The university will use reserves to absorb its $100 million cut, said Dianne Klein, who handles media relations for the UC's Office of the President.
She explained in an e-mail:
What the university intends to do, on a short-term basis, is draw upon reserves currently held to pay for unexpected cost spikes in employee health and welfare plans. This, in essence, is a rainy day fund. We’ve declared a rainy day. There may be other measures taken to cover the $100 million, but this represents the lion’s share of the cost.For more on how the cut will affect (or won't affect) agriculture-related programs, check CapitalPress.com soon.