President James B. Milliken’s opening remarks to the Education Finance Subcommittee of the California State Assembly on Tuesday, February 17, 2026, as delivered
Thank you, Chair Alvarez and members of the subcommittee, for the opportunity to be with you today – my first time. I have very much enjoyed over the last seven months working with my colleagues from the California Community Colleges and the California State University system. I’m pleased to join them. And after listening to them today, I'm even more impressed. I'm a big fan of both of them and both the systems of education they lead.
I spent 40 years working for five very different university systems across the country. But despite their differences, a fundamental belief of mine has remained constant throughout my career: talent is universal, but opportunity is not. Higher education, and particularly public higher education, is the best vehicle we know of to match that talent with opportunity. When we’re successful, we achieve something truly meaningful. We become the best engine of social and economic mobility there is. We are able to change the trajectory not only of an individual, but of families and communities.
Few places are better at this than California. The work that our community colleges, CSU, and UC do is changing the lives of hundreds of thousands of Californians every day.
But it doesn’t end there. UC improves the lives of countless people across this state, the country, and the world through world-leading teaching, research, patient care, and public service that dramatically impacts the economy, health, and quality of life.
UC health locations served patients from 99% of California ZIP codes last year; our research generates four inventions a day, fueling California’s leading industries; and the University employs more than 265,000 people, contributing $82 billion to the state’s economy. The breadth and depth of UC is unparalleled in higher education, and I’m honored to be a very small part of that.
I stepped into this role last summer a few days earlier than originally planned when the federal government suspended almost $600 million in research funding from UCLA. Each of our campuses and the UC system as a whole have been the subject of numerous federal investigations and enforcement actions.
These challenges have persisted during my seven months as president and required a great deal of attention from many colleagues and me, and I don’t expect them to subside any time soon.
The federal government continues to reduce its support of higher education and research. Federal policy changes and reductions to financial aid and student opportunity programs continue to threaten our ability to serve all Californians. And UC is affected by continuously rising operational costs, impacting everything from housing to healthcare.
Despite the declining federal support, UC’s impact continues to grow. We reached a remarkable milestone this past fall, enrolling more than 300,000 students for the first time in our history. This includes over 200,000 California resident undergraduates—also a record.
We added nearly 19,000 fulltime California undergraduates since the Compact was signed in 2022. These record-breaking numbers reflect the state’s commitment to academic excellence, access, and innovation, and the value of a UC degree. They also reflect the University of California’s commitment to serving the people of its state.
Given these challenges and opportunities, state support has never been more important. Governor Newsom’s state budget proposal acknowledges this. We are heartened that it included a base budget increase of 7%—or $350 million increase in ongoing funding and a restoration of the $130 million base budget deferral from the current fiscal year.
The Compact funding is essential for UC campuses to provide instruction and student services to a growing student body—at the same time we hold tuition to levels that makes attendance one of the best values anywhere. The Governor is proposing an important step to fund both the final year of the Compact payment and a portion of the fourth-year payment. I’m hopeful we can build on this year’s progress to receive the full Compact funding.
This proposal is a very positive first step. I’m grateful for the unwavering commitment the Governor and you, our legislative leadership, have shown to our students and the university that serves so many Californians. I look forward to our ongoing collaboration to ensure that our students have what they need to succeed at UC and beyond.
In the months ahead, my focus is two-fold: preserve what has made UC an extraordinary public university—our world-leading research enterprise, great teaching, life-changing medical care; and to continue to evolve, to innovate, and to ensure that this institution is responsive and meets the needs of a changing state. That means leveraging technology, including AI, to make UC and higher education more accessible and affordable to more Californians.
With regard to AI in particular, California is the birthplace and center of the AI universe, and its use is not optional. It is incumbent upon us to be leaders in the ethical and responsible adaptation of AI. Others should not define this for us.
I look forward to discussing these issues and more with you today and over the months ahead.
I want to note that we provided the Subcommittee staff with a written statement on Title IX as requested.
It is the privilege of a lifetime to be leading the University of California today. As stewards of UC in this critical moment in history, the Board of Regents, our talented faculty and staff, and I plan to meet the challenges together, guided by the values that have shaped UC across generations.
I'm pleased to have the opportunity to answer any questions I'm able to today, after seven months in this role, and I thank you again for the opportunity to be here and for your support of higher education in California.