Update on Financial Planning and Sustainable Operations
Published Date
Share This:
Article Content
A Message from Chancellor Pradeep K. Khosla:
Dear Triton Community,
I am writing to provide updates and share measures that UC San Diego is taking to protect our university’s future. In a landscape of escalating financial pressures, increased scrutiny, shifting policies, rising costs and exceptional uncertainty about future funding for research universities nationwide, it is essential that we remain nimble and proactive in evaluating and responding to the many challenges facing our institution.
We know this is a stressful time for many in our community. I will reiterate UC President Drake’s message – the mission and values that unite us as a community have not changed. We are here to support you as we work through this together.
Since my last update, we have implemented various measures to assess, respond and prepare for the future. These measures, along with some updates on the impacts to our campus, research enterprise and Health system, are outlined below.
UC San Diego and UC San Diego Health Financial Impacts
UC San Diego relies heavily on state and federal funding to conduct lifesaving research, treat patients, teach the next generation of leaders, and maintain facilities and operations. This funding includes research grants, indirect cost recovery from research, student financial aid and Pell Grants, as well as reimbursement from Medicare and Medicaid payments for patient care.
Current and proposed budget cuts, grant cancellations and stop work orders, grant reimbursement policy changes, executive orders, federal agency reductions and payment delays, and threatened cuts to Medicare and Medicaid pose a significant financial risk to the university. We are unable to predict exactly what the losses will be, but our initial scenario planning models indicate possible reductions ranging from $75 million to more than $500 million annually. In preparation, I have asked budget offices to model a 2.5% to 12.5% budget reduction based on these initial scenarios. We will continue to evaluate the data and further refine the range of our estimates.
Actions We Are Taking
As we navigate these unprecedented conditions, mindful that what will happen next is uncertain, we are taking proactive steps to protect UC San Diego. I have initiated several discussions with my Cabinet, Academic Senate and other campus leaders on issues related to planning and budgets. Given the complexity of the situation and the need for a multifaceted communications approach, I have instructed the vice chancellors to communicate directly within their units, including deans and chairs, to ensure that up-to-date information is distributed to affected areas in a timely manner. |
Updates on Grant DisruptionsIn the last month, UC San Diego Principal Investigators (PI) have received approximately 50 notices of award disruption. We have also seen a concerning rise in payment delays on expected grant revenues from most federal agencies. Research disruptions present both short- and long-term cash flow challenges, and we know that managing this financial challenge is very difficult, both personally and professionally. Abrupt termination of research funding has far-reaching and damaging consequences not just for the research, but for individuals, teams, our university and society as a whole. The road ahead will require tough decisions, and we are committed to equipping affected researchers with the tools, guidance and support they need to make these decisions. Research teams may be the first to receive notice indicating termination or modification of an award. If researchers receive such communication from a funding agency, please forward it to vcresearch@ucsd.edu and immediately inform the Department Chair or Unit Head. The Office of Research and Innovation will gather grant information including personnel and financial data for researchers to review. PIs and the supervisory units must immediately begin any necessary actions, including temporary layoffs in accordance with the appropriate policy or collective bargaining agreements. How You Can Take Action
|
Share This:
Stay in the Know
Keep up with all the latest from UC San Diego. Subscribe to the newsletter today.