UC San Diego Still Strong Despite Turbulent Economy

Dear UC San Diego Friends:

As individuals, businesses and governments struggle in today's difficult economy, nonprofits—including public universities—are also feeling the effects of this global financial meltdown.

At the University of California, San Diego, we are facing a myriad of fiscal and budgetary challenges that will impact our campus now, and in the coming years. I am writing to keep you informed about efforts to manage this crisis in the best interests of UC San Diego's outstanding faculty, students and staff. Above all, we are committed to preserving our tradition of excellence.

Despite the economic downturn, UC San Diego stands strong. Thanks to the university's philanthropic donors who have made so many new programs and facilities possible, our campus is recognized as one of the top ten public universities in the nation. In addition, UC San Diego contributes more than $7.2 billion in direct and indirect spending and personal income each year to the California economy, while generating 39,000 jobs.

As a result of the turbulent economy, UC San Diego's current budget was cut by $4 million at the beginning of the fiscal year, and reduced an additional $12 million at mid-year. The university's endowment experienced a serious decline, losing 22 percent of its investment value since the 2008-09 fiscal year began July 1. We know that our donors have experienced similar declines in their portfolios, and we share your concern for nonprofits which rely on support from the government, foundations and individuals.

In response to this historic economic crisis, the University of California Regents have decided to cut enrollment by 2,300 students, and freeze salaries of the top 285 administrators. Our capital projects have been affected as well—the state recently halted most building projects regardless of the effort already invested. To help weather the fiscal storm, UC San Diego is working to drive operating costs down, achieve greater efficiencies, manage expenses and encourage further collaborations between campus departments, divisions and schools. We are determined to preserve the extraordinary quality of our university amidst declining revenues from the state, our endowment and external sources.

Philanthropic contributions are critical to the success of public universities. Private gifts from alumni, parents, faculty, staff, students and university friends—regardless of size—can make a difference.

We are thankful to all of our supporters who have helped to enhance groundbreaking research, advance patient care, recruit stellar faculty, support student access to education and train tomorrow's leaders. Your commitment to UC San Diego will help continue the local impact, national influence and global reach of the region's leading research university.

Thank You,

Debra Neuman
President, UC San Diego Foundation Board of Trustees
Vice Chancellor, UC San Diego External Relations