Posts Tagged: budget

Budget update and strategies

As you know, the University is experiencing severe fiscal challenges across all locations because of COVID-19 and its economic fallout. UC ANR is facing a possible 12.7% budget reduction for the 20-21 fiscal year. The University is hoping for a supplemental federal appropriation from Congress which may help to reduce the budget cut.

“Congress wanted to pass the fourth COVID supplemental package before August, but they weren't able to come to an agreement,” said Anne Megaro, director of governmental and community relations. “Many of them are still in D.C. working and it could take several more weeks of negotiation before the bill is finalized.”

Until we know more about our fiscal position for the coming year, we are implementing measures to ensure that we are able to continue to deliver the UC ANR mission. As these fiscal challenges become more apparent, many of you have expressed concerns about continued job security and what's next. 

Our Commitment 
UC ANR's strength lies squarely with its people. We have a strong commitment to our employees and seek to implement this by being proactive, transparent and innovative wherever possible. In addition to this ongoing commitment, we will prioritize protecting programmatic goals and current positions. Layoffs will be considered only as a tool of last resort to address the fiscal challenges. 

We will approach this situation as we have faced many other challenges - thoughtfully, strategically and with our employees and mission in mind. To do this effectively and equitably across UC ANR, we are implementing a series of strategies.

Our Strategies 
To achieve the above we initiated a hiring freeze effective July 1 and deferred funding requests for new staff positions and expenditures. Staffing requests will only be approved by exception based on compelling priorities. This hiring freeze will remain in effect for 12 months, unless the budgetary condition improves. Additionally, we are:

• Ensuring a high level of flexibility to reassign current staff to critical positions using the current Redeployment program, wherever possible.
• Approving reasonable use of the voluntary Employee Initiated Reduction in Time (ERIT).
• Proactively considering other UC systemwide strategies for actions to reduce costs such as voluntary reduction in time and voluntary early retirement.
• Working to grow and diversify the Division's revenue streams, prioritizing the development of contracts and grants, gifts, and other independent revenue sources.
• Maintaining programmatic delivery and continuing to invest in key areas, including those identified in the strategic plan, to strengthen delivery of extension and operational efficiency to further our mission.

Our hope is that the hiring freeze and other cost-cutting measures will be short-lived and that Congress will provide the necessary funds to minimize cuts to the University. UC has initiated an advocacy campaign to encourage Congress to support state funding as well as supplemental research and cooperative extension funding.

Glenda Humiston 
Vice President

 

Governor proposes UC budget cuts in May revise

As expected, California's response to the coronavirus pandemic and loss of tax revenues resulting from the disruption in business have dramatically changed the state's economic outlook.

Governor Gavin Newsom released his revised budget proposal for 2020-21 on Thursday, May 14.

The governor said California began the year with a projected budget surplus of $5.6 billion for 2020-21. The reduced revenue, combined with increased costs in health and human services programs and the added costs to address COVID-19, leads to a projected budget deficit of approximately $54 billion, he explained. 

To balance the budget, he called for a number of actions, including withdrawing the 5% budget increase for UC ANR and 5% increase for UC in general funds he proposed in January. He also proposed a 10% reduction in support for the UC system, UC Office of the President, UCPATH and UC ANR. The Legislature is required to approve a budget by June 15.

“Let me remind you that this is a proposal,” said Vice President Glenda Humiston. “This could all change if the federal government provides funding to bridge the gap or the economy recovers more quickly. We will continue to work with our partners to secure adequate funding to achieve our mission.”

On May 18, President Janet Napolitano announced

• a systemwide freeze on salaries for policy-covered staff employees; 
• a systemwide freeze on salary scales for policy-covered, non-student academic appointees. To ensure a stable faculty pipeline and to maintain our teaching and research enterprise, we will continue the regular academic peer-review merit advancement program;
• a voluntary pay cut of 10% for current chancellors and herself.

See Napolitano's full statement and FAQs at https://ucnet.universityofcalifornia.edu/news/2020/05/president-napolitano-announces-systemwide-pay-freeze-for-policy-covered-employees.html.

During the May 28 ANR town hall, Humiston answered questions about the budget. A recording of the town hall will be posted at https://ucanr.edu/sites/anrstaff/All_Hands.

“As we manage the budget situation, the top priority will be, as always, to take care of our people,” Humiston said. “Without you, the critical mission of ANR could not be delivered.”

