Fee hikes and hiring restrictions are on the table as UC faces budget cuts of $74 million under proposals issued Friday, Dec. 6, by Gov. Gray Davis. The cuts, which are in addition to those in the 2002-03 state budget, target areas including administration, K-12 outreach programs, public service programs and state-funded research.

UC Davis' share of the mid-year cuts will likely be made from one-time savings. More and bigger cuts are expected when the governor releases his state budget proposal in January.

The cuts are part of a two-year package of $10.2 billion in budget adjustments across the state government, intended to help close the state's $21 billion budget deficit.

The governor's proposal showed commitment to the core mission of the university by sparing instruction and enrollment funding from mid-year reductions, said Provost and Executive Vice Chancellor Virginia Hinshaw.

"The permanent cuts necessary to other programs will be difficult. However, we will likely deal with these reductions through one-time measures in 2002-03. This will allow us to better plan and consult during the 2003-04 budget process," Hinshaw said.

• budget planning work group has been developing a specific review process for the upcoming 2003-04 budget, Hinshaw said. The campus approach would be based on strategic reductions that maintain the academic mission; balancing the impact on faculty and staff; open communication and broad consultation; streamlining procedures to save money and reduce workload; seeking new funds from private, business and federal sources; and serving students through alternatives such as summer sessions, distance learning and evening classes, she said.

"Given the governor's recent executive order on expenditures, we will likely restrict new hiring in certain areas so we may preserve flexibility during this period of great uncertainty," said Vice Chancellor for Resource Management and Planning John Meyer.

"As the scope of the state's fiscal crisis becomes clear, we believe that it is prudent to begin planning how we might assist staff whose positions are affected," Hinshaw said.

Human resources would work with campus leaders to minimize the impact of budget reductions on staff, said Associate Vice Chancellor for Human Resources Dennis Shimek. Shimek was recently appointed as Special Advisor to the Chancellor with the task of softening the impact of budget cuts on staff.

"Reaching out to our staff, committees and unions will be an important part of our work," Shimek said.

Early this week, it was not clear what share of the mid-year cut in UC funding would fall on UC Davis, but the campus' budget share is typically 15 percent of the total UC allocation from the state general fund, Meyer said. That would amount to about $11 million if translated into a share of the total mid-year cut for UC.

"We must keep in mind that these budget proposals are the first step in a long and complicated political process. These proposals will get much discussion and will be debated with vigor. The state budget process always entails uncertainty - especially in this environment," Meyer said.

The Legislature began a special session Dec. 9 to consider the budget proposals. Not all of the measures proposed by the governor require legislative approval. The UC Regents will meet Dec. 16 to consider the cuts and fee increases.

The largest cut is a $20 million reduction in funding for general and academic administration and libraries across the UC system. Campuses will decide locally where to make their share of this cut.

The governor's mid-year proposal also includes a general cut of $19 million across the UC system, leaving the university to decide how to achieve this target.

UC administration will propose systemwide fee increases of $135 per quarter for all students and an additional $150 to $400 per quarter for professional school programs to meet this cut. The increases, the first in in-state fees in eight years, would be effective spring quarter 2003.

Student fees for the academic year 2003-4 will be set by the regents in early 2003. At UC Davis, any fee increases will be in addition to increases recently approved by a student ballot to support athletics, health and other programs.

K-12 outreach programs, public service programs such as Cooperative Extension and student services face cuts of about five per cent each, or $3.3 million, $2.5 million and $6.3 million, respectively. The UC Cooperative Extension program includes farm advisers, nutritionists and other experts who work with communities and businesses across the state. Many of the farm advisers are based at UC Davis.

While the cuts in student services preserve the essential functions of financial aid, registration and admission, other services would face significant cuts, said Meyer.

"These reductions will only grow larger as part of next year's budget," Meyer said.

The proposal includes $18 million in savings from state-funded research.

However, those cuts are identified as unspent funds for specific programs such as substance abuse research, the Multi-Campus Unit for Labor Studies and the Institute for Mexico and the United States.

The 2003-4 state budget, which is due Jan. 10, is certain to impose additional cuts, Meyer said.

• document posted Monday on the UC Office of the President Web site gave some indication of the magnitude of cuts for 2003-04.

Including the mid-year cuts for 2002-03, they total $36.5 million from UC administration, a permanent cut of $28.8 million in state research funds, $25.4 million from student services, $33.3 million from K-12 outreach and $15 million from public service programs.

The cuts are additional to those made in the last state budget, which cut K-12 outreach programs and reduced state research funds by 10 per cent across the board.

At UC Davis, those cuts had the greatest impact on the College of Agricultural and Environmental Sciences, which receives more than half of the state research funds awarded to the campus.