The 2007-08 state budget proposal issued on Jan. 10 by Gov. Arnold Schwarzenegger supports the University of California by funding growth in student enrollments, supporting faculty and staff compensation increases totaling 5 percent, and proposing an infrastructure plan for facilities, among other things.

With the state still facing a $4 billion structural budget deficit and the proposed budget reducing spending in many areas to eliminate that deficit, the budget does not include a student fee “buyout” in 2007-08, as occurred in 2006-07.

As a result, increases of roughly 7 percent in mandatory systemwide student fees and 10 percent in select professional school fees would be necessary to balance the 2007-08 UC budget proposal adopted by the Board of Regents in November. The Regents will not be asked to set actual fee levels, part of which will go to student financial aid, until their March meeting.

The governor’s budget also does not include $60 million the University had requested for reinstated employer contributions to the UC Retirement Plan. The University’s next steps regarding the resumption of contributions will be considered by the Regents at future meetings.

The governor also proposes a research and innovation initiative and invests state funding in a number of UC research projects supporting the state’s economic and environmental objectives. The initiative would support two “green technology” initiatives, support UC’s bid to build a new supercomputer with uses in a wide range of fields, and provide operating funds for the California Institutes for Science and Innovation, of which UCSB’s CNSI is one.

The governor’s budget proposal fulfills his 2004 compact, an agreement that spells out anticipated state funding levels over a multi-year period. However, the governor’s budget again this year proposes to remove state funding for UC academic preparation and labor research programs. Details of the governor’s budget are at <www.ebudget.ca.gov>.

“With the state still facing a major fiscal challenge, we are grateful for the support the governor has provided in his budget for some of our key priorities at the University of California—student enrollments, improved salaries for our hard-working faculty and staff, and research to keep California on the leading edge of global innovation,” said UC President Robert C. Dynes.

“This budget does not include everything we might wish for,” he added. “We will certainly pursue continuation of state funds for our academic preparation and labor research programs, and we will need to give very careful consideration to the issues of student fees and retirement contributions.” The president will recommend to the Regents that employee contributions not be restarted until employer contributions are resumed as well.

Under the governor’s budget, UC’s state-funded operating budget would increase $192 million, or 6.2 percent, to $3.27 billion in the fiscal year beginning July 1, 2007. The Legislature will consider the governor’s budget and make proposals of its own during the spring.