CSU, UC budget sparks debate
By Shreya Bhakta
Daily Forty-Niner
The heads of California State University
and University of California systems are waiting for a vote that may significantly
impact how the systems spend money in the future.
If Gov. Gray Davis signs the four-year
budget compact, the systems will be guaranteed a 4 percent increase in
funding.
And a "no" vote may result in the two
systems’ using a yearly budget.
Both systems agree that the budget compact
has many benefits. However, the new compact proposal has been the subject
of criticism by other state offices.
"There should be a better process of how
to budget in a fair, effective way," said Craig Breedlove, spokesman for
the Department of Education.
For the 1999-2000 fiscal year, an estimated
$2.3 billion will be coming from the state and $618 million from student
fees.
"For every $1 a student puts in, the state
taxpayer will put in $3.65," Breedlove said.
Unlike the CSU and UC systems, the Legislative
Analyst Office wants funding on a yearly basis, like most state departments,
Breedlove said.
The office serves as a watchdog for the
state Legislature to ensure the executive branch implements legislative
policy in a cost-efficient and effective manner.
The state should allocate money based on
performance, he said.
"They should compete for the scarce resources
provided by taxpayers money," Breedlove said.
However, President Robert Maxson said the
new compact proposal has many benefits.
"The whole concept of the compact is a
good idea because if you sign a contract for up to four years, you can
do long-range planning," Maxson said.
He supports the unification of the state
and the CSU and UC systems working together on creating a new agreement.
"It's different to do long-term planning
between the government and UC and CSU - it’s a good thing," Maxson said.
The concept of a four-year compact is not
a new thing.
Under former Gov. Pete Wilson, the CSU
and UC systems were guaranteed a four-year funding agreement known as Compact
I, which ensured the UC and CSU systems would receive minimum annual support
budget increases and other funding increases.
After Wilson left office, negotiations
began between the Davis administration and the two college systems for
a new compact.
Both Compact I and II were four-year budget
compacts, but the second asks for a 4 percent increase in the guaranteed
minimum budget. Maxson said the new budget compact also translates into
a 4 percent increase in enrollment.
But a report released Aug. 26 by the Legislative
Analyst states that the new compact is unlikely to offer additional or
better accountability measures than the old compact.
The report also states that the guaranteed
minimum budget increases would decrease incentives for the CSU and UC systems
to improve program quality and cost-effectiveness.
The secretary of education and director
of finance are trying to negotiate a new funding agreement.
No agreement has been reached on the compact
proposal. |