Posts Tagged: Research and Extension Centers

RECs develop new funding model

The Research and Extension Center (REC) System is a key component of UC ANR (Cooperative Extension + Agricultural Experiment Station + Research and Extension Centers + Statewide Programs). Each of the nine RECs is unique and offers a wide array of opportunities to research and extension personnel within the University of California, and to our external partners. UC ANR will continue to deploy funds to support research projects. However, these funds do not go as far because salaries, benefits, and infrastructure expenditures continue to rise, while state and federal support for the Land Grant systems continue to decline or remain flat.

To address these budgetary issues, cost increases must be offset by increasing the proportion of research costs covered by research projects. We project that approximately 25 percent of today's central funding will need to be redirected to cover increases in personnel salaries and benefits, deferred maintenance, strategic investments to ensure long-term operation of the REC System for generations to come, and increases in operating expenditures that are not included in research expenses. Increased expenses will be covered over time through a combination of fund development, increased revenue generated through increased programming and services, increased efficiency of business operations, and a reduction in the current level of research funding by UC ANR which, at present, averages approximately 80 percent across all REC supported projects.

For over a year now, we have been working to secure a bright future for the REC System by looking at the research that is conducted at each REC and considering how we do business now and in the future. In addition to the current work and programming that occurs at each REC every day, there is incredible untapped potential for new research and programs. Improved understanding of the cost to conduct research has been a key part of the review process undertaken at each of the centers over the past year. A deep dive into the accounting and cost structure has occurred at each facility; identifying the lines of service at the facility and the costs to provide those services. The FY 2018-19 cost structures for each center have been submitted to the UC ANR Rate and Recharge Committee for review this past week. Following review, the REC System will receive feedback and recommendations for changes to be made prior to rate approval.

We aim to have the full cost structures approved by late April 2018. Concurrent with the effort to identify costs for each line of service is work by each REC director to identify the level of funding that will be available in their individual budgets to reduce those costs to support research projects at each facility. We anticipate these rates will be available in late April for projects conducted in FY 2018-19 and with estimates for FY 2019-20 available at the same time.

Continuing a long tradition of supporting impactful research at each REC to solve agricultural and natural resource issues remains our highest priority. Ramp up of fund development efforts and identification of new or additional income opportunities at each REC will take time as will the ability for these strategies to offset research costs. In the meantime, the REC directors have identified that providing extra financial support to UC academics who have been in their jobs 6 years or less is critical to the success of new and early career UC academics. To the extent that UC ANR funding permits, extra financial support may also be provided to support exploratory or high risk/high reward projects, projects that extend critical, underfunded, long-term research, and projects conducted by PIs who are first time users of the REC.

While the current budgeting efforts come with uncertainty and discomfort in the short-term, change is needed to secure long-term success. The leaders of each REC and UC ANR senior leaders are committed to transparency of research costs, exemplary customer service and investment into facilities and infrastructure that further our ability for sustained growth of the REC System.

Sincerely,

Glenda Humiston, vice president

Wendy Powers, associate vice president

Tu Tran, associate vice president, Business Operations

Jeff Dahlberg, director, Kearney Agricultural Research and Extension Center

Jairo Diaz, director, Desert Research and Extension Center

Jose Fernandez De Soto, director, Hansen Agricultural Research and Extension Center

Beth Grafton-Cardwell, director, Lindcove Research and Extension Center

Darren Haver, director, South Coast Research and Extension Center

Bob Hutmacher, director, West Side Research and Extension Center

Jeremy James, director, Sierra Foothill Research and Extension Center

Kim Rodrigues, director, Hopland Research and Extension Center

Rob Wilson, director, Intermountain Research and Extension Center

 

View or leave comments for ANR Leadership at http://ucanr.edu/sites/ANRUpdate/Comments.

This announcement is also posted and archived on the ANR Update pages.

