[Online exclusive] Proposed cuts not as thrifty as thought

SAN FRANCISCO “”mdash; As the University of California reels from
its fourth straight year of budget cuts, it appears that Gov.
Arnold Schwarzenegger’s suggested cutbacks may not be enough
to deal with the lack of funds.

Larry Hershman, UC vice president of budget, said in a
presentation to the UC Board of Regents at its bimonthly meeting in
San Francisco that many of the governor’s cuts would save far
less money than his budget proposal estimated.

The 10-percent cuts to freshman enrollments, for example, would
save the UC $8 million less than was expected, according to
Hershman’s calculations. He also said Schwarzenegger
overestimated by $8 million the money that could be saved by
charging for all units over 110 percent of those required for a
degree. He said the proposed 20 percent hike for non-resident
students would raise tuition to a prohibitive level, which would
mean a loss of $2 to $7 million for the UC when non-residents
decide to attend other colleges over the UC.

These overestimations on the part of the governor’s
office, in conjunction with several changes the UC will likely
refuse to make ““ such as increasing student to faculty ratios
and cutting outreach ““ would leave the UC with $70 to $170
million in unallocated reductions.

Hershman estimated that maintenance and energy costs, price
increases on goods the UC needs to procure, and employee health
benefits could add up to another $100 million the UC does not have.
And this number does not include money for increases in faculty
salaries.

“I think we need to have further decisions to decide how
we are going to deal with these cuts,” Hershman said.

The regents also agreed that a proposed 40 percent increase in
graduate student fees is not practical.

The problem with the fee increase for graduate students is
two-fold. An increase would make it more difficult for the
university to compete for top graduate students, and since the
university usually waives fees for teaching assistants and research
assistants, the costs to pay for a fee increase would fall back on
the UC.

“The 40 percent is really untenable,” said UC
President Robert Dynes.

Dynes said in his experience as a physics professor, increased
fees for graduate students make it economically more efficient to
hire post-doctoral students.

“The fees for my research assistants comes from my grants,
so I would be better served financially to hire a post-doc,”
he said.

And even if fees were to increase at the level the governor has
proposed ““ 10 percent for undergraduates and 40 percent for
graduate students ““ Hershman predicts an $8 million shortfall
from the $121 million the governor said would be generated.

Hershman’s presentation included several options to raise
funds without a fee increase for grad students.

Several of these options included greater increases in
undergraduate student fees.

Hershman said a hike in undergraduate fees would not affect low
income undergraduates because they would receive financial aid, and
that such a fee hike would relieve the burden on graduate students.
Most of the weight of an undergraduate fee increase would fall on
middle and upper income students whom the UC assumes would best be
able to afford it.

Hershman’s options included raising undergraduate fees
$750, or 15 percent, and lowering the increase in graduate fees to
$1,050, or 20 percent. This option would raise $119.3 million.

The regents were largely unresponsive to Hershman’s
alternative fee policies.

Regent Joanne Kozberg said her mind “remains open”
about how to change student fees.

Dynes said while he didn’t want to raise fees, he realized
that such a stance was impractical.

“I won’t take a position on the trade-off at this
point,” he said.

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State superintendent and Ex-officio Regent Jack O’Connell
gave a presentation on the status of education in California. He
suggested that all high school students should have to take
UC-approved courses to better prepare them for college, the
workplace and citizenship.

Some regents, however, were concerned this could lead to either
a degradation in the quality of UC-approved classes, or to a
decrease in high school graduation rates.

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Matt Kaczmarek, chairman of the UC Student Association and
external vice president of the Undergraduate Students Association
Council, spoke to the regents about UCSA’s opposition to fee
increases and cuts in enrollment and in financial aid. Kaczmarek
then read from letters of students who had been affected by
enrollment cuts.

“Students are building a presence at the Capitol this year
because we realize that our university is in jeopardy. … We would
like to see the regents making more appearances in Sacramento as
well,” Kaczmarek said.

But some, like UC Budget Vice President Larry Hershman and even
Regent Ward Connerly, who has consistently advocated against fee
increases, say UCSA’s stance is unrealistic.

“I think the students’ position is
unworkable,” Connerly said.

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