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 Timeline | News | 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 |
| February - March | Listening tour with various campus constituency groups including CAPRA, the Senate Chair, ASUCM, Graduate Student Association, Staff Assembly, and Non-Senate Academics Council to hear their top-of-mind concerns and feedback. |
| Mar 7, 2025 | Divisions to submit FY26 budget reduction exercise PowerPoint and documentation to budget@ucmerced.edu |
| March | Executive Vice Chancellor and Provost Betsy Dumont and Vice Chancellor for Planning and Budget and Chief Financial Officer Kurt Schnier meet with campus leadership, Vice Chancellors and deans to review each division’s plan for their budget reduction and to discuss budget scenarios and priorities. |
| April | EVC/P and VCPB/CFO to provide share preliminary recommendations campus leadership, including Senate and CAPRA chairs, for review and discussion. |
| May | Final recommendations will be provided to Chancellor, and shared with Vice Chancellors, Deans' Council, Senate and CAPRA Chairs, and the constituency groups listed above. |
| Summer | Based on recommendations, the Governor’s May Budget Revision, and enrollment projections, Chancellor Muñoz will review the recommendations and make the final determination on the fiscal year 2025-26 budget reductions. Final recommendations to be shared with campus community via campus communications and a town hall prior to the start of the new academic year. |
News
- Jan. 23.: Demonstrating Resilience in Budget Reduction Planning
- Nov. 18: Budget Reduction Exercise
Resources
- Top 5 Takeways from Oct 23 Financial Transparency Town Hall
- Oct. 23: Financial Transparency Town Hall | video and slide deck (Single Sign On required)
