| State Budget Proposal Funds Enrollment Growth
Governor Arnold Schwarzenegger issued a 2005–06 state budget proposal in January that offers an increase in state funding for the University of California system after four years of substantial cuts.
If enacted, the proposed increase would fund enrollment growth of 5,000 full-time-equivalent students for the next academic year, a 2.5 percent increase. It would also fund the opening of UC Merced, among other measures.
The proposal, which requires legislative approval to take effect, fulfills last year’s “compact” between the governor and UC, an agreement that provides the University with new budget stability by establishing funding and performance expectations over several years. In the four-year period from 2001–02 to 2004–05, UC saw a 15 percent cut in state funding while enrollment increased by 19 percent. The proposal will be presented to the Legislature for formal approval this summer.
Overall, the governor’s budget calls for a $97.5-million increase in state general funds for UC operations, or 3.6 percent, over the 2004–05 fiscal year. UC’s state-funded operating budget in 2005–06 would then total about $2.8 billion.
“The governor’s overall budget proposal for UC is very welcome after years of cuts,” said UC President Robert C. Dynes. “The governor has fulfilled his commitments under the compact, providing many of the basic resources we need to begin rebuilding our programs and to sustain our contributions to California’s economic competitiveness and quality of life.”
Potential Cut
The governor’s budget proposal also withdraws $17 million in state support provided to UC at the end of the 2004–05 budget process, as one-time funding outside the compact, and asks UC to take the cut in either enrollment or K–12 academic preparation programs, formerly known as “outreach.”
Dynes said UC will work with the governor and Legislature to seek restoration of this funding. “Strong academic preparation programs and broad access to a college education are both important to California’s continued leadership in the global economy,” he added.
The University expects to offer admission to every eligible applicant for fall 2005. However, if the University’s efforts to restore the $17 million are not successful and enrollments ultimately are affected, there could be an impact on winter and spring admissions.
Financial Aid Grows
Anticipating the governor’s budget proposal, and acting to give maximum notice to students and their families, the UC Board of Regents set 2005–06 student fee levels at the board’s November meeting (see December 2004 UC Notes. The action included increases of 8 percent ($457) for resident undergraduates and 10 percent ($628) for resident graduate students.
The Regents also approved a plan to set aside 25 percent of the revenue from fee increases, up from last year’s 20 percent. The funds set aside will be added to an existing pool of grant money built up in past years, when up to one-third of such revenue was returned to financial aid.
In addition, the state’s Cal Grant awards will increase to cover the new UC fees for students with a Cal Grant. The combination of award increases and new UC financial aid funding will be enough to cover the increases in UC fees for all eligible students (generally families with annual incomes below $60,000).
“The increase in Cal Grants is especially good news for students,” said UC director of student financial support Kate Jeffery. “Combined with the increase in the proportion of revenue that goes to financial aid, this coming year should result in a modest increase in students’ need to work and borrow to help pay for their education.” All students, regardless of income, are asked to help contribute a manageable amount to the cost of a UC education.
Jeffery stressed that grant money is available for needy students who apply on time. To be eligible for Cal Grants and other university-administered aid, students must file a completed FAFSA and GPA Verification Form by March 2, 2004. (For more information on the FAFSA, call (800) 443-3243 or go to the FAFSA website. More information on Cal Grants is available online.
Other Elements
In addition to its expenditure proposals, the governor’s budget emphasizes the importance of efforts by California public universities to help bolster the development of high-quality math and science teachers for California’s K–12 schools. UC has been working with its faculty to develop a plan to increase the number of college students who receive math, science and engineering bachelor’s degrees and go on to become K–12 math and science teachers.
Other items in the budget proposal with an impact on UC:
Faculty: A 3 percent increase in UC’s base budget, which, in part, will support a 1.5 percent general salary increase.
Labor research: A reduction of $3.8 million in one-time funds for UC labor research programs.
Capital improvements: Funding to expand and upgrade academic facilities to support enrollment growth.
Updates on the budget situation are available online.
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