UC's Budget Deliberations Begin on Nov. 19

By VIC COX

With California's current budget still in a precarious state and a new governor assuming office today, the University of California Board of Regents is taking a cautious approach to its 2004-05 budget deliberations.

Meeting this Wednesday and Thursday, Nov. 19-20, at UCLA, the Regents are expected to discuss the operations budget and approve principles for determining priorities for the 2004-05 UC budget. While this will happen after 93106 has gone to press, some priorities have been enunciated by top UC administrators that will influence the discussions.

Over the last few years, certain values have clearly been reflected in past budgets. These have been emphasized by former UC President Richard Atkinson and his successor, current President Robert Dynes: No dilution of what they termed the "educational experience," and maintaining accessibility to students to the maximum possible extent.

These themes arose again in the introductory round of presidential Web chats Dynes conducted last month with faculty, staff, students, and alumni. To an alumni question on dealing with further cuts to UC's budget, Dynes said, "If cuts do come, we will try to absorb them in ways that minimize the impact on accessibility and quality of the educational program."

When asked by a staff employee about rumors of a 15 to 20 percent salary reduction, the president said, "I don't accept the premise that 15 to 20 percent salary cuts are going to happen. We must do the best we can to maintain competitive salaries and benefits" (for staff and faculty).

What about a five percent cut, such as happened in the early 1990s, he was asked? "I hope not," said Dynes, recalling that the earlier cuts birthed the Capital Accumulation Program, which is based on UC Retirement Plan assets.

Inevitably, an employee asked about the return possibility of an early retirement program, known as a VERIP. "I certainly recognize the appeal of a VERIP and the value of the previous VERIP," Dynes responded. "The question is whether the pension fund can afford it," adding that stock market volatility requires that "we need to tread very carefully in this area."

To a student who asked if the coming year would bring more fee increases, Dynes admitted, "I think, unfortunately, there is a good possibility of that." Another student asked if he could expect to see enrollment caps.

"I genuinely hope not," said Dynes.