In a public response to the governor's proposal, President Napolitano released a statement saying, “The University of California recognizes the unprecedented challenges California is facing in the wake of COVID-19 and regrets that Gov. Newsom was put into a position to steeply reduce the University's budget in response to the State's dramatically diminished revenues. Regardless, UC stands with the governor and the Legislature to help lift the State out of this economic crisis.”

Governor proposes budget increase for ANR

Governor Gavin Newsom has included a 5% increase for UC ANR in his proposed California 2020-21 State Budget, which was released Friday, Jan. 10.

"We welcome an increase of $3.6 million annually for UC ANR," said Vice President Glenda Humiston. 

She noted that more people are recognizing and giving credit to the research, public service and outreach UC ANR does to help Californians improve their lives and businesses.

The trade publication Growing Produce reported that Nick Davis, southern valley vineyard manager of The Wine Group, the second-largest U.S. wine company, said, “We don't really have an R&D arm, so we really rely on George [Zhuang] and Cooperative Extension to provide viticultural knowledge and methods to help us achieve our production goals.”

"I am grateful for Governor Newsom's support for UC in his initial proposed budget," Humiston said. "You all do fantastic work and I look forward to seeing what we can accomplish in the year ahead."

UC Board of Regents Chair John A. Pérez and UC President Napolitano issued a statement on governor's budget plan for UC as a whole, acknowledging that 'the governor's spending plan is an important step toward covering the funds necessary to meet UC's tripartite mission of delivering world-class education, conducting cutting-edge research and providing public service that benefits California and beyond.”

ANR has a tight budget, not budget crisis

ANR's budget is tight this year, but we don't have a budget crisis, VP Glenda Humiston emphasized during the ANR town hall on Aug. 15. In addition to the budget update, Humiston discussed UCPath, which launches on Oct. 1, and answered ANR members' questions during the 78-minute online meeting that was scheduled for an hour.

ANR's budget remained at $72.6 million for FY 2019-20, the same as last year, while expenses including salaries and benefits have increased nearly $5 million. She shared the good news that President Janet Napolitano will provide ANR with $2.2 million to help cover some of the shortfall the flat budget has created.

Despite the tight budget, Humiston reiterated ANR's commitment to continuing salary equity programs.

“ANR people are our most important resource, they are our infrastructure, so to speak, because without our people we can't do extension, we can't do research,” she said.

In addition to the one-time $2.2 million supplement, ANR will also receive $19 million to help with deferred maintenance.

“This is a huge increase over the roughly $700K we typically receive per year,” Humiston said, noting that the $19 million designated for capital projects cannot be spent for anything else. “We will also have access to more funding for this critical need as part of the General Obligation Bond that will be on next year's ballot.”

She also addressed concerns about the number of UC Cooperative Extension academics. 

“Despite a 20-year slide in funding from the state and federal government, we have been able to retain academic numbers through partnering more on shared appointments and redirection of administrative funds to programs. I'm very proud to say that the graph of our academic footprint has not been dropping the past 4 years.”

She pointed out that the state had been cutting funding for the entire UC system. The campuses are able to increase tuition fees to make up the difference while ANR depends on contracts, grants, private giving and other new funding sources. Humiston encouraged everyone to work with Development Services for support in securing more funding. She also urged everyone to tell stakeholders about the value of ANR's work for California.

“There is nothing, nothing good about being the best kept secret out there,” Humiston said.

“All of you do fantastic work. We've got to let our stakeholders know that and we also need to let them know about our budget situation.”

UCPath launches Oct. 1

John Fox, director of Human Resources, reminded everyone that UCPath will officially launch next month.  As part of the transition, the AYSO website will become view-only for personal information, tax withholding, and benefits on Aug. 30; all future changes will have to be made in the UCPath portal when it goes live Sept. 27.

The first paychecks from the new UCPath system will be issued on Oct. 1 for monthly paid employees, and on Oct. 2 for bi-weekly paid employees. Fox emphasized that meeting timesheet deadlines is critical in ensure accurate and timely pay in the new system. 

As UCPath goes live, the UC ANR Beehive – a team of people who have been involved in the project – will be available to academics and staff to help troubleshoot.

Visit the UC ANR UCPath website at http://ucpath.ucanr.edu to preview the employee self-service portal and get answers to frequently asked questions. Comments and questions can be addressed to ucpath@ucanr.edu.

Q & A

The following are some questions that were asked during the town hall:

Can you provide the actual budget numbers behind the charts and power point slides that were shared by Glenda to the CDs in January as well as current budget numbers?

