Home < Administrators < Employment < Furlough/Salary Reduction Plan Q&A for Administrators < Part-time Employees Introduction to the Furlough Plan
Why is a furlough plan necessary?
UC faces an unprecedented $637.1 million cut in state support in 2009-10. The furlough plan is part of a systemwide strategy to address the shortfall. In an effort to lessen the hardship on employees, the plan is based on a sliding scale. Those who earn more have a larger number of furlough days and a correspondingly higher salary reduction. Salary reductions range from 4 – 10 percent. Savings from the furlough plan will cover about one-quarter of UC’s budget gap. Student fee increases will close another quarter of the deficit. Debt restructuring, and cuts in spending on campuses and within the Office of the President will make up the remainder. This approach of shared sacrifice means that every member of the University takes part in solving UC's budget problem.
Are these furloughs intended to be permanent?
No. The intent is for these actions to be temporary or short-term to help the University through the current budget crisis. The plan will commence on September 1, 2009, and will run for 12 consecutive months thereafter, unless renewed by the Regents.
I've read that the furlough plan yields much more than $184 million. Please clarify.
Yes, savings from the furlough plan will total more than $184 million. When all UC fund sources are taken into account (UC general funds, auxiliary enterprises and medical center revenues) the furlough plan yields approximately $449 million. The general fund savings of $184 million will be applied directly to the state budget cuts. The additional dollars resulting from the salary reductions in other non-general fund sources will be used to help offset other cost increases and revenue shortfalls in those areas, such as rising costs of technology, utilities and health benefits as well as revenue shortfalls such as cuts in Medi-Cal payments to UC medical centers. To the greatest extent possible, campuses will seek to deploy savings generated from non-general fund sources strategically to address their specific needs and to address the balance of the $813 million state funding shortfall after savings from furloughs/salary reductions are taken into account, consistent with any restrictions on those fund sources.
Furlough Q&A
- Implementation
- Plan Participation
- Furlough Days
- Salary Reduction
- Impact on Benefits
- Part-time Employees
- Separation from the University
- End of Furlough Plan