The UC Board of Regents last month proposed a 2008-09 budget that includes new funding for student enrollment growth at both the undergraduate and graduate levels; new research and public service initiatives, most critically to help address issues in K-12 education; new money for student mental health; and salary increases for faculty and staff.

Specifically, 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.)

A portion of this state money would help fund a $263 million program recently launched to close the faculty salary gap by 2010.

Under the University’s budget plan, UC’s state-funded budget for the fiscal year beginning July 1, 2008, would total $3.46 billion, an increase of $378.2 million, or 7.2 percent above this year’s total. The Regents decided to withhold action on student fees until after the governor’s state budget proposal is issued in January.

While state funding and student fees pay for the core educational program, the University’s total budget from all sources for all activities, excluding the UC-managed national laboratories, is roughly $18 billion.

The operating budget request is available at <www.universityofcalifornia.edu/regents/regmeet/nov07/f4attach.pdf>.

“This budget is a roadmap for turning vision into action,” said UC President Robert C. Dynes. “The vision is to meet the growing and changing needs of California.” The Regents’ plan serves as a budget request to the state.

UC Executive Vice President Katherine N. Lapp, in presenting the proposed budget to the Regents, underscored this commitment to meeting the needs of California, but also sounded a note of caution.

“The state is facing significant fiscal constraints, which may limit its ability to meet all of the University’s current budgetary needs,” she said. “Therefore, UC has a responsibility to fund other critical needs and investments through cost-saving reforms identified as part of an ambitious and sweeping multiyear restructuring initiative.”

—UC Office of the President