COVID-19: UCSD Releases Statement on Financial Impacts Related to the Pandemic

This article is a part of our news series on the COVID-19 pandemic. For information on how to prevent the spread of the virus, click here.

On May 7, Chancellor Khosla released a statement regarding the financial impact of COVID-19 on UC San Diego, claiming that UCSD will lose hundreds of millions of dollars as a result of the economic conditions that arose with the pandemic. According to the statement, the loss of university funding has come primarily from the following:

  • Housing and dining refunds to students;
  • Reduction in state tax revenue leads to decreased state funding for UCSD;
  • Lack of revenue from parking, retail, child care, conferences, and cultural venues;
  • Hospitals focusing on providing more space for COVID-19 patients;
  • Typically maintenance to ensure a functioning campus for students and employees. 

Given the enormity of the financial losses, the university has been working to get emergency funds from all levels of government through various support mechanisms such as the CARES Act, FEMA, and research funding. 

The university will also be dramatically reducing the amount of new hires during this time. Construction projects which have already broken ground will continue while any projects in the design stage will be halted.

“The key to making decisions in this current environment is knowing and accepting that there are unknowns,” Khosla wrote. “From this position, we must plan for potential scenarios and act decisively, while accepting that we may need to change course at a moment’s notice should a new variable present itself or better solutions become apparent. In this context, we believe it is prudent to plan for a reduction of all core operating budgets for the fiscal year 2020/21.”

At this time, the university has not provided their budget statements nor their specific projected pandemic-related economic losses. 

This is a breaking story, and The UCSD Guardian has contacted the university for further comment. The article will be updated with any further developments.

Photo by Brendan Wilson for the UCSD Guardian.

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