UC warns of 'gravest' threat, seeks fast loan of $130 million

Emergency funding is requested in midst of state cuts, uncertainty over federal support.

- BY JAWEED KALEEM

AT UCLA, budget cuts have forced tours to be reduced, and student retention programs targeting nonwhite students have cut staff.

(AL SEIB For The Times)

Facing budget shortfalls due to state cuts, uncertainty over federal support and increasingly acute student needs, the University of California said Friday that it would seek a nearly $130-million zero-interest loan from the state.

UC’s top finance manager made the emergency request in a letter to the state Department of Finance, asking for fast-tracked approval from lawmakers so the loan could be used during the current fiscal year.

“The university is currently facing myriad budget pressures, particularly as a result of federal actions targeting institutions of higher education and ongoing challenges to the state’s fiscal condition,” UC Chief Financial Officer Nathan Brostrom wrote.

Brostrom said the system surpassed its California resident undergraduate enrollment goal this year by thousands but needs state help to maintain services for those students.

“While we work to restore ongoing funding for our campuses, the loan will be prioritized for onetime student support services that are critical to ensuring student success and timely degree completion,” he wrote.

The loan option was offered to UC under the state budget passed this year that cut the system's year-to-year state funding by 3%, or roughly $130 million.