Governor’s Revised Budget Proposal

May 18, 2020
Kim A. Wilcox
May 18, 2020

Dear Campus Community,

Each year around this time, the Governor provides an updated budget proposal for the coming year based on the state’s financial outlook. Last week, Governor Newsom released his May Revise. In light of COVID-19 and the pandemic’s impact on state revenue and expenses, this year’s update was more significant. 

If enacted, the proposal will cut UC’s budget by about 10% from current levels and reduce or eliminate most new appropriations. This represents a cut of approximately $338 million to the University system’s main appropriation, and if UCOP allocates the same level to each campus, approximately $26M to UCR.  

We hope this is the first and last budget cut from the state, but that is not something we can rely on at this point.

There are several variables that could impact the final state budget. First, the state Senate and Assembly are constitutionally required to pass a final budget bill by June 15. Second, the state revenues will be adjusted further after July 15, the extended date for filing 2019 taxes. Finally, Governor Newsom’s budget relies on federal funds to provide relief against the state’s deficit. So, while this revised budget is informative for our planning, it is still far from a final decision for next year.  

Governor Newsom’s proposed budget also reduces his earlier recommendation of $25 million in new funds to support the UCR School of Medicine to $11.3 million. This support is one of the few targeted investments remaining in his budget and reflects his support of UCR and a commitment to address the health needs of our region.  

We continue to work with the Office of the President on exactly what these recommendations mean for UCR. 

As we plan and evaluate several budget scenarios, we have also appealed to our Inland Empire legislative delegation to continue their efforts in support of UCR and the UC. We believe that higher education will fuel the state’s recovery and provide the foundation on which we rebuild. 

This is a particularly challenging budget season, which will affect the entire campus community in some way. We will continue to provide updates as things progress.