With the University of California facing one of the most serious funding challenges in its history, UC President Mark G. Yudof has moved forward with a 5 percent pay cut for senior UC leaders — himself, all executive and senior vice presidents, general counsel and the vice president of legal affairs, all chancellors, and all executive vice chancellors. The action will be effective for the 2009-10 fiscal year, at the end of which it will be reviewed.

“Admittedly, this action does not have a significant impact on our very serious budget deficit, given its magnitude and the fact that UC’s senior management group comprises only a very small fraction of University employees,” Yudof said. “Nonetheless, I believe a reduction in pay is only right, especially as we continue to consider possible furloughs and/or pay cuts for faculty and staff systemwide.”

Earlier this month, Yudof testified before the state’s Joint Legislative Conference Committee on Budget and described the devastating consequences of the proposed state budget cuts for the university, its students, and the services it provides to the state.

Yudof noted that the reduction in the state’s General Fund commitment, which totals almost $800 million for the 2008-09 and 2009-10 fiscal years, would place in jeopardy California’s historic commitment to provide access to all eligible high school graduates and would force UC to rely more heavily on higher student fees.

“We recognize the need to be part of the solution to solve the state’s fiscal crisis,” Yudof said. “But cuts of this magnitude proposed in Governor Arnold Schwarzenegger’s budget proposal will require us to consider extremely painful options. These include the possibility of further reducing first-time freshman admissions for 2010-11, revisiting the fee increase levels for 2009-10, and implementing furloughs, more layoffs, and salary reductions for our employees.”

Addressing the issue of student access, he warned that without funding for enrollment growth, and given the magnitude of the proposed cuts, UC would be unable to hire the faculty and offer the sections to meet the overwhelming demand for access by qualified applicants. He said the university and the Regents would have to consider further reductions for the entering class of 2010-11 to bring them more closely into alignment with UC resources.

“The long-term solution for our economy is to heighten investment in UC, CSU, and the Community Colleges,” Yudof said. “In the near term, unfortunately, the utter severity of the cuts proposed leaves us only difficult options to consider.

“But the Regents and I will have to act in order to ensure that UC can continue to offer the high-caliber education, research, and patient care that Californians expect of us. Mediocrity is not an option.”