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Office of the Chancellor / Public Affairs
Friday, February 20, 2004
 

Modesto Bee 2-19-04

Push back UC Merced opening, report says
By MIKE CONWAY

 

SACRAMENTO -- In a report issued Wednesday, the Legislature's nonpartisan budget adviser again urged lawmakers to push back the opening of the University of California at Merced to save money.

But university officials say they remain undeterred by what's become perennial criticism from the legislative analyst's office.

"We've been proving ourselves every year," said university spokeswoman Patti Istas.

Still, the legislative analyst's office report on Gov. Schwarzenegger's budget proposal renewed questions about the UC Merced project in light of the state budget crisis.

University officials wanted $30 million in funding next year to open the campus by fall 2005, almost double what the school is receiving this year.

Schwarzenegger offered hope with the $20 million he put in his budget proposal. But the analyst's office suggested that lawmakers cut back the governor's plan by as much as 75 percent, to just $5 million.

"The state faces a $7 billion operating shortfall (next year)," said Legislative Analyst Elizabeth Hill at a news conference. "We've got tough choices to make. We think that since the campus isn't open yet that there are opportunities for saving."

Hill also said university officials have not provided enough details of their expenses.

"We can find no justification or rationale" for an increase in funding, Hill said in her report.

Hill's budget analysis is considered by lawmakers as a guidebook to help them with budget decisions. But it's advice that isn't always followed. When it comes to UC Merced, lawmakers consistently have sided with pumping more money into the campus even though the legislative analyst has frowned on it.

The state already has spent more than $350 million to get the school open, with construction under way at the site near Lake Yosemite. It has contracted out $170 million from state bonds to build a library, and classroom, science and engineering buildings, along with roads, parking lots and other improvements.

UC Merced has more than 168 employees, with a payroll exceeding $7 million.

"In order for us to be able to open, we'd need to stay at least with the ($20 million proposed by Schwarzenegger)," said Istas. "We hope that the legislators understand that."

Questions remain

However, legislative analyst's office staff say obvious questions remain about the project, such as how many faculty members have been hired and what they're doing.

Anthony Simbol, an analyst in the legislative analyst's office who scrutinized the UC Merced numbers, said he was surprised by the lack of information he received from the university.

"They couldn't give us anything at this time. They didn't really have a plan," he said. "For whatever reason, we're not getting the information."

The university is blaming a timing issue. When Schwarzen-egger's budget plan came in lower than requested, UC Merced officials had to retool their budget, then submit it to the university system again for approval, Istas said.

Deadline passes

The university system still is examining the new UC Merced plan, and it missed the analyst's office deadline, she said.

"It's unfortunate it gives an appearance there's reluctance," Istas said.

Assemblywoman Barbara Matthews, D-Tracy, represents the Merced area and is a leading university booster in the Legislature. She expects that all the financial details will be provided to lawmakers.

"We intend to educate everyone on what the money will be used for," she said. "We've spent a lot of money on a new campus that we desperately need. To not open would be foolish."

Sen. Jeff Denham, R-Merced, said the analyst's report makes his job of persuading lawmakers to support the campus more difficult.

"Ultimately, the money's got to be justified," he said.