UC San Diego Chancellor urges lawmakers to reconsider proposed budget cuts and funding deferrals

The California Assembly Budget Subcommittee No. 3 on Education Finance convened on April 22, 2025, to discuss critical funding proposals for the University of California (UC) system, revealing significant budget challenges ahead. The meeting highlighted the state's proposed 8% cut to UC's base budget, which translates to a reduction of approximately $396.6 million across the system. This cut, combined with deferrals of anticipated funding, could lead to a budget shortfall exceeding $500 million for UC campuses.

Jessica Deichman from the Department of Finance emphasized that the governor's budget maintains a multi-year compact with UC, which aims to enhance student access and affordability. However, the proposed budget deferrals and cuts have raised concerns among UC leaders about their ability to maintain educational services and support for students. UC San Diego Chancellor Pradeep K. Khosla expressed that the proposed cuts would create a $73 million budget gap for his campus alone, significantly impacting student services and instruction.

The Legislative Analyst's Office (LAO) noted that while UC received a modest increase in general fund support this year, it was insufficient to meet all budget priorities, prompting the university to implement spending reductions, including hiring freezes and cuts to discretionary operating costs. These measures could lead to larger class sizes and fewer course offerings, adversely affecting student education.

Chancellor Khosla urged the committee to reconsider the severity of the proposed cuts, arguing that they disproportionately burden the UC system compared to other state agencies. He highlighted the potential for increased wait times for courses and longer times to degree completion, which could hinder students' academic progress.

The discussions also touched on the broader implications of federal funding cuts, which could exacerbate the financial strain on UC campuses. With significant federal research funding at stake, UC San Diego could face additional losses that would further impact its operations and research capabilities.

As the committee deliberates on these budget proposals, the future of UC funding remains uncertain, with potential consequences for California students and the state's higher education landscape. The subcommittee's decisions in the coming weeks will be crucial in shaping the financial health of the UC system and its ability to serve students effectively.