The UC Libraries' Budget Process

Most new state funds for libraries result from provisions of the Partnership Agreement with California Governor Gray Davis. The Partnership Agreement represents a four-year commitment on the part of the Governor to provide the University with the state funding needed to maintain quality and access at a time when the University's enrollment is anticipated to grow dramatically. Within the Partnership, funding for libraries comes from two principal provisions:

• Funding for approved enrollment increases, based on the "marginal cost of instruction," recalculated annually by UC; library budgets are included in the cost pool for the marginal cost calculation.
• An average 4 percent General Fund increase to cover salaries, benefits, non-salary price increases, and other expenses. Within the 4 percent provision, all non-salary costs and estimated price increases are pooled into a single request; library materials price increases are included in this request.

Under both of these provisions, new funds provided by the state are allocated to campuses on a proportionate basis. The Chancellors allocate these funds to specific programs, including libraries, according to local campus needs and priorities.

In addition, the Partnership provides for an additional 1 percent increase to the General Fund base eliminate historic annual budgetary shortfalls for building maintenance, instructional equipment, instructional technology, and libraries ("core needs").

The 1 percent provision was envisioned to provide a permanent increase of $20 million to address the shortfall in library materials budgets over four years ($5 million per year). Between 1998–99 and 2000–01, the state provided $8.7 million in permanent funding increases and $14 million in one-time funds under this provision to enhance the UC's library collections and improve capabilities to share these resources among the campuses.

Finally, the Partnership provides funding for new or expanded special programs or initiatives "outside the Partnership," contingent upon the state's fiscal situation. In addition to a $3 million allocation in 1998–99 to help establish the California Digital Library, UC's library budget plan envisioned requesting $2.5 million per year for three years under this provision to support the continued development of CDL collections and services. Between 1998–99 and 2000–01, the state provided $7 million (including the $3 million start-up allocation) to support the CDL.

Recent Library Budget Issues

The state's deteriorating financial condition beginning in 2000–01 meant that it was unable to fully fund the provisions of the Partnership Agreement. For library-related components of the University's budget request for 2000–01, the state fully funded approved enrollment increases, but could provide only a 2 percent General Fund increase for salaries, benefits, and non-salary price increases; additional funding for "core needs" (including library materials) and "outside the Partnership" requests (including the CDL) was not provided.

In 2002–03, facing a $23.5 billion deficit, the state provided full funding for enrollment increases and a 1.5 percent General Fund increase for salaries, benefits, and non-salary price increases. The budget also imposed a one-time reduction of $29 million for "core needs" (including library materials). In addition, a $20 million mid-year cut in general administration, academic administration, and libraries was imposed in 2002–03; each campus and the Office of the President was given discretion to achieve its portion of the cut in locally determined ways. Finally, the 2003–04 budget increased the permanent cut for "general administration, academic administration, and libraries" from $20 million to $36.5 million.