UC System outlines budget cuts target administrative roles to protect student services

The Assembly Budget Subcommittee No. 3 on Education Finance convened on April 22, 2025, to discuss the financial challenges facing the University of California (UC) system, particularly in light of proposed budget cuts. The meeting focused on the implications of these cuts for administrative and student services, as well as the overall financial health of the UC system.

The session began with a presentation outlining the UC's planned allocation of funding, emphasizing that cuts would primarily target administrative costs rather than academic affairs or student support services. This approach aims to minimize the impact on students while addressing the need for budget reductions. The committee expressed appreciation for the UC's efforts to focus cuts on areas less likely to disrupt student services.

Chancellor Khosla provided insights into the campus-level implications of these budget cuts. He noted that while administrative cuts would be slightly higher than those to academic programs, any reductions would inevitably lead to increased class sizes and diminished student services. Khosla highlighted the significant progress made in graduation rates at UC San Diego, which rose from 55% to 77% over eight years, and expressed concern that budget cuts could reverse this progress.

The discussion also touched on the broader financial context, with the Department of Finance confirming that the proposed cuts were consistent with the 2024 budget act. However, concerns were raised about the disproportionate nature of the cuts compared to other state agencies, prompting calls for continued advocacy against these reductions.

The committee explored the concept of reserve policies within the UC system, noting the lack of a system-wide approach. This inconsistency complicates financial planning for campuses, particularly in balancing immediate needs with long-term financial stability.

A significant portion of the meeting was dedicated to discussing the implications of deferred funding. The UC representatives explained that reliance on deferred allocations complicates budgeting and labor negotiations, as campuses must plan for future expenses without guaranteed funding. This uncertainty poses challenges for hiring faculty and staff, particularly in light of enrollment growth.

In conclusion, the meeting underscored the critical financial challenges facing the UC system and the potential impact on student services and academic outcomes. The committee emphasized the importance of continued dialogue and collaboration to address these issues and protect the educational mission of the UC system.