Yes, we can provide the numbers. See the pie charts at the bottom of the one-page budget handout. We will post more budget information in a separate story.

When will we find out about professional development funds?

At the time of the call, AVP Wendy Powers had not received her budget letter. She expects the amount of professional development funds to be the same as last year and to announce within the next two weeks.

Did (or will) the ANR budget challenges impact decisions on academics' merit/promotion/accelerations? 

No. While the budget situation may impact the amount of money for salary equity programs or the increase to base scales (3% for CE Advisors and CE Specialists), it does not influence the merit and promotion decisions. Every year the percent of successful merits and promotions varies, as does the number of requests submitted and what requests are made. High level data suggest that this year's success rate is within the range since 2016. That high level data will be shared with the Academic Assembly Council for broader distribution. 

When is leadership going to update and improve ANR maternity leave policy, same for paternity leave. When will leadership begin to better align vacation for staff with vacation for academics?

UC ANR leadership does not have the authority to unilaterally change leave policies for our employees.  We are part of the UC system.  Policies for academics and staff are consistent across the system, and changes generally would have to be approved by the President or the Regents. 

When will we see/hear about the new communication strategy being created by our new communication leader?

A working strategic communications plan has been developed. Strategic Communications and Publishing are embarking on a combined strategic planning effort in September to develop longer-term strategies.

Why do we not have a map of specialists and advisors that serve our state on our website?

Informatics and GIS has created two maps. The storymap at http://arcg.is/0yWGfj can be used to quickly see where academic personnel covering specific subjects are located around the state. The UCANR Personnel Filtering App at https://arcg.is/0XHSXb can be used to query and visualize the data more fully. A short video (https://goo.gl/dzykqK) walks through the different features of the UCANR Personnel Filtering App.

How can we attract and retain talent for co-funded advisor positions when they have no indefinite status? How can co-funded academics maintain academic freedom when their position is tied to specific funding partners and their priorities?

For some time now, UC ANR has had two CE Advisors who are very talented and do not have indefinite status. We have successfully retained those individuals. More recently, we have attracted six more talented CE advisors into co-funded positions. All of these positions were filled upon the initial search.

Senior leadership is proud to have these people in these key positions, as are our funding partners. They are here now and there is no evidence that retention is an issue. There is no evidence that academic freedom is compromised. All of our academics are expected to work with stakeholders to identify their priority needs.

Are ANR staff encouraged to contact their local legislative representative to discuss ANR's contribution to California's leading ag industry?

You may and should educate and inform elected state and federal officials and their staff of the work you do in their districts. As UC employees, we cannot take positions on bills or ask for budgetary support without the expressed consent of the UC Office of the President. For more information, please contact Anne Megaro, director of government and community relations, and read the one-pager at http://ucanr.edu/sites/Professional_Development/files/293044.pdf.

A recording of the 78-minute town hall is at https://www.youtube.com/watch?v=62WrjR1Il7w.

PAC discusses ANR Advisory Committee recommendations

The UC ANR Advisory Committee, appointed by President Janet Napolitano to consider options for UC ANR's structure, governance and funding, submitted its recommendations to her, Don Bransford told the UC President's Advisory Commission on Agriculture and Natural Resources (PAC), which met Dec. 18 at the DoubleTree by Hilton in Berkeley.

PAC Chair Bransford, who also served on the UC ANR Advisory Committee, said the committee saw opportunities to strengthen governance, increase budgetary transparency, provide more stable and predictable funding models and enhance collaborations between UC ANR and UC's broader academic and research enterprise.

The committee, which included deans Kathryn Uhrich of the UCR College of Natural and Agricultural Sciences and Michael Lairmore of the School of Veterinary Medicine at UC Davis, consulted internal and external stakeholders, then conducted its own analyses in consultation with UC ANR leaders.

The committee made four key recommendations:

1. Maintain UC ANR's status as a systemwide program within UCOP, reporting to the president.
2. Create a UC ANR governing council for oversight and to promote greater understanding of UC ANR across the university.
3. Create a funding model using a combination of the “set-aside” and “corridor” models.
4. Retain campus oversight of and reporting responsibility for state Agricultural Experiment Station funds.

Napolitano told the PAC she would be moving forward on the recommendations because she thinks they will ensure ANR greater budget stability, a broader understanding of ANR across the UC system and create more opportunities for collaboration between ANR and campus academics. She issued a statement Dec. 19 on her decisions for UC ANR.

