In his initial look at next year's operating budget, University of Cincinnati President Joseph A. Steger finds himself $3 million in the hole.

        That figure assumes an 8 percent increase from tuition next fall, no rise in health costs and faculty acceptance of a 3 percent raise in the first year of its new contract.

        UC's predicted deficit worsens if economics or politics hold down a tuition increase, state subsidies fall farther than expected or the faculty negotiates a larger raise.

        A final budget won't be ready before June.

        Budget Director James Plummer said a 1 percent across-the-board cut would compensate for most of the shortfall, but any decision would be premature.

        After administrators sought $1 million to begin restoring their contingency fund and to support biomedical engineering, Dr. Steger was $3 million short in a budget of about $355 million.

        None of this involves designated or construction funds, which are outside the general operating budget.

        UC spokesman Greg Hand said this perennial first budget conversation included a radical change: Deans were told to forget wish lists, with the exception of a new biomedical engineering program.

        Mr. Hand also said tuition numbers were tentative.

        When it looked for new income, UC sought $9.8 million from increased tuition. That requires 8 percent more than tuition produces today but it doesn't mean anyone or everyone would pay that much more.

        Mr. Hand said the 8 percent figure could change under the following scenarios:

        • If recruitment and/or retention improve, the total number of students would increase and the required percentage could fall.

        • If UC adds more part-time students, allowing the percentage to fall. Those students pay for every credit, compared to full-time undergrads, who can get more credits than what they pay for.

        Compared with 1992, UC said the current overall head count on the main campus is 26,890 (down 7 percent). This includes 646 more (3 percent) full-time students but 2,535 (35 percent) fewer part-time students.

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