<div dir="ltr"><span id="gmail-docs-internal-guid-ee9586cb-7fff-88f8-2d2f-75d3cbd558cf"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">Dear Colleagues,</span></p><br><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">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. </span></p><br><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">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 </span><a href="https://www.ucop.edu/academic-personnel-programs/_files/2025-26/2025-06-25-president-drake-salary-program-letter.pdf" style="text-decoration-line:none"><span style="font-size:12pt;font-family:Calibri,sans-serif;background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;text-decoration-line:underline;vertical-align:baseline">announced by UC President Drake</span></a><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline"> in June.</span></p><br><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">Overall, from the campus perspective, the implementation of </span><a href="https://insideucr.ucr.edu/announcements/2024/07/16/budget-update-fiscal-year-2025?_gl=1*1mzqz4*_ga*Mzc5MzE2MjQ0LjE3NDg4ODY1Mzg.*_ga_S8BZQKWST2*czE3NTMzODg3NjAkbzY2JGcxJHQxNzUzMzg5MzEzJGo0MSRsMCRoMA..*_ga_Z1RGSBHBF7*czE3NTMzODg3NjAkbzY2JGcxJHQxNzUzMzg5MzEzJGo0MSRsMCRoMA.." style="text-decoration-line:none"><span style="font-size:12pt;font-family:Calibri,sans-serif;background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;text-decoration-line:underline;vertical-align:baseline">salary savings last yea</span><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(70,120,134);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;text-decoration-line:underline;vertical-align:baseline">r</span></a><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline"> 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). </span></p><br><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">New permanent resources include:</span></p><br><div dir="ltr" style="margin-left:0pt" align="left"><table style="border:none;border-collapse:collapse"><colgroup><col width="326"><col width="200"></colgroup><tbody><tr style="height:14.25pt"><td style="vertical-align:top;padding:0pt 5pt;overflow:hidden"><p dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">Salary savings</span></p></td><td style="vertical-align:top;padding:0pt 5pt;overflow:hidden"><p dir="ltr" style="line-height:1.38;margin-left:72pt;text-align:right;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">$16,700,000</span></p></td></tr><tr style="height:14.25pt"><td style="vertical-align:top;padding:0pt 5pt;overflow:hidden"><p dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">Additional tuition</span></p></td><td style="vertical-align:top;padding:0pt 5pt;overflow:hidden"><p dir="ltr" style="line-height:1.2;margin-left:72pt;text-align:right;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">$8,350,000</span></p></td></tr><tr style="height:14.25pt"><td style="vertical-align:top;padding:0pt 5pt;overflow:hidden"><p dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">Investment income</span></p></td><td style="vertical-align:top;padding:0pt 5pt;overflow:hidden"><p dir="ltr" style="line-height:1.38;margin-left:72pt;text-align:right;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">$2,000,000</span></p></td></tr><tr style="height:14.25pt"><td style="vertical-align:top;padding:0pt 5pt;overflow:hidden"><p dir="ltr" style="line-height:1.38;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">Savings from reductions in central leases</span></p></td><td style="vertical-align:top;padding:0pt 5pt;overflow:hidden"><p dir="ltr" style="line-height:1.38;margin-left:72pt;text-align:right;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">$2,250,000</span></p></td></tr><tr style="height:14.25pt"><td style="vertical-align:top;padding:0pt 5pt;overflow:hidden"><p dir="ltr" style="line-height:1.38;text-align:justify;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;background-color:transparent;font-weight:700;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">Total:</span></p></td><td style="vertical-align:top;padding:0pt 5pt;overflow:hidden"><p dir="ltr" style="line-height:1.38;margin-left:72pt;text-align:right;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-weight:700;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">$29,300,000</span></p></td></tr></tbody></table></div><br><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">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 </span><a href="https://insideucr.ucr.edu/announcements/2025/07/11/fall-2025-enrollment?_gl=1*j3xye0*_ga*Mzc5MzE2MjQ0LjE3NDg4ODY1Mzg.*_ga_S8BZQKWST2*czE3NTMzODg3NjAkbzY2JGcxJHQxNzUzMzg5NTY4JGo1OCRsMCRoMA..*_ga_Z1RGSBHBF7*czE3NTMzODg3NjAkbzY2JGcxJHQxNzUzMzg5NTY4JGo1OCRsMCRoMA.." style="text-decoration-line:none"><span style="font-size:12pt;font-family:Calibri,sans-serif;background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;text-decoration-line:underline;vertical-align:baseline">our growth in California undergraduate enrollmen</span><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(70,120,134);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;text-decoration-line:underline;vertical-align:baseline">t</span></a><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline"> in 2025-26.</span></p><br><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">We hope you enjoy the remainder of the summer and look forward to seeing you on campus in the fall.</span></p><br><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">Sincerely,</span></p><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline"> </span></p><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">Elizabeth Watkins, PhD</span></p><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">Provost and Executive Vice Chancellor</span><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline"><br><br></span></p><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">Sandra H. Kim</span></p><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">Interim Vice Chancellor and CFO</span></p><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt"><span style="font-size:12pt;font-family:Calibri,sans-serif;color:rgb(0,0,0);background-color:transparent;font-variant-numeric:normal;font-variant-east-asian:normal;font-variant-alternates:normal;vertical-align:baseline">Planning, Budget & Administration</span></p></span><div><br></div></div>