The ASUC Auxiliary plans to significantly restructure its $3,082,000 yearly budget to eliminate a $200,000 deficit.

Auxiliary director Nadesan Permaul announced at Wednesday's ASUC meeting that the budget restructuring will consist of "realigning" the auxiliary's staff while investing in student services that will generate revenue. ASUC revenues have fallen flat over the past 10 years, Permaul said.

The auxiliary, which manages the ASUC's budgets and maintains its facilities, has worked on the budget restructuring plan for the past two months in the face of the current economic crisis and an expected 33 percent increase in costs for next year.

According to Permaul, the auxiliary currently pays $227,000 for utilities and $81,000 to the campus for overhead services. Due to problems with the aging student union and Eshleman Hall, the $127,000 budgeted for maintenance was expended within the first half of this fiscal year.

"To have to make reductions next year requires us to rethink our business model to put resources where they serve our core functions," Permaul stated in an e-mail.

One of the programs proposed in the budget to promote revenue is a web-based system called CollegiateLink, said Thomas Spivey, associate director of the auxiliary. The system will allow student groups to request funding and communicate with the ASUC in a paperless fashion, he said.

"It's a cost-saving software that will serve students well," Spivey said.

The auxiliary is also proposing to increase sales at The Scholar's Workstation, which recently re-opened next to the ASUC Bookstore on Lower Sproul Plaza, and to promote new vendors such as Panda Express, Spivey said.

If a fast-food restaurant comes to campus, it will be the second-largest revenue source for the auxiliary next to the bookstore, Permaul said.

Permaul also said the auxiliary plans to enhance reservations and event services in the student union in order to increase revenue for the ASUC.

The budget restructuring comes during a time of economic stress for the entire ASUC, said ASUC Senate Finance Committee member Meghana Dhar.

"I'm happy that they're doing (the budget restructuring) rather than not doing it at all," Dhar said. "Better late than never."

Because of decreasing textbook sales in the ASUC Bookstore since the 1980s, the ASUC has been losing its main source of revenue, Dhar said.

This fiscal year, the bookstore lost $1.3 million.

Dhar also said that the lack of business for the vendors at the Bear's Lair has caused financial stress for the ASUC.

The auxiliary submitted its budget proposal to the Business Administration Services last week. If approved by the administration, the proposed budget will go into effect July 1.

Tags: ASUC AUXILIARY