ANR develops cost-recovery strategy to improve REC facilities

UC ANR leadership is proud of its outstanding network of nine Research and Extension Centers across the state. Including academic salaries and temporary funding, UC ANR invests close to $14 million annually in the REC system. We are committed to continuing to make an investment of this magnitude, recognizing the importance of each individual REC, and the REC system to our research and extension missions. 

A freeze on state operations and maintenance funding since 2006, and a virtual absence of deferred maintenance funds, necessitates a close look at how the annual investment is used so as to position the RECs for a long, successful future. UC ANR leadership is taking the long view to its programmatic collaboration and growth. As a result, we are developing a strategy for cost recovery to continue to operate and improve the facilities so that we can better serve researchers and their research and extension activities – well into the next decade, not just the next three to five years.

Key attributes of the strategy include:

• improved clarity of how full-cost research rates are calculated and how researcher costs are derived, based on a researcher's specific and agreed upon needs for labor and facilities,
• establishment of rates four to six months in advance of the effective date for the rate (i.e. rates published in January for projects beginning in July, or some variation of) in recognition of the need to project costs in advance of research start date,
• development of a cost structure that reflects different project needs and differences in costs required to support the needs, and
• ability to confirm researcher costs for specific, itemized research needs over a multi-year timeframe at time of proposal submission to a funding agency.

A move to this new way of calculating research rates will take some time to establish across all nine RECs. Our goal is to have this rolled out between January and March 2018 and to go into effect for any projects (new, renewed or expanded usage) beginning July 1, 2018. This is an ambitious goal given the review and approval process in place that ensures fairness of proposed methodology and charges. However, we are committed to making this a high priority in order to improve the research experience.

To assess feasibility of the approach, the Desert REC will move to a new model in the very near term and serve as a pilot study for the July 1, 2017 – June 30, 2018 timeframe. The new model includes different rates for different services (land, water, pesticides, labor, etc.). The new model applies at Desert REC for both new and continuing projects and provides the opportunity to identify any issues early on and make the necessary adjustments. The remaining RECs will develop research rates for REC services over the next few months and the new model will be refined and adapted in 2018-2019 for the remaining eight RECs.

For 2017-2018, researchers continuing projects at all RECs, except Desert REC and West Side REC, should plan on an additional 10 percent to their 2016-2017 research rate to cover increases in salaries and benefit rates and reflect a reduced subsidy by center funds applied to the full cost rate. New and renewed projects will be billed at a researcher rate of $27.46 per hour. A new project is one that has not been submitted to, and approved by, the REC previously. This higher rate reflects the need to reduce the subsidy applied to the full cost rate.

Researchers at West Side REC will be billed at a rate 10 percent above the 2016-2017 West Side REC research rate for all projects.

Developing a new strategy for setting research rates based on different rates for different services will take time, thus the decision to move forward as outlined above. The pilot assessment at Desert REC will illustrate the impacts of a new strategy on both researchers and business operations and help identify best practices to support the transition to a new strategy. We are committed to maintaining a system of RECs that are positioned to address present and emerging research needs for the long term and meet the planning needs of researchers.

Research and Extension Center	New projects and projects renewed at the end of the 3-year cycle	Continuing projects (2nd and 3rd year)
Desert	Charges based on services utilized (acreage, water, labor etc.)
West Side	2016-17 rate + 10%	2016-17 rate + 10%
Hansen, Hopland, Intermountain, Kearney, Lindcove, Sierra Foothill, South Coast	$27.46	2016-17 rate + 10%

Wendy Powers 
Associate Vice President  

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This announcement is also posted and archived on the ANR Update pages.

Haver named interim associate director of Research and Extension Center system

Dear Colleagues,

I am pleased to announce that Darren Haver has agreed to serve as the interim associate director of the Research and Extension Center system, effective Oct. 1, 2017. Darren has served as the UC Cooperative Extension water resources advisor in Orange County since 2002, director of South Coast Research and Extension Center in Irvine since 2009 and director of UC Cooperative Extension in Orange County beginning in 2011.

