UC stays positive with release of governor's budget revision

by Dave Jones
May 14, 2010

UC Davis’ top budget officer said today (May 14) that “the news remains positive for UC and higher education” in Gov. Schwarzenegger’s revised budget proposal for 2010-11. The good news came even as the governor proposed drastic cuts in welfare and other programs to help erase a $19.1 billion deficit.

Associate Vice Chancellor Kelly Ratliff commented shortly after Schwarzenegger came out in the afternoon with his “May revise,” which is based on changes in revenue projections since the governor issued his original spending plan in early January.

In his revised budget plan, Schwarzenegger maintained his proposals that add up to about $370 million in additional funding for UC:

• The restoration of $305 million that the state held back from UC in 2009-10

• $51.3 million for enrollment growth (enough for 5,121 full-time equivalent students)

• $14.1 million for retiree health benefits

In addition, Schwarzenegger removed a condition that he had attached to the enrollment growth funding. His May revision allocates the $51.3 million regardless of whether the federal government meets the state’s request for billions of dollars in economic stimulus money.

“Of course, there will be a lot of work that needs to be done over the coming weeks and months to maintain this funding,” Ratliff said.

Schwarzenegger's May revision sets the stage for budget debate in the Legislature and negotiations between the Legislature and the governor.

Schwarzenegger commits to higher ed, UC Davis

Schwarzenegger's plan for dealing with the $19 billion deficit includes the elimination of the CalWORKs welfare-to-work program and the scaling back of in-home care for elderly and disabled people — proposals that are in for a rough go at the Capitol.

But, as the politicians argue over competing priorities, one thing that UC, the California State University system and the community colleges will have going for them is Schwarzenegger’s pledge not to sign a budget unless it includes the return of more than $848 million to the three higher education systems — to help make up for a year of drastic cuts that led to higher student fees, enrollment cutbacks and employee furloughs.

“I will not sign a budget without those increases in there,” he said during an April 27 roundtable discussion commemorating the 50th anniversary of the California Master Plan for Higher Education.

He called higher education the best investment that the state can make, and, during a visit to UC Davis this week, he pointed out some of what the state is getting for its money.

Schwarzenegger, participating in a forum dubbed E3, for Economic Prosperity, Energy and the Environment, said: “There is a lot of great, great research going on right here at UC Davis. And this university eventually will be known worldwide for its great, great work that it is doing, so I want to congratulate you all here at UC Davis.”

His April pledge also covered money for the Cal Grant financial aid program. And, true to his word, his May revision rescinds his previous proposal for the suspension of competitive Cal Grants and provides an additional $45.5 million to the California Student Aid Commission.

UCOP 'extremely grateful'

In a statement from the UC Office of the President after the May revision came out, Vice President Patrick Lenz, in charge of budgeting, said: “We are extremely grateful that the governor has made higher education a top priority in his proposed budget.

“The restoration in funding for the University of California will help us maintain access and protect financial aid for thousands of young Californians who look to our campuses as portals of opportunity.

“We especially applaud the governor’s decision to fully fund Cal Grants, which are critical to the future of so many low- and middle-income students across the state.”

Schwarzenegger's May revision also includes $355 million in funding for capital facilities construction.

Lenz said the governor’s recommendations for the UC budget are consistent with his and the Legislature’s objective to create new jobs with limited state resources.

“This budget will also assist UC in protecting the jobs of current employees and to add more than 3,300 private sector jobs associated with the building and construction detailed in the capital facilities funding proposal,” Lenz said.

“We appreciate the difficult decisions that face Sacramento in this fiscal crisis. We hope that as the budget process unfolds this summer, the Legislature will support the governor’s proposed funding for all three segments of public higher education.

“Investing in higher education is the key to California’s economic recovery and long-term health.”