Answers to some common questions

Q. Why are there fee increases at UC?
A. UC was forced to raise student fees to cope with the deep state budget cuts in 2003-04. Fee increases are only one part of a balanced package of solutions at UC.

Q. When did the Regents vote on fees?
A. UC Regents approved a 30 percent fee increase at their July 16-17 meeting.

Q. How will fee increases affect students?
A. A portion of the new fee revenue will go straight into financial aid to mitigate the impact of the fee increase on low-income students. As a result, UC estimates that 40 percent of its undergraduates will not have to pay the fee increase. UC’s strong financial aid programs allow it to enroll more low-income students than any other top university in the country, public or private.

Q. How did fees go up to 30 percent?
A. The Regents passed a 25 percent fee increase and gave the president authority to go to 30 percent if necessary. That step was taken after the Legislature adopted more budget cuts (specifically, an additional $18 million unallocated reduction to UC’s budget, on top of an already suggested $80.5 million cut). So in total, the Legislature added a $98.5 million unallocated UC cut to the budget cuts originally proposed by the Governor. UC expects to fill that with the fee increase, which will raise $51 million above the fees assumed in the Governor’s Budget, and by borrowing $47.5 million.

Q. Are more fee increases possible this year, or is this the end?
A. UC hopes this is the end, but it depends on the state’s budget situation.

Q. Does UC cost more than other comparable colleges?
A. Even with a 30 percent fee increase, fees for resident undergraduates would still be more than $1,200 below the average charged at other public universities (Illinois, Michigan, SUNY and Virginia) that UC uses for fee comparison purposes.

Q. Do students pay for their whole education?
A. No, student fees only provide a portion of the cost of instruction. The full cost of instructing a UC student has increased over time from about $12,000 in 1991 to about $16,900 in 2002-03.

Student fees increased in the early 1990s to cover a portion of these costs, but from 1995 to 2002, students and parents did not have to pay for the increasing cost of instruction. Instead, through a state “buy-out” made possible by California’s strong economy through 2000-01, California made up the difference to keep a high quality UC education among the most affordable in the nation.

Q. Is UC doing anything else besides fee increases to help with the budget?
A. Yes. Most of the budget shortfall will be covered through lower-than-expected employee salaries and program cuts in non-instructional areas as well as the $47.5 million UC expects to borrow.

Q. What about enrollment constraints?
A. With California still facing a major structural budget problem next year, the final state budget also contains intent language adopted by the Legislature specifying that the 2004-05 budget will provide no state funding for student enrollment growth, employee salary increases, or other inflationary cost increases at UC. This is a distressing issue because it means UC will have to consider capping enrollments for the first time in memory. The UC Board of Regents will discuss options for dealing with this issue at upcoming meetings.