University of California - Budget Overview
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University of California, San Diego
2010/11 Resource Allocations
University of California - Budget Overview
The 2010/11 State Budget Act was signed by the Governor on October 8, 2010 – one-hundred days into the
new fiscal year. This Budget addressed budget gap of $19.3 billion caused by a continuing weak world
economy and growing structural deficit.
Included in the approved 2010/11 State Budget Act is $7.8 billion in spending reductions, $5.4 billion of new
federal funding, and $6 billion in other revenue actions and/or loans and transfers. The Budget Act holds
General Fund spending essentially flat compared to the prior year at $86.6 billion compared to $86.3 billion
in 2009/10. However, California continues to face sizable budget problems. On November 10, 2010, the
Legislative Analyst Office (LAO) issued a report that projects California faces a $25.4 billion shortfall
between now and June 2012. In addition, the LAO projects budget gaps in the $20 billion range through
2015/16, and advises multi-year planning that includes a combination of solutions that reduce the permanent
structural problem over the next several years.
For 2010/11, the University requested $913 million from the State to avoid declining educational quality,
access and research. Although UC and CSU were among the few entities in the state budget to receive an
increased appropriation, the Legislature approved only $264 million, or 29% of the University’s request. In
total, the UC’s state budget is approximately $2.9 billion, $344 million less than in 2007/08.
The state’s allocation to UC restores $199 million of the $637.1 million cut from the 2009/10 budget. An
additional $106 million in one-time federal stimulus funds brings the total funding restoration to $305 million.
Of the $155.8 million requested for unfunded but enrolled students, the State Budget included only
$51.3 million for 5,121 of the 16,000 student FTEs. This is the first new state funding for enrollment growth
since 2007/08. In addition, the Budget included $14.1 million for UC retiree health benefits, however, did not
support UC’s budget request of $96 million for employer contributions to the UC Retirement Plan (UCRP).
To help offset the State Budget reduction, in November 2009, the Regents approved a mid-year increase for
2009/10 to the Educational Fee of 15% for undergraduates and professionals and 2.6% for graduate
academics. The Regents also approved a 15% Educational Fee increase in 2010/11 for all students.
Increases in Professional School Fees ranged between 7% and 30% for 2010/11. No increases were
approved for the Student Services Fee (formerly called Registration Fee) or Non-resident Tuition Fee. The
fee increases are expected to generate approximately $350 million, net of student financial aid.
The State Budget also commits funding to Cal Grants for UC students so eligible low-income students will
receive enough money from the state program to cover these fee increases. The grants help stabilize UC's
Blue and Gold Opportunity Plan, which ensures that aid is available to pay the systemwide fees of all needy
California resident undergraduates whose family income falls below $70,000.
Separate and in addition to the operating budget, UC originally requested $632 million in capital funding.
The State Budget Act supported $352.7 million in capital construction bond funds for facilities projects on
UC campuses to include funding for the Scripps Institution of Oceanography research facilities.
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11/19/2010University of California, San Diego
2010/11 Resource Allocations
University of California, San Diego - Summary of Campus Allocations
In 2009/10, UC San Diego’s budget shortfall of $84 million, excluding mandatory cost increases, was
addressed as outlined below:
Using $25 million in one-time savings expected from the one-year furlough;
Proceeding with a one-time $40 million internal loan, to be repaid with future interest earnings on unit
cash balances; and
Allocating a permanent $20 million base reduction on Vice Chancellor unit budgets.
Of the 2009/10 state budget shortfall, $40 million was due to a permanent state budget reduction. As noted
above, the campus addressed half of this permanently, deferring the remaining $20 million into 2010/11.
There are no further base reductions for the campus as a result of the signed 2010/11 Budget Act. In
addition, with the State’s restoration of $199 million coupled with additional Federal Stimulus funding of
$106 million for UC, the campus can begin to restore some of the cuts made to programs and services.
However, the campus must continue to seek solutions for its annual and increasing mandatory costs,
resulting from a lack of required state funding. Major drivers of these costs include increasing benefit and
retirement cost contributions, as well as academic merits and contractual salary increases. Because these are
substantial challenges in magnitude, they must be planned and addressed over several years. Accordingly,
Vice Chancellor units are asked to continue to provide multi-year financial plans on how they plan to
respond within their respective units to these continuing funding challenges.
The Office of the President (OP) has not yet made formal allocations to campuses. However, UCSD is
proceeding with its budget proposal to make preliminary allocations to Vice Chancellors (VC) based on the
best information available and several critical planning assumptions on the resources OP will provide to the
campus. Specifically, these allocations are outlined in the following section, and detailed allocations to each
VC are contained within the body of this proposed package.
A. Directed Allocations
Directed Allocations include funding adjustments that are directed to specific programs within Vice
Chancellor (VC) units.
General Campus
1. A permanent allocation of $156,000 for Rady School of Management, derived from a Professional
School Fee increase of 15.4% for resident students, and a corresponding permanent allocation of $76,900
for student financial aid.
