State Budget Surplus Could Give Big Boost to Higher Education

With this year’s budget surplus expected to be about $4 billion, Gov. Pete Wilson’s administration Saturday called for the first of what will be several spending proposals--$170 million for new computers, books and long-needed maintenance at public universities.

That money is in addition to the nearly $6 billion that Wilson offered to spend on the University of California and California State University systems in January when he issued his proposed budget of $73.8 billion.

“There is a tremendous amount of investment being made to improve higher education. These are very significant dollars,” said Sean Walsh, Wilson’s spokesman.

Department of Finance officials continue to count receipts from the April flood of income tax returns. California’s bustling economy has brought stronger than expected tax collections that could push the budget to nearly $78 billion.

The exact amount will not be released until later this week. But several Capitol sources predict that the windfall will amount to about $4 billion more than was anticipated in January.

Part of that money comes as a result of one-time revenue, apparently as Californians took capital gains by selling stock or homes, and cashed in year-end bonuses in 1997. The extra $170 million for the public universities will come out of that one-time revenue.

Wilson’s spending proposal for the university systems was quickly lauded by legislators, who have been clamoring for more education spending.

“We are very much OK with it,” said Sandy Harrison, spokesman for state Senate President Pro Tem John Burton (D-San Francisco).

“It’s a very appropriate use of one-time money. The need is definitely there,” Harrison said.

The administration plans to release its revised budget on Thursday. Before then, Wilson will release details of other proposals. He probably will call for more spending on public schools--additional teaching training is being considered--and on environmental projects.

As the Republican governor fashions his eighth and final budget, he also is expected to call for tax cuts.

That is sure to meet resistance from Democrats who want the bulk of the $4-billion surplus spent on schools, public works projects, pay raises for state employees and increased payments to disabled Californians.

The $170 million will be divided equally between the UC and CSU systems. The money is in addition to the $311 million proposed by Wilson in January for various capital improvement projects, and $62 million to cut tuition by 5%.

As outlined by Wilson’s aides, $50 million of the new money will be spent on roofs, paint, heating, air conditioning and other projects that were delayed during the deep recession of the early 1990s.

Included in the so-called deferred maintenance projects will be extensive roof repairs on 52 buildings at UCLA, and a new heating system at UC Irvine.

An additional $100 million will be spent to replace and repair instructional equipment, such as computers, and laboratory material.

A final $20 million will be spent to upgrade libraries and pay for periodicals. The UC system had cut the number of periodicals by 40,000 in the past decade, largely because of budget cuts and rising costs.

“This money will be a reinvestment into quality at the California state universities,” CSU Chancellor Charlie Reed said Saturday.

The improvements will help the CSU system as it sets out to recruit 1,000 new teachers for the estimated enrollment increase of 10,000 students in coming years, Reed added.

He was especially pleased by the $10 million the CSU system will receive for its libraries, “the heart and soul of a university.”