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Friday, June 19, 2009

S P E C I A L    E D I T I O N

UC Plans Employee Salary Reductions, Furloughs to Address Budget Shortfall

A memo issued by University of California President Mark Yudof Wednesday (June 17) outlines three salary reduction and furlough options for UC employees. These reductions will help the university address the severe fiscal challenges it is facing. The combination of actual and proposed cuts by the State to UC’s budget for the current and upcoming fiscal years will result in shortfall of nearly $800 million.

The three options include:

1) 8-percent salary reduction
2) 21 unpaid days (equivalent to an 8-percent reduction)
3) 12 unpaid days plus a 3.4-percent salary reduction (equivalent to an 8-percent reduction)

For those earning less than $46,000, the reduction amount would equal 4 percent. The proposed plans have to be approved by the UC Regents.

Further details about these options are available in the memo from President Yudof to UC employees. Go here to read a list of FAQs on the proposed reduction options.

As stated in the FAQ, the University will comply with all Department of Energy contract obligations.