Gov.'s budget plan lives up to terms of compact
BY Anne Burke
UCLA Today Staff
UC administrators are giving a qualified thumbs up to Gov. Arnold
Schwarzenegger's proposed 2005-06 budget, which boosts state funding
to the university after four years of cuts and includes money for
enrollment growth and employee raises.
"Higher education is treated very well in the budget compared
to other things," Larry Hershman, UC vice president for budget,
told campus administrators in a Jan. 10 conference call following
the release of Schwarzenegger's spending plan.
The proposal offers UC a 3.6% — or $97.5 million —
increase in state general funds over 2004 05, for a total of $2.8
billion. Under Schwarzenegger's plan, UC would receive an increase
of 3% for faculty and staff compensation. The funding would support
a 1.5% general salary increase for eligible staff and faculty; a
1.5% merit based increase for eligible staff; and merit increases
for eligible faculty and academic programs. It would also provide
funds to help cover the increasing cost of employee health benefits
and to address market based salary equity issues.
Pay hikes for eligible staff — should the proposed funding
survive the budget approval process in the Legislature — would
become effective on Oct. 1, said Lubbe Levin, UCLA assistant vice
chancellor for Campus Human Resources. Salary increases for employees
represented by unions would be subject to the collective bargaining
process and existing labor agreements, she added.
Schwarzenegger's proposal honors last year's higher education compact,
a commitment by the governor to provide UC with budget stability
over several years and fund enrollment growth of 5,000 students
in 2005 06. Fulfilling the terms of the compact "was not easy
for (the administration) to do, given the size of their problem,"
Hershman said.
The governor's $111.7 billion plan seeks to close a yawning budget
gap through strict curbs on spending growth. Particularly hard hit
are K-12 education, health and human services, and prisons.
While generally favorable to UC, the governor's budget plan includes
two disappointments: the withdrawal of $17 million given to UC as
one time funds outside the compact and $3.8 million as one time
funds for UC labor research programs. The governor asked the university
to absorb the $17 million loss through cuts in enrollment or K-12
academic preparation programs, formerly known as "outreach."
The university plans to appeal to the Legislature to maintain those
funds, UC President Robert C. Dynes told employees in a newsletter
last week. Should the appeal fail, winter and spring 2006 admissions
could be affected, Dynes warned. For fall 2005, the university remains
committed to admitting all eligible applicants. Schwarz enegger's
plan takes into account student fee hikes already approved by the
regents in November.
Pay raises would come none too soon for UC employees. Most staff
members have not seen salary hikes since 2002; individual faculty
members have received merit increases but no general adjustments
during that time.
While the governor has proposed pay raises, he has indicated he
wants to reform pension plans for state employees. Schwarzenegger
backs a constitutional amendment recently introduced in a special
legislative session that would replace defined benefit public pensions
with defined contribution plans similar to private 401(k) retirement
plans.
Dynes said in his message to employees that even if the Legislature
and voters pass the amendment, the change would affect only UC employees
hired on or after July 1, 2007. While UC is now trying to determine
the potential impact, Dynes said he is worried that it might "restrict
our flexibility to fashion suitable retirement plans for our unique
employee populations."
Not all members of the UC community were as sanguine about the
governor's spending plan. Werner Z. Hirsch, professor emeritus of
economics, said that while the university fared better than many
other state entities, he believed the funding increase will not
be sufficient for UC to remain competitive among comparable institutions.
Keith Parker, UCLA assistant vice chancellor for Government and
Community Relations, said that the university will move forward
with its annual advocacy campaign, despite its generally favorable
standing in the governor's proposal. A full schedule of advocacy
activities gets under way in February, designed to ensure that lawmakers
are fully informed of UC's needs and positions.
For more information on the UC budget, visit: http://budget.ucop.edu.
For details on government relations at UCLA or on becoming an advocate
for the university, visit: www.advocacy.ucla.edu.
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