BY MARINA DUNDJERSKI
UCLA Today Staff

Gov. Gray Davis’ May Revision to his 2003-04 budget plan spared the University of California from additional cuts. However, as of presstime, state lawmakers continued to wrangle over alternate proposals that might cut even deeper.

Released May 14, Davis’ budget plan still includes the $300-million cuts to UC he proposed in January — about $25 million to UCLA — to help pare down a record state budget deficit, now estimated at $38.2 billion. Davis’ revised proposal — which relies on a combination of cuts, taxes, fund shifts and borrowing — also restores $300 million to community colleges and some funding to K-12 education, health programs and local government.

“The governor’s May Revision plan sticks to his original budget [for UC] and indicates that education will be a top priority for him,” Larry Hershman, UC vice president of budget, told the UC regents meeting in San Francisco on May 14. “We have been worried about the size of cuts already made and have worked very hard not to get more cuts.”

After accounting for offsetting revenue from possible fee increases, UC will have taken $360 million in base budget cuts by next year. As a result, over a three-year period ending next year, UC’s enrollment will have grown 18% while state funding will have declined by 6%, Hershman told the regents. “That is a very serious statement,” he said.

Systemwide, virtually every program area outside of student instruction —libraries, administration, research — is being cut, many in the range of 20% to 50%.

But Davis’ revise is relatively good news for UC, when compared to other possibilities, UC finance officials said. A proposal by Assembly Democrats would cut UC’s budget by an additional $80 million, while the Assembly Republicans have come up with a plan for a $400-million cut to UC.

“That would be devastating and could lead to a lot of serious decisions that the regents would have to make,” said Hershman, involving further student fee hikes, enrollment caps and salaries. “We want to avoid those kinds of draconian cuts.”

Steven A. Olsen, UCLA’s vice chancellor of finance and budget, said the May Revision was “unexpected good news for UC.” Although the plan does not eliminate the threat of cuts from the two other legislative proposals, it “usually carries significant weight in the final stages of legislative deliberation on the budget,” he said.

Under Davis’ plan, UCLA would see funding reduced by $25 million next fiscal year (not counting cuts in instruction slated to be replaced by increased student fees). About $10 million of the $25-million cut is targeted at research, student services and core needs. About $15 million is undesignated, affecting instruction, and institutional and academic support.
However, if Davis’ plan is adopted by the Legislature, an $8-billion state deficit would be rolled over to 2004-05.

“The governor’s proposal may lessen the immediate threat to UC’s operating budget, but is symptomatic of a continuing lack of resolve in Sacramento to address seriously the permanent imbalance between the state’s income and expenditures and its steadily weakening cash position,” Olsen said.

The Legislature has until June 15 to adopt a budget although it may take longer. If it takes action before the regents’ regularly scheduled meeting July 16-17 in San Francisco, the board plans to call a special meeting to set 2003-04 student fee levels, among other actions.