After funding twice as many student groups as it did last year, the ASUC Senate was forced to transfer $30,000 from its reserves to its contingency fund for student groups.

Though the contingency fund began the semester $18,000 in the red, it will be replenished from the carry-forward reserves fund, as approved during Wednesday's senate meeting. The senate has already spent $100,000 from the carry-forward fund since the beginning of the school year.

The contingency fund is used for student groups requesting ASUC funding. When the senate exceeds its budget in the number of groups it can support, money must be taken from the carry-forward fund - drawn from student fees and leftover student group allocations.

Student groups have requested more than $40,000 in new funding since the beginning of the school year, making the carry-forward fund a necessary supplement to the contingency fund, senators said.

The ASUC allocated $22,280 to the contingency fund in its 2008-09 budget, but has since supplemented it with $6,000 more from the carry-forward fund last November.

"We have been funding the highest number of bills in the recent past, which means we have been spending more money than previous senates," said Student Action Senator Meghana Dhar, who serves on the body's finance committee.

ASUC Finance Officer Madelaine Batac said in an e-mail that the new spending will not threaten the ASUC's financial stability this year, but the senate should be cautious in the future.

Senators said the stability is due to a larger carry-forward fund than in previous years, when an unused $97,000 set aside for an audit of the ASUC is added to the reserve next week.

The additional $30,000 approved Wednesday brings the carry-forward fund's balance below the year's starting figure of roughly $300,000.

Adequate carry-forward funds still remain to cover new costs including a recall election, which could cost $48,000. The election was scheduled for Feb. 23 and 24 at the Wednesday meeting.

"The senate needs to recognize their limited resources," Batac said. "(The ASUC) is tremendously lucky to have their increased expenditures covered by sufficient funding."

The ASUC is currently looking to augment its long-term financial strategy. Plans include leasing space to Panda Express on Lower Sproul Plaza and reorganizing lease agreements for other campus businesses.

Revenue earned by the ASUC Auxiliary from campus vendors has fallen 40 percent since the 1970s when inflation is factored in, said Student Action Senator Yishi Zuo.

"We want Panda Express to come in," said Senator John Moghtader. "It's going to boost the revenue of ASUC big time, and that money will go back to the students."

Tags: CONTINGENCY FUND, ASUC SENATE, ASUC