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©2004
The Regents of the University of California
 

 
VOL. 25. NO.10 FEBRUARY 23, 2005

A Persistent funding gap

Budget plan still fails to cover needs

by Cynthia lee
ucla today staff

Although Gov. Arnold Schwarzenegger’s 2005-06 budget plan offers a 3% increase in state funding for the University of California — enough to provide merit and salary range adjustments for faculty and staff, as well as funding for an additional 5,000 full-time students — there is still a growing gap between state funds that UC receives and the estimated amount it needs to operate, said UCLA’s budget chief.

Speaking to Academic Senate members Feb. 8 at the Faculty Center, Vice Chancellor Steve Olsen compared actual state funding received with workload funding — an annual increase of 6.5%, the estimated amount that UC needs each year to offset the effects of increased salaries, operating expenses and enrollment growth.

From 1999-2002, UC was receiving more than it needed to cover those expenses, Olsen said. Then, beginning in 2002-03, the trend reversed during three straight years of deep budget cuts. Although UC will likely be receiving slightly more state funding in 2005-06, the cumulative difference between that number and workload funding is
at 24%, the largest gap in seven years, Olsen said.

The widening of the gap in 2005-06 is primarily due to the governor’s proposed cut of $17 million for enrollment and academic preparation programs, which Olsen called “a political football in Sacramento.” Last year, when the governor attempted to eliminate all funding for these programs, legislators worked out an 11th-hour compromise to save the programs from near-extinction. This year, however, battle over the proposed $17-million cut is looming.

UC President Robert C. Dynes said UC intends to work with Gov. Schwarzenegger and lawmakers to demonstrate the importance of academic preparation programs and to seek restoration of those funds.

Olsen also explained how UC has absorbed state funding cuts over the last three years. While raising student fees helped cover 25% of the budget cuts, and the lack of salary increases and range and cost-of-living adjustments covered another 25%, half of the cuts were absorbed as funding reductions to academic and administrative programs.

“There’s no doubt that fees for undergraduate, graduate and professional program students have all increased rather sharply in the last three years,” Olsen explained. “But even with those startling increases, that new revenue made up only one quarter of the loss of state funds.”