ASUC President Suspends Bylaw to Free Up Funding

ASUC President Van Nguyen issued his first executive order on Monday, suspending an association bylaw in an effort to keep the ASUC out of a deficit.

The order suspended the association’s bylaw requiring 75 percent of the money in the Commercial Revenue Holding Fund to be set aside for other funds, as last year’s executives had thought they could allocate the full $95,827 in the holding fund toward the Spring Concert and other programs.

Nguyen said suspending the bylaw will free up the money in the holding fund, allowing the association to pay the costs of the Spring Concert.

“By suspending the bylaw, it’s making sure we can pay our bills,” Nguyen said.

The ASUC has a contract with Another Planet Entertainment, a company that worked on last year’s Spring Concert. The company is asking the association for about $95,000 for its services, Nguyen said.

According to the executive order, last year’s holding fund contained $220,927, which, after paying for maintenance in the Cal Lodge and seismic renovations, was reduced to $95,827.

In the order, Nguyen states that because last year’s executives were not aware of the bylaw requiring that 75 percent of the money in the holding fund go into other funds, they thought they could allocate the full $95,827 to Spring Concert and other programs, such as the 2007 Dance Marathon and the From All Perspectives culture show.

Former executive vice president Vishal Gupta said he had been presented with an account marked “ASUC Auxiliary residual funds” and did not associate that label with the Commercial Revenue Holding Fund.

ASUC Auxiliary Director Nadesan Permaul said the ASUC Auxiliary residual funds become the Commercial Activities Fund when the money is transferred to the students. The Commercial Activities Fund is called the Commercial Revenue Holding Fund in the association’s bylaws.

Permaul said while last year’s executives did not realize that the Auxiliary’s residual funds were the Commercial Activities Fund, neither did he, as he was new to the director’s position.

Permaul said he believed Nguyen’s order was a good choice for the association.

“Van is taking a very responsible role. He’s thought it through very carefully,” he said.

Nguyen said he did not plan on having a Spring Concert this year.

The bylaw is suspended until the Fall 2007 session of the ASUC Senate.

Nguyen said it was necessary to issue the executive order for the well-being of the association.

“I personally don’t like to mess with bylaws,” he said. “The decision I’m making is purely based on the fact that if it’s not done, the ASUC would be in bad financial standing. As ASUC president, I can’t let that happen.”

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