Gov. Arnold Schwarzenegger has signed a 2008-09 state budget that includes essentially flat state funding for the University of California system.

The budget restores nearly $100 million that was proposed to be cut earlier in the budget process. However, because it does not provide funding increases for student enrollment growth or inflation-based cost increases, the 10 UC campuses will still need to reduce expenditures by about $100 million through budget cuts and use of reserves in order to accommodate these rising costs. UC kept its promise to offer a place to all eligible undergraduate applicants this fall and total enrollment is expected to increase by several thousand students, even though the university is not receiving state funding to enroll additional students beyond last yearís levels. The budget also contains lease-revenue bond funding for six critical facilities projects on UC campuses, included by the governor as part of his economic stimulus plan.

“We are gratified that the governor and Legislature have brought this year’s state budget process to a conclusion,” said UC President Mark G. Yudof. “The final budget for UC is probably the best we could have achieved in a difficult fiscal environment, but it falls far short in terms of maintaining and enhancing our competitiveness in educational and research programs. We will need to do more with less.”

– UCOP