SAN FRANCISCO “”mdash; The University of California Board of
Regents voted to pass a preliminary budget plan Thursday for the
2003-2004 fiscal year that could include a 6.5 percent student fee
hike, if the state does not provide requested funds.
If the final version of the budget is approved next year, a hike
would compensate for a portion of next year’s expected budget
cuts. The announcement coincided with a report from the
legislature’s financial analyst that predicts the state will
be burdened with a $21 billion deficit.
The state does not have a final budget for 2002-2003, and UC
budget vice president Larry Hershman said the Department of Finance
has told him the university will not be immune from further
cuts.
“I don’t know how deep these budget cuts are going
to be “¦ it looks scary,” Hershman said.
The potential fee hike would give the university $49.1 million,
though the state could decide to buy out the increase by providing
that amount to the UC. The state bought out fee hikes from fiscal
year 1995-1996 through fiscal year 2001-2002. This year, there was
no buy-out, and the university absorbed the costs.
If the regents approve the fee hike next year, in-state
undergraduate and graduate educational fees would increase by
between $178 and $189, respectively, while nonresident fees would
go up by $202. These increases would be compounded by an additional
$47 registration fee hike.
Nonresident tuition would be $500 more for undergraduates and
$445 more for graduates.
Fee hikes for professional students would vary widely by
field.
The University of California Students Association opposes any
fee increase, especially since student services may be cut.
“To ask students to pay more and give them less is
unacceptable,” said Stephen Klass, UCSA chair.
During his presentation to the board, Hershman announced if the
university does not receive enough funding, the UC may raise fees
by up to 10 percent ““ equivalent to levels during the early
1990’s.
Regent John Davies, who supports a fee increase, said fees may
ultimately go up more.
“We have to face-up to a major increase in student
fees,” Davies said.
No final decision about fees will be made until the governor
releases his budget proposal, scheduled for Jan. 10. The Board of
Regent’s next meeting is planned for Jan. 15 and 16, but a
decision may not be made that session.
“(The regents) probably won’t vote in
January,” Hershman said.
In addition to fee hikes, the UC may make several budget cuts to
protect the bottom line. Possible targets include outreach and
other public services, administration and student services, and
research. State funding for summer sessions could be delayed.
Hershman said top priorities for the UC are plans to give
faculty and staff a 4 percent raise and protecting $72 million for
basic operational costs and enrollment growth.
The regents’ budget requests the full funds guaranteed by
the Partnership Agreement with Gov. Gray Davis that secures
university funding in exchange for the UC’s commitment to
multiple objectives, including maintaining access for students.
The Partnership Agreement has been underfunded by the state for
the past two fiscal years, and it is not anticipated the state will
supply the revenue requested.
UC press aide Brad Hayward said the UC expects that close to
$421 million in Partnership funds may not reach the UC in
2003-2004.
Though student fees at the UC are historically tied to the ups
and downs of the state and university budgets, there may be changes
ahead. The 2002 budget act requires the California Postsecondary
Educational Commission to work on a long-term fee policy, and make
a presentation to the legislature.