Gov. Arnold Schwarzenegger’s proposed increase of UC student fees should be significantly reduced, the nonpartisan Legislative Analyst’s Office recommended in its annual analysis of the state budget.
The LAO, California’s fiscal and policy adviser, suggested an increase of 2.4 percent for both UC and CSU student fees, differing from Schwarzenegger’s proposed increase of 7 percent for the University of California and 10 percent for the California State University.
“”The governor provides no rationale for the proposed fee levels,”” the report said. “”The UC and CSU fee increases are tied to neither an inflationary index nor a specified share of cost.””
Under Schwarzenegger’s plan, UCSD undergraduate resident students could expect to pay an additional $430 to current campus fees of $6,684.60, as opposed to an increase of $147 recommended by the LAO. The fee hikes are meant to balance the state budget, a common occurrence considering higher education funds fluctuate over the years in direct correlation with periods of economic growth and stagnation.
LAO analysts stated in their report that “”the state operates under an implicit policy whereby students and the state are expected to share educational costs, but with the relative proportions dependent on the state’s fiscal situation.””
In an effort to prevent such a chain of events, the LAO suggested the implementation of an explicit student fee policy in which student fees are set at a fixed share of total costs.
Schwarzenegger’s proposal comes after an agreement he made with UC President Robert C. Dynes and CSU Chancellor Charles B. Reed in 2004. Under their “”compact,”” the governor committed to increasing annual state funding for the University of California’s basic budget and enrollment growth, starting during the 2005-06 fiscal year, in return for the university’s agreement to accountability in specified areas, including compensation transparency, through the 2010-11 fiscal year.
“”What we budgeted was in response to what they said they needed,”” Schwarzenegger spokesman H.D. Palmer told the San Diego Union-Tribune.
The UC Board of Regents, which implements changes in student fee levels, is looking to students to provide an increased proportion of funding to meet the agreements arranged by the 2004 compact.
According to UC Office of the President spokesman Ricardo Vazquez, Schwarzenegger’s budget proposal reflects the university’s need for increased student contributions.
The LAO, however, argued against student fees covering the increase. It recommends the continuation of the current proportion with an increase of 2.4 percent to satisfy the rise in educational costs due mainly to inflation.
LAO Director of Higher Education Steve Boilard did not respond to requests for comment.
A planned increase in student fees last fall was averted when Schwarzenegger enacted a student fee buyout. The buyout allocated additional state funds to universities to spare students from an 8-percent fee increase.
The governor introduced his budget in January to be examined by the LAO, which advises the state Legislature. In May, Schwarzenegger will release a revision of the budget based on the April tax revenue receipt. The Legislature has from May until mid-June to approve the governor’s budget. Schwarzenegger then has until July 1 to sign the budget.
“”With the state still facing a major fiscal challenge, we are grateful for the support the governor has provided in his budget for some of our key priorities at the University of California – student enrollment, improved salaries for our hardworking faculty and staff and research to keep California on the leading edge of global innovation,”” UC President Robert C. Dynes said in a press release.
The regents will consider the governor’s student fee increase proposal this month.
