Amid current and potential new state budget cuts, UCSD still recorded an economic impact of over $4.6 billion last year, as revealed in the school’s annual report released on Feb. 12.
“”I think it’s very impressive that UCSD makes such a major contribution to the economy,”” said Assistant Vice Chancellor of Resource Management Margaret F. Pryatel. “”It certainly means a lot to the economy, given its current state.””
The $4.6 billion figure is made up primarily of the $1.046 billion the school spent on goods and services, the $831.6 million spent on salaries, the $76 million spent by students and visitors, the $119.2 million spent on financial aid and scholarships for 11,673 students, and the $186.6 million on federal, state and payroll taxes.
The UCSD Office of Technology Transfer and Intellectual Property Services also reports that over 10 new companies and over 300 new inventions and copyrights were created as a result of the school’s advanced technologies. The TechTIPS research led to an additional $13.5 million given for royalties and for funding future research.
The annual report also revealed that the school had revenues of over $1.7 billion in the 2002 fiscal year. The most substantial source of income for the campus was the $550 million the school received to conduct research. This mark, which is over $40 million more than last year’s research money, places UCSD at fifth in the nation in federal research awards.
In addition to research money, UCSD also received $435.5 million generated by the school’s hospitals and clinic, $411 million from federal research awards, $356.7 million from the state of California, $143.6 million from educational activities, $129.7 million given in gifts, grants and contracts, and $129.6 million from tuition and fees.
This figure of $1.7 billion may in fact decline next year due to both current and projected budget cuts for UC schools.
According to Pryatel, research funding was cut 10 percent, or $2.4 million, at the beginning of the year, while another $3.1 million of total funding was cut in the middle of the year.
“”The economic realities of the year challenged us, as it did all Americans, to plan and work more wisely than ever,”” said Chancellor Robert C. Dynes. “”Although we are in a major growth period, as our student body continues to grow and our state funding faces severe cuts, the administration, faculty and staff continue to maintain a can-do spirit.””
Pryatel said that UCSD, which is already overenrolled by 500 students, has been told by the state that it must take an additional 900 students above its normal enrollment maximum, due to the increasing number of applicants to UC schools.
A decrease in state funding occurred once before in the early ’90s, although the school was not going through a concurrent enrollment expansion.
UCSD, which is currently going through a large enrollment growth period, is presently involved in an $800 million expansion that will include the construction of new lecture halls, research buildings, conference and housing facilities, and parking structures.
The money to fund this expansion is being generated through bond measures and will not affect UCSD’s state funding.
“”We are in good shape in the capital side,”” Pryatel said. “”But we will have a problem paying the salaries of the new employees.””
New teachers will have to face the same problems tenured professors are facing in that no teacher salary will increase next year, following last year when salaries only rose 1.5 percent to make up for inflation.
“”This does not bode well for the University of California schools,”” Pryatel said. “”We are trying to get new faculty, but it has been difficult.””
However, salaries are not the only item that faces budget cuts due to the decrease in funding.
“”Our goal is to make judicious use of limited resources and to obtain maximum benefits from our core operating funds,”” Dynes said. “”The ongoing development of efficient and cost-effective business systems remains a management priority.””
Pryatel said these cuts for all the UC schools could reach as high as $36.5 million for academic institutions, $33.3 million for outreach, $28.8 million for research, $25.3 million for student services and $15 million for public services.
“”There is a $35 billion shortfall,”” Pryatel said. “”It’s hard to argue that we shouldn’t pay our fair share when the state is in terrible shape.””
