[Ucrfacultyandstaff] FY26 Budget Update

[UCR Provost]

Dear Colleagues,

We are writing with a quick update on the campus budget, now that the state
budget has been signed by the governor. Although our state allocation was
cut by $1 million, we will NOT impose an across-the-board budget cut at UCR
for FY25-26. That said, each organization at UCR is in a unique financial
position, so senior leaders are examining their budgets to ensure they have
sufficient resources to cover expenditures within their organizations. For
some, this alignment may necessitate some organization-specific reductions
in personnel and/or programs.

Effective July 1, all represented staff received increases per their
negotiated contracts, and all non-represented staff received increases of
3.2%. Effective October 1, faculty will receive a 3.2% increase to the
salary scales, plus a 3.2% increase on any off-scale component, and
distinguished faculty who are above scale will also receive a 3.2%
increase. This salary program for FY25-26 was announced by UC President
Drake
<https://www.ucop.edu/academic-personnel-programs/_files/2025-26/2025-06-25-president-drake-salary-program-letter.pdf>
in June.

Overall, from the campus perspective, the implementation of salary savings
last year
<https://insideucr.ucr.edu/announcements/2024/07/16/budget-update-fiscal-year-2025?_gl=1*1mzqz4*_ga*Mzc5MzE2MjQ0LjE3NDg4ODY1Mzg.*_ga_S8BZQKWST2*czE3NTMzODg3NjAkbzY2JGcxJHQxNzUzMzg5MzEzJGo0MSRsMCRoMA..*_ga_Z1RGSBHBF7*czE3NTMzODg3NjAkbzY2JGcxJHQxNzUzMzg5MzEzJGo0MSRsMCRoMA..>
has provided us with sufficient resources to meet our fixed cost increases
for FY25-26. These fixed cost increases amount to around $34.2 million
(approximately $32.4 million in salaries and benefits and $1.8 million in
expenses such as utilities).

New permanent resources include:

Salary savings

$16,700,000

Additional tuition

$8,350,000

Investment income

$2,000,000

Savings from reductions in central leases

$2,250,000

Total:

$29,300,000

The remaining gap will be covered with one-time funds left over from the
salary savings introduced in 2024-25. We anticipate that we will recoup
additional permanent state funding in FY26-27 to account for our growth in
California undergraduate enrollment
<https://insideucr.ucr.edu/announcements/2025/07/11/fall-2025-enrollment?_gl=1*j3xye0*_ga*Mzc5MzE2MjQ0LjE3NDg4ODY1Mzg.*_ga_S8BZQKWST2*czE3NTMzODg3NjAkbzY2JGcxJHQxNzUzMzg5NTY4JGo1OCRsMCRoMA..*_ga_Z1RGSBHBF7*czE3NTMzODg3NjAkbzY2JGcxJHQxNzUzMzg5NTY4JGo1OCRsMCRoMA..>
in 2025-26.

We hope you enjoy the remainder of the summer and look forward to seeing
you on campus in the fall.

Sincerely,



Elizabeth Watkins, PhD

Provost and Executive Vice Chancellor

Sandra H. Kim

Interim Vice Chancellor and CFO

Planning, Budget & Administration
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://scotmail.ucr.edu/pipermail/ucrfacultyandstaff/attachments/20250729/780ae8dc/attachment.htm>