USAC surplus funds continue to shrink by at least $100,000 annually

Undergraduate student government surplus funds total $103,000 this year, marking the third time in a row that the pool of money has shrunk by at least $100,000 in a year.

The Undergraduate Students Association Council surplus is money left over from the previous council that gets recollected and distributed the next year to projects that aim to benefit students.

Surplus funds have steadily decreased over the past few years. The 2011-2012 surplus, which was allocated in 2012-2013, was about $384,000, while the following year’s surplus was about $232,000.

USAC calculates a new surplus each fall, and councilmembers choose how to spend or allocate the funds. Typically, tens of thousands of dollars go to funding the JazzReggae Festival and Bruin Bash as well as councilmember initiatives occasionally. This year, however, USAC allocated no money to putting on Bruin Bash.

The remaining surplus funding is divided among the USA programming fund, contingency fund and capital contingency fund, according to a procedure set out in the USAC bylaws. USAC funding comes from mandatory fees, which students pay each quarter.

“(Surplus is) last year’s money that didn’t get spent on the purpose it was intended for, and as it crosses that fiscal boundary, it can be repurposed,” said Student Union Director Roy Champawat.

Champawat said he thinks the recent surplus fluctuations are due to many independent factors, and the trend could potentially change.

“It goes up and down, and there is no clear trajectory of it going down, although a significant factor is the eroding purchasing power of the dollar because (surplus) is not adjusted for inflation,” Champawat said.

In past years, surplus has fluctuated partially because of changes in council spending or a more active use of student programming funds. USAC also created an endowment in 2013, using $100,000 of surplus funding with the goal of establishing a more stable funding source for the council and students.

Community Service Commissioner Cynthia Wong said she thinks decreasing surplus amounts are occurring as a result of student organizations using their money more efficiently.

“It should continue to decrease because that means we are better utilizing the funds, and it’s not necessarily a bad thing,” Wong said

USAC President Avinoam Baral said he does not think the smaller funding amount will affect any usual USAC events or services, partially because the JazzReggae Festival will only be one day this year, instead of its normal two.

“In past years, USAC funds were used directly or indirectly to extensively fund JazzReggae. This year’s lower surplus also coincides with (the Cultural Affairs Commission’s) decision to rethink JazzReggae. This will make the event less expensive,” Baral said.

Though capital contingency funding is typically underused, many student groups apply to the contingency and programming funds for organization activities.

“It is still unclear how (low surplus) will affect the student group allocations. Overall, this really points to the need to reform the system to make student group funding sustainable,” Baral said.

During the last academic year, students voiced concerns after USAC allocated $78,500 out of the total available surplus toward councilmember initiatives. Dozens of students attended the next meeting and urged the council to reverse its decision, prompting student government officers to return the money to student programming that night.

Discussion as to which projects will be funded by the excess money will begin at USAC’s meeting Tuesday.

“The key is ensuring that all decisions that are being made are done transparently and efficiently and that the campus community understands why and what USAC is doing with its funds,” Baral said.