University of California, San Diego

July 28, 1994
For your information, below is a summary, released by the Office of the President, of the pertinent facts pertaining to student fees for the 1994/95 University of California budget.
Margaret F. Pryatel
Assistant Vice Chancellor
Friday, July 15, 1994
UC News Office (510) 987-9200
The University of California Board of Regents today (Friday,
July 15) took action to reduce the 1994-95 undergraduate student fee increase from 18 to 10 percent. The $275 reduction in the fee increase is contingent, however, on the University not suffering a mid-year cut in state funding.
"I believe the only prudent course for now is to position
     ourselves so we are fully prepared to reduce fees and then to 
     implement those actions just as soon as we know there
     will be no mid-year budget cut," said UC President Jack W. Peltason. "We will know by November 15."
The 1994-95 state budget approved by the Governor and the
Legislature provides UC with its first state general fund budget increase in four years. But fully funding the state budget depends on state revenues and expenditures being in line with projections. If projections do not hold, UC's state-funded budget would be open to a cut.
"Under the circumstances I am recommending taking a cautious
     approach to 1994-95," Peltason told the Regents. "Our state-funded 
     budget could be significantly reduced at a time when we are already 
     very far along in both the fiscal and academic year, with
     students enrolled and classes underway. We must do everything we 
     can to avoid imposing further budget cuts on the campuses."
Under the action adopted by the Regents, the $620 fee increase
for 1994-95 would be reduced to $345. A number of fall quarter and semester bills have already gone out to students at the higher fee rate. If there is no mid-year cut in state funding to the University adjustments will be made in the subsequent quarters and semester and quarters so that the overall fee increase for the year will be 10 percent. This action represents a $275 cut in the fee increase.
With the 10 percent increase, undergraduate resident students
will be paying on average $4,072 for the year.
Whatever the fee increase, financial aid will be provided to
help maintain access for needy students.
An additional $2,000 fee increase for new and entering
professional school students will remain in place for now. The Legislature had expressed interest in having a $600
increase for all professional school students rather than the $2,000 for new students only. UC Provost and Senior Vice President for Academic Affairs,
Walter E. Massey said that this matter is under review and a multi-year plan for handling professional school fees will
be brought to the Regents for consideration later in the year. The same cautious approach being taken on fees will also be
applied to the funds the Governor and Legislature has provided for the first cost-of-living adjustments for UC faculty and staff since 1990-91. If there is no mid-year budget cut, the cost-of-living adjustments will be implemented in January, retroactive to their effective date. Effective dates of the salary adjustments will vary among
personnel programs because some require merit-based increases only, while others separate merit increases from COLAs. Implementation is also subject to appropriate notice to employees and collective bargaining requirements under the Higher Education Employer-Employee Relations Act. Merit increases for eligible faculty were paid as of July 1
and merit increases for eligible staff will take effect Jan. 1, 1995.
The president, chancellors, vice presidents and principal
officers of the Regents will receive no increases. Other executives will be eligible for only a fourth of the increase granted faculty and staff.
If fully implemented, the salary plan will still leave both
faculty and staff, on average, about 9 percent behind comparison institutions.
UC President Peltason praised the Governor and the Legislature
for providing the University with its first budget increase in four years "at a time of extraordinary fiscal difficulty" for the state. The state budget provides $1.8 billion in state general funds
for UC for 1994-95, an increase of 2.1 percent or $38.5 million over last year. In addition, the budget for the first time provides $25 million in revenue bonds to pay for deferred maintenance. Those two sources of funding plus the net proceeds from fee increases will mean the equivalent of about a 4 percent budget increase for UC.
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