...Although the impact of the COVID-19 pandemic will vary by revenue source, its projected impact on some sources will be significant. The University estimates that the financial impact associated with pandemic-related revenue losses and cost increases during the months of March and April alone totaled $1.2 billion across the system, including $700 million attributable to the University’s medical centers (with considerable variation by center). Although the pandemic has not affected State support for the University in the current fiscal year, the California Department of Finance and the Legislative Analyst’s Office project a substantial budget deficit for 2020-21, ...suggesting that (a) significant reduction in the University’s State appropriation next year is possible.
...The University will take full advantage of reimbursement opportunities for pandemicrelated costs provided by the Federal Emergency Management Agency (FEMA).
• The University has accessed over $260 million in federal support provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency grants to students and to cover institutional costs and revenue losses attributable to COVID-19.
• UC hospitals have received an additional $288 million to date in CARES Act funding to cover a portion of their pandemic-related costs.
• Pursuant to another provision of the CARES Act, the University plans to defer an estimated $700 million of the University’s employer contribution to Social Security in 2020. Although the contribution will need to be repaid in 2021 and 2022, the deferral will provide additional liquidity for campuses this year.
• The University has taken initial, prudent cost containment steps related to hiring and compensation.
• The University has developed initial planning scenarios for how the pandemic and its second-order effects could affect the University’s revenues over a multi-year period.
These are being refined as more information becomes known and will be shared at the Finance and Capital Strategies Committee meeting. The scenarios represent one step in a longer, consultative process of developing strategic options for the Regents’ review and consideration.
Source: https://regents.universityofcalifornia.edu/regmeet/may20/f7.pdf
No comments:
Post a Comment