Cost efficiencies and staff downsizing at the UC Office of the President reduced its current operating budget $60.4 million, a 21 percent savings over the prior year, along with an FTE reduction of 500, or 27 percent.

Those reductions include an additional $8.7 million savings and 97 FTE reductions during the first four months of the fiscal year.

The revised UCOP 2008-09 budget, presented to Regents in November, now totals $230.1 million.

"This is a significant achievement made possible by the dedication and hard work of the staff at the Office of the President," Executive Vice President of Business Operations Katie Lapp told Regents. "Many participated in helping to design new consolidated units, and many more have shouldered additional responsibilities as the work force has been reduced. It has been a painful and difficult time, yet the staff has continued to fulfill the mission of the university. This must be acknowledged."

The restructuring of the Office of the President aims to streamline UC's central administration operations for both cost-savings and work efficiencies. Half of the total savings are due to transfers of programs and functions to campuses.
 
A portion of the budget cuts came from a voluntary separation program, which is expected to save $5 million annually. A total of 155 UCOP employees took the buyout.

Additional savings came from not filling vacant nonessential positions, curbing travel and consulting expenditures and consolidating and reorganizing departments in the central administrative offices.

Those efforts will continue along with ongoing reviews of programs and services that could be better delivered through third-party vendors or campuses.  

The Office of the President has a goal of reducing its work force by at least another 275 positions and $25 million by the end of the 2009-10 fiscal year. This would result in a work force reduction of 43 percent, down from a high of 1,874 FTEs in 2007-08 to fewer than1,100.