The May revision of the state budget issued on May 14 by Gov. Arnold Schwarzenegger contains no substantial changes in his January proposed general fund spending—$3.3 billion—for the UC system’s total budget of $5.5 billion.

However, the proposed 2007-08 fiscal year budget has no state funds for employer contributions to the UC Retirement Plan (UCRP) so employee contributions will not begin as scheduled in July, according to UC officials (see sidebar).

The January budget proposal for the upcoming fiscal year would fulfill the 2004 “compact,” an agreement that spells out anticipated state funding levels and UC accountability measures over a multi-year period. The governor’s budget includes funding for student enrollment growth, faculty and staff pay increases, and a major research initiative that supports the state’s economic and environmental objectives.

(In his summary on May 14 of campus achievements, Chancellor Henry Yang said that the proposed state budget supported average salary increases of 3.5 percent, “plus faculty merit increases.”)

That initiative would contribute funds for two major “green technology” research efforts at UC and operating support for the UC-based California Institutes for Science and Innovation. The governor’s May revision is online at <www.ebudget.ca.gov>.

“We are very pleased that, with the state’s resources still highly constrained, the governor has reaffirmed his support for the work the University of California is doing for California,” said UC President Robert C. Dynes. “We will continue working with the Legislature and governor to advance our budget priorities.”

The University is seeking continuation of $19.3 million in state support for academic preparation programs. Background on the governor’s January budget proposal for UC is at <www.universityofcalifornia.edu/news/2007/jan10.html>.