Tough Times Tough Choices
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California, where personal income-tax revenues suffered the sharpest
one-year drop since World War II, the California Legislative Analyst's
Office in May projected a $23.6-billion state shortfall for the
coming fiscal year. California, along with 25 other states, has
raided its "rainy day" fund and, like 16 other states,
plans to tap its share of the national tobacco settlement to help
make ends meet. Late last year, Gov. Gray Davis implemented a hiring
freeze on non-essential state employees.
part of his May Revision to the 2002-'03 budget, the governor proposed
cuts in education. The University of California may see a $162-million
reduction, leaving it with $3.2 billion from the state. Those cuts
include: $32 million, or 10 percent, of funding from research programs;
$29 million in a one-time cut from UC's $150-million budget for
equipment, library materials, deferred maintenance and instructional
technology; and $28 million from K-12 outreach efforts. The final
budget plan will be the product of negotiations between the governor
and State Legislature.
resources, however, were saved, such as capital expenditures for
the four California Institutes of Science which includes
the UCLA-UC Santa Barbara California NanoSystems Institute
where funding was shifted from the General Fund to lease-revenue
a state institution, the University of California will participate
in the actions that must be taken to balance the state's budget,"
UC President Richard C. Atkinson wrote in a budget update sent to
all UC faculty and staff. "But we need to make every effort
to do so in a way that preserves the quality of our institution."
administrators are even more concerned about what will happen in
2003-'04. Conventional wisdom, according to UCLA Vice Chancellor
for Finance and Budget Steven A. Olsen '77, says that Gov. Davis'
budget reflects the impact of an election year, and that many cuts
have been delayed. "But they can't put it off forever,"
Olsen says. "Next year, it's going to be tough."