According to the Legislative Analyst’s Office, student
fees do not need to be raised as high as levels planned by Gov.
Gray Davis, but the University of California cautions new
recommendations may not be in the best interests of the UC.

In addition to new recommendations on student fees, a report
released Wednesday by legislative analyst Elizabeth Hill proposes
the UC save money via methods the UC could be hesitant to
accept.

The LAO’s plan would spend a smaller proportion of revenue
raised through fee increases on financial aid, allocate lower
amounts for enrollment growth than Davis’ budget, and
increase faculty to student ratios.

“On the fee and financial aid piece … we are worried
what it would mean (for) lower and middle income students,”
said UC press aide Brad Hayward.

Though the UC Board of Regents has final say on student fees,
Davis’ budget plan anticipates a 25 percent increase for all
resident students, while the LAO proposes respective 10 and 20
percent hikes for resident undergraduate and graduate students.

Davis’ plan follows past UC policy by allocating one-third
of monies raised by fees for aid, but Hill allocates less than
one-tenth for that purpose.

LAO student fee proposals would raise $16 million for aid, $59
million less than what would be raised in Davis’ budget.

After money is spent on aid, the LAO estimates its
recommendations would produce $174 million for the UC
““ $24 million more than the governor’s plan. Cash
raised through fees would go toward $214 million in unallocated
cuts.

While the UC did not exhaustively analyze Hill’s proposals
Wednesday, university officials will likely be reluctant to adopt
recommendations on enrollment growth and faculty.

Davis’ budget plan slashes the UC’s funding by
almost $300 million, but he proposes a 6.9 percent increase for
enrollment growth. The LAO’s plan would increase funding by
only 4 percent, closer to the amounts originally requested by the
regents in November 2002.

With enrollment increasing rapidly, however, the UC can be
expected to seek as much money as possible.

The UC needs state monies “if we’re going to provide
the kind of education these students deserve and expect,”
Hayward said.

Hill’s report suggests the university could mitigate the
impact of cuts by increasing student-faculty ratios, which would
almost certainly result in larger class sizes throughout the
UC.

According to the LAO, the university would save cash through
higher faculty-student ratios since the UC would not need to hire
as many new instructors as under current ratios.

Larger class sizes would be contrary to UC goals, Hayward
said.

The LAO report agrees with Davis’ plan to cut outreach
programs by 50 percent, but suggests cuts could be better
distributed.

Generally, Hill’s recommendations on outreach would
protect funding for programs that would increase the number of
students eligible for the UC, while cutting programs aimed at
students who are already eligible.

For the long-term, the LAO proposed the Legislature create a new
student fee policy providing for gradual increases, an idea
endorsed last December by the California Postsecondary Education
Commission.

Proponents of the policy believe it would be more rational than
the current trend of fees suddenly increasing when the
state’s budget takes a nosedive.

Hilary McLean, a Davis press aide, said she expects budget
negotiations to include a revised fee policy.

“I’m sure it’s something the Davis
administration will be hashing out with the legislature,” she
said.