Chancellor meets with staff at forum

October 28, 2002

Budget uncertainty looms, fee increases possible

The state's budget crisis and its uncertain impact on the University of California set a serious tone for the first Brown Bag Forum with staff held by Chancellor M.R.C. Greenwood on October 23.

About 200 people turned out for the gathering in Kresge Town Hall, where Greenwood discussed the budget and rising health care costs before fielding questions that focused largely on transportation and campus safety.

California faces a "severe budget problem" with estimates of the state's deficit running between $10-15 billion, said Greenwood. The state legislature and Governor Gray Davis, facing reelection next month, have so far kept their pledge to higher education and the University of California and "hit our budget proportionately less" than other state agencies, but additional cuts are anticipated after the November 5 election, she said.

Systemwide, UC could face up to $155 million in cuts, of which UCSC's share could amount to $9.25 million, according to Greenwood.

It's unclear whether the Office of the President will choose across-the-board cuts or will try to mitigate the cuts at some campuses, she added.

Student fees, which have been stable since the early 1990s, will likely be increased, but final decisions will hang on the news from Sacramento, she said.
"We don't know how much will be cut or what actions the university might take to close the gap," said Greenwood, who expressed her own frustration with cyclical statewide budgetary uncertainties that preclude long-term campus planning.

"This is the craziest way of funding higher education, but it's the way we're doing it in California," she said, referring to the cycle of raising fees when times are bad and holding them stable when the economy is strong.

Beginning in January, UC employees will be required for the first time to contribute to the cost of their health care coverage, and Greenwood credited UC representatives for "aggressively negotiating" to hold down the costs of the university's contracts with health care providers.

New options include opportunities to enroll one UC employee and a child or children, lower rates for employees who earn less than $40,000 annually, and health care reimbursement accounts that allow employees to set aside pretax dollars to pay for certain anticipated medical expenses.

"But the big distinction is nothing is completely free at this point," said Greenwood, noting that HMO copayments and benefits are unchanged, and the university still provides complete vision, dental, and retirement benefits without employee contributions.

On the "good news" side, Greenwood said the purchase of the Laureate Court apartments adjacent to the base of campus is moving ahead, Colleges Nine and Ten opened, and the infill projects are under way, all of which underscore the campus's efforts to house more faculty, staff, and students.

Additionally, the campus recently received a $9.1 million grant from the Gordon and Betty Moore Foundation, UCSC continues to attract more and more top students, and some "fabulous" new faculty and staff have been hired, she noted.

Responding to a question, Greenwood said she is unaware of any "active discussion in the UC system" about an early retirement incentive program but added, "I wouldn't rule anything out until we know what circumstances we'll be facing."

Pedestrian safety and transportation dominated much of the forum, with several speakers expressing interest in stricter enforcement of traffic regulations on campus, particularly in light of a recent accident in which a student suffered serious injuries after running into the roadway and being struck by a car on Hagar Drive near the East Field House.

"I am perfectly prepared to post big signs at the front of campus telling people we enforce traffic rules and that if you speed, you'll get a ticket," said Greenwood, who jokingly admonished the crowd not to come complaining to her if they were snared.

But campus police officers have a finite amount of time to spend on traffic enforcement, and Greenwood encouraged the audience to help spread the word to students and others about the necessity of taking basic precautions, like wearing reflective clothing after dark, and abiding by campus rules that ban skateboarding on campus.

The campus has recently secured state funding to install a traffic signal at the intersection of Hagar and Coolidge; construction is slated for summer 2003. Plans for a light at the Physical Plant intersection are also moving ahead, with that project currently out to bid.

Also under consideration are proposals to build more pedestrian walkways and bridges and the installation of a natural gas fueling station on campus. Wes Scott, director of Transportation and Parking Services, was pleased to announce that the imminent purchase of two new 15-passenger vans will accommodate would-be vanpool riders in Watsonville and San Lorenzo/Scotts Valley.

There is little relief in sight, however, for staff who are feeling the loss of parking spaces to make way for construction of the new Engineering Building.
"One of the costs of our spectacular wooded environment is that there are virtually no places on campus that are genuinely flat," said Greenwood, adding that the campus will build additional parking over time.

Greenwood encouraged the audience to learn about Proposition 47, which would provide $13 billion for K-12 and higher-education facilities in the state, including about $408 million for UC. On this campus, funds would support the new Humanities/Social Sciences Building, an emergency response center, seismic upgrades, and the beginning of the expansion of McHenry Library. Campus construction would generate badly needed local jobs, she added. (see Related Story)

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