Gov. Arnold Schwarzenegger signed a 2006-07 state budget on June 30 that funds enrollment growth at the University of California, provides state funding to “buy out” student fee increases, and allows the University to offer much-needed salary increases to faculty and staff.

The budget also preserves funding for UC’s academic preparation programs for K-12 students, and it includes new funding for efforts to assist community college students in transferring to a UC campus.

“This budget supports our mission as a public institution—providing students with access to a high-quality education, researching the important questions facing society, and providing public service that improves the lives and health of people in communities across California,” said UC President Robert C. Dynes.

The University’s state-funded budget in the fiscal year that began on July 1 will total $3.077-billion, an increase of $234-million or 8.2 percent above the 2005-06 level.

The budget includes the following for the UC system:

• Enrollment growth: Funding for enrollment growth of 2.5 percent in 2006-07, at a level of $9,900 per student. This increase allows UC to continue meeting its Master Plan for Higher Education obligations to offer a place to all eligible California undergraduate applicants and to continue increasing graduate enrollments, including in the health sciences.

• Faculty and staff compensation: The state budget and other University revenue sources will fund an average 4 percent increase in employee compensation in 2006-07, subject to collective bargaining requirements where applicable. “Salaries of UC faculty and staff continue to lag (behind) those at institutions we compete with, putting us at a serious disadvantage in recruitment and retention,” Dynes said. “This funding increase is welcome because it allows us to reward our hard-working employees and prevent the further widening of the salary gap. This year’s increase is only a first step toward bringing all faculty and staff up to market-competitive compensation.”

• Academic preparation and expansion of transfer programs: The final budget preserves $17.3-million in state funding for UC’s academic preparation programs, which work to improve the academic performance and college preparation of educationally disadvantaged students in K-12 schools across the state.

Efforts by Assembly Speaker Fabian Nunez added $2-million in new funding to expand community college transfer programs to UC.

• Student fees: The budget provides $75 million in state funding to avoid a student fee increase for 2006-07. “This is good news for students and their families,” Dynes said.

Mandatory systemwide fees for resident undergraduates in 2006-07 will remain at $6,141 per year, or an estimated average $6,802 with the inclusion of campus-based fees. Resident graduate academic students will pay $6,897 in mandatory systemwide fees, or an estimated average $8,708 with the inclusion of campus-based fees.

The state buyout of student fees does not apply to a 5 percent nonresident tuition hike already approved by the UC Regents for undergraduates only. Nonresident undergraduates will pay an estimated average total of $25,486 next academic year. Professional school fees will also not increase the planned 5 percent, but a one-year, temporary $350 increase will still go through.

• Science and math initiative: The budget includes $375,000 in addition to the $750,000 in the 2005-06 budget for UC’s “California Teach” program to expand the training of science and mathematics teachers for California’s schools.

• Capital improvements: The budget calls for $340 million in general-obligation bond funding for construction and renovation of UC facilities.