MERCED -- For years, University of California at Merced officials resisted the notion of a contingency plan in the event the first campus buildings were not ready on time.

Officials remained steadfast that the university, despite environmental controversy over the site near Lake Yosemite, would open as scheduled.

But state budget concerns now top fairy shrimp on the list of campus obstacles, and UC Merced spokeswoman Patti Waid Istas acknowledged Thursday: "We're working with several backup plans. You need to in this atmosphere of tight money."

She said flexibility is being built into the plans. "Perhaps opening with a smaller number of students, or maybe with plans for professors to work at community colleges."

All along, officials have proposed an opening enrollment of 1,000 undergraduates for the 10th campus in the UC system.

But no matter when the campus opens, students can enroll this summer in the first class that will put the designation "UC Merced" on student transcripts.

A state budget compromise last summer pushed the scheduled opening from the fall of 2004 to the fall of 2005.

Then, in January, amid the ongoing state budget crisis, Gov. Schwarzenegger's preliminary budget for 2004-05 gave UC Merced only $10 million, half of what the university sought.

The governor is due to present budget revisions in May before sending the document to the Legislature. The final spending plan -- approved by the Legislature and signed by the governor -- is due by June 30.

Istas said the university's opening plan will depend on how much money the campus receives.

Already, the university has hired 23 of the 30 faculty members it wants to have on staff by July 1, Istas said. The goal is to have 60 professors on board for the planned 2005 opening.

"We have to move forward. We have to work on the assumption that things will happen for us at UC Merced," she said.

First credit course scheduled

The university has been moving forward with summer classes the last four years. But those classes, even though offered by UC Merced, brought credit from UC Davis.

This summer, Istas said, a contemporary biology class will become the first with UC Merced credit.

This summer also will mark the first time that UC Merced faculty members are teaching classes. Dean Maria Pallavicini and Professor Mike Colvin are scheduled to teach the biology class, while four other faculty members will be teaching classes for UC Davis credit, according to Istas.

"We're taking little steps," she said. "In five years, people will take for granted that all the classes are for UC Merced credit."

While lawmakers and UC officials worry about money, and administrators plan classes, campus construction goes on, Istas said. Concrete pads are being poured for student housing, and the first floor of the library building is complete.

Merced city and county officials, meanwhile, have agreed to joint talks on development around the campus, which lies just outside the city's jurisdiction.

Up for discussion, Assistant City Manager Bill Cahill said, will be planning, potential annexation and revenue-sharing agreements between the city and county.

"The original draft of the university plan said there was a need for total urban services: police, fire, refuse (and) ultimately parks," Cahill said.

The city also is concerned about development along Bellevue Road, where the city has extended sewer and water lines to the campus.

"There's a lot of undeveloped land near Bellevue Road," Cahill said. "It may or may not be annexed, but there would need to be some planning process agreed on between the city and the county."

Council, board work together

The City Council asked to start the joint planning process, and Tuesday the county Board of Supervisors responded: "We will work with you … to devise an amicable and economically feasible resolution to further ensuring the greater community of Merced prospers."

County Chief Executive Officer Dee Tatum said: "I think the board will consider whatever operations are available to it and I don't think they will be restrictive in their thinking.

"Quite candidly, I've heard board members say they know that at some point it will be annexed," Tatum said. "When is the question.

"Annexation is the end game," he said. "We have to do a lot of sausage-grinding before that."