News
Governor Signs 2008-09 State Budget
September 29, 2008
On September 23rd, Governor Schwarzenegger signed the 2008-09 state budget. The $143 billion plan was enacted after an 85-day standoff, the longest in state history. Major features of the plan include an increase in the budget reserve fund, a grant of authority for the Governor to make unilateral, mid-year budget reductions should conditions warrant, and an economic stimulus package. It does not raise taxes, and leaves California with an ongoing structural deficit of around $7 billion.
For the University of California, the budget restores nearly $100 million that was proposed to be cut earlier in the budget process. The final 2008-09 state-funded operating budget for UC is $3.256 billion, and does not provide increases for student enrollment growth or inflation-based cost increases. These cost increases are expected to cost UC roughly $100 million over the fiscal year. The operating budget continues state funding for UC academic preparation programs serving K-12 and community college students.
As part of the economic stimulus package, the budget contains $204 million in lease-revenue bond funding for six critical facilities projects on UC campus. This includes $23 million for the seismic renovation of Hershey Hall.
By keeping the university's funding flat relative to last year, the budget does not provide the normal state funding for employee compensation increases. The administration and Board