2. A permanent allocation of $44,900 for the Graduate School of International Relations and Pacific
Studies, derived from a Professional School Fee increase of 7% for resident and non-resident students,
and a corresponding permanent allocation of $22,100 for student financial aid.
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11/19/2010University of California, San Diego
2010/11 Resource Allocations
3. A permanent allocation of $126,000 for General Campus for the hiring of President Postdoctoral
Fellows into a campus ladder-rank faculty position.
4. A permanent allocation of $4,189,400 and a temporary allocation of $349,500 for Graduate and
Professional University Student Aid Program (USAP). The permanent allocation includes student aid
funding of $4,161,400 for budgeted student enrollment increases in the regular academic year as well as
$28,000 for summer. In addition to need-based financial aid, campuses may use designated portions of
the graduate USAP allocation for Teaching Assistant fee remissions, Research Assistant fee remissions,
and non-need-based fellowships.
Health Sciences
5. A permanent allocation of $279,500 for the Skaggs School of Pharmacy and Pharmaceutical
Sciences, derived from a Professional School Fee increase of 11.4% for resident and non-resident
students, and a corresponding permanent allocation of $137,600 for student financial aid. Also provided
is a temporary allocation of $254,600 to support continuation of 2008/09 enrollment funding for growth
of 40 student FTE. The School reaches steady state enrollment in 2010/11.
6. A permanent allocation of $428,100 for the School of Medicine derived from a Professional School Fee
increase of 7% for resident and non-resident students, and a corresponding allocation of $210,900 for
financial aid. Also provided is a permanent allocation of $70,800 to support continuation of 2008/09
enrollment funding for PRIME program.
Student Affairs
7. A permanent allocation of $17,752,300 and a temporary allocation of $5,400,000 for Undergraduate
University Student Aid Program (USAP). The permanent allocation includes an increase of
$16,251,000 from budgeted student enrollment increases in the regular academic year as well as
$1,501,300 from summer.
8. A temporary allocation of $634,600 from the increase in the Undergraduate Application Fee intended
to support Comprehensive Review in Admissions.
Resource Management and Planning
9. A permanent allocation of $1,116,100 and a temporary allocation of $3,110,000 for basic operation and
maintenance of plant. Permanent funding is distributed based exclusively on General Campus enrollment
growth. Temporary funding includes re-directing of one-time savings from UCOP debt restructuring to
fund maintenance of new space based on campus share of UC enrollment growth.
B. Components for Campus Allocation
Components for Campus Allocation include funding adjustments that are to be distributed across various
Vice Chancellor units.
From 2007/08 through 2009/10, San Diego’s state funded student enrollment for the General Campus
remained at the 2007/08 level of 26,375 student FTE. In 2010/11, the State Budget Act includes
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11/19/2010University of California, San Diego
2010/11 Resource Allocations
$51.3 million supporting UC enrollment growth of 5,121 student FTE. San Diego’s share is expected to be
510 student FTE or approximately $5.1 million, or 10% of total.
10. A permanent allocation of $7,551,800 is provided for General Campus Resident Student Enrollment
Growth. This funding includes state Marginal Cost of Instruction (MCI) and student fee income
generated by the additional 510 student FTE. Additionally, a temporary allocation of $2,073,800 is
provided from student fee income only for over-enrollment for 303 student FTE.
11. A permanent allocation of $3,259,600 is provided for General Campus Non-resident Student
Enrollment Growth based on the first year of a five-year campus-approved non-resident student
enrollment growth plan of 1,500 FTE. Funds provided in this allocation are from the Non-resident
Tuition (NRT) income and the additional student fee income generated based on the first year growth
target of 125 undergraduate FTE.
12. An estimated permanent allocation of $8,892,500 in Research Indirect Cost Recovery (ICR) Funds
attributed to growth in total federal recovery of 5.7% and growth in total private/local recovery of
17.1%. There is also a one-year cash availability of $3,401,800 due to an OP restructuring of some debt.
13. A temporary allocation of $14,253,000 in Research Indirect Cost Recovery (ICR) Funds, of which
$3,107,000 is generated from the recovery of grants issued by the California Institute for Regenerative
Medicine (CIRM), and $11,146,000 generated from recovery of grants issued by the American
Recovery and Reinvestment Act (ARRA).
14. An estimated temporary allocation of $25,000,000 in Indirect Cost Recovery (ICR) Funds generated
from Auxiliary & Self-Supporting Activities (ASSA). Of this allocation, the estimated recovery from
Medical Center is shifted and available for “Sources and Priority Uses” (Schedule 7).
15. A permanent state Undesignated Budget Reduction of $20,000,000 from the 2009/10 permanent state
budget reduction of $40 million. Last year, the campus made the decision to phase in the $40 million
state budget reduction and allocate one-half, or $20 million, on a permanent basis, and defer the
remaining $20 million to 2010/11.
