Budget Framework

While core funds are stabilizing, we must continue our work on a multi-year strategy to address the university’s remaining core fund deficit. 

"As a result of these cost pressures and the importance of making strategic investments in critical needs and priorities, we continue to manage a core fund structural deficit of approximately $25 million for fiscal year 2022-23. Therefore, we must continue to implement the multi-year budget framework and meet the $70 million goal in Phase 1 Savings Targets allocated to units and central campus beginning in 2020-21."
– Mary S. Croughan, Provost and Executive Vice Chancellor, July 1, 2022

Since January 2020, the campus has been working to reduce ongoing reliance on state funds and tuition revenue (core funds) by $80–100 million by 2025 and to fundamentally change the way we operate to sustain a balanced budget and maintain a responsible central reserve. Resolving our core funds structural deficit will allow UC Davis to invest in strategic priorities, build a responsible central reserve and meet future challenges. To meet this goal and achieve financial sustainability, we must make fundamental, long-term changes in business practices and fund management strategies across all facets of UC Davis. 

$70 million savings over 5 years must be achieved 

Our current projections for the core funds structural deficit have stabilized and are consistent with our original projections made prior to the pandemic in 2020.  

If we continue to achieve our Phase I savings targets – and if the five-year annual increases proposed in the governor’s budget are indeed implemented -- then we will have a remaining core fund structural deficit of $10-20 million to address.  

As a result, campus units will need to continue to implement the planned reductions to meet their Phase I savings targets, but we do not plan to issue Phase II budget savings targets in fiscal year 2022-23.  

UC Davis can address this remaining challenge with our combined strategies of multi-year actions. We must continue to: 

  • Renew our efforts to identify significant revenue-generating opportunities. 

  • Think differently about how to support our mission and fully leverage all of our fund sources. 

  • Realize efficiencies by reducing duplication of effort and programming. 

  • Use one-time bridging to mitigate the most severe consequences, when necessary. 

2022–23 Budget Framework Letter (PDF)

2022-23 Budget Status and Allocations (PDF)

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.