California's massive budget deficit has led to a more than $800 million dollar cut in University of California's state appropriation. As reported in the NY times article, "University of California Makes Cuts After Reduction in State Financing" furloughs will be imposed, student fees increased, various campus programs eliminated and hiring will be nearly frozen. Furloughs for highly paying faculty will be the equivalent of a 10% pay cut. Although other universities have suffered as the result of the current recession and drops in endowments, these deep cuts in the UC system's state appropriations may put it at a serious competitive disadvantage relative to its peer institutions.