UC to undergo cut in state funding
By Leila Kamgar
Nov. 17, 2002 9:00 p.m.
The UC system faces budget cuts in light of a projected $21
billion state budget deficit through the 2003-2004 fiscal year,
according to nonpartisan legislative financial analyst Elizabeth
Hill.
The report, issued by the Legislative Analyst Office, estimates
that the state remains strapped with a $6.1 billion deficit that
must be balanced before the fiscal year ends on July 1.
It also forecasts state budget deficits between $12 and $16
billion for the next five years.
Hill attributes deficit predictions to insufficient revenue, a
product of the staggering state economy.
Among the organizations facing cuts is the University of
California system. The budget crisis “could affect a number
of higher education activities,” Hill said.
Last year’s budget woes led the state to reduce UC funding
by 10 percent while increasing out-of-state tuition.
Currently, higher education accounts for 11 percent of the
state’s general fund spending.
Cuts to the UC system could include reductions in state funding
of research grants, cuts in funding for student services, and
raises in resident tuition, said Steve Olson, UCLA’s vice
chancellor of budget and finance.
While in-state undergraduate tuition hasn’t increased for
eight years, “It is becoming increasingly difficult to keep
tuition low,” Olson said.
There are plans for at least a 6.5 percent increase in tuition,
which is currently $3,429 for resident undergraduates, Olson
said.
Increases may be even larger, however, depending on Gov. Gray
Davis’ budget plan, slated to be unveiled Jan. 10.
In a recent press conference, Chancellor Albert Carnesale said,
“The governor and legislature have worked very hard to
protect the UC’s and minimize cuts” and predicted
continued protection of the UC.
Still, he said he is not ruling out the possibility of student
fee hikes and staff layoffs.
“I don’t think any of those things can literally be
taken off the table,” he said.
The state is looking at ways to make the UC system more
self-sufficient; right now, 25 percent of funding for the UCs comes
directly from taxpayers, said John Campbell, R-Irvine, and vice
chair of the budget committee in the state legislature.
“There’s a fundamental imbalance because state
revenue and growth aren’t keeping up with rising expenditures
mandated by the state,” Campbell said.
While Gov. Gray Davis grappled with a similarly dismal budget
deficit last year, both Hill and Campbell say that the types of
measures taken to balance the budget this year will be more
difficult.
“Last year, Davis borrowed a lot of money ““ that
can’t be repeated to the same extent this year … this year
more direct and genuine reductions will need to be made in
spending,” Campbell said.
Of major concern to the UC system is just how soon projected
cuts will go into effect. Olson expects a mixture of cuts, with
some taking effect as soon as January and others deferred until
July 1.
Hill expects Davis to urge the legislature to take immediate
action, however, because of the $6.1 billion deficit for this
fiscal year alone.
The UC Regents set a financial agenda at their Nov. 13 and 14
meetings for the governor to consult before his final January
budget decision.
