DFA Report on UC Budget Issues, the LAO Recommendati

UC Budget Prospects

by Myrna Hays

Definitive legislative action on UC’s 2001-02 budget must await the May Revise when the state will have a better idea of how much the energy crisis and the recent economic slowdown will affect state revenue. The Assembly has not acted yet on the Governor’s budget proposal, but here are some actions taken by the Senate Budget Sub-committee for Education that may be of interest to UC faculty:

Budget Augmentation Requests:

The committee heard requests for additional appropriations to UC and CSU in order to increase compensation levels for faculty and/or staff. Action on these items will not be taken until after the May Revise. Professor Charles P. Nash, representing the FA, testified as follows:

The Governor’s budget includes funding for an overall 3% increase in faculty salaries, based on the UC administration’s best estimate of the amount required to maintain “parity” with our “Comparison Eights.” Although a final figure is not yet available, a preliminary report issued in February by the California Postsecondary Education Commission suggests that the pertinent increase is more likely to be 4%. The FA urges the Legislature to augment the UC budget appropriately.

UC Vice President for the Budget, Larry Hershman, requested a $20M augmentation: $6M to bring faculty salaries to parity and $14M to make staff salaries more competitive. UC had included the $14M in their original budget request. Hershman stated that these funds would provide a 1% additional increase in compensation for faculty and staff—a high priority for UC.

Budget Action Items:

· Approved three of the four UC Institutes of Science and Technology and placed the fourth (Center for IT, led by UC Berkeley in collaboration with UCDavis, UCSantaCruz, and UCMerced) on the checklist with high priority for funding in May.

· Approved $160.4 million for capital outlay for UCMerced, plus Budget Bill Language requiring UC to come back to the Legislature if the site changes and to provide copies of preliminary planning documents to the Legislature prior to the expenditure of any funds for working drawings and/or construction. Approved $2 million for UCMerced faculty recruitment.

· Placed funding for the following on the checklist for May consideration: Engineering Research ($5M), Environmental Science Research ($5M), Continued development of Internet2 ($18M), Deferred Maintenance, Technology, and Libraries ($20M). [Nash also presented a “white paper” to the committee stating FA support for this last item.]

· Approved $8M for UC to strengthen the quality of undergraduate education (hire more faculty and reduce the student/faculty ratio) despite objections from the LAO that UC could reduce the student/faculty ratio simply by requiring existing faculty to teach more undergraduate courses.

· Adopted Budget Bill Language to counter a recommendation from the Legislative Analyst’s Office (LAO) for a phased-in funding mechanism for Year-round education whereby UC and CSU only receive the funding appropriated for marginal cost if they increase enrollments. The BBL requires UC and CSU to file reports with the Legislature regarding fees charged and enrollment figures for summer school. UC agreed also to BBL to establish five-year capital outlay plans and to not limit summer enrollment.

Capital Outlay Projects:

· Approved $2.2 million for the UC Berkeley Stanley Hall Seismic Mitigation project despite objections from the LAO. Approved all other GO bond-funded UC projects except for Davis Veterinary Medicine, Riverside Heckman Center, UCSF-Fresno Medical Center, and San Diego Pharmacy School. These four projects will be discussed at the committee’s April 25, 2001 hearing.