ASUCLA’s sales decline 15 percent
By Daniel Schonhaut
Sept. 29, 2009 11:19 p.m.
“We’re going through a period now where everything is down,” said Bob Williams, executive director of Associated Students UCLA, at a Board of Directors meeting Friday.
Gross income was down nearly 15 percent in August compared to the previous year ““ a 10 percent drop from predicted figures.
“With the (poor) economy and UC budget cuts taking effect, our initial trends aren’t as strong as we would like,” Williams said, although he added that figures might change as the year progresses.
Financial director Richard Delia said that while he believes much of the decline in sales can be explained by the recession, two financial issues may be of long-term concern to ASUCLA.
Sales of new textbooks are down 14 percent from last year, Delia said.
And as professors switch from using printed texts to online content, this trend will likely be amplified, he added.
Students who do purchase traditional textbooks often do so online, Delia said. This tendency has persisted even after ASUCLA has worked to cut textbook fees.
On Friday, a funding committee was formed to investigate how textbooks are prioritized in classrooms and how ASUCLA can adapt to changing demand, said Bernice Shaw, the Board of Directors chair and an ASUCLA undergraduate representative.
“Services have to be weighed alongside financial results,” Shaw said. “We have to look at the issues and think outside of the box. … Not everything can be attacked financially.”
Revenues from computer sales may soon decline, as well, if $300 netbook computers grow as more popular alternative to $2000 laptops, Delia said.
“Apple is coming out with a new netbook, and if people start to switch, that could be a problem,” he said. “There’s less of a profit margin in netbooks.”
Despite these concerns, ASUCLA is currently in a good financial position due to its strong cash reserves, Williams said.
“The board has been very careful to save money,” he said.
Much of the $18 million in reserve will be spent on ongoing projects that the association planned, including the construction of a South Campus Student Center. Williams said the center will bring new food facilities and indoor seating to South Campus.
On Friday, the Board of Directors presented a $7 million check to Capitol Programs to put the student center project up for bid.
Construction on the South Campus Student Center is scheduled to begin in January and will be completed in about 18 months, Williams said.
Three million dollars from the cash reserves will also be used to pay for recent renovations to Cooperage Dining in Ackerman Union. In addition, a new restaurant will be added to the first floor of Ackerman Union, Williams said, adding that negotiations with Wolfgang Puck are underway.
Other projects, including renovations to bathrooms and large-scale facilities maintenance, have been slowed or stalled in response to declining sales.
