The University of California faces uncertain times ahead.
Gov.-elect Arnold Schwarzenegger’s appointment of Donna
Arduin as finance director could exacerbate the situation.
Schwarzenegger had originally hired Arduin to audit
California’s finances in an effort to get to the root of
California’s budget deficit, which experts predict will total
more than $8 billion next year.
However, on Nov. 3, Schwarzenegger announced that Arduin would
become the finance director for his new administration.
She will be in charge of California’s Department of
Finance, and her responsibilities will include serving as the
governor’s chief fiscal policy adviser and ensuring the
financial integrity of the state.
Many political experts say this is a job tailor-made for Arduin.
She held a similar position in Florida under Gov. Jeb Bush and
helped implement a program of tax cuts there that was over $6
billion.
However, her appointment might mean more cuts for public
education in California, since many have criticized Arduin for her
relentless cuts to many social programs and curbs on spending.
And though many experts agree it is too early to talk about
Arduin’s specific policy decisions, her past record plays a
role in their predictions.
In Florida, Arduin presided over steep cuts in education funding
and an increase in fees and tuition for many schools in the
state.
Steve Boilard, the executive director of higher education for
the Legislative Analyst’s Office, a non-partisan organization
which analyzes the California Legislature, said Arduin’s
history might make further cuts more likely.
“I don’t know the inclination of the new
administration towards higher education, but (Arduin) has a history
of scrutinizing programs,” Boilard said.
He said the attitude of the new finance director might be
especially critical toward the University of California and
California State University schools when compared with the attitude
of the previous director Steve Peace and Gov. Gray Davis.
“The former administration, in my opinion, really seemed
to make an effort to protect UC and CSU from significant budget
reductions. It is possible the new administration might not have
the same priorities,” Boilard said.
He added that the position of finance director is important in
deciding the fiscal future of the state. A future that for now
remains unknown, since Arduin’s position on education is
still unclear.
However, other fiscal experts say it is the governor who makes
all final decisions in regard to the budget, with the finance
director serving only as an adviser.
“The Department of Finance has an advisory role. They do
not state where money will be spent,” said Christopher
Thornberg, a senior economist for the UCLA Anderson Forecast.
However, he added that Arduin does have the ear of the new
governor and as such, will have an effect on California’s
finances.
Tom Lieser, also an Anderson Forecast senior economist, said it
is too early to compare Arduin with any of her predecessors, but
said the Department of Finance is not a policy-driven organization,
which may curb Arduin’s influence.
“There are variations, of course, but the Department of
Finance puts together various pieces of the budget and comes up
with an entire document,” he said. “They provide
support; they don’t make decisions.”
For now, Arduin remains mum on the future of California’s
economy, which, according to Boilard, may be due to the audit
Arduin is currently working on.
“They do not want to commit to anything until the audit is
completed,” he said.