California students in fee limbo as state gambles on new taxes

CALIFORNIAN university students will not know how much their fees will be for the coming year as the University of California and California State University consider freezing fees on the gamble that voters in November will approve a sales tax and a tax on the rich.

Losing the bet would turn the schools' budgets to rubble, forcing cuts and a new round of tuition increases.

The 2012-13 state budget, signed last week, promises $125 million each to the University of California and California State University systems next summer if they keep fees at the 2011-12 levels. Both systems said they likely would abide by its terms.

If the measure fails, the universities will likely need to raise tuition sharply or make major budget cuts in the middle of the academic year.

California State has already began collecting fees which had been raised by more than 9 per cent presenting additional difficulties for the 23-campus system. The promised $125 million reward is less than the university system would have collected from the higher fees.


Trustees will need to reverse the fee hikes and refund the extra money. The California State board may vote in September on reversing the fee hike on the condition that the tax passes two months later. The issue likely will be discussed at the board's July meeting.

If trustees agree to the budget deal and the tax measure passes, students will receive refunds soon after the election.

UC president Mark Yudof said in a written statement last week he will urge the Board of Regents to freeze fees rather than boost fees by 6 percent or more, as was being considered.

The university may have to borrow money and make additional cuts to meet budget demands until the tax vote comes in. How much money it might borrow is not yet known.

``Where else are we going to get the money?'' asked UC spokeswoman Dianne Klein. If the tax fails, she said, fees will most likely rise by more than 10 percent and UC will need to cut more of its budget.

``It would be draconian on steroids. It would be ugly.''?