Darren brings a wealth of experience to this position. We continue to develop a plan to address administrative vacancies and look forward to working with him in this interim role. Darren will serve in this capacity until June 30, 2018, or until a new director is appointed. Please join me in congratulating Darren on his interim position.

I also wish to congratulate Lisa Fischer on her pending retirement from UC ANR and thank her for her years of leadership of the REC system. Under her direction, each REC has developed a strategic plan to set the course for the future and numerous capital improvements have been made to the RECs, including new office and conference spaces. We wish Lisa the very best as she takes on new adventures.

Wendy Powers
Associate Vice President and Interim REC Director

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This announcement is also posted and archived on the ANR Update pages.

UC ANR REC System Investments

Dear Colleagues,

As we move forward with the implementation of our new Strategic Plan, I want to take this opportunity to share some exciting plans for recapitalizing and modernizing our research infrastructure and facilities. This investment is a key strategy within our larger efforts to “rebuild the UCCE footprint” and increase the number of academics throughout the system.

The Strategic Plan proposes a total investment of more than $40 million on UC ANR research facilities, with well over half of that designated for the Research and Extension Center System (RECs). This historic investment will be funded by a combination of debt issuance, judicious deployment of reserves, revisiting recharge rates (cost recovery) and a robust capital campaign. The good news is, in the current financial market, interest rates are still relatively affordable, making it a very good time to borrow money and expedite construction.

The RECs are a unique and critical part of the research capacity of UC ANR, as well as a vital resource for California's agricultural sector. Unfortunately, they have not been adequately supported for a number of years, resulting in 21^st century research being conducted in facilities that are 50 to 60 years old. We must look to the future and invest in these facilities now to serve the researchers and scholars that bring their projects to the RECs – both current and future. Going forward, we must also ensure financial stability and plan for ongoing upgrades to keep our facilities up-to-date and in demand. 

UC ANR central funds currently cover expenses at the RECs ranging from 70% to 90% of all costs; the RECs, in turn, use those funds to support, on average, over 80% of the costs to conduct research. This significant support has been given to all researchers, regardless of need or priority, and doesn't allow ANR the flexibility to target our research support dollars where they are most needed. Furthermore, much of the work conducted at the RECs for projects awarded to UC campuses, provide no Indirect Cost (IDC) to the RECs to cover utilities, infrastructure and other support costs generally covered by IDC. 

Lisa Fischer has been working with the REC directors to develop a vision for the RECs, including prioritizing the improvements to be funded and identifying options to enhance administrative and financial management. Several options are currently under discussion, including liquidating assets and/or pursuing land lease options, increasing crop income, seeking endowment opportunities, and resetting recharge rates either as a system or by individual RECs.  

As part of these options, we need to develop recharge rates that more accurately reflect true costs and assist with recovery of the division's outlays. This move will enable those funds to be available to help improve operations and maintenance as well as augment three research funds that we are developing: one to provide extra support for early-career ANR academics, another to be available for emergency needs such as Asian citrus psyllid, and the third to provide matching funds when required for certain grants.

I know you share my enthusiasm about the potential of our REC System to become the elite and productive research infrastructure that California is depending on to provide solutions to the many issues facing the state.  We are discussing and evaluating all available options to reduce the RECs' dependence on central funds and develop strategies to improve their administrative and financial management. I anticipate receiving a proposal from REC leadership in late April.

Rising costs, coupled with budget forecasts from our traditional state and federal sources that appear flat for the foreseeable future, mean that all of UC ANR, not just the RECs, must look for ways to manage ongoing programs with less reliance on central funding. Concurrently, we are also greatly enhancing our funds development capacity to assist with program needs and expanding our academic footprint. I will be providing more updates on that, as well as other aspects of the Strategic Plan implementation effort, as plans are finalized and milestones are met.

Sincerely,

Glenda Humiston
Vice President

 

View or leave comments for ANR Leadership at http://ucanr.edu/sites/ANRUpdate/Comments.

This announcement is also posted and archived on the ANR Update pages.

ANR Building modular addition project approved

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