University of California, San Diego
January 9, 2004
President Dynes' office today issued the attached news release, in response to Governor Schwarzenegger's proposed 2004-2005 budget, which includes major cuts to the University of California budget. For the next several months, the California legislature will consider this proposal and negotiate with the Governor, until the budget is finalized this summer or fall. It is clear, however, that there will be budgetary shortfalls to each campus and fee increases for our students. UC representatives will continue their ongoing discussions with the State legislature and the Governor's staff to minimize the impact on the UC budget. As this fiscal picture becomes clearer, we will keep the campus community apprised. If you have any questions concerning this notice, please contact Budget Director Sylvia Lepe-Askari at extension 4-5357.
Updates also will be posted at the UCSD Campus Budget Office website:
FOR IMMEDIATE RELEASE
· Spending on faculty would be cut 5%, aimed at increasing
· Fees would increase 10% for undergraduates, more for
· Financial aid would be cut from 33% of new student fee revenue to 20%
· Deeper cuts proposed for outreach, research, administration, other
· UC Merced would open in fall 2005 at modified level
Gov. Arnold Schwarzenegger issued a 2004-05 state budget proposal today (Jan. 9) with $372 million in cuts for the University of California system. The proposed cuts would reduce student enrollments, raise student fees, scale back student financial aid, reduce spending on faculty, eliminate K-12 outreach, and make deeper cuts to research, administration, and other programs.
The governor's proposals are part of a series of statewide cuts intended to help close a $14 billion state budget shortfall. The proposals, for the fiscal year starting July 1, will need the Legislature's approval to take effect. Final decisions will not be made until this summer.
"The governor is making difficult choices, and asking many parts of state government to sacrifice, as the state confronts a massive budget deficit," said UC President Robert C. Dynes. "That is understandable. But it also should be understood that these cuts, coming on top of deep previous budget cuts, would have a very serious impact on the University of California and its tradition of providing a top-quality, accessible, affordable education for Californians.
"UC is recognized worldwide and in our own communities for the extraordinary opportunities it offers our state's young people and for the profound impact it has on California's economic growth and global competitiveness. It is an institution that helps our people achieve their hopes and dreams. The continuing trend of reduced state funding for UC makes me deeply concerned about our ability to deliver on the promise that the University of California has always represented for the people of California.
"I intend to work with the governor, the Legislature, and the Board of Regents to minimize these cuts and their impact, to seek restoration of funding as the economy improves, and to preserve what the University of California has always meant for California."
The budget, and the University's response to it, will be discussed in more detail at next week's Board of Regents meeting.
The $372 million in program cuts represent the fourth consecutive year of such cuts to the UC system. The proposed budget for UC also includes $145 million in augmentations, largely consisting of restoration of $80.5 million in one-time cuts in the 2003-04 budget, funding for annuitant health benefits, and other items. As a result, UC's net state-funded operating budget in 2004-05 would be $2.67 billion, or 8 percent less than the current $2.9 billion.
Measured another way, the governor's budget, when combined with prior cuts, would leave the University with $530 million less in net state funding than it had in the 2000-01 fiscal year - a decline in state support of more than 16 percent during a period when enrollments have grown by more than 15 percent. Already, every area of University spending has been cut, student fees have increased significantly, employee positions have been eliminated, and faculty and staff have been denied cost-of-living salary increases.
Proposed program cuts
Major elements of the governor's 2004-05 proposal include:
· Enrollments: UC's freshman enrollment in fall 2004 would be cut 10
· Faculty: A cut of 5 percent ($35.3 million) in spending on faculty.
· Administration and libraries: A 7.5 percent cut to academic and
· K-12 outreach: Elimination of all remaining state funding ($33.3
· Research: A 5 percent ($11.6 million) reduction in state-funded
· UC Merced: The University's 10th campus would open to students in fall
If the proposed level of funding stands, the University will need to examine the range and scope of academic programs and services available on opening day. The University will continue to hold the goals of serving Central Valley students and delivering the highest-quality academic programs within a modified campus plan. "UC Merced remains critical to expanding educational opportunity in the San Joaquin Valley and to UC's long-term ability to accommodate growing college demand statewide," President Dynes said.
· K-12 Internet: Elimination of remaining funding ($14.3 million) for
· Salaries: There would be no state funding, once again, for
· Clinical enterprise: The effects of the governor's budget on UC's
Student fees and financial aid
The governor's budget proposes the following in the areas of student fees and financial aid:
· Financial aid: The budget proposes a major curtailment of financial
These policy proposals are of significant concern to UC because they would have a significant effect on access of lower-income students to public higher education. If these proposals stand, UC would need to consider alternatives for preserving access for lower-income students, such as rescinding a program started just this year in which UC provides grant aid to many financially needy students with family incomes of between $60,000 and $90,000 per year.
· Resident undergraduate fees: A 10 percent increase. Mandatory
The governor's budget also states the Schwarzenegger Administration's support for a long-term fee policy in which student fees would increase regularly in line with per-capita personal income, but not by more than 10 percent in a given year. The University believes such a policy should take account of overall state funding available for University programs, however.
· Fee surcharge for extra units: The governor's budget proposes that
· Resident academic graduate fees: A 40 percent increase. Mandatory
The governor's proposal also contains a long-term policy goal that academic graduate students ultimately pay 50 percent more in fees than undergraduates.
· Professional school fees: The governor's budget proposes that state
· Nonresident tuition: A 20 percent increase, or $2,746 for undergraduates
The UC Regents are not expected to set fall 2004 fee levels until later this winter or spring.
The governor's budget also contains a capital budget of $339 million in general-obligation bond funding for UC construction, earthquake retrofit, and infrastructure renewal projects. These funds are contingent upon voter approval of Proposition 55, a statewide education bond measure on the March 2 ballot. There also is $55 million in lease-revenue bond funding for an agricultural genomics building at UC Riverside, funded through UC's sale of a parcel of land.
The governor's budget is available at http://www.dof.ca.gov/HTML/BUD_DOCS/Bud_link.htm.