Aug. 7, 2008: — On July 31, Gov. Schwarzenegger signed an executive order implementing a number of measures to reduce the state’s cash obligations until a state budget is approved. Among these measures are the reduction of state employees’ salaries to the federal minimum wage and the suspension of state contracts.

Regarding salary reductions, the UC Office of the President has informed us that they do not expect the majority of current salaries to be affected by the governor’s order. We are assuming, however, that all agreements with state agencies will be retroactively suspended to July 31, 2008, which will impact areas of the campus currently funded by these awards.

We are working closely with vice chancellors, deans and principal investigators to address these issues and manage the impact of suspended awards on academic and staff employees.

We understand and regret that consequences of the governor’s action may create hardship for some members of the campus community and are working with units to mitigate such hardships wherever possible.

We remain hopeful that a budget will be established soon, and we will continue to provide updates via Zotmail and at www.uci.edu/ExecutiveOrder. Questions related to this matter should be directed to Paige Macias, 949-824-5108.

Thank you for your patience as we work through these issues.

Michael R. Gottfredson
Executive Vice Chancellor & Provost