16. Other income sources estimated to be available for campus priorities include permanent funds of
$366,000 from Campuswide Support and temporary funding of $52,609,000 from various sources to
include: $35,118,000 from student fee and non-resident tuition income; $9,875,000 from federal
stimulus funding; $1,000,000 from state lottery funding; $4,617,000 from Medical Center
Administrative Overhead Recovery as noted above; and $2,000,000 from Campuswide Support.
17. An estimated $24,078,000 available for Mandatory Inflationary Cost increases. Funds are intended to
support:
Employee benefits cost increases, including UCRP contributions; and
Salary increases for filled positions permanently budgeted on General Funds and Student Services
Fee Funds.
18. Based on current discussions in the Legislature’s Budget Conference Committee, the 2010/11 Student
Academic Preparation and Educational Partnership (SAPEP) program budgets must be held, at a
minimum, at the 2009/10 funding levels. Therefore, until further notice, the campus must proceed
uniformly to ensure that the 2010/11 SAPEP’s budgets will remain at the prior-year funding levels.
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11/19/2010Schedule 2
2010/11 FUNDS AVAILABLE FOR CAMPUS ALLOCATION
(000's)
Permanent One-Time
A. Directed Allocations
General Campus
Rady School of Management Allocation
(1) $ 156 $ -
Professional School - Fee Increase
Professional School - Financial Aid 77 -
International Relations and Pacific Studies (IRPS)
(1) 45 -
Professional School - Fee Increase
Professional School - Financial Aid 22 -
President's Postdoctoral Fellows - Faculty Support(2) 126 -
(3,4) 4,189 350
Graduate/Professional Aid (USAP) - Educational Fee and Summer Fee
Subtotal 4,615 350
Health Sciences
Skaggs School of Pharmacy and Pharmaceutical Sciences
(1,5) 280 255
Professional School - Enrollment/Fee Increase
Professional School - Financial Aid 138 -
School of Medicine
Professional School - Enrollment/Fee Increase(1,5) 499 -
Professional School - Financial Aid 211 -
Subtotal 1,127 255
Student Affairs
Undergraduate Aid (USAP) - Educational Fee and Summer Fee(4,6) 17,752 5,400
Undergraduate Application Fee Income - 635
Subtotal 17,752 6,035
Resource Management & Planning
Operation and Maintenance of Plant(7) 1,116 3,110
Subtotal 1,116 3,110
Total Directed Allocations $ 24,611 $ 9,749
B. Components for Campus Allocation
Enrollment Growth: General Campus - GF, NRT and Student Fee Income $ 10,811 $ 2,074
Estimated Research Indirect Cost Recovery 8,893 17,655
(8)
Estimated Auxiliary & Self-Supporting Activities (ASSA) Recovery - 25,000
(9)
State GF Budget Reduction (20,000) -
Other Income Sources(10) 366 47,993
Total for Campus Allocation $ 70 $ 92,721
Total Allocations Available for Distribution $ 24,680 $ 102,470
(11)
Inflationary Cost Block Funds 24,078 -
TOTAL ALLOCATIONS $ 48,758 $ 102,470
Footnotes:
1. Professional School allocations reflect the following fee increases: Rady - Residents 15.4% and Non-Residents 0%; IRPS - Residents and Non-Residents 7%;
Medicine - Residents and Non-Residents 7%; Pharmacy - Residents and Non-Residents 11.4%
2. Permanent funding for the hiring of President Postdoctoral Fellows into a campus ladder-rank faculty position.
3. Funding for graduate / professional USAP includes a respective 50%/ 33% of the increase in student fee income associated with enrollment growth and fee increases.
4. A portion of a temporary $60 surcharge, assessed to all students, will flow to campuses through USAP.
5. Permanent funding includes Ed Fee for 2008/09 growth of 12 PRIME student FTE; one-time funding includes Student Fee Income for 2008/09 growth of 40 Pharmacy
student FTE.
6. UCSD's share of the systemwide undergraduate USAP allocation is based on the Education Financing Model.
7. Permanent funding for O&MP is distributed based exclusively on General Campus enrollment growth; one-time funding includes re-directing of one-time savings from
UCOP debt restructuring to fund maintenance of new space based on campus share of UC enrollment growth.
8. Estimated Auxiliary & Self-Supporting Activities (ASSA) Recovery from differential income and administrative overhead based on 2008/09 financial statement,
actual
allocations will be based on 2009/10 financial statement.
9. Reduction of $20 million permanent from 2009/10 State budget reduction.
10. Includes $48 million "other income" as reflected in "Sources" on Schedule 7. This does not include the $4.6 million from Medical Center Administrative Overhead
Recovery (already included in the $25 million Estimated ASSA Recovery income above).
11. The $24.1 million Inflationary Cost Block Funds are allocated centrally and intended for mandatory inflation costs (continuation costs, health benefits, faculty merits,
bargaining units negotiations, UCRP). Includes salary increases for filled positions permanently budgeted on General Funds and Student Services Fee.
CBO
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