UC tuition may increase by 6.5% in 2003

Deirdre Newman

Next year, students may face something that hasn’t affected them

in eight years -- a tuition increase.

The potential 6.5% tuition increase from the University of

California is just one repercussion of a projected $21.1-billion

state deficit for 2003-04. The state’s legislative analyst released

the news Thursday.

The state budget deficit could force UC campuses and community

colleges such as Orange Coast College to take other drastic measures.

Gov. Gray Davis is required to propose a balanced 2003-04 budget

to the legislature by Jan. 10. Davis and the legislature have already

filled a $23.6-billion shortfall in the $98.9-billion budget for

2002-03 using a hodgepodge of cuts, fee increases and deferments.

The state’s legislative analyst also urges legislators to deal

with a $6.1-billion gap projected for this year’s budget, attributed

to higher spending and lower tax collection than expected.

The prospect of mid-year budget cuts is sending chills down the

spine of Jim McIlwain, vice-president of administrative services for

OCC.

“I’m really concerned about it,” McIlwain said. “We’re facing a

real problem and we’re concerned at the college that the state of

California is not going to be able to fund the community colleges

like they want to.”

The UC Board of Regents approved a basic budget for the 2003-04

fiscal year Thursday, acknowledging that significant budget cuts may

be required.

Since specific proposals from the state for balancing the budget

will not be available until Davis releases his 2003-04 budget

proposal in January, the board discussed general options, including

increasing student fees by 6.5%, which is about $225 more over the

course of a full year for undergraduates. This increase would apply

to undergrads and professional students. The 6.5% figure is tentative

and could vary based on the state’s budget plans, said Larry

Hershman, UC vice-president for budget.

If a tuition increase is required, one-third of that revenue would

be returned to financial aid to lessen the effect on lower-income

students, Hershman said.

Another effect of the budget deficit could be a reduction of

funding for UC research, although these cuts would be limited to

programs that received major increases over the last several years.

While UC Irvine officials said they could not comment on effects

on the university as a whole until January, the athletics department

is already bracing for another $73,000 reduction in funding in the

near future, the same amount that was cut at the beginning of the

school year, said John Hauscarriague, assistant athletics director of

administration.

UCI Athletics compensated for the first $73,000 loss with

increased fund-raising and is monitoring its travel expenses and

operational costs to absorb the next potential reduction,

Hauscarriague said.

OCC has lost $300,000 already this year and is expecting much

worse next year, McIlwain said. OCC officials won’t really know what

to expect until Davis releases his budget in January.

The worst-case scenario, McIlwain said, is that the state could

suspend Proposition 98, an amendment that protects education from

cuts that affect other parts of the state’s budget.

“If the deficit is so huge that for some reason things get really

worse and they have to suspend it, then we’re in there with all these

segments of the state that aren’t protected,” McIlwain said. “But the

magnitude of that I wouldn’t even estimate.”

McIlwain called the legislative analyst’s report a wake-up call to

Davis and the legislature that the state’s financial woes cannot be

ignored any longer.

“I think [it’s] sounding the alarm,” McIlwain said. “If you look

at the forecast, it’s grim. But is the sky falling? OCC will be here

next year. We’ll just be a bit leaner.”

* DEIRDRE NEWMAN covers education. She may be reached at (949)

574-4221 or by e-mail at deirdre.newman@latimes.com.