A growing gap must be addressed, as funds that the university receives from state appropriations and tuition routinely fall short of expenses traditionally supported by these "core funds."
In this short video, Provost and Executive Vice Chancellor Ralph Hexter introduces a multi-year process for rebalancing the budget for core funds.
By 2025, UC Davis needs to reduce ongoing reliance on state funds and tuition revenue (core funds) by $80–100 million and fundamentally change the way we operate to sustain a balanced budget and maintain a responsible central reserve. These actions will allow UC Davis to invest in strategic priorities, build a responsible central reserve and meet future challenges.
- Within five years, UC Davis must have a balanced and sustainable core funds operating budget.
- Campus units must make fundamental, long-term changes in business practices and fund management strategies across all facets of UC Davis to achieve financial sustainability.
In an organization as complex and varied as UC Davis, only a multi-faceted approach to this challenge will be successful. We must critically evaluate and innovate our practices around resource generation and utilization by:
- Looking for opportunities to grow net revenue from new sources
- Striving for improved processes to achieve operational efficiencies
- Aligning our expenditures with our priorities and leveraging all sources to support our mission
All parts of campus must work together to rebalance the budget for core funds
A Budget Framework Advisory Committee, with leaders representing several different types of campus constituencies, has been established to inform the budget process.
The Advisory Committee has assisted in development of the following core principles to guide our efforts:
- Our commitment to students' success and experience will not be compromised.
- The good of the university as a whole drives the discussion of resource allocation adjustments.
- Administration and faculty have shared responsibility and accountability to support responsible financial management.
Throughout this process, we will hold firm to our principles and primary mission by:
- Continuing to make progress on the strategic plan goals identified in “To Boldly Go.”
- Continuing to invest in infrastructure needs.
- Leveraging and diversifying our activities appropriately across all fund sources and strategically growing fund sources to support our mission and goals.
- Enabling all employees to work smarter and direct their effort toward the most benefit for the university.
- Using benchmarks and data in decision-making.
- Weighing long-term risks and return on investments.