Gov. Schwarzenegger's revised budget contains no changes in state general fund money for UC in 2007-08. That means his proposal stands at $3.27 billion for UC, with no "buyout" of student fee increases and no $19.3 million for academic preparation programs.

And, while Schwarzenegger again excluded UC's request for $60 million for the UC Retirement Plan, the governor proposed a budget "trailer bill" to "specify the state's intent to reinstate the employer share of future contributions."

UC is asking for the state money to go along with renewed contributions by employees. Those contributions were supposed to begin July 1 of this year. But, when Schwarzenegger's draft budget came out in January, without the retirement money, UC President Robert Dynes indicated that UC might delay the workers' contributions.

After the budget revision came out this week without the $60 million, the Office of the President declared: "Discussions about the reinstatement of employer and employee contributions to the UC Retirement Plan are continuing at the university, and employees will be updated shortly regarding next steps."

The update came Thursday afternoon, with UC officials saying: "Because UC will not receive state support for this purpose in its 2007-08 budget, the restart of UCRP contributions will need to be rescheduled." The update added that "the new date for restarting contributions is unknown at present."

"University leaders will continue to discuss this issue with state officials over the coming months, and employees can expect more information about this soon," the update stated.

The governor's revised budget is but one step in the process. Now he and the Legislature must negotiate and agree on a spending plan, hopefully by the July 1 start of the fiscal year.

The proposed trailer bill for retirement plan money "sets the table for future state contributions," said UC Davis Vice Chancellor John Meyer, who leads the Office of Resource Management and Planning.

Neither UC nor its employees have paid into the fund for more than 15 years. During this contribution "holiday," the retirement plan has been living off its investments.

But for more than a year, UC officials have been saying that the plan is in jeopardy of falling below the 100 percent funding level — meaning that the balance would not be enough to pay all obligations. So last year, the Board of Regents ordered renewed contributions, to be phased in until UC and retirement plan members were contributing a combined 16 percent of covered wages.

The split has not been officially determined. However, the Thursday update stated that UC regents' "long-term approach" is a formula consistent with how the state pays into CalPERS. So, based on the UC Retirement Plan's "current projected total ongoing cost" of 16 percent of payroll, UC would pay 11 percent and employees 5 percent, according to the update.

For represented employees, the update stated, the restart of contributions will be subject to the collective bargaining process.

In a preface to the Thursday update on retirement contributions, UC officials stated: "The regents are committed to maintaining a healthy pension plan in order to ensure UC’s ability to pay retirement benefits, and to also avoid the funding problems that many other pension plans are having."

Responding to the rest of the governor's May budget revision, UC officials noted again how the governor is upholding his end of the 2004 compact that spells out anticipated state funding levels and UC accountability measures over a multiyear period.

The budget includes funding for student enrollment growth, faculty and staff compensation increases, and a major research and innovation initiative aimed at supporting the state's economic and environmental objectives.

That initiative would contribute funds for two major "green technology" research efforts at UC and support for the UC-based California Institutes for Science and Innovation.

"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," Dynes said in a news release.

"We will continue working with the Legislature and governor to advance our budget priorities, which include those identified in the governor's plan and also the continuation of state support for our student academic preparation and labor research programs."

The university is seeking continuation of $19.3 million in state support for academic preparation programs, which work to build the academic achievement and college readiness of educationally disadvantaged youths in California schools.

Schwarzenegger similarly excluded the academic preparation money from his budget last year. As the budget wound through the legislative process, however, the money made its way back into the 2006-07 budget that eventually earned the governor's signature.

However, no one is indicating there is a possibility of a repeat this year of the "buyout" that negated last year's student fee increases.

Without the "buyout," the Board of Regents voted in March to raise systemwide educational and registration fees about 7 percent, or $500 to $550 a year, to a total of $6,636 for undergraduates and $7,440 for graduate students. The fees do not include campus-specific assessments.