UCSD CAMPUS NOTICE University of California, San Diego |
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OFFICE OF THE ASSISTANT VICE CHANCELLOR RESOURCE MANAGEMENT January 10, 1994 SUBJECT: 1994-95 Governor's Proposed Budget ALL AT UCSD For your information, following is the official news release from the Office of the President - University Relations regarding the Governor's 1994-95 State budget. If you have any questions regarding this notice, please call Robert Brents at 534-6519. Margie Pryatel Assistant Vice Chancellor >>UC NEWSWIRE<< Friday, January 7, 1994 UC News Office (510) 987-9200 GOVERNOR PROPOSES FIRST FUNDING INCREASE FOR UC IN FOUR YEARS Gov. Pete Wilson today (Friday, Jan. 7) proposed a 1994-95 state budget increase of 3.2 percent for the University of California, the first increase in state funding for the University in four years. Under the governor's proposal, UC would receive $1.8 billion in state funds next year, an increase of $58 million over the current year. The University had sought an 8.8 percent or $159 million increase in state support. "We are very grateful to the Governor for his proposal," said UC President Jack W. Peltason. "The 3.2 percent increase represents the best outcome possible given the state's fiscal situation and the increasing demands on state funds." The governor's budget recognizes that the proposed increase in state general funds alone will not be enough to prevent further erosion in UC quality or access, Peltason said, and acknowledges that fee increases will be necessary. Equal portions of increased state support, additional student fees, and further cost-cutting by the campuses and the Office of the President will be needed to balance UC's 1994-95 budget, Peltason said. "If state taxpayers are willing to provide some of the funding to maintain the quality of the University in these tough economic times, we reluctantly need to ask parents and students who can afford to do so to contribute more as well," Peltason said. As a result, the UC Board of Regents at its meeting Jan. 20-21 in Los Angeles will consider a proposed $620 or 17 percent general student fee increase for next year, which would raise the total average fee paid by resident undergraduate students from the current $3,727 a year to $4,347. It is anticipated that the new fee will be about $300 less than the average to be charged students at the four public universities (Michigan, Virginia, Illinois, and SUNY Buffalo) UC uses for salary comparisons. About a third of the funds raised by the general fee increase will be set aside for financial aid for low- and middle-income students and the remainder used to help offset general budgetary needs. Even with the $620 fee increase, resident undergraduate students will be paying about a third of the cost of their education with the state paying for over 60 percent of the cost. Thanks to the increasing amount of financial aid being set aside from student fee increases, UC has been able to increase the percentage of entering freshmen students from low-income families and continue to enroll the same percentage of students from middle- income families as before. It is estimated that this year that financial aid will cover fee increases for about half of all UC students. From the start of the Regents budget discussions in October, it was acknowledged that a general fee increase in the range of $600 to $650 would be needed if the state was unable to fund UC's full budget request. At their January meeting, Regents also will be asked to institute an additional $2,000 fee for new students entering the graduate professional schools of medicine, law, veterinary medicine, business and dentistry. UC is the only major institution of its kind in the country without a differential fee for such professional programs. The consideration of a special professional school fee has been under study for more than a year. At least a third of the special professional program fee would go to financial aid for students in those programs and consideration also will be given to the development of loan forgiveness programs for students who enter public service. The remaining money from the special professional fee will be returned to those professional school programs to restore previous budget cuts and to improve quality. The special fee revenues would be used for expanded student services, library augmentations, instructional equipment and additional faculty. The proposed increase in state funds and the fee increases would cover about two-thirds of UC's original request for increased funds. Peltason said the campuses and his office will review the governor's budget proposal to determine where cuts can be made to balance the budget. A recommendation will be presented at the January Regents meeting. The governor's proposal provides funding for a half-year, 5 percent cost-of-living increase for faculty and staff. The Regents budget had requested funding for a full-year pay increase. UC faculty and staff have not received a cost-of-living increase for the last three years. This year, salaries were cut on a one-time basis by 3.5 percent. To restore salaries to pre-pay cut levels, campuses and the office of the President budgets will be cut by a total of $53 million next year, in addition to any other savings needed to balance the 1994-95 budget. Even with the salary restoration, the 5 percent cost-of-living adjustment and regular merit increases, UC faculty salaries next year would still lag an anticipated 7.5 percent behind the average faculty salaries at the comparable eight public and private institutions traditionally used for salary comparisons. In a separate action, the governor is proposing a $166.8 million capital budget for UC in 1994-95. All but $26 million of the building budget would be dependent on voter approval of a proposed general obligation bond issue for public higher education. >>UC NewsWire<< |