The 2007-08 UC budget proposal approved last month by the Board of Regents includes new funding for student enrollment growth at both the undergraduate and graduate levels, restoration of prior cuts to the instructional program, an initial $60 million contribution to the UC pension plan, and a 5 percent pool for faculty and staff salary increases, among other items.

The budget proposes no increase on student fees for 2007-08. The state provided a “buyout” of student fees in 2006-07, and it is not yet known whether the state will have sufficient resources to do so again next year. As a result, the Regents withheld action on student fees until after the governor’s state budget proposal is issued in January, according to a statement from the UC Office of the President.

Under the University’s budget plan, UC’s state-funded budget for the fiscal year beginning July 1, 2007, would total $3.324 billion, an increase of $247.9 million or 8.1 percent above the 2006-07 level. State funding and student fees pay for the core educational program at UC; however, the University’s total budget from all sources for all activities, excluding the UC-managed national laboratories, is expected to be $17 billion in 2007-08.

“This is a budget that continues to provide access to the University of California for all eligible students and also makes strategic investments to strengthen our contribution to the state’s economy, health and quality of life,” said UC President Robert C. Dynes.

Below are highlights of the proposed budget:

Enrollment growth: Funding for a 2.5 percent enrollment increase, or 5,340 full-time-equivalent students. This funding would allow the University to keep up with undergraduate enrollment growth driven by continued growth in California’s college-age population, as well as continue to increase graduate and health sciences enrollments.

Faculty and staff compensation: A 5 percent pool is included for employee compensation increases, including merit-based and equity-based salary increases, health and welfare benefit cost increases, and related cost increases. (Distribution of salary funding is subject to collective bargaining requirements where applicable.) This increase is intended to begin closing the market pay gap affecting many UC faculty and staff.

Retirement contributions: The budget requests $60 million in state funding for the first phase of reinstating employer contributions to the UC Retirement Plan. The Regents have voted to resume employer and employee contributions, beginning in July 2007. More details are at: <www.universityofcalifornia.edu/news/ucrpfuture>.

Graduate student support: The budget includes several strategies for increasing support for graduate academic students, including providing additional funding for graduate student support on a matching basis to campuses, based on their success at utilizing the Strategic Sourcing Initiative to achieve savings through purchasing efficiencies and other strategies.

Academic preparation: The budget continues current state and UC funding levels for student academic preparation and educational partnership programs, which work to improve the academic performance and college preparation of K-12 students.