Davis proposes UC budget cuts to ease deficit

In an attempt to fix some of the state’s financial woes,
Gov. Gray Davis proposed $74 million in mid-year cuts to the
University of California to take effect as soon as the legislature
gives its approval.

Administration, libraries and research were the hardest hit, and
students will also be footing part of the bill through increased
student fees.

The cuts are part of a $10.2 billion package Davis announced on
Dec. 7, while most students were concentrating on their finals.

“These budget reductions are severe by any measure,”
Davis said at the time, “but we face an extraordinary
challenge.”

While a special session of the state legislature convened the
next weekday, it still has yet to approve Davis’
proposal.

Davis has asked legislators to approve his proposal by the end
of this month.

The UC is discussing how to implement the cuts now, instead of
waiting for the legislature’s vote, because UC President
Richard Atkinson has said he wants immediate action.

If lawmakers make any changes to the governor’s proposal,
the UC Regents would hold additional meetings to discuss the
changes according to Larry Hershman, the university’s budget
vice president.

Most programs affected by the mid-year cuts only suffer a five
percent reduction, but programs such as research funding already
suffered a 10 percent cut earlier this year.

“The governor probably decided that’s all that could
be done at this time,” Hershman said.

Student services will be cut by $6.3 million and K-12 outreach
will lose $3.3 million.

Davis campaigned as the “education governor.” His
plan cuts over $3 billion dollars for education at various
levels.

Various government spending ““ including state employee
contracts ““ was also a target of cuts.

Elizabeth Hill, the legislature’s nonpartisan economic
adviser, called Davis’ plan a “credible proposal”
but disagreed with a 3.6 percent budget cut to school
districts.

Throughout the summer she criticized Davis’ budget plans
as not doing enough to address the state’s economic problems,
which are expected to grow next year.

Davis will propose his 2003-2004 budget on Friday, a budget that
must cope with a $34.8 billion deficit.

Although his mid-year proposals did not include any tax
increases, he called this deficit “just too big a gap to
close” without tax increases on radio station KFWB-AM.

Republicans say they will not pass any budget that includes a
tax increase.

Because the budget requires a two-thirds majority to pass,
Democrats must garner some Republican support before a budget can
pass.

It took 67 days beyond the June 30 deadline for the two parties
to agree on a budget for this fiscal year, a state record.

The projected 2003-2004 budget deficit is over $11 billion
greater than this year’s budget deficit, prompting concerns
that this year’s stalemate could last even longer.

This larger deficit could place a major strain on the UC as it
tries to educate more students with less money.

“If this is (a permanent problem), then it seems to me
that the University of California as we know it cannot go on
without major changes,” said UC Regent Ward Connerly.

Specific proposals for cuts in 2003-2004 will not be made until
Thursday, but regents and university officials are already
discussing more fee increases in the future.

“We are very concerned with the kind of fee increases that
may be needed next year,” Hershman said.

This year’s budget cuts are not likely to solve all of the
state’s financial problems.

Hill said the state could face $12 billion to $16 billion
deficits for at least six more years.

With reports from Daily Bruin wire services.

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