UC President Announces Furlough Option for Regents' Approval

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Correction Appended

To close the $813 million reduction in state funding over the last two years, UC President Mark Yudof announced today that he will recommend the UC Board of Regents approve an employee furlough plan in lieu of direct salary cuts.

The board is expected to vote on the plan Wednesday during its three-day meeting in San Francisco.

In June, Yudof outlined three options to trim costs: salary cuts, furloughs, or a combination of both.

After weeks of comments, Yudof said the furloughs was an option most employees favored.

"No one likes it, but I feel like we've done a good job of listening," Yudof said in a press conference today.

The plan--which is expected to trim about $515 million of the UC system's $813 million deficit-- will follow a graduated approach, meaning higher earners will face higher salary reductions as a result of unpaid furlough days.

Employees who make up to $40,000 a year will have 11 unpaid furlough days, which accounts for a 4 percent overall salary reduction.

The number of furlough days for employees increase as the pay scale rises. For example, a employee who makes more than $240,000 will be required to take 26 unpaid furlough days, amounting to a 10 percent salary reduction.

Yudof said employees will have flexibility in deciding when to take their furlough days.

He also said pensions and retirement benefits, a main concern for faculty, will remain intact despite the cuts to salaries, which would normally decide how much an employee would receive in benefits.

Faculty furlough days will vary depending on the academic year.

There had been some talk that faculty would take furlough days during class times in order to make the financial crisis visible to students, but Yudof strongly suggested that faculty take their furlough days on holidays or other days that do not interfere with class schedules.

In addition to the furlough plan, Yudof said that although UC officials will not revisit the fee increase for Fall 2009, there will likely be a mid-year student fee increase in January 2010.

"There could be one in January," he said. "It depends on how tough things get."


Correction: Tuesday, February 9, 2010
A previous version of this article incorrectly stated that the university faced an $813 million budget deficit. In fact, the university faced an $813 million state reduction in funding for the past two years.

The Daily Californian regrets the error.

Alexandra Wilcox is the assistant news editor. Contact her at [email protected]

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