From the Desk of Willie Brown V4N3

Happy New Year HDAE Team!

Let me start with a thank you to all of you for your extraordinary work this academic year, and a special thank you to those team members who have been working in-person full-time to deliver world-class service to our students. I’m grateful to be your colleague. 

Although we recently experienced a temporary pivot this winter quarter with the changing nature of the pandemic and the need to begin with remote instruction, the Omicron surge appears to be waning. You can read about it in a January 26, 2022 email from UCSB’s medical experts. Campus activities are able to resume because of the UCSB community’s high vaccination rate, mandatory masking policies, and a robust testing program. I thank you for continuing to keep our campus community safe by adhering to the UC COVID-19 Vaccination and Booster Policy Requirements, as well as other healthy practices such as masking and hand washing. In case you are not aware of the site My Vaccine Record, it allows you to get a digital download of all your COVID vaccinations.
 
Since the start of the pandemic, much has been done together to support our students. This is highlighted in our recently published 2020-21 HDAE Annual Report. Please take a moment to review this historical record and celebrate your accomplishments. The report also includes a detailed financial statement, which generated questions from staff members. Melissa Jarnigan, HDAE’s Chief Financial Officer, and I have done our best to answer the questions and I share them with you here.
 
Q: How is HDAE making up or accounting for the $91.5M deficit from last year? 
A: Most of the deficit was covered by reserves that HDAE had in place prior to the pandemic starting. The campus then took a loan at the beginning of the pandemic that UCOP offered to all campuses. At the end of last fiscal year, approximately $30 million of this loan was applied to HDAE to cover the remaining “cash” deficit. We will be required to repay this loan via our normal operating funds. The repayment schedule is still being worked out with the Central Budget Office and we will incorporate that debt payment into future budget years.
 
Q: If we're taking loans from the state, are we still considered auxiliary services?
A: Yes, we are still auxiliary services. These funds are not state appropriations and therefore are not considered “state” funds. They are similar to all our debt – which is typically from the open bond market.
 
Q: With a 7% inflation on goods since December 2020, (how) are salaries expected to keep pace with the rising costs of living?
A: Internally, we closely monitor our regional CPI (consumer price index) which serves as a good barometer on how the cost of goods affects our purchasing power. UCOP is watching this closely and there are current bargaining sessions taking this into consideration. Additionally, the UC has been working to bridge the salary gap. The Governor just released his January preliminary budget for the 2022-23 fiscal year. That information can be found on the Governor’s Budget website. 
 
I value your questions and ideas very much. If you think of additional questions or have feedback, please feel free to contact me. Be well and stay safe HDAE Team!