The picture the UC Board of Regents painted of the state and
federal budgets at their meeting at UCLA on Thursday was a gloomy
one, to say the least.
More specifically, the regents discussed the sorry condition of
the state and federal budgets and how that will affect the
university in coming years.
“I don’t think we should anticipate that federal
funding is going to be a driving force for helping the university
meet its goals in the years ahead,” said Bruce Darling,
senior vice president of university affairs.
Darling said in the future, the Legislative Analyst’s
Office wants student fees increased and used to cover as much as 40
percent of the University of California’s budget.
This would be far more than students contribute now and would
mean a substantial fee increase for students.
The LAO has also recommended a decrease to student aid,
specifically the Return to Aid component.
Currently, 25 percent of income from student fees is used for
financial aid, but the LAO would like to see that number reduced to
0 percent.
“The LAO really sees that as unnecessary because the
neediest students are covered by Cal grants,” said Jennifer
Lilla, president of the UC Students Association.
“That’s definitely something that the students would be
against,” she added.
The income from Return to Aid is used for middle-income students
““ the ones who often receive the least aid.
“My greatest concern is that by focusing on the percentage
of those who get support, we’re not talking about the people
who don’t get support,” said Regent Judith
Hopkinson.
As a result, Hopkinson said the university’s ability to
attract the best students is in jeopardy.
Darling said the UC would not support any budget that eliminated
Return to Aid and that discussions will continue well into the
summer before a final deal is drawn up.
Overall, two-thirds of the funding for the UC campuses comes
from combined state and federal funding, Darling said. Of that, the
federal government contributes $3.7 billion a year.
But with the huge deficit in the federal budget ““ which is
now well over $400 billion ““ Darling said “the only
real alternative is to cut spending, and that’s where we come
in.”
Funding for the UC falls into the category of discretionary
spending, which makes up about 15 percent of the overall federal
budget.
When the federal budget is doing well, that amount grows, but
when it is doing badly ““ as it is now ““ it shrinks.
Funding for the UC will likely get substantially squeezed in the
coming years.
This may mean that the university will have to look elsewhere
for funding.
“This is probably going to be one of the most challenging
years that we … have faced for federal funding,” Darling
said. “In totality, we’re going to have a very, very
tough year,” Darling said.
The university is likely in for more than just one year of
difficulty as the federal budget will probably not be a substantial
source of funding in the near future, Mullinix said.
Pension plans
The governor’s proposed pension reforms were also a
subject that the regents addressed at their meeting. Gov. Arnold
Schwarzenegger’s proposal would limit the taxpayer and state
responsibility for employee pensions and put more of the burden on
workers to save.
The plan would apply to all public workers, including UC
employees.
Supporters say the new system would spare taxpayers and give
employees more flexibility, but many workers ““ some of whom
came to the regents meeting to voice their opinions ““ oppose
the proposal.
“The governor’s proposal (will) destroy the
university’s retirement system,” said Peter Goodman,
who said he has worked for the UC for 15 years.
University officials also did not support the proposals.
“The university cannot accept the proposal in its current
form,” Mullinix said, adding that the new system would hurt
the UC’s ability to retain the most qualified faculty.
The labs
In January, the regents voted to bid for management of the
Lawrence Berkeley National Laboratory.
Robert Foley, vice president for lab management at the UC, said
the university was in a very good position to receive the
contract.
The fate of the Los Alamos National Laboratory is still
undecided, but some regents expressed a desire to continue the
UC’s management.
Regent Norman Pattiz, said he would like to see the university
continue to support the work that is done at Los Alamos, which he
called “crucial” and “essential.”
The regents will revisit the lab discussion in future
meetings.