FY21 Budget Update
Dear Financial and Administrative Services (FAS) Community,
I am following up on our recent UCSF Finance Town Hall about the current state of the UCSF budget to share more details about what this means for FAS.
To meet the FY21 budget reduction requirements, all FAS department leaders identified budget reduction options including eliminating vacant positions and deferring hiring, renegotiating external contracts, and significantly reducing expenses for supplies, training, and meetings. The anticipated risk impacts vary, with cybersecurity and campus service level maintenance representing the highest concerns. FAS departments have committed to resiliency by actively pursuing lean efficiencies and leveraging partnerships across teams.
In the short term, we are preparing for a 10% reduction of core revenue, while also absorbing new cost increases. As requested by the Chancellor, FAS has committed to a 7.5% core revenue reduction of $15 million for FY21. Most of this target is achieved through the reduction of vacant positions and hiring deferrals. In addition, I am taking an additional 2.5% core revenue reduction of $5 million in order to be able to absorb and fund cost increases within FAS, such as the increased employer contribution to the UC Retirement Plan and other employee benefits costs. The Chancellor will fund insourcing and new buildings as they open, even in these resource-constrained times, as well as the Anchor Institution Initiative, supported in partnership with FAS.
We are monitoring longer-term considerations as well, such as how the further integration of Benioff Children’s Hospital Oakland into UCSF Health will affect service agreements, and opportunities we may have to strengthen Health and Campus partnerships to integrate and eliminate redundancies.
The pandemic continues to generate uncertainty about our financial outlook. Yet, we know we have persevered through difficulties before, and we are well-positioned to address this challenge because of the strength of the employees and leadership within our organization. As an employee, you can get involved by participating in lean training, sharing your improvement suggestions and taking part in efforts like the Value Improvement Program that help us improve outcomes and generate cost savings. It’s also important to take care of your own well-being, whether participating in Wellness Month or taking advantage of the confidential services provided by the UCSF Faculty and Staff Assistance Program.
We have a lot of work ahead of us. I ask you to remain focused on the critical work we do to support UCSF’s mission. If you have questions, please talk to your manager or reach out in any way you feel comfortable, including emailing me directly: [email protected].
Thank you for being part of our FAS village,
Paul Jenny
Senior Vice Chancellor
Finance and Administration