FOR IMMEDIATE RELEASE
Gov. Arnold Schwarzenegger issued the May Revision to his original state budget proposal for 2004-05 today (May 13), protecting the University of California from additional state budget cuts and restoring $20 million in previously cut funding to the university.
The May Revision also includes funding for the California Student Aid Commission to provide Cal Grants that cover the proposed 14 percent undergraduate student fee increase at UC. The governor’s original state budget proposal did not increase Cal Grants to cover fee increases.
Under the governor’s original budget, issued in January, UC’s state-funded operating budget would fall from $2.9 billion to $2.67 billion, or 8 percent. The May Revision makes the following technical adjustments to the original January proposal:
The governor’s decision not to make additional cuts at UC beyond those proposed in January follows a “compact” announced Tuesday by Gov. Schwarzenegger, UC President Robert C. Dynes, and California State University Chancellor Charles B. Reed. The compact will provide, over the years 2005-06 to 2010-11, budget stability and moderate growth for UC and CSU. Details on the compact are at www.universityofcalifornia.edu/news/compact/welcome.html.
Because the State of California is still grappling with a major budget gap for 2004-05, however, most of the governor’s January proposals for budget cuts at UC remain in place. They include cuts to enrollments, administration, research, and other programs. The January cuts are described in full at www.ucop.edu/news/archives/2004/jan09a.htm.
In addition, the governor’s budget continues to provide no state funding for cost-of-living increases for UC faculty and staff in 2004-05, though the new compact does offer funding for increases beginning in the 2005-06 year.
The May Revision also continues to propose student fee increases for 2004-05, though they have been modified from the governor’s January proposal to reflect the compact announced Tuesday. The governor’s current proposals on student fees include:
The UC Board of Regents is expected to vote on 2004-05 fee levels and a 2004-05 budget plan at its May 19-20 meeting.
Professional school fees were not specifically set in the January budget, the compact, or the May Revision. However, the governor’s January proposal, which remains in place, is to reduce state support for most UC professional schools (excluding nursing) by an average of 25 percent and to replace the lost revenue through student fees. The UC administration has been consulting with campuses and professional schools about this issue and will have more information about proposed 2004-05 professional fee levels in the coming days.
The May Revision is available at www.dof.ca.gov/HTML/BUD_DOCS/Bud_link.htm.
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