May 19, 2004
At today's meeting of the Finance Committee, the UC Regents discussed
UC's
2004-5 budget. The main focus was on the elements of the Compact which
UC
President Dynes and the Governor negotiated. See the following link: http://www.universityofcalifornia.edu/news/compact/compact.pdf
The only action item was proposed increases in student fees in
accordance
with the Compact. That discussion was complicated by an announcement
from
Hershman and others about possible state-funded augmentations to UC's
budget.
The Assembly budget subcommittee for higher education last night
presented information
only/possible action items
including funding 3% enrollment growth (rep.
6,000) students, 2.41% COLAs for faculty and staff, a 25% General Fund
subsidy
for professional schools, restoration of funding for the Institute for
Labor
and Employment, and funding for Outreach programs. The Assembly budget
subcommittee is scheduled to convene late today to determine whether to
act
upon these proposals. If they approve them, the Senate subcommittee and
then
the full Legislature as well as by the Governor would need to agree
with them as
well. Nonetheless, I felt you would want to hear this news.
That news created intense debate among the Regents regarding whether or
not to
adopt a fee structure (increase) for 2004-05. On the one hand, they
want to
give the Legislature time to provide more funding which would make the
fee
increase unnecessary. On the other hand, they feel they are legally
bound to
inform students "in a timely manner" about the fees they will need to
pay if UC adopts the fees outlined in the Compact and no augmentations
are
provided. Bill statements are due to go out in the very near
future; the
state budget may not be final until July or much later. Some Regents
suggested
sending out letters that state that fees will be increased unless the
Legislature and the Governor agree to provide funding; the UC
Counsel
agreed that such a "waffling" letter could serve to meet the legal
obligation. Some Regents wanted to at least "sleep on it" and wait
until tomorrow to decide. Hershman reminded the Regents that summer
school
students begin at
In their discussion, many Regents expressed concern about the
Compact.
Some feared that it will weaken UC's bargaining power and that it does
not
really assure future funding. Hershman stated that the
Compact is a
floor. It represents an agreement for base funding as well as allowing
for UC
to request augmentations when funds are available. But, the Speaker of
the
Assembly said that it is merely "a promise between the
Governor and
the UC that may or may not be kept." He felt that the Compact "takes
the wind out of the sails of those who would like to provide all that
is
possible for higher education." Several Regents agreed that it may
weaken
our bargaining power. Others expressed support for the Compact, feeling
that it
does provide for a "baseline, a Gentleman's agreement" that has some
value in future budget years.
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copyright 2004 The Davis Faculty
Association.