UC Regents Told of Bleak ‘02-03 Outlook

With the state’s economic crisis deepening, University of California regents were warned in a grim budget report Thursday that they may be forced to consider a series of distasteful options next year, from limiting student enrollment to raising fees for the first time since 1994.

The discussion followed an announcement Wednesday by Gov. Gray Davis of even more immediate budget woes, with the UC system facing a proposed reduction of $86 million under the governor’s plan to save nearly $3 billion statewide in the current fiscal year.

“Given the reality of the state’s fiscal situation, we will have difficult choices to make in the year ahead,” UC President Richard C. Atkinson told regents gathered for their regular meeting.

They approved a $3.65-billion state-funded operating budget for 2002-03, an 8.7% increase over the current year, with the understanding that the university might get less when the governor sends legislators his budget proposal in January.

As expected, the regents also gave final approval Thursday to a plan to change the university’s admissions policy to allow personal factors, not just academic achievement, to be weighed in evaluating all freshman applicants.

Approved on a 15-4 vote with one abstention, the change takes effect immediately. The new policy will be used in evaluating students applying this month for admission next fall. Students and others have expressed concern about the decision to alter admissions guidelines even as the annual process goes forward.

But Atkinson sought to reassure students Thursday, especially those applying now, that the policy shift will not hurt their chances.

“If we believed that students would be harmed by this change at this time, we would not proceed with it,” he said.

The financial issues occupied the regents’ attention for much of the day Thursday, as they heard grim predictions of cuts that may prove necessary.

The governor has asked the university to save $86 million from the current budget, with $50 million of that to be achieved by shifting funds for four new science institutes from the state’s general fund to lease-revenue bonds.

The proposal calls for the remaining savings to be accomplished by returning to the state $25 million allocated to help cover rising energy costs, by cutting $6 million from a professional development program for teachers and by slicing $5 million from a clinical teaching support program at UC medical centers.

UC officials said the more serious concerns, however, involve next year, when they will probably be forced to consider increasing student fees, limiting faculty and staff raises or capping enrollment.

Several regents expressed dismay at the possibility of raising student fees--perhaps as much as 10%--or limiting enrollment.

“California cannot afford to underfund education,” said student regent Traci Davis. “We have had a massive increase in student debt. It just seems like a huge spiral, and to know that we are not investing in education is very disconcerting.”

UC has traditionally promised a spot at one of its eight undergraduate campuses to any student who meets its basic eligibility requirements. Funding for at least 7,000 more students will be required in 2002, officials have said.

At the same time, student fees remained flat for the last seven years after years of increases in the early 1990s. After the economy improved in 1994, the state began buying out the annual increases, allowing the fees to students to remain unchanged.

The university’s budget officials said other possible cuts in 2002-03 include delaying a plan to begin summer sessions next year at Davis, Irvine, Riverside, San Diego and Santa Cruz.

In light of the state’s worsening financial crisis--and apparently, negative reaction from regents and faculty members--university leaders also decided Thursday to put off granting raises of up to 25% to a group of its highest-paid administrators, including executive vice chancellors and engineering deans.

Instead, those top administrators, for now, will receive the same 2% merit raise previously given to all university staff.

The board approved the larger raises for 35 senior managers but put them on hold, “considering economic conditions and budgetary constraints.”

UC officials had defended the raises as necessary to attract and retain the university’s top administrators.