Governor's Budget Proposal Funds Enrollment Growth, Salary Increases
Gov. Schwarzenegger has issued a 2007-08 state budget proposal that funds his "compact" with UC, including funds for student enrollment growth and faculty and staff compensation increases. In a tight budget year overall, the governor has proposed a 6 percent state funding increase for UC.
The budget proposal does not propose state funding for UC academic preparation or labor research programs, and President Dynes has said the University will make a strong appeal to the state to continue the funding for both. The budget also assumes increases of roughly 7 percent in mandatory systemwide student fees and 10 percent for select professional school students.
The governor's budget combined with other UC revenues would provide a 5 percent pool for employee compensation increases in 2007-08, compared to the 4 percent pool this year. (Distribution is subject to collective bargaining where applicable.) This increase is intended to begin closing the market pay gap affecting many faculty and staff.
The governor's proposal did not contain funds requested for the restart of employer contributions to the UC Retirement Plan. The Regents have voted to resume employer and employee contributions in July 2007, subject to the budget process, availability of funding, and collective bargaining. In the wake of the governor's budget, the Regents will continue discussions with the state about funding for employer contributions. President Dynes has stated his position that employee contributions should not be restarted until employer contributions are resumed as well.