To: All Faculty and Staff
January 23, 2025
Dear Colleagues,
As we continue preparing for a campus-wide budget reduction of up to 5% for the next fiscal year (FY 26, beginning July 1, 2025) pursuant to state fiscal circumstances, we write to share additional details and updates.
We recognize the challenges posed by rising costs, a reduction in state funding and budget constraints within the UC system. However, this adjustment will serve as an important opportunity to further strengthen our foundation for long-term institutional success. UC Merced is not alone in facing these challenges—similar reductions are underway at many public research universities across the country, some in much more difficult positions.
Our approach is designed to balance immediate needs with sustainable progress. Next year’s adjustment marks the start of a multi-year budget reduction process, allowing us the time and flexibility to align our revenues and expenditures while maintaining focus on our shared goals. By making gradual changes, we create space for thoughtful consultation and collaboration about what matters most: our priorities as a student-centered research university as captured in our Strategic Plan.
Each Vice Chancellor has been asked to identify ways their division can reduce state and tuition fund expenditures by 5%, along with the potential impacts of these reductions. Proposals are due by March 7, with units in Academic Affairs submitting their plans to the Provost by January 31 to allow time for consultation with the Academic Senate.
It’s important to note that these adjustments will apply only to state funds and tuition revenues (i.e., 19900 and 14000 funds), as these represent our core sources of funding and are tied directly to undergraduate enrollment. Other funding sources, including federal grants and gift accounts, (e.g., 199XX funds, student fees, contracts and grants, gifts, etc.) will remain unaffected.
Division plans will undergo a consultative feedback process by campus leadership, including Vice Chancellors, Deans’ Council and the Academic Senate. The Provost and Vice Chancellor for Finance and Administration will forward recommendations to the Chancellor for final consideration.
We are committed to supporting the campus community and look forward to collaborating with stakeholders across the campus to minimize disruptions and find creative ways to continue serving students, faculty and staff efficiently and effectively.
Thank you for your resilience, dedication, and continued commitment to UC Merced. Together, we can shape a more sustainable future by turning today’s challenges into tomorrow’s opportunities to flourish and shine brighter.
Fiat Lux,
Elizabeth R. Dumont, Ph.D.
Executive Vice Chancellor and Provost
Kurt Schnier, Ph.D.
Vice Chancellor and Chief Financial Officer
|