Gov. Davis expected to cut UC budget

By Robert Salonga
DAILY BRUIN STAFF
[email protected]

The University of California’s bleak financial forecast
may look worse when Gov. Gray Davis releases his revised 2002-03
state budget today, which must account for a $22 billion
overestimate, according to university and state officials.

“We just know it’s going to be bad,” said Max
Espinoza, consultant to the State Assembly budget committee.

State agencies throughout California have been bracing
themselves for budget cuts to make up for the lack of funds due to
a tumbling economy made worse by Sept. 11.

Everything seems to be fair game to compensate for the loss,
including raising student fees, lowering faculty pay and closing
correctional facilities. And a tax hike is no longer an extreme
option.

One of Davis’ campaign platforms in recent years has been
a promise not to increase student fees while he is in office. So
far the university is hoping it will not have to resort to raising
them.

“We’ve seen no indication of this in our discussions
with the governor,” said UC spokesman Brad Hayward.
“But we’ll have to wait and see what he
proposes.”

Espinoza, however, said the state is hard-pressed to find
desirable places to make cuts.

“Unfortunately, I think everything’s on the
table,” Espinoza said, adding that the state legislature will
have to sift through the “least painful” options
without specifying what those options were. But he agrees raising
student fees is not at the forefront of possible alternatives.

“The legislature wants to protect access to higher
education as we respond to the governor’s revision,” he
continued.

Yet the Legislative Analyst’s Office has outlined several
options to help alleviate the budget problems, including raising
student fees, closing a women’s state prison and even
eliminating a state holiday. According to the LAO, eliminating a
holiday would save up to $9 million in overtime pay to state
workers. One proposal looks to eliminate one of the two
President’s Day holidays, which 28 other states celebrate in
one day.

The UC outlook on the budget has steadily declined since
Davis’ first budget draft in January. At the time, the budget
deficit was estimated at $12.5 billion.

The deficit has expanded because of an unprecedented revenue
decline sparked by an economic slump, sagging tourism, security
costs and unemployment after Sept. 11. California was also hard hit
by the collapse of the high-technology industry.

The budgetary woes were not isolated to next year’s budget
““ because of the sagging economy, Davis implemented a $2.2
billion mid-year budget cut in January, of which $86 million was
cut from the UC.

Hayward said the university has a role in helping to absorb
state budget cuts, but that the state would help itself by ensuring
that the UC is not significantly harmed.

“Investment in the university pays long-term dividends to
the state,” he said. “It’s important for the
state to consider those positive effects.”

With reports from The Associated Press.