Davis Faculty Association

UC Budget Update

by Charles Nash and Myrna Hays

On May 14, reacting to a $5.7 billion deterioration in the state’s fiscal condition, the Governor proposed reducing the University’s General Fund augmentation for 2001-2002 from an original (January) figure of $202.5M to $185.8M. Some of the changes are discussed below.

Proposed increases beyond the original appropriations included:

· $100.6M to address increases in natural gas costs. This includes $55.9M in onetime funds to address current year costs. These funds are also available to promote conservation consistent with the Governor’s goal of reducing peak-load energy use by state agencies by 20 percent.

· $12.8M to fund a projected enrollment increase of 1,400 full-time equivalent students. This brings total budgeted enrollment growth, including summer enrollment, to 10,522 FTE students.

Proposed Reductions: The change from the January budget which will clearly have greatest impact on the faculty is an $89.9M reduction in the so-called partnership budget. IF the Legislature concurs, the effect of these cuts will be:

· A reduction of $47M in the compensation and benefits budget.

· A reduction of $29M in the budgets for maintenance, equipment, instructional technology, and libraries

· A reduction of $8M which was originally proposed to effect a small reduction in the UC student/faculty ratio.

· A loss of $5M in inflation adjustment funding.

Faculty Salary Impact: The $47M figure mentioned above would have funded faculty and staff merit promotions, a 2% COLA for all employees, and a 1% parity adjustment for faculty and eligible staff. Having learned a lesson from 1991-92, UC has stated that merits and promotions will not be affected. Building that firewall will leave 0.5% or less for COLAs.

These issues are currently before the Legislature. Further reductions could occur because the Governor’s proposed budget leaves only $1 billion in reserve. CUCFA has been lobbying strongly for faculty salary increases and other interests, and we will continue to do so.

This entry was posted on Tuesday, May 29th, 2001 at 3:28 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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