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February 2008 | UC Notes Home |
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Governor's Proposed Budget Falls $400 Million Short of Regents'Gov. Arnold Schwarzenegger's proposed state budget for 2008–09 includes across-the-board cuts in state spending, including at the University of California, to address a projected $14.5 billion state budget deficit. The governor's proposal would increase funding under his 2004 compact with the UC system but then apply a reduction of $332 million, or 10 percent, the same percentage reduction proposed for most state General Fund programs. The cuts would leave UC with a net state funding reduction of $109 million, or 3.4 percent, compared with the current year. The governor's proposal would leave state funding more than $400 million below the level of the UC Board of Regents' own proposed budget for 2008–09. The governor's budget plan assumes that $70 million of that amount will be made up with increases of at least 7 percent in student education fees in 2008–09. Also included in the proposal is a 10 percent increase in the registration fee. However, the governor noted that because of the magnitude of the proposed cuts, "it is possible that the Regents will act to increase fees beyond these levels." The governor's proposal would amount to a rise of $490 in mandatory systemwide fees for resident undergraduates and $546 for resident graduate students. No fee buyout is included in the governor's proposal. The governor's budget proposes that $32 million of the $332 million reduction be taken from administrative spending. "This budget proposal will have serious impacts on our ability to deliver on our mission for our students and for the people of California," said UC President Robert C. Dynes. "State funding for the University is not an expenditure but an investment—an investment that produces real returns through an educated workforce, a dynamic economy, job creation and new tax revenue." The Board of Regents discussed the state budget and possible responses to the governor's proposal at its Jan. 15 meeting but is not expected to act on budget decisions or set student fee levels for next year until the Regents have discussed the budget and considered the availability of financial aid. In November, the Regents adopted a 2008–09 state-funded budget request for UC that addressed the University's needs in a number of areas, including student enrollment, research, faculty and staff compensation, graduate student support, academic preparation and student mental health services. The governor's plan does include $388 million for UC's capital improvements, specifically those that address growth, safety and infrastructure renewal on UC campuses. This proposal is subject to the approval of the state Legislature separate from the overall budget, and $336 million of it requires voter approval of a new bond measure. The governor's proposal is for the fiscal year beginning July 1, 2008. The governor will revise the budget in May, and the Legislature will consider the governor's budget and make proposals of its own during the spring. The governor and Legislature typically adopt a final state budget in the summer. Details of the governor's proposed budget can be found at www.ebudget.ca.gov. |
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also in this issue:UC Applications Top 120,000, an All-Time High |
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© 2007 Regents of the University of California Last Updated: February 12, 2008 |
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