This story was reported for the San Diego News Network on November 19, 2009.
Amid budget deficit estimates for next fiscal year, the UC system is seeing protestors and the CSU board is proposing an optimistic budget number for next school year. Here’s your Thursday dose of California Budget Crisis Diaries:
A budget analysis: California Legislative Analyst’s Office released its fiscal outlook Wednesday showing the state’s general fund deficit could be about $20.7 billion.
The LAO states that the budget problem “consists of a $6.3 billion projected deficit for 2009-10 and a $14.4 billion gap between project revenues and spending in 2010-11.”
The report further states that the problem is due to the “state’s inability to implement several major solutions in the July 2009 budget plan.’
Some of the problems include: finding reductions in California’s MediCare and prison systems and California’s inability to sell the State Compensation Insurance Fund for nearly $1 billion.
In response to the new findings, Sen. President Pro Tem Darrell Steinberg released the following statement:
“The numbers cry loudly for California to focus on rebuilding our tax base. The only tried and true way to do so is to use our fiscal levers to increase the number of high wage jobs. Putting more people to work earning decent wages will help overcome our deficit. We need to protect our schools and universities, so as we create high wage jobs we produce a workforce able to fill them.”
On Tuesday, SDNN’s budget diary entry said Capitol Hill insiders are actually expecting the deficit to top $25 billion, while Gov. Arnold Schwarzenegger estimated the budget to be $12.4 billion.
UC protest: About 200 demonstrators marched around a UCLA building where University of California regents are scheduled to vote on a 32 percent fee increase for next year.
Protesters from several UC campuses stayed overnight at a campus tent city to take part in a second day of demonstrations on Thursday.
UCLA spokesman Phil Hampton says 30 to 50 students also have staged a sit-in at an ethnic studies building and have chained the doors shut. They’re peaceful and are being allowed to stay.
Fourteen people were arrested Wednesday for failure to disperse or disturbing the peace.
Protests are also reported at other UC campuses but no further arrests have been reported.
The regents say cuts in state aid leave are forcing the tuition hike.
Protests against education cuts and fee increases for California universities have not been uncommon in recent months. SDSU held one of their many protests on Monday against budget cuts with some protestors donning “FURLOUGH $TATE UNIVER$ITY” shirts.
CSU hopes: Despite the financial troubles facing the state and California State University system, educators are hoping the government can still help.
On Tuesday, the CSU Board of Trustees Finance Committee adopted a budget for the 2010-11 school year asking for $884 million in aid from the “legislature and governor.”
“This is a very ambitious budget in these very challenging times,” said CSU Chancellor Charles B. Reed. “We are asking the state to not only restore funding of one-time cuts that were imposed for this year, but to also provide the needed revenue for mandatory costs, compensation increases, as well as fund our collective bargaining agreements for the past two years. This budget reflects the true fiscal needs of the CSU.”
The assistance would push the CSU’s general fund up from $2.3 billion to $3.2 billion.
The California State University system saw a $600 million cut in funding with about $55 million hitting SDSU.
Associated Press writer Michael R. Blood contributed to this report.