Tuesday, April 30, 2002
Contact: Chuck McFadden
Gov. Davis Signs Funding For California Institutes, UC
Gov. Gray Davis has signed legislation that will provide
$308 million in lease-revenue bonds to help build the four
University of California Institutes for Science and Innovation
and an additional $26.7 million to construct the first classroom
building at UC Merced.
State funds provided under the bonds for the institutes must
be matched on a 2-1 basis by non-state dollars. The funding
mechanism creates a three-way partnership between the university,
the state, and private industry.
"The governor and the legislature have acted boldly
to ensure that the institutes will go forward with the research
and discoveries that are vital to California's technology-oriented
economy," UC President Richard C. Atkinson said.
Lease revenue bonds are sold by the state treasurer and the
proceeds are used to fund construction costs for the institutes.
Debt service on the bonds will be funded through lease payments
made each year by the university, with funds provided by the
state through the annual budget. Lease revenue bonds have
been a common source of funding for capital projects, including
many of the university's hospital projects and other critical
The four institutes were first announced by Gov. Davis in
December of 2000. Under the governor's plan, the state is
investing $100 million in each institute, with every dollar
from the state being matched with at least two dollars in
non-state funding. Total funding for the initiative is expected
to be no less than $1.2 billion, including $800 million in
non-state matching funds.
The institutes and their participating campuses are:
1. The California Institute for Bioengineering, Biotechnology
and Quantitative Biomedical Research (UC San Francisco, UC
Berkeley, UC Santa Cruz)
2. The California Nanosystems Institute (UCLA, UC Santa Barbara)
3. California Institute for Telecommunications and Information
Technology (UC San Diego, UC Irvine)
4. Center for Information Technology Research in the Interests
of Society (UC Berkeley, UC Davis, UC Merced and UC Santa
The University of California at Merced campus is expected
to open in the fall of 2004 with an initial enrollment of