State budget cuts to affect university

By Karen Albrecht
Daily Bruin Reporter

The University of California did not escape the state’s
$3.2 billion budget downsizing Monday.

The governor’s May revision cut $16.7 million from the UC
budget augmentation proposed for 2001-2002.

“The overall picture for UC is mixed,” said Brad
Hayward, UC Office of the President spokesman.

According to Hayward, while $100.6 million was granted in the
revision to offset costly natural gas prices, the annual core
budget increase was reduced to two percent from the standard four
percent. In addition, funding for several research initiatives was
eliminated.

Core budget increases are necessary each year to cover inflation
and raises in staff salaries, but cuts in that area totaled $89.8
million

“We certainly appreciate the state’s fiscal problem
and hope it recovers soon, but the core budget reductions are
disappointing,” he said.

Hayward said the UC is pleased with the $100.6 million now
allocated to offset skyrocketing natural gas costs.

UCLA alone exceeded its utilities budget by more than $10
million during the first half of this fiscal year, said Steven
Olsen, vice chancellor of budget and finance.

According to Hayward, the state funding is expected to fully
cover natural gas rate increases.

“Some of the money may also be identified for energy
independence projects, including several we have proposed for this
campus,” said Dave Johnson, director of energy services for
facilities management.

UCLA submitted requests for up to $14 million in funds for
several energy conservation projects on campus.

A new cold water thermal storage facility and cooling tower
upgrades in the co-generation plant are already under way. Three
other projects are planned pending approval of state funding,
Johnson said.

While the energy money was largely intended to pay for rate
increases, the funds have not yet been allocated, according to
Hayward.

Universities must reduce energy consumption by at least 10
percent before using the state funds, Gov. Gray Davis said in a
statement.

An additional $12.8 million was approved in the budget revision
to cover an increase of 1,400 UC students from enrollment
projections made in January for the 2001-2002 school year.

To compensate for these increases, cuts were made not only in
the core budget, but in project funding as well.

The $20 million set aside for instructional equipment, deferred
maintenance, and instructional materials was eliminated from the
budget.

Also cut was an augmentation of $5 million for engineering and
computer science research, and $5 million in one-time funding for
environmental science research.

The Professional Development Institutes lost $5 million in the
revision, and $1.5 million for expansion of graduate and
professional school outreach was eliminated.

Still included in the budget are funds to avoid increases in
mandatory system-wide student fees, and for summer sessions.

Hayward said money will also be available to help reduce class
sizes and provide more undergraduate research opportunities.

2001-2002 UC BUDGET REDUCED BY $16.7 MILLION
Cuts compensate for natural gas and energy funding increases.
SOURCE: Governor’s budget May revision Original graphic by ADAM
BROWN/Daily Bruin Senior Staff Web adaptation by STEPHEN WONG/Daily
Bruin Staff