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Vol. 14, No. 1 - July 21, 2003


Budget Ax May Cut Future UC Enrollments

The UC Regents voted 13-3 last week to approve student fee hikes of 25 percent in anticipation of state cuts in the University's 2003-04 budget deeper than the $300 million suggested by Gov. Gray Davis. The Regents also gave President Richard C. Atkinson authority to increase fees another 5 percent.
This means that mandatory UC undergraduate fees would increase a minimum of $960 to $4,794 a year. Individual campus fees would be in addition to that. If the full 30 percent increase were needed, the systemwide total would be $4,984. Graduate, professional school, and nonresident fees would also rise.
These fee hikes do not cover the entire 2003-04 anticipated shortfall. President Atkinson has said he plans to seek one-time debt financing of between $40 million and $50 million.
He also warned in a July 2 letter to the Regents that in order to avoid further program cuts that would harm the quality of the student educational experience at UC, constraints on student enrollments appear likely. For 2004-05, Atkinson wrote, deeper budget cuts from the Legislature may leave UC with no alternative but to begin cutting back on student enrollment growth.
Such enrollment constraints are not possible this fall because all new students have already been admitted. But continuing state budget cuts could mean that UC would be forced to scale back its enrollment growth plans by at least 5,000 students beginning in the 2004-05 year, he said.
"Raising student fees and constraining new enrollments are very painful decisions to make, and I wish we did not have to consider them. But I am convinced that the alternative—allowing the educational quality of the University of California to deteriorate—would be even worse."
All non-instructional programs are taking significant cuts, including administration, libraries, research, outreach, student services, and Cooperative Extension. Employee layoffs are being planned or implemented in most of these areas.
Though state Comptroller Steve Westly has said that if the Legislature has not approved a budget by the end of July some state employees will be temporarily paid minimum wages, it is not yet clear if this will include UC employees. A new issue of "Our University," the electronic budget newsletter for UC employees, is scheduled between now and the end of the month.
In addition to absorbing state budget cuts, UC is contending with about $100 million in cost increases for which it is receiving no new funding. These include health benefits, energy, maintenance of new space, and other inflationary costs.
Atkinson's letter is available at <www.ucop.edu/news/budget/regentsletter.pdf> and a fact sheet on fees is available at <www.ucop.edu/news/factsheets/2003/student_fees.pdf>.
—UCOP