Facing down an anticipated budget shortfall of $40 million that is two and a half times larger than last year’s reductions, UC Santa Barbara officials are planning for salary cuts and a furlough plan for all employees and faculty to help address the fiscal crisis.
On the table are three options — pay cuts, unpaid vacation or a combination of both — that all add up to an 8 percent slice to paychecks. Employees that make less than $46,000 would receive the softer blow of a 4 percent cut.
And while there is still no approved state budget, and therefore no University of California system budget, there is little doubt that California’s $24.3 billion deficit is going to result in cuts to higher education.
“Nobody is going to be surprised by the fact that we’re going to have to take a big whack,” said Paul Desruisseaux, UCSB’s assistant vice chancellor of public affairs.
The UC system as a whole will likely be dealing with an $800 million shortfall this coming fiscal year, a gaping hole that will be partly plugged by a bump in student fees, the systemwide pay cuts and furloughs, and individual reductions by each campus.
“These are unprecedented times and we face unprecedented challenges,” UC President Mark Yudof said in a memo sent out to employees last week.
UCSB has already gone through some painful budget decisions in recent years, including halving the popular UCSB Extension program and eliminating the Osher Lifelong Learning Institute.
Vacant positions are being left unfilled or folded into other jobs, student fees have been increased and senior management officials have agreed to pay cuts of their own.
While there might have been some surprise and dismay to see the cost-cutting scenarios revealed last week, Desruisseaux echoed comments made during a recent open budget meeting at the campus when he said the budget picture hasn’t been pretty for some time and will only get uglier in the coming months.
“I think people are resigned to hard times,” he said. “California now has the lowest bond rating of any state in the country and it doesn’t have a budget yet.”
There is some discussion of pushing the recently approved student fee increase even higher, campus officials said, in addition to looking for other areas to consolidate or curtail programs.
Desruisseaux said budget officials are looking into the possibility of having some university programs share common support staff and administration.
As far as the salary and furlough plans, he said comments from employees and faculty are being gathered through the end of the month before being sent off to the UC Regents, who will ultimately decide which option to take.
That puts members of the American Federation of State, County and Municipal Employees (AFSCME) Local 3299 in sit-and-wait mode, said lead organizer Julian Posadas, adding that said UC officials have contacted the union about dealing with the budget crisis.
“We obviously feel it’s somewhat surprising they want to start meeting with us now that it’s a crisis,” he said. “When we were trying to negotiate a fair contract with our workers, they didn’t want to listen to us.”
He said although no official decisions on wage cuts or furloughs have been made, workers are ready to make a stand and ask that cuts be made elsewhere.
“It would jeopardize their livelihoods,” Posadas said of the service workers represented by the union. “Some off these workers have fought hard to get what they got with this contract, yet it would definitely put a dent in their livelihoods. We’re talking about workers who already work two or three different jobs just to make a living in Santa Barbara County.”
UC officials noted that salaries for top administrators have been frozen systemwide, in addition to the cancellation or deferral of certain bonus and incentive programs. The president, chancellors, executive vice chancellors, and executive and senior vice presidents have also agreed to a 5 percent salary cut this year.
Under the proposed salary or furlough plans, those senior executives would receive a total salary reduction of at least 8 percent, according to Yudof’s memo.
-8% for everyone with 46K+: a really bad joke given cost of living at the coast : 6/23/2009
The so-called options are a joke anyway: one just gets a choice how exactly one is screwed, the financial consequences - i.e., -8% - are the same. Basically, the plan is completely unfair since it puts younger faculty and staff at an extreme disadvantage. Obviously here at UCSB were already underpaid compared to what faculty in other states make: An assistant professor at some state college in ID or TX makes the same as an assistant professor here at UCSB, but housing costs up to 5 times more here than in many other places. Younger faculty are those that make less money to begin with and had to find housing at a time where the housing bubble was largest. If someone is Full 6 or 8 or even above scale (I am not even mentioning the people making the real money, like the Chancellor etc.) , then (i) they most likely have already been here for a while and hence bought a place when housing was still affordable to us mortals, and (ii) they just won’t feel a pay cut: it doesn’t really matter whether you make 160K or 147K a year. If on the other hand someone is a low-ranking Associate Professor (like me) or staff, then (i) they most likely have only arrived here when paying for housing was already on the brink of not being affordable, and (ii) a pay cut of 8% means changing from saving a few hundred $ each month to running a deficit, especially when pension plan contributions and health plan increases are considered at the same time. Now, since we’re already paid salaries whose ratio to our costs of living (because of housing alone) is a joke compared to what happens in the rest of the country, then UCOP could at least have the decency to make the salary reduction proportional to the income. For example reduction = -1 + ( 0.0001 * income ) which means, for example, people making 160000 and more get a 15% cut, people making 120-130K get an 11% cut, people making 80000 and more get a 7% cut, etc. Yes, that may mean annoying some of our Nobel Prize winners and UCOP and Chancellors and the like, but it would socially fairer than this oh-we-are-so-impartial-and-cut-everybody’s-salary-the-same reduction, which completely disregards the *real-life* consequences of a reduction of this magnitude and will drive younger faculty away from UC. UCOP would be well advised to not just protect Full Prof 7 and higher salaries but to consider the future of the system, which lies to at least some degree in attracting and retaining top faculty from the more junior ranks. What does UCOP think, that $800-1000 less a month does not matter for staff and junior faculty? That we can live working full time and making a deficit each month?
