The release of the federal stimulus money provides $268 million to UC. Because $255 million of that amount was previously taken into account in the February state budget, the federal funding reduces the UC system's current $450 million state funding shortfall by $13 million.
Without the federal funding, the cuts to UC presumably would have been larger, and the total shortfall even greater than $450 million.
"I want to thank Governor Schwarzenegger for his leadership in securing this funding for California so quickly," Yudof said. "I also want to express my appreciation to President Obama and the Congress for making this funding available, which helps the state of California with its very substantial budget challenge.
"We still face a major budget shortfall of at least $437 million at the University of California. But the federal money has taken some of the burden off the shoulders of the state government for the coming year, preventing what otherwise would have been even deeper budget cuts for California public education. That assistance is much appreciated."
The state budget -- in addition to the $450 million in budget cuts and under-funding of enrollment growth and inflationary costs at UC -- made a special one-time reduction of $255 million in state funding, assuming that federal stimulus money would replace it. The federal money came in at $268 million, or $13 million higher than the assumed amount -- and therefore reduces the university's remaining $450 million shortfall by $13 million.
Aside from the money now being released under the "State Fiscal Stabilization Fund" component of the federal stimulus package, the package also provides enhanced funding for U.S. research grants and for student financial aid. The package increases the value of Pell Grants by up to $619, and it provides expanded federal education tax credits estimated to be worth $88 million to the families of UC students.
Information on the UC impact of the February state budget is at www.universityofcalifornia.edu/news/article/19562. A press release from the governor on the release of the federal money is available at www.gov.ca.gov/index.php?/press-release/12054.