The FAs have been following a number of issues in the Legislature, as we indicated in our March Newsletter:
Long-Term Funding for UC — AB 1415
At UC’s request, Assembly Speaker Cruz Bustamante (D, Fresno) introduced AB 1415 which would specify state policy that would require: a) an annual allocation to UC equal to the prior year’s appropriation adjusted by a percentage increase in California’s per capita personal income; b) a supplement to the marginal cost of instruction for each additional student adjusted by the per capita increase and the amount that would have been derived from student fees if fees had also been increased proportional to per capita income; c) a “backfill” if the General fund does not grow sufficiently to provide for the above. With the specified intent of eliminating general fee increases, the bill requires that, should student fee increases be needed, they be no greater than the increase in California per capita income and that one third of these fees be directed to student financial aid.
UC would be required to meet certain conditions of funding. They include: 1) offering admission to all qualified students; 2) providing classes in order to increase the rate of graduation; 3) maintaining the current level of outreach; 4) continuing the current student-faculty ratio of 18.7 to 1; and 5) keeping the ratio of lower division to upper division students at 4 to 6 in order to make transfer of community college students possible.
After considerable discussion and research, the CUCFA elected to support AB 1415. Concerns expressed by Council Chair David Leonard in our March Newsletter that, given the constraints of California’s constitution and propositions, the Legislature would be unable to deliver on this promise have been somewhat allayed due to his conversations with representatives from the Legislative Analyst’s office and from the Dept. of Finance. CUCFA has also noted a statement from Debbie Davis, leader of the UCSA (Univ. of California Students Association), that they support AB 1415 although they do have some concerns about how professional fees and financial aid will be handled.
The bill is currently being held in the suspense file of the Assembly Appropriations Committee and is expected to pass through the Assembly with the backing of the Speaker. It will then go to the Senate, where the CUCFA’s active lobbying may be more important.
College Affordabillity Bill — AB 1318
We are also monitoring a bill by Assemblywoman Ducheny (D, San Diego) who chairs the Assembly Budget committee. AB 1318 would freeze general student fees from July 1, 1998 through June 30, 2000. The bill does not obligate the State to backfill any presumed loss of student fee revenue. Beginning in 2000-01, and each fiscal year thereafter, any increase in systemwide student fees shall be limited to the percentage change in California’s per capita personal income from the proceding calendar year. UC Regents would need to approve any fee increases. It further specifies legislative intent (not a statute as contained in AB 1415) that annual General Fund appropriations for UC, CSU, and CCC be calculated in a manner that considers the number of students enrolled and the percentage change in the California per capita personal income.
AB 1318 is opposed by UCSA. It has passed in the Assembly and will now move to the Senate. So far, the CUCFA has taken a neutral position on this bill.
Medical Education Funding
The CUCFA is also monitoring activity on two bills sponsored by UC to improve the methods of covering the costs of medical education in institutions which serve
significant numbers of the state’s Medi-Cal population by obtaining Medicaid reimbursement for medical education costs similar to federal funding benefits provided to other states for medical education costs. UC states that changes in fereral and state health care reimbursement and eligibility policies have put the university medical centers and the future of medical education at risk.
Senator Thompson (D, Helena) and Assemblywoman Ducheny (D, San Diego), each of whom chair the budget committee of their respective houses, have each introduced spot bills to deal with these issues. Although both are moving through committee, the details within the bills are still being negotiated. Thus, while the CUCFA is optimistic about supporting them, we are waiting to review the final drafts of the bills before taking a position on them.
Tenth Campus Funding Augmentation
Assemblyman Cardoza (D, Merced) introduced an augmentation to UC’s operating budget of $10M to fund “start up costs” for a tenth campus in Merced. Of the $10M, $100,000 would go to CPEC to fund planning; the exact use of the remaining funds has not yet been publicly specified. Also, the Chair of the Senate Budget subcommittee, O’Connel (D, Santa Barbara) introduced a similar motion for a $10M augmentation for “planning, start-up costs and ongoing support for a new cmpus.” Both sub-committees approved the augmentation.
Walker Hall Seismic Replacement Facility State Funding Request
At the request of Marj Dickinson, Governmental Relations Director at UCD, the DFA reviewed and then decided to support a proposal for partial state funding to replace seismically unsafe Walker Hall with a new facility to house the engineering departments of civil and environmental engineering and applied sciences. The state would provide $10.8M of the $18.3M needed; UC would fund the remainder. The proposal was included in the Governor’s budget and has now been approved by both budget subcommittees
The new three-story building is to be located at the current site of Parking Lot 44, just south of Bainer Hall, near Engineering Unit II. During the two-year period of construction, which is expected to begin in 1998, some pens at the swine facility would be relocated within the boundaries of the existing facility and later moved with the swine facility to a new location. The mechanical and aeronautical engineering and the environmental design departments would be housed in Walker for the time being, but the hall will be eventually evacuated. Whether the building will be renovated to a less intensive use or demolished will be determined after an historical evaluation of Walker Hall.