• printer friendly
• mail this article
• iPod format
• digg

Photo

Gov. Gray Davis speaks after his election win on Nov. 5. His budget plan this January could determine the extent of possible student fee increases at the UC.

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.