Budget Reduction Update

March 5, 2021
Thomas Smith (Interim Provost and Executive Vice Chancellor) and Gerry Bomotti (Vice Chancellor and CFO)
March 5, 2021

Dear Campus Community, 

We are pleased by the recent announcement from Governor Newsom and legislative leadership that the state will restore permanent funding to the University of California to its levels from July 1, 2019. This funding restoration, which is subject to full legislative approval, would take effect July 1, 2021. 

As a result of an anticipated $31.3 million budget restoration, the planned two-year core budget reductions for all UC Riverside campus units will not be as deep as originally announced. Last fall, we originally estimated core budget reductions between $77-$100 million.

With the Governor’s announcement, we anticipate a core budget reduction of approximately $51 million. These reductions are still needed as the restoration in state funding does not account for mandatory cost increases for fiscal years 2021 and 2022, and flat tuition revenue. The main funding sources of UCR’s core budget are state funding allocation and tuition revenue.  

Below are the original two-year budget reduction percentages for campus organizational units, and the updated percentages reflecting the funding restoration. Your organization’s original reduction percentage can be found on the budget website.

•    Original Core Budget Reduction: 11%

•    Revised Core Budget Reduction: 8.2%

•    Original Core Budget Reduction: 12%

•    Revised Core Budget Reduction: 9%

•    Original Core Budget Reduction: 15%

•    Revised Core Budget Reduction: 11.8%

•    Original Core Budget Reduction: 20%

•    Revised Core Budget Reduction: 15%

Unit leaders and chief financial and administrative officers have been notified of these updated budget reduction percentages, and updated budget reduction letters will be distributed shortly. Individual units on campus will determine how the revised cuts will be implemented within their organizations. 

UCR also just received $46 million in one-time funds, $15 million of which is set aside for student financial aid, in the federal COVID relief bill passed in December 2020. The remaining funds are expected to be used for COVID-related one-time expenses. Once we receive additional guidance on appropriate use of these funds from the federal government and the UC Office of the President, we anticipate making a portion of these funds available to units on campus.  There is also a possibility that the current COVID relief package being discussed in Washington D.C. may have additional one-time funding that would come to UCR. We will continue to track this closely.

For more detailed information about the budget reduction process visit the budget website

Thank you for your collective efforts to respond to this series of historic challenges on our campus. We will continue to keep you informed if there are changes to the budget situation.