GOVERNOR ISSUES 2005-06 STATE BUDGET PROPOSAL
The 2005-06 state budget proposal issued today (Jan. 10) by Gov. Arnold Schwarzenegger offers an increase in state funding for the University of California after four years of substantial cuts. The proposed increase includes funding for student enrollment growth, faculty and staff compensation, and the opening of UC Merced, among other things.
The proposal fulfills last year’s “compact” between the governor and UC, an agreement that provides the University with new budget stability by establishing funding and performance expectations over a multi-year period. Previously, over a four-year period ending this year, UC had taken a 15 percent cut in state funding while also seeing a 19 percent increase in enrollments.
“The governor’s overall budget proposal for UC is very welcome after years of cuts,” said UC President Robert C. Dynes. “The governor has fulfilled his commitments under the compact, providing many of the basic resources we need to begin rebuilding our programs and to sustain our contributions to California’s economic competitiveness and quality of life. We appreciate the governor’s support for higher education and its transformative impact on the state.”
The governor’s budget for 2005-06 also withdraws $17 million in state support that was provided to UC at the end of the 2004-05 budget process, as one-time funding outside the compact, and asks UC to take the cut in either enrollments or K-12 academic preparation programs, formerly known as “outreach.”
“The withdrawal of $17 million, intended to be targeted to either enrollment or academic preparation, is a concern to us,” Dynes said. “While we understand that the state’s fiscal condition is still serious, we intend to work with the governor and Legislature over the course of the budget process to demonstrate the importance of these programs and to seek restoration of this funding. Strong academic preparation programs and broad access to a college education are both important to California’s continued leadership in the global economy.”
Student admissions for fall 2005 will not be affected by the proposed $17 million withdrawal, and the University still expects to offer a place next fall to every eligible applicant. If the University’s efforts to restore the $17 million are not successful and enrollments ultimately are affected, there could be an impact on winter and spring admissions.
Overall, the governor’s budget calls for a $97.5 million increase in state general funds for UC operations, or 3.6 percent, over the 2004-05 fiscal year. UC’s state-funded operating budget in 2005-06 would total $2.806 billion under the governor’s proposal.
The governor’s budget will now be reviewed by the Legislature, which will hold hearings and make alternate proposals over the course of the spring. A final state budget traditionally is approved by both the governor and Legislature in the summer.
Anticipating the governor’s budget proposal, and acting to give maximum notice to students and their families, the UC Board of Regents set 2005-06 student fee levels at the board’s November meeting. The action included increases of 8 percent ($457) for resident undergraduates and 10 percent ($628) for resident graduate academic students. Details about student fees are available at www.ucop.edu/news/archives/2004/nov18.htm.
The governor’s budget does propose sufficient Cal Grant funding to cover the 2005-06 fee increases for eligible students.
In addition to its expenditure proposals, the governor’s budget emphasizes the importance of efforts by California public universities to help bolster the development of high-quality math and science teachers for California’s K-12 schools. For the last several months, UC has been leading an effort, working with its faculty, to develop a plan to increase the number of college students who receive math, science, and engineering bachelor’s degrees and to increase the number of these students who go on to become K-12 math and science teachers. UC will be working to refine its plans and move forward on this effort with the California State University in the coming months as another means of helping California stay competitive in the global economy.
Below are major elements of the UC budget as outlined in the governor’s proposal:
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