To: Faculty and Staff
September 25, 2026
Colleagues,
The first weeks of the fall semester have proven to be among the most exciting and consequential in the history of the University of California, Merced.
UC Merced has welcomed the largest first-year class in its history, accompanied by the largest annual percentage growth in enrollment in 15 years. These accomplishments, along with our recent ranking as a Top 30 Public University in U.S. News and World Report, are a powerful affirmation of the university’s growing reputation, the strength of our academic programs, and our continuing ability to provide access to an exceptional University of California education.
Our momentum received further affirmation from the UC Office of the President in the renewal of our Memorandum of Understanding (MOU), a new six-year funding agreement that further strengthens UC Merced’s financial position.
Financial Stabilization Planning Process
Our record enrollment growth and the renewed funding agreement with UCOP materially improves our financial outlook. In light of these recent successes, and in consideration of the substantial work already undertaken for FY 26-27 to better align our existing resources with expenditures, I am placing a one-year pause on the financial stabilization planning process initiated last year. This means a 5% core funds reduction will not be planned for FY 27-28. This decision was made in consultation with Academic Senate and campus leadership.
This one-year pause should not be interpreted as a retreat from our responsibility to maintain our long-term fiscal health. It provides a timely opportunity to assimilate the corrective actions already undertaken, assess the impact of our recent growth and new resources, and engage further with the campus community regarding our shared future.
It is therefore incumbent upon all of us to protect the wellbeing of UC Merced by anticipating predictable increases in costs, adjusting when necessary, and, at the same time, continuing to invest strategically in the future of our institution.
With these principles in mind, I will appoint a committee comprised of faculty, staff, administrators, and students to examine our financial position and develop strategic corrective recommendations for consideration and potential implementation in FY 28–29 and FY 29–30. This committee will further ensure that the campus has the greatest practical degree of input, transparency, and meaningful engagement as we consider the choices before us.
Looking Forward
I am encouraged by the university’s current position and by the extraordinary progress reflected in this semester’s enrollment, our continued institutional momentum, and the renewed commitment of the UC Office of the President.
Our responsibility extends beyond ensuring the finest possible higher education experience for our students today, working environment for our staff, and scholarly context for our faculty. We must also continue to build an institution capable of serving the generations of students, faculty, and staff who will follow us.
We will keep the university community informed as this process develops. I remain deeply grateful for your continued commitment, service, and dedication to the University of California, Merced and to the communities we serve.
Sincerely,
Juan Sánchez Muñoz
Chancellor
