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Governor's Budget Proposal Increases UC's StateFunding

January 10, 2005

MERCED, CA — After several years of substantial cuts at the University of California, Gov. Arnold Schwarzenegger's 2005-06 state budget proposal, released Jan. 10, offers a $97.5 million (3.6 percent) increase in state general funds for the operations of the UC system. The proposed increase includes funding for student enrollment growth, faculty and staff compensation, and the opening of UC Merced, among other things.

The plan is consistent with UC's “compact” with the governor, which was aimed at restoring fiscal stability to the University. Over a four-year period ending this year, UC has absorbed a 15 percent cut in state funding while also seeing a 19 percent increase in enrollments.

The governor's budget will now be reviewed by the Legislature, which will hold hearings and make alternate proposals over the course of the spring. A final state budget traditionally is approved by both the governor and Legislature in the summer.

Highlights of the governor's budget proposal include:

Enrollments: Funding for enrollment growth of 5,000 full-time-equivalent students in 2005-06, a 2.5 percent increase, consistent with the compact.

UC Merced: Continuation of $10 million in ongoing operating funds plus $14 million in one-time money for the new campus opening in fall 2005, along with enrollment funding (part of the above 5,000-student allocation) to enroll 1,000 students in 2005-06.

Read the full UC Office of the President release.