Ask the Administration Leadership Team

The pandemic has had a profound impact on our personal lives and professional activities. As public health orders continue to restrict on-campus activities and require remote working, teaching, and learning, UCLA faces both decreased revenues and increased expenses, which raises the question:

"How significantly have reduced campus operations impacted UCLA Administration's budget and how will those lost revenues be mitigated?"

Charles Turner, executive director of financial and organizational services — Charles Turner, Executive Director of Financial & Organizational Services.

UCLA Administration is not immune to the severe operational disruption and financial damage resulting from the essential and immediate response to COVID-19. For the fiscal year 2019-20, Administration’s operating revenues were $762 million compared to an $846 million budget, an $84 million loss. The most severely impacted area was Housing & Hospitality with budgeted 2019-20 revenues of $380 million and only $287 million in realized revenue, a $93 million loss. Looking ahead, Housing & Hospitality is anticipating revenues to come up short by as much as $262 million as a result of minimal on-campus housing allowed and the continuation of a stalled conference industry. Housing revenue losses will be partially mitigated with the infusion of a $125 million loan and an $18 million CARES Act grant. While housing is experiencing the most substantial revenue impact within Administration, all departments are experiencing financial challenges at this time.

*UCLA Administration looks forward to an eventual return to on-campus activities.*

In response to the declining financial conditions, Executive Vice Chancellor and Provost Emily Carter and Vice Chancellor and Chief Financial Officer Greg Goldman prepared a budget guidance memo that outlined budget guiding principles and targets to minimize the negative impacts any budget adjustments will have on campus. The budget principles include pursuing revenue strategies to reduce the need for reductions, being measured and steady in our approach and not overreact to the continuously changing circumstances, and maximizing attrition and retirements over multiple years to mitigate impacts to personnel. The budget targets for the current and subsequent two years are a gradual reduction in campus operating expenses by an initial two percent, then four percent in each subsequent year, for a 10 percent reduction in campus operating expenses over three years. We believe these targets are achievable and, together, we can make this happen.

To this end, UCLA Administration will overcome this challenge and make the organization stronger, more resilient, and better positioned to realize our vision to be the leader among higher education organizations by delivering innovative, high-value programs and services.

Sincerely,

Charles Turner
Executive Director, Finance and Organizational Services
UCLA Administration