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FAQ: Cost-Saving Initiative for Fiscal Year 2022-23

Here are some questions and answers about a cost-saving initiative for the 2022-23 fiscal year that is expected to give divisions and schools more latitude in filling vacancies and providing compensation. Please read the March 24 announcement of the initiative.

Is the four-month hold on filling staff vacancies ending?

Yes. The four-month hold enacted July 1, 2021 will cease on June 30, 2022 – the end of Fiscal Year 2021-22.

Is a new cost-saving policy replacing the four-month hold?

Yes. For Fiscal Year 2022-23, starting July 1, 2022, schools and divisions will have more resources for salaries than in FY22.

How will the new cost-saving policy work?

The university will hold back 2.5% of funds allocated for permanent budgeted salaries and benefits for both career and contract lines on 14000 and 19900 funds. This includes sub 1, 2 and 6 budget (legacy terms).

What will that change mean?

It is expected that schools and divisions will have a total of about $2 million more than in FY22 to address vacancies. This additional funding will allow managers to expand their use of temporary payroll measures (such as stipends) to support their staff.

How could the university’s overall financial health affect this?

We are able to make these investments in staff salary equity and staffing levels because enrollment is expected to increase in fall 2022. It is hoped that this allow further relaxing of fiscal controls and additional investments to increase both staff and faculty.

However, should UC Merced’s structural deficit resume its growth in coming years, the university will have to revisit these measures. Continued vigilance around fiscal discipline and sustainability must remain a priority.