In light of financial crisis, students must actively oversee ASUCLA expenditures
By Alexander Pherson
Feb. 11, 2009 9:08 p.m.
California is facing the largest budget deficit in its history ““ $42 billion to be exact. Last month, Gov. Arnold Schwarzenegger cautioned that “California … faces insolvency within weeks.” It has been weeks, and though we are still functioning, we are fast approaching the point when we will be totally out of cash.
Naturally, this mess will trickle down to the state’s public education system. The governor’s budget, which will soon be reviewed by the state legislature, proposes drastic cuts for services like infrastructure, and, yes, education. That includes a 9.3 percent tuition hike for undergraduates in the CSU and UC systems, and a $275.4 million cut in next year’s UC budget.
As education has ceased to be a priority, there is growing concern that our own Associated Students of UCLA, or ASUCLA, will be at risk of going into deficit as well ““ a frightening prospect for many students. As the main student organization on campus, ASUCLA funds all non-academic services including the United Students Association Council, or USAC, which runs Student Media and student government. ASUCLA officials continue to insist they are doing fairly well. According to a Daily Bruin article on Feb. 2, the organization has continued to fund capital ventures through promotional campaigns ““ a sign it is doing better than other retailers.
However, there is reason to believe that this may only be temporary. In fact, ASUCLA’s recent financial reports cast a much grimmer outlook on its stability. While the crisis has not yet had time to put a significant dent in the organization’s total assets, recent performance is not encouraging. Last month, all operations ran at a net loss of 5.7 percent. This followed a 4.7 percent loss from the previous month. In the meantime, all students can do is sit and watch.
Furthermore, sales are decreasing steadily, and the slump shows no sign of letting up. Most economists estimate that recession will loom for at least another year. And while the stimulus package of more than $800 billion will allot money for education, it focuses on infrastructure as opposed to helping students and faculty.
Most people predict that the economy will get worse before it gets better. If that is the case, it may be difficult for ASUCLA to keep a grip on its finances, which begs the question, what will happen if it does begin to fail?
History is the best metric we have to answer this question. Before it became standard practice in the federal government, ASUCLA was arbitrarily increasing dues to cover its ““ sometimes irresponsible ““ expenses. It did this in 1997, when a higher union fee was imposed that ended up lasting five long years, and again in 2004 after the controversial hiring of 80 unionized workers.
Irrespective of any additional charges that may be assessed in the next year to bolster ASUCLA, students have a lot on their plates. Last year saw $250 million in tax increases on students in the CSU and UC systems. This year the sales tax will increase even though prices are already higher due to the recession. On top of annual tuition increases, these make any further costs intolerable for many students. Despite supposedly being a “student-run” organization, ASUCLA has a large degree of autonomy. In 2007, the board gave the executive director the power to spend 10 percent of the budget for a capital project (such as construction of a student center) without board approval.
Thus, while both student and non-student members sit on the board, the student body frequently has little say in specific policy matters even if it’s their money that’s being tossed around. It’s even harder to monitor our “investments” once we pay into the system, with that money often going as much to self-approved pay increases as campus improvements.
As principals of our money, the board is responsible to us. We should not be asked to bail out ASUCLA, as we are being forced to do with the auto companies and banks. If it does come to that, changes will need to take effect. Students must insist on more oversight over ASUCLA’s activities, including monitoring its expenditures and whom it hires.
Indeed, this should have been the case well before now. Had the organization trimmed some fat out of its budget ““ such as the $25,000 spent on Dyson hand dryers that were recently installed in the Ackerman Union, or the $140,000 digital video screen in the Cooperage ““ I doubt raising tuition would have to be a topic of discussion.
But the reality is that it is a distinct possibility. ASUCLA has poo-pooed the idea of tapping into its almost $16 million cash reserve in the event that it begins to lose revenue.
If it stands firm on this, then it will be forced to make drastic cuts in its budget. That will mean reduced budgets for USAC and hence, a decline in student life. Barring a bailout from the chancellor (which happened once in the mid-1990s), the burden will fall on students to bail out ASUCLA if such things as student government and Student Media are to continue undeterred. In good conscience, we cannot allow that to happen.
E-mail Pherson at [email protected]. Send general comments to [email protected].
