Gov. Pete Wilson has proposed an 8 percent state budget increase for UC in 1998-99, including funds to cover a 5 percent reduction in fees for undergraduates who are California residents.
The governor's plan calls for an increase of $175 million in state general funds for UC or a total $2.3 billion for next year.
The budget plan would restore faculty salaries to competitive levels, restore a $9.5 million undesignated cut from the university's 1997-98 state budget and provide revenue that eliminates the need for a 10 percent increase in student fees.
Moreover, the budget plan provides $22.5 million allowing for a 5 percent cut in fees for undergraduate California residents. The fee cut was called for by Assembly Bill 1318, approved by the state Legislature and signed by the governor.
The 5 percent fee cut will reduce undergraduate student fees by $190 a year to $4,022. The UC Regents are expected to approve the fee reduction at their Jan. 15-16 meeting in San Francisco.
Because state funding offsets a loss in fee revenue, the university's actual spending increase would be 5.5 percent, not the 8 percent increase in state funding.
The governor's budget plan also provides an additional:
The governor's plan calls for a $12 million funding reduction for the California Subject Matter Projects, a statewide teacher training program. The program provides professional development for K-12 teachers in nine subjects including arts, mathematics, science and writing. The university is seeking clarification of that funding cut.
Before 1996-97, the Subject Matter Projects were supported by Proposition 98 money in the state Department of Education budget. Two years ago, the funding for these programs was transferred to the state general fund and provided through the university's budget.
If the $12 million were not cut from UC's budget, the university's state funding would increase by 8.6 percent, under the governor's plan.
For capital improvements, the governor's budget plan provides $151 million for projects on UC's nine campuses. This funding depends on voter approval of a bond measure later this year. The governor has proposed placing on the ballot a $1 billion bond measure for public higher education that would be shared by the UC, California State University and California Community Colleges.
The proposed bond measure, however, does not resolve the university's long-term capital needs associated with projected enrollment growth.
Wilson's budget proposal will be discussed by the state legislature throughout the winter and spring, and a final, negotiated budget will be passed during the summer.