UC Davis Budget Deficit in 5 Minutes

The UC Davis budget has grown a lot, but increases in funding from the state and from tuition have not kept pace with increased costs. This video explains UC Davis’ core funds deficit and why the university has embarked on a multi-year effort to rebuild its budget framework.

0:00 UC Davis budget introduction
0:53 Define "Core Funds"
1:17 State funding in UC Davis budget
1:46 UC Davis is people-driven
2:21 Closer look: If Core Funds were $100
4:12 Facing the structural deficit

UC Davis is a state-assisted university. Only about 17% of the UC Davis budget comes from “core funds,” which are made up of state funding and student tuition. (The other 80% of the UC Davis budget is actually “restricted funds,” which are earmarked for specific uses such as gifts, medical services, contracts and grants.) Core funds are what power the university’s teaching, research and service missions. While core funds have seen moderate increases in recent years from state funding and enrollment, these increases have not kept pace with increases in costs.

UC Davis is a people-driven university. Budget costs are largely focused on employee compensation, including salaries and benefits for faculty, staff and academics. Employee compensation costs are increasing more rapidly than funding increases. This mismatch creates a structural deficit in UC Davis’ core funds, where the university’s budget falls short, year after year.

The campus faces a structural deficit in its core funds. UC Davis leaders and budget teams are working to change this, but it will take fundamental, long-term changes in business practices and management strategies across all facets of the campus community to achieve financial sustainability.

Find more information about the UC Davis budget framework and core funds deficit: https://budgetframework.ucdavis.edu

January 2024 update: After reviewing nearly 2,000 ideas from UC Davis employees for new revenue or costs savings, the provost announced initial investments to support long-term financial sustainability. More about the IDEA$ at Work campaign and its outcomes: https://ideasatwork.ucdavis.edu/

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