ASUCLA’s net income bounces back

NET INCOME FROM 1980 TO 2001 ASUCLA made
$831,000 this summer, strengthening its recovery from financial
troubles. SOURCE: ASUCLA Original graphic by SEAN WATERS/Daily
Bruin Senior Staff Web adaptation by STEPHEN WONG/Daily Bruin
Senior Staff

By Rachel Makabi
Daily Bruin Reporter After experiencing net losses every year since
1992, the Associated Students of UCLA devised a multipart agenda
that led to a net income of $2,756,000 this year. This income came
despite the association’s having to increase minimum wage and
pay unexpected costs related to the state energy crisis. As a
result of the increased income, starting this year mandatory
Student Union fees will decrease from $51 to $7.50 a year, said
Patricia Eastman, executive director of ASUCLA. Eastman said
vacancies in administrative positions and throughout the campus
store were central to the increase in income, saving the
organization $2 million. “We cut a total of 44 career
positions, mostly in finance, accounting, human resources and
information systems,” Eastman said. She added that because
they had openings in other departments, some of the people who were
cut were given jobs elsewhere and only 14 were laid off. Eastman
said that though the Student Union had many vacancies in student
positions, ASUCLA did not plan for this and would have rather paid
the student wages. “The vacancies did have a positive impact
on our financial structure, but it was a short-term strategy that
won’t be helpful in the long run,” Eastman said.
“We want as many students (to work) as we can get. We have
instituted an increase in student wages starting at $7 an
hour.” Christopher O’Neal, a third-year international
development studies and history student working in Ackerman Union,
said administrative cuts were beneficial if they cut unnecessary
positions within the store. “Cutting jobs is always going to
be problematic,” O’Neal said. “But if you bring
in more students, it will improve their lives. It is an even
trade.” Other factors contributing to the increase in income
include the rental income paid by Copeland Sports; a 48 percent
rise in mail, telephone and Web orders; an increase in store
revenues due to new product lines and the growth in campus
enrollment. In addition, a rise in summer school enrollment, from
approximately 10,000 students last summer to 14,000 this year,
contributed to the net income for ASUCLA. Summer Sessions financial
manager Steve Angelo said the elimination of the $300 registration
fee and the reduction in class prices from $100 to $76 per unit for
UC students is the main factor for the rise in enrollment.
“If you look at head counts in the past, it has always been
the same,” Angelo said. “This year it has risen
dramatically.” Eastman said the cost for replacing ASUCLA
buildings, increase in construction around the student store and
the general downturn in the Westwood economy in the mid 1990s
contributed to financial losses for the organization in past years.
In addition to reducing the Student Union fee, the increase in
income will go toward establishing a reserve fund in case the
organization experiences financial troubles. ASUCLA financial
director Rich Delia said although ASUCLA has made $2.7 million to
date, that number is expected to drop to $2.1 million by the end of
the fiscal year because they anticipate having to pay $500,000 for
increased energy costs. To continue increasing income, ASUCLA has
plans to establish wireless Internet in the Student Union in the
coming year, creating coffee bars in the library facilities for the
2002-03 academic year and discontinuing the publication of lecture
notes because most professors are posting their own notes
online.