ASUCLA budget counts on fee referenda passage
By Jamie Hsiung
June 1, 2003 9:00 p.m.
The Associated Students of UCLA approved its budget for next
year under the tentative assumption that a referendum for a student
union fee increase will pass in fall quarter.
For its “Basic Budget,” ASUCLA has built in a $24
student union fee increase, which would be implemented in the
2005-2006 fiscal year. The total student union fee indicated in
their budget will then total $31.50.
The “Basic Budget” contains assumptions about the
2003-2004 fiscal year as well as a five-year financial
forecast.
The ASUCLA board of directors is hoping the additional $800,000
from the proposed referendum will help pay for improved student
services in Ackerman Union ““ something the association is
currently unable to provide because of insufficient funds.
To prepare for the chance that students refuse to pay a fee
increase, a “failed fee referendum contingency plan”
has already been generated, which would cut some student services
and reduce dining services, said ASUCLA board of directors Chairman
Randy Hall.
“Some of the improvements aren’t going to go through
as planned if we don’t have funding for that … but
there’s just no other way we can see,” Hall said,
referring to the lack of alternatives to a fee increase.
The Student Union Strategic Initiative, a set of plans to make
Ackerman Union more student-friendly, would need to be put on
standstill if students reject the referendum.
Furthermore, the extra money from the potential fee increase
would ensure smooth implementation of the Food Services Master
Plan, designed to revamp many of the ASUCLA on-campus eateries.
Installing a pub in the Cooperage is included in the food services
plan.
Though ASUCLA built the $24 dollar fee increase into their
budget beginning the 2005-2006 fiscal year, the referendum for the
student union fee increase could amount to more.
At their last ASUCLA meeting of the year, board members approved
the proposal of two separate student union fee referendums.
One of these increases has already been worked into the budget,
calling for the $24 fee increase to meet “ASUCLA financial
obligations,” including capital investments in facilities and
programming in the student union.
The second proposed student union fee increase of $20 is geared
specifically toward the Student Union Strategic Initiative. This
increase would fund student services such as increased Internet
access and student programs in the union.
Whether the two separate referenda will be bundled into a single
one of $44 is yet to be determined.
Compared to other universities where the student union fee can
reach hundreds of dollars, UCLA’s current student union fee
is $7.50.
But instead of relying on the student union fee to provide
various student services and capital improvements as do other
universities, ASUCLA’s business model depends on the income
from textbook sales, the UCLA Store and food sales.
And with the relative under-performance of the
university’s top revenue-generating sports ““
men’s basketball and football ““ food concession and
BearWear sales plummeted, hurting the association.
To further salt the financial wound, textbook sales dropped, as
a result of a decline in enrollment.
But one of the biggest factors that contributed to putting
ASUCLA on shaky financial ground is due to the hiring of the 80
newly unionized workers last spring quarter, which cost the
association an additional $800,000, said ASUCLA Executive Director
Pat Eastman.
“Certainly there is a financial hit to the association,
but there were a lot of positives and it was the right thing to
do,” Eastman said.
“ASUCLA did take steps to reduce costs in other areas,
which helped, but not to the extent of covering the
$800,000,” she said, adding that six positions in the store
were eliminated and hours were cut to reduce costs.
ASUCLA’s financial status may not be rosy right now, but
officials are hopeful that the financial picture will improve.
“In six months from now, maybe our athletic performance
will be better and we won’t have to worry about this,”
said ASUCLA Finance Director Rich Delia at the last board
meeting.
For its five-year forecast, the association predicts a continual
increase in income, mostly due to an expectation that the general
economy will improve, resulting in a better University of
California financial situation, and students being able to spend
more, Eastman said.
With ASUCLA on such a financial slump, the board is banking on
students approving the referendum, which will provide much-needed
income for the association.
To illustrate the importance of the referendum’s passage,
stipends for student board members, which were supposed to be
increased, have remained at the same level.
“One of the cuts is to the stipends ““ it’s not
much money, but it’s a symbolic gesture that student services
will have to be cut,” Hall said.
