Letters

ASUCLA’s financial situation complex

The Daily Bruin editorial regarding the discussions under way
about the challenges facing the Associated Students of UCLA
Services and Enterprises division requires a few clarifications
(“ASUCLA closes doors to student accountability,”
Viewpoint, May 11).

As the chair of the Joint Operating Committee appointed by
Executive Vice Chancellor Wyatt R. Hume, I would like to offer the
following comments.

The financial challenges facing ASUCLA are significant and
complex.

Throughout the 1970s and 1980s, ASUCLA enjoyed a period of
sustained growth in both sales and profitability. Unfortunately,
this trend ended around 1990. ASUCLA’s sales have declined
from a peak of nearly $80 million in 1990-1991 to $71 million
projected for the current year.

In 1990-1991, net revenues were $2.1 million. ASUCLA now
projects an operating loss of $1.5 million in the current year.

Notwithstanding substantial investments in ASUCLA facilities and
services during the 1990s, its operations have lost a total of $8.8
million since 1995.

Financial losses of this magnitude are a campus-wide concern,
not one limited to ASUCLA.

If these losses were to continue unabated, services to the
entire campus community would suffer, funding for student programs
would be curtailed and the university’s ability to meet its
debt obligations would be compromised.

It would have been irresponsible for the campus administration
to stand by while these losses continued to grow.

The Joint Operating Committee is a practical means of working
cooperatively with the ASUCLA Board of Directors to find solutions
to a very difficult problem.

I am pleased that the board has accepted the
administration’s invitation to participate in this forum.
Contrary to assertions in The Bruin editorial, the membership of
the board is well-balanced between students, faculty and
administrators.

The ASUCLA board has the discretion to determine both the
numbers and composition of student membership on the committee. The
committee’s first meeting on May 5 was both productive and
cooperative.

I fully expect the committee to reach a consensus in the months
ahead regarding the steps necessary to restore ASUCLA’s
financial health.

Steven A. Olsen

Vice Chancellor, Finance and Budget

Chair, ASUCLA Joint Operating Committee