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Budget Reduction Planning

Like other University of California campuses, UC Merced has experienced a growing structural deficit in core funding over recent years, driven by annual expenses consistently outpacing revenues. In response to state fiscal challenges, the campus is preparing for a budget reduction of up to 5%, with implementation beginning in FY 2026 (July 1, 2025). This multi-year effort aims to thoughtfully align revenues and expenditures while maintaining our focus on the Strategic Plan and our priorities as a student-centered research university. Through collaboration and resilience, we are committed to minimizing disruptions and transforming challenges into opportunities for a stronger, more sustainable future. This site provides information and resources tied to budget reduction planning.

Overview | Budget Reduction Planning TimelineNews | Resources | Ask DFA


Overview

The campus is anticipating a number of significant financial challenges, including a 7.95% decrease in state funding, the expiration of key funding agreements, and rising costs. To address these pressures, the campus has initiated a 5% budget reduction exercise beginning in Fiscal Year 2026 as part of a multi-year effort toward fiscal sustainability. This reduction applies to permanent budgeted core dollars (e.g. 19900 state allocations and 14000 tuition funds), while exempting special appropriations and auxiliary/student-based fees.

The strategy focuses on aligning revenues and expenditures over time, guided by the "Three Es" framework:

  • Evaluation of resource alignment with the campus mission,
  • Efficiency in resource usage, and
  • Enrollment efforts to drive growth.


Budget Reduction Planning Timeline


Nov 18, 2024 Budget reduction exercise formally announced to campus via email announcement
Dec 18, 2024 Budget reduction targets, based on core funds, for FY26 provided to each division
Jan 27, 2025 Budget reduction PowerPoint presentation template provided to divisions
Mar 7, 2025 Divisions to submit FY26 budget reduction exercise PowerPoint and documentation to budget@ucmerced.edu
Mar 7 - Apr 4, 2025 Executive Vice Chancellor and Provost Betsy Dumont and Vice Chancellor for Planning and Budget and Chief Financial Officer Kurt Schnier meet with Division leads to review presentations and proposed budget reductions
Apr 7 - Apr 25, 2025 EVC/P and VCPB/CFO to provide proposed budget reductions for FY26, both one-time and permanent funding, and present to Extended Cabinet, Senate representatives and Staff Assembly representatives for feedback and discussion. Feedback to be reviewed, and a final recommendation will be presented to the Chancellor
May 2, 2025 Chancellor to make preliminary budget reduction decisions for FY26. All budget actions are subject to Governor's budget decisions, as well as campus final enrollment projections for Fall 2025.

 


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