If the referendum were to pass, UC Davis would lose about half of its $40 million per year athletics budget, with only a year or so notice before the funding is gone. “The campus would need to replace funds on an ongoing basis,” Topousis said. “An endowment would need to be established.” Because of University of California policies requiring that far more money be invested in an endowment than the amount withdrawn per year, UC Davis would need to raise more than $400 million to replace the funds generated by student fees. “The campus would not be able to raise those funds,” Topousis said.
As a result, UC Davis would either need to eliminate sports teams or dismantle other campus programs to replenish the athletics budget. Both options would involve laying off significant numbers of staff and student employees.