Dear Colleagues,
We are writing with a quick update on the campus budget, now that the state budget has been signed by the governor. Although our state allocation was cut by $1 million, we will NOT impose an across-the-board budget cut at UCR for FY25-26. That said, each organization at UCR is in a unique financial position, so senior leaders are examining their budgets to ensure they have sufficient resources to cover expenditures within their organizations. For some, this alignment may necessitate some organization-specific reductions in personnel and/or programs.
Effective July 1, all represented staff received increases per their negotiated contracts, and all non-represented staff received increases of 3.2%. Effective October 1, faculty will receive a 3.2% increase to the salary scales, plus a 3.2% increase on any off-scale component, and distinguished faculty who are above scale will also receive a 3.2% increase. This salary program for FY25-26 was announced by UC President Drake in June.
Overall, from the campus perspective, the implementation of salary savings last year has provided us with sufficient resources to meet our fixed cost increases for FY25-26. These fixed cost increases amount to around $34.2 million (approximately $32.4 million in salaries and benefits and $1.8 million in expenses such as utilities).
New permanent resources include:
- Salary savings: $16,700,000
- Additional tuition: $8,350,000
- Investment income: $2,000,000
- Savings from reductions in central leases: $2,250,000
- Total: $29,300,000
The remaining gap will be covered with one-time funds left over from the salary savings introduced in 2024-25. We anticipate that we will recoup additional permanent state funding in FY26-27 to account for our growth in California undergraduate enrollment in 2025-26.
We hope you enjoy the remainder of the summer and look forward to seeing you on campus in the fall.