Recently, UC Davis Chancellor Gary May issued a “message” to the community after University of California President Michael Drake announced a systemwide hiring freeze designed to manage costs in the face of budget uncertainties.

“One concern is the proposed 2025-26 California state budget, which calls for a reduction of funding for the University of California,” stated May. “We are also facing the prospect of significant cuts in federal research funding.”

Federal funding from the National Institutes of Health, the National Science Foundation, and other agencies “plays a critical role in strategic preparations for the next generation of leaders, innovators and scientists.”

“However, given the ongoing uncertainty with federal support, much of this funding is in jeopardy,” May writes.

It’s important to remember that “R&D,” or research and development, never pays off immediately. It is one of those “budget necessities” that should never be cut.

Davis is classified as an R1 research university, which marks those with the highest level of research activity. Out of nearly 6,000 colleges and universities in the nation, UC Davis is one of 187 institutions with R1 designation,” May reported.

“In September, we announced that UC Davis received over $1 billion in research awards for the third consecutive year, surpassing the previous year by $33 million. Fewer than 20 public universities in the United States can make a similar claim. These numbers reflect how UC Davis is shaping a healthier and brighter tomorrow while supporting $2 billion in California economic activity and nearly 10,000 jobs.”

But the feds are now proposing to significantly cut these amounts. May states “a proposed 15% cap on NIH reimbursement for facilities and administration costs, or F&A, would be devastating, equating to a loss of $70 million in research funding at UC Davis if the rule were applied to this year. And the impact would stretch beyond UC Davis to the research community at large.”

May said he uses an analogy about “milk and a refrigerator to explain the relationship between research and F&A.

“Imagine you visit the grocery store to purchase some milk,” he writes. “The milk itself constitutes your direct cost. However, you also incur indirect costs, such as the refrigerator and the expenses needed to keep the milk cold. These costs include the need for a storage space for the milk, the utilities required to maintain its freshness and someone to monitor and replenish when the product has expired, as well as clean up any milk that spills.

“We charge direct costs for the research and indirect costs for research infrastructure expenses, such as buildings, compliance and regulatory staff, computing and utilities,” he writes. “These indirect costs also cover essential staff to ensure safety measures and protections for human and animal research are in place. The university and the federal government both contribute to the indirect costs of doing research.”

May said he and others are monitoring the “federal landscape” to “stay committed to unlocking advancements for the greater good of our communities and the planet.

Research across the UC Davis campus produces innovations that become the foundation for tomorrow’s products, services and businesses. Last fiscal year, researchers generated 140 records of invention, submitted 208 patent applications and secured 109 patents and plant certificates.”

But if future research funding is cut then those innovations will disappear as will the jobs that come with them and not just to UC Davis, but all of Yolo County.

That’s what will happen when that $1billion in research funding goes away.

Jim Smith is the former editor of The Daily Democrat, retiring in 2021 after a 27-year career at the paper.