By Todd Belie and Melody
Wang
Daily Bruin Reporters
After conducting its annual review of the Student Union fee, the
Associated Students of UCLA decided the $51 mandatory fee will not
decrease this year.
“We don’t have sufficient cash reserves to retire
the fee early,” said Jerry Mann, director of the student
union.
The fee, which is to be reduced to its former rate of $7.50 in
2002, could be reduced sooner depending on next year’s
review.
“We hope to be profitable this year and next, and sunset
the fee then,” said Mann, who is also director of student
support services.
The fee increased from $7.50 in 1997 because ASUCLA’s
income was insufficient to cover operational costs of the student
union.
Though the fee increased seven-fold, ASUCLA officials regard the
current fee as relatively minimal.
“Even with the $51 fee UCLA has one of the lowest student
fees in the country,” said Patricia Eastman, executive
director of ASUCLA.
The emergency increase was enacted in 1997 based on the ASUCLA
Board of Directors’ recommendation to the chancellor.
Students normally vote on fee increases during student government
elections, but that year the association did not anticipate its
financial troubles in time for students to have a referendum on the
matter.
The Undergraduate Students Association Council, the Graduate
Student Association and the Student Fee Advisory Committee all
supported the increase.
“The Student Union provides lots of goods to
students,” said Darrell Menthe, a current representative on
the BOD.
“I wouldn’t raise the fee any more, but I’m
happy to keep it where it is for now.”
ASUCLA cash reserves are still strained for several reasons,
including debt payments from the $20 million expansion of the
Student Store in Ackerman Union in 1996.
Income from conferences, events and the game room in the Student
Union brought in $629,000 last year, but expenses from these
endeavors cost more than $1 million.
According to Mann, revenue from BearWear sales were lower than
expected last year due to poor athletic performances, but sales are
expected to increase from $6.3 to $8.4 million this year.
ASUCLA officials also noted increased Internet and catalog sales
this year due to more aggressive marketing and publicity.
In addition, planners are attempting to turn ASUCLA’s
financial situation around by consolidating the student store and
renting out 10,000 square feet of store and office space on the
B-level.
“We’re planning to make $2 million this year and for
the past three months we’re on target for that,”
Eastman said.
“The good news is that after paying the cost of the
student union, ASUCLA will still have $1 million to put in the
bank,” she said.
ASUCLA’S PAST, CURRENT AND PROJECTED INCOME
Because of ASUCLA’s financial instability and delays in the opening
of Ackerman Union, student union fees were raised from $7.50 to
$51.00 annually in 1997 to cover the operating costs of the
association.* SOURCE: ASUCLA