In an effort to continue open communication and understanding about UCSF’s budget, California’s ongoing fiscal crisis and related financial matters, Senior Vice Chancellor Steve Barclay issued an open letter to the campus community today (Nov. 17.)
“As the grim realities of the state and national economic and financial marketplace begin to have a direct impact on us, having a common understanding of these challenges and the benefit of thoughtful and informed advice within the UCSF community becomes even more urgent and important,” Barclay said. “Now, more than ever, we will need to identify ways, and provide people with the tools, to drive the success of the institution.”
The
letter (pdf) and
budget (pdf) serves as the third campuswide statement regarding the state financial crisis.
Barclay’s ongoing communication and the budget website are designed to keep the campus community informed about resource management, planning and allocation. That is no easy feat, given the daily headlines of impending financial challenges. On Friday, the
San Francisco Chronicle reported that the nonpartisan Legislative Analyst’s Office delivered the grim news that the “state is now on a course toward a deficit of nearly $28 billion over the next 18 months.”
Establishing a regular and transparent campuswide process for planning, budgeting and allocating resources is outlined in the UCSF Strategic Plan, which specifically states that “UCSF should work to improve accountability and transparency, particularly regarding finances, to ensure that stewards of resources are better able to fulfill their responsibilities.”
In his latest report to the campus community, Barclay provided information about current and future budget cycles, strategic initiatives to move the University forward through financially strenuous times, as well as a UC-wide movement toward more accountability.
State Budget Update
The current $48 million financial cut will bring UC funding to the same level as that of the 2007-2008 fiscal year, leaving no additional state funds for such core costs as student enrollment growth, inflation-based cost increases for salary and nonsalary budgets, and improved student financial support.
In anticipation of an additional $65.5 million midyear UC budget cut, as proposed by Gov. Arnold Schwarzenegger on Nov. 6, the University expects as much as a 7 percent systemwide financial loss for the 2008-2009 year.
Impact on Employees
“Throughout the budget process, UC continually stressed to the Legislature and the governor the importance of competitive salaries and benefits, and we are very disappointed that this year’s final budget does not provide funding for salary increases,” Barclay noted.
This means that UCSF will be hard-pressed to meet another recommendation in its strategic plan to “improve the financial aspects of recruitment and retention to compensate for the high cost of living in the Bay Area.”
As the University must cut $100 million from internal funds in response to the state fiscal crisis, general salary increases for faculty and staff will not be granted, although wages for union-represented employees are subject to collective bargaining.
Still, looking on the bright side, UC-sponsored medical and retirement employee benefits remain among the best in the country, and the University will continue to absorb escalating health care costs and next year’s premium increases for employees. In addition to a systemwide, onetime subsidy to defray employees’ share of premium increases, lower-paid employees will continue to pay lower monthly premiums and no benefits will be cut, according to UC officials.
IT Network and Infrastructure
In an effort to enhance UCSF technology for administrative, academic and clinical operations, as outlined in the UCSF Strategic Plan, a capitated funding model has been proposed to strengthen the University’s core networking infrastructure.
The model suggests a system in which users share costs equally via a monthly user fee over a five-year period. So far, a business case for the funding model has been presented to the Executive Budget Committee, the Academic Planning and Budget Subcommittee and the School of Medicine department chairs. Other presentations are planned. A Data Network Recharge Committee has been established to further review the proposal. That committee is expected to submit its recommendation to the Executive Committee by spring 2009.
Management Information Reporting System
As of July 7, UCSF’s Resource Management, Planning and Allocation Steering Committee began work on a new management information reporting and budgeting system.
Cognos, a business intelligence software company, has proposed a UC-wide plan to:
* provide a data warehouse repository of major campus data;
* homogenize information retrieval and orchestration tools to accommodate the gamut of skill levels among University employees;
* clarify and simplify the budget submission and approval system; and
* establish common data and definitions to facilitate campuswide reporting.
“This software is a potential solution to many of our needs for transparency, common terminology and stronger financial management,” notes Barclay.
UC Accountability
According to a Sept. 21 proposal to the UC Board of Regents by UC President Mark G. Yudof regarding a framework for systemwide accountability, the University will be subject to regular, comprehensive assessments of progress toward meeting all goals and priorities across all 10 campuses.
Performance metrics will be established to provide more transparency, communication and accountability about the University’s financial profile, among other criteria. Developing a budget-related, operational performance metrics system is the first priority, with academic, research and clinical metrics to be considered thereafter. This “will provide UCSF with a powerful tool for financial communication [and] is another example of how we are committed to establishing the most solid financial future possible,” says Barclay.
The next planned Universitywide communication will report on further action planning steps that UCSF will take to address these financial challenges. The University will continue to emphasize the critical importance of competitive salaries and benefits for all employees when discussing further actions with state officials, UC officials say.
