UC's Budget Takes Hits

The annual May revision to the governor's budget proposal this year brought both welcome and unwelcome news for the University, according to appraisals from the UC Office of the President.

Gov. Gray Davis unveiled his revised 2001-02 budget plan on May 14 amid a darkening fiscal picture. State General Fund revenues for the current and 2001-02 fiscal years were projected to decline a total of $3.45 billion from the initial estimates.

The good news came in the form of a $100 million augmentation for UC's increased natural gas costs, along with a $12.8 million boost to cover enrollment growth of 1,400 students--in addition to the 5,700 new students budgeted for in the January spending plan.

However, the revised proposal reduced UC's core budget increase by $90 million. The 4 percent increase to cover inflationary price hikes, employee salary increases, increased benefit costs, and other similar expenses was reduced to 2 percent. An additional 1 percent for deferred maintenance, instructional equipment, instructional technology, and libraries was eliminated entirely.

The May revision maintains funding for four California Institutes for Science and Innovation, and for infrastructure and the first buildings at UC Merced, though it shifts the funding for Merced from General Fund money to lease-revenue bonds.

Other reductions from the January budget proposal included: deferred maintenance, instructional technology, and instructional equipment ($20 million); engineering and computer science research ($5 million); environmental science research ($5 million); and elimination of a proposed expansion of graduate and professional school outreach programs ($1.5 million). Most other elements of the governor's original budget plan for UC remain unchanged.

Final action by the Legislature is expected by late June.