BY BRAD HAYWARD
UCOP News Service

Facing a budget deficit estimated at more than $21 billion, Gov. Gray Davis proposed mid-year spending reductions across state government Dec. 6, including cuts in noninstructional areas at the University of California.

As of press time, the governor proposed $74 million in mid-year cuts at UC, on top of cuts already implemented this year. Areas affected include administration, libraries, K-12 outreach, Cooperative Extension and other public service programs, student services and certain state-funded research programs.

The cuts also include a $19-million unallocated budget reduction for UC. To close this gap without reductions in instructional programs, the Board of Regents will be asked Dec. 16 to approve a $135 increase in mandatory systemwide student fees for the spring 2003 term — the university’s first such fee increase in eight years. Additional fee hikes also would be assessed to professional school students in the spring 2003 term.

“These budget cuts will be painful because we have already absorbed major cuts and the university’s funding is now significantly below the minimum called for in our Partnership Agreement with the governor’s office,” said UC President Richard C. Atkinson.

“But we also know that the university must play a role in the state’s budget solutions,” he said. “The university’s principal priority is preserving access and quality in the instructional program, even amid budget cuts, and the governor’s proposals are consistent with that priority.

“It is with great reluctance that we are considering even a modest student fee increase. But we must look to a package of solutions if we are to ensure that students will continue to have access to the classes they need to graduate on time and will continue to receive the high-quality education they expect of UC,” the president said.

The cuts to UC’s budget are part of Davis’ proposal to trim $10.2 billion over two years in state spending, including $3.4 billion for 2002-03. A special legislative session called by the governor to consider his mid-year proposals was slated to begin Dec. 9. The Board of Regents will hold a special meeting Dec. 16 to take action on a final 2002-03 university budget that incorporates the new cuts and to consider the proposed fee increases.

Included in the governor’s proposal is a $20-million cut to general and academic administration, and libraries. Each campus and the Office of the President will have discretion to make its portion of the cut in locally determined ways.

Among the other cuts proposed: $3.3 million from UC’s K-12 outreach programs; $2.5 million from UC public service programs; and $6.3 million from student services.

For more details and updates, visit www.ucop.edu.