Student Council announced Wednesday night that it will have to cut by 6 percent this year's funding for every Contracted Independent Organization receiving funds through the appropriations process.
Council also has reduced its own budget by 6 percent.
The cut was necessary because the money students paid for the Student Activity Fee this fall were not enough to cover the funds the Appropriations Committee allocated last spring to CIOs. All students pay $39 each year into the Student Activity Fund.
The appropriations cuts are unrelated to cuts in the University's state funding.
Council told CIOs last spring that their funding was contingent on enough SAF money coming in this fall, Appropriations Committee Chairman Guru Raj said.
Council sent an e-mail Wednesday night to leaders of CIOs to announce the cuts.
According to a Council press release, the cut is due to a large increase in both the number of groups applying for and receiving SAF funds in last spring's appropriations process. There also was a significant increase in the amount allocated to all of the organizations.
The deficit in funding occurred because the Appropriations Committee allocates money in the spring based solely on demonstrated need of organizations, and doesn't take into account how much money is expected to be available from fees paid in the fall.
"The reason behind this policy is to ensure that Appropriations Committee members are not making any value judgements on the quality or worth of any CIO or any CIO program and that all groups are considered on an equal basis," according to the press release.
Council members suspected in the spring that a cut would be necessary, Raj said.
But Council couldn't be sure how much of a cut would be necessary until it knew exactly how many students would attend the University this fall, and how many would ask for refunds of their fee.
Some of this year's activities fee money was reserved for special projects designated by former Council president Abby Fifer, Raj said.
"Student Council regrets having to make these cuts," Council President Micah Schwartz said.
But Schwartz said there was an encouraging side to the situation.
"At the same time, we're glad so many groups applied for money," he said. "I consider it a sign that CIOs are going to do substantive work this year."
In spring 2001, 168 organizations received $599,754 in SAF funding. The average allocation was $3,569.96. But last spring, a record 197 groups received a total of $798,546.
The average 2002 allocation rose to $4053.53. After the 6 percent cuts, that average now will be $3810.32.
The number of CIOs at the University has increased steadily in recent years, said Kelly Polk, Council vice president for organizations.
Moreover, groups have asked for more and more money, Polk said. She attributes this increase to a streamlining of the application process.
Meanwhile, the activity fee, which is set by the Board of Visitors, has remained the same for several years.
Council will help groups to find alternate sources of funding, Schwartz said.
CIOs in need of more money can look for it in the Parents Program. The program is comprised of parents of University students who give money for certain student activities.
CIOs also can turn to the Cultural Programming Board, the Office of Student Affairs and secret societies.
Council also will try to prevent shortfalls in coming years by helping CIOs budget more effectively, Schwartz said.
The Appropriations Committee asks that CIOs only request money they need, and encourages them to be as self-supporting as possible.
"The SAF is supposed to give groups a jump-start," Schwartz said. "The hope is that these groups become self-sufficient."
Leaders of CIOs reacted in various ways to Wednesday's announcement.
"We're just hoping we won't have to cut our practice time significantly, or make up the deficit through dues," said Catherine Hovell, president of the women's ice hockey club team, which must pay to use the Charlottesville Ice Park. "It definitely puts pressure on us to fundraise even more."
Most said they couldn't yet assess the impact of the budget cuts.
The pep band might have to raise dues or ask the Athletic Department for help, Pep Band Director Adam Lorenston said.
Council itself also will feel the effects of the cutback. It has limited its advertising and reduced its budget for office supplies, Schwartz said.
Council's decision Tuesday night to reinstate a fall appropriations process in addition to the spring round was unrelated to the SAF deficit, Polk said.
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