more adequate state support for its core mission in the future by helping the state to stabilize its financial picture.

California has already reduced funding to the UC by $115 million. If the ballot measures are approved, the university would face an additional cut of $125 million. However, if ballot measures fail, state funding for UC could be cut an additional $81 million, for a total reduction of $321 million.

The impact upon UC and UCLA will ultimately depend on further decisions made by the state legislature and the governor. In addition, the impact of budget cuts on UCLA’s academic program will be affected by actions taken by the UC Office of the President and the UC Regents.

I am greatly concerned about the potential impact on our ability to serve our students, faculty, staff and community. I believe that the best course of action is to continue our efforts to reduce costs and our planning for a likely reduction of 5 percent in state funding for the 2009-10 fiscal year.

California ballot measures are often complex, but it is critical that you understand the positive and negative implications of the propositions to be decided tomorrow. Whatever your feelings about the ballot measures, please vote tomorrow, and please encourage your friends, family and neighbors to do so.