RZ
After a few years in Santa Barbara it dawns on them : 6/23/2009
I find it interesting that people who decry the wages and living costs in Santa Barbara do not leave and move to those places that pay more and cost less. Don't you get it? Everyone is thinking the same way as you - they won't budge - so Santa Barbara is overcrowded and as a result extravagantly expensive. If it is not worth living here then leave! The population will go down and prices will fall. It is everyone who insists on staying here and working for the wages offered that has made the problem. You have met the enemy and it is you!
Beenherealongtime
Cuts should be proportional and should start from the top : 6/23/2009
I agree with RZ that the cust should inded be proportional and that the cuts come at the worst time. The UC has of late underpaid many of its staff, in particular those at the middle or lower rungs. The sad thing is that everyone is feeling the pinch, the County has already gone through a furlough with the added hur of having no cost of living increase. Nevertheless, those at the top are least likely to feel the hurt than those at the bottom of the pay scale in a place that is suppose to be paradise, but is more like a gilded cage.
Not Here
cut beneifits and retirement : 6/23/2009
I would first look at the benefit and retirement packages. Can those be cut or changed before cutting salaries?
local
income : 6/24/2009
researchers (lab technicians and postdocs) typically make on the order of $40k. The 4% cut would put them at $36k. This type of work, and also most jobs such as maintenance and administrative staff, have a specific set of tasks that must be completed. So they will need to do the same work despite a furlough. They aren't going to accept payroll, grants, grades, etc never being filed, certain buildings not being fixed or cleaned, or the library closed a few extra days of the week. As mentioned above, it is a mystery where many staff manage to live in this county, as someone having $2700 takehome pay can afford $950 rent with traditional 3X income criteria. I think you need to have a spouse with investment income?
Julie
Staff and Faculty Salary Cuts??? : 6/25/2009
I work at UCSB in an academic department as a staff member. I have a family (wife and two kids) and I live in subsidized housing. I have lived in SB my whole life. I have worked on campus 8 years and have slowly moved up the scale to where I now make barely enough to support my family. A 4% pay cut or more (if furloughs are included which would happen to be during my busiest time of year and you think the work is going to get done on time) would devastate my family financially. You have to ask yourself though....why in the world is the UC system proceeding with capital building projects while cutting salaries. Is a new road, parking structure or building more important than being able to keep food on the table, I think not. You also have to realize that if the UC system hadn't been poring a couple of billion dollars into a new campus over the last few years the UC systems would be in a better place financially.
MP
Regents should take pay cuts : 7/6/2009
The UC Regents are paid a salary of a million dollars each annually. If they were paid normal salaries like everyone else then the university could save millions of dollars.
JN
Lots of wild figures... : 7/7/2009
The Regents are unpaid. The UC Retirement System is only 50% funded, and taxpayers of the state of California haven't contribute one red cent to it since 1990. Most likely it will go bankrupt and UC employees will be put on 401(k) type systems. Lots of portions of UC make a lot of money... the med centers, dorms, food services, summer programs etc. The big money loser, in the eyes of the admin, is teaching. Teachers cost you money, but health administrators make you money.
Cheadle
California Dreaming Becomes a California Nightmare : 7/8/2009
All of California, in so many ways, is not worth living in any more. California politics have stunk as long as I can remember–30 years solid. The Golden State is being dismantled, bit by bit. The Terminator, our Governor, has lived up to his name.
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