The May Revision issued today (May 14) by Gov. Arnold Schwarzenegger continues to support the governor’s January state budget proposals for the University of California. The May Revision contains no changes in proposed general fund spending for the UC system.

The governor’s January budget proposal for the 2007-08 fiscal year would fulfill his 2004 “compact,” an agreement that spells out anticipated state funding levels and UC accountability measures over a multi-year period. The governor’s budget includes funding for student enrollment growth, faculty and staff compensation increases, and a major research and innovation initiative aimed at supporting the state’s economic and environmental objectives. That initiative would contribute funds for two major “green technology” research efforts at UC and operating support for the UC-based California Institutes for Science and Innovation.

“We are very pleased that, with the state’s resources still highly constrained, the governor has reaffirmed his support for the work the University of California is doing for California,” said UC President Robert C. Dynes. “We will continue working with the Legislature and governor to advance our budget priorities, which include those identified in the governor’s plan and also the continuation of state support for our student academic preparation and labor research programs.”

The university is seeking continuation of $19.3 million in state support for academic preparation programs, which work to build the academic achievement and college readiness of educationally disadvantaged youth in California schools.

The May Revision does include proposed language supported by UC regarding future state funding for the UC Retirement Plan. The language would state that “in order to meet the state’s fiduciary responsibilities associated with the University of California Retirement Plan, it is the intent of the Legislature and the governor that the state will provide its share of employer contributions, contingent on the university’s reinstatement of employee contributions, in the future at rates comparable to those of the California Public Employees Retirement System.”

The budget does not contain state funds for employer contributions to the UC Retirement Plan in the 2007-08 fiscal year. Discussions about the reinstatement of employer and employee contributions to the UC Retirement Plan are continuing at the university, and employees will be updated shortly regarding next steps.

Background on the governor’s January budget proposal for UC is available at www.universityofcalifornia.edu/news/2007/jan10.html.

The governor’s May Revision is available at www.ebudget.ca.gov.

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