Assembly subcommittee hears warnings that proposed UC cuts, deferrals would deepen hiring freeze and squeeze students

Chair David Alvarez convened the California State Assembly Budget Subcommittee No. 3 on Education Finance for a hearing on proposed state budget changes to the University of California, saying the panel would focus on the UC system's compact funding, enrollment and related items.

The hearing centered on the governor's proposal to defer portions of the multi‑year compact and to reduce UC's ongoing general fund support by roughly 7.95–8%. Jessica Deichman of the Department of Finance described that plan as “the fourth year of the multi year compact” and said the administration had proposed a deferral of some compact payments and continuation of reductions first included in the 2024 Budget Act. Ian Klein of the Legislative Analyst's Office recommended rejecting the proposed deferrals, saying the state has not identified how it would pay them and that deferrals could come at the expense of other programs.

Why it matters

The university and campus leaders said the combined effect of the cuts and the delayed compact payments would force immediate cost‑saving moves that are already underway at many campuses and would damage students' access and progress. Chancellor Pradeep Khosla of UC San Diego said the campus faces about a $42 million reduction from an 8% cut plus a $31 million shortfall if the nonresident‑replacement payment is deferred, creating a roughly $73 million gap for San Diego. "I ask you to reconsider the magnitude and the severity of these cuts,"…