Replenished State Coffers May Deactivate 'Trigger'

The state's financial situation looks good enough for optimism that mid-year budget cuts will not go into effect, UC President Jack Peltason said in a letter to chancellors Nov. 3.

In his letter, Peltason cited a report prepared by the legislative analyst related to the budget "trigger" legislation.

"Based on this analysis, it is reasonable to be optimistic and assume that the trigger will not be pulled," he wrote.

However, he cautioned, "we will have to wait for the state controller's official report, due on Nov. 15, for the final determination."

If, as now anticipated, the trigger is not activated, it will mean that student fee hikes will be reduced from 18 percent to 10 percent, providing for a spring-semester fee rollback.

In addition, merit and cost of living increases for eligible employees can be put into effect.

In July, UC Board of Regents approved the UC budget with funding to provide hikes of 3 percent of salaries for cost of living adjustments (COLAs) and 2 percent of salaries for merit increases.

Merit increases are effective July 1, 1994, for faculty and Jan. 1, 1995, for staff.

Assuming no mid-year cuts are required, the cost of living increases will be made Jan. 1, 1995, retroactive to October.

Salary actions for exclusively represented employees are subject to the obligations of the Higher Education Employer-Employee Relations Act.


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