Uhrich said she sees the governing council as an “opportunity to educate, integrate and be inclusive” to have people from across the UC system and outside of UC participating.

UC expertise

In other discussions, Napolitano commended ANR employees for their responses to the Camp Fire and Woolsey Fire, noting that employees and volunteers lost homes in the devastating wildfires.

At a recent meeting with some legislators to discuss automation and the future of work, wildfire, health issues and homelessness, Napolitano said the policymakers told her they want to hear more from UC experts to help them think through policy challenges.

One commissioner commented, “We're going to have more fires, more foodborne illness outbreaks. Let's have our folks out there to talk to media and have them wearing a UC shirt.”

Napolitano replied, “I like the idea of folks wearing UC garb when they're on TV.”

Budget

Humiston and Tu Tran, associate vice president for business operations, briefed the PAC on ANR's budget. Administrative costs are up this fiscal year to invest $4 million to join UCPath, the new systemwide payroll and personnel system. UC ANR has begun the transition and will go live in March-April. “Ultimately UCPath will save us money, but it's costing us now,” Humiston said.

Due to budget constraints, Humiston explained that UC ANR isn't offering competitive grants nor announcing UCCE positions to be filled in 2018-19. Recruitment for previously approved positions is ongoing and new hiring will begin as resources become available to make the long-term commitment to support positions.

In her budget PowerPoint presentation for the PAC, Humiston listed actions ANR has taken in the past to compensate for budget cuts and steps that will be taken in FY 2018-19.

Tran explained that UC ANR relies on six sources of funds – state, federal, county, extramural, endowments and income from gifts, patents, investments and program fees. State funds, which constitute the largest portion of the division's funding, pay for employee salaries and benefits. He noted government funding is highly volatile so “we are trying to raise money in other ways.”

California Agricultural Resources Archive

UC Merced's librarian HaiPeng Li, project archivist Lisa Valens and project director Emily Lin gave a presentation on the California Agricultural Resources Archive or CARA. The UC Cooperative Extension archive project, which was launched after UC Cooperative Extension's centennial in 2014, started with UCCE in Merced, Humboldt and Ventura counties. The team has been digitizing annual reports and historical photos to make them accessible to the public and researchers.

“The data isn't just history,” Humiston asserted. “There are notes on research that may hold the key to something like huanglongbing.”

Mining the data, advanced analysis and linking to other information might open new avenues of research, she said.

UC ANR is seeking partners and trying to raise funds for the archive project. Jim Downing, publications director, will assume leadership of the project to succeed Jan Corlett, chief of staff to the vice president, who plans to retire in July.

Deans' updates

To help students with career planning, Helene Dillard, dean of the UC Davis College of Agricultural and Environmental Sciences, said she seeks UCCE advisors to show students the research and outreach being done in the counties and planning a course on Cooperative Extension to introduce students to career options. She is in talks to partner with UC Davis medical center on health research such as the connection between diet and disease.

David Ackerly, dean of the UC Berkeley College of Natural Resources, announced the recent hiring of new Cooperative Extension specialists Ellen Bruno for policy analysis and Rob York for fire and policy, and that he is striving to create new faculty positions that will not depend on state money. He also announced that UC Cooperative Extension specialist Adina Merenlender received a $5 million gift to train California climate stewards through a program similar to California Naturalist. Ackerly also noted that Giannini Hall is closing temporarily for seismic upgrades so faculty and staff are packing to move out during construction.

Katherine Uhrich, dean of the UC Riverside College of Natural and Agricultural Sciences, announced CNAS has hired 24 faculty this year including two Nobel laureates – Richard Shrock and Barry Barish. She also announced that Givaudan, a Swiss company that creates fragrances and flavors, is donating funds to cover UCR's citrus variety collection, to protect the trees from pests and diseases.

Michael Lairmore, dean of the School of Veterinary Medicine at UC Davis, announced that his veterinary team worked tirelessly treating animals injured during the Camp Fire, taking in 70 animals, most of which have returned to their families. About $2 million has been donated to offset the costs of treating the animals. Veterinarian Jamie Peyton covered burns on cats and dogs with tilapia skin to help with healing and has a provisional patent for the fish skin treatment. Lairmore also announced the school is planning to build a Livestock and Field Service Center. “We are in need of donations and there are naming opportunities for interested individuals or companies,” Lairmore told PAC members. He also announced the hiring of Emmanuel Okello, the new UCCE specialist in antimicrobial stewardship.

The PAC, which meets twice a year, will meet next in the spring.

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