By M.R.C. Greenwood

As I write this in January, hardly a day passes without news detailing California's worsening budget crisis. Estimates of the magnitude of the problem have varied, but Governor Davis's own numbers suggest that the state's annual deficit will exceed $30 billion without massive adjustments to the revenue the state collects, the expenditures it makes, or--most likely--both. Even if this number is reduced by the regular reassessments of California's bottom line, the budgetary shortfall represents a staggering amount by anyone's calculations. It is clear that state government as a whole, the 10-campus University of California system, and our campus, UC Santa Cruz, are entering what will be a very challenging phase in our histories. At UC Santa Cruz, we already know that there will be new cuts targeted to research, outreach programs, student affairs, libraries, and in the dollars it takes to administer an enterprise as many-faceted as UCSC. We also know that, under almost any scenario, students (and their parents) will be asked to pay more for higher education. Already, mandatory systemwide student fees at UC have been increased $135 per quarter, beginning this spring. And the governor's proposed 2003-04 budget would require an additional fee hike of $795 per year for undergraduates who are California residents. Fee increases are always difficult, but when they take effect during an economic downturn, it can be especially challenging for some of our students and their families. For this reason, the University of California will increase the amount of financial aid that will be available to protect low-income students from the full extent of these increases. At UCSC, we have also launched a campuswide budget planning effort in the face of this fiscal uncertainty. The initiative, under the leadership of Campus Provost and Executive Vice Chancellor John B. Simpson, will	Photo: r. r. jones	identify options for reducing our expenditures--with a goal of preserving UCSC's commitment to superlative instruction, world-class research, and public-service activities that make a positive difference to society. But we also need your help. In the budget deliberations that will take place in the months ahead, we will need members of the UCSC community to join us in advocating not only for this campus, but for the University of California system. Our message will be simple: The state's continued investment in UC is critically important to today's students, to those who will enroll in future years, and to our society as a whole. We also will need the continued support of the many contributors who have made it possible for UCSC to achieve national distinction for the quality of its people and programs. The private support we receive from alumni, parents, other individuals, foundations, and corporations provides crucial funding for undergraduate scholarships and graduate fellowships, research activities, and the classrooms, labs, and other facilities in which our students prepare for their futures. By working together now, UC Santa Cruz will not only weather this budgetary crisis, it will continue to build upon its legacy of innovation, excellence, and achievement.   M.R.C. Greenwood Chancellor If you are interested in legislative advocacy efforts, please contact our Government and Community Relations Office; to learn about private gift support, please contact our Development Office. Both offices can be reached by calling 800-933-SLUG (7584).
	In the face of fiscal uncertainty, we have launched a campuswide budget planning effort to preserve UCSC's commitment to superlative instruction, world-class research, and public-service activities that make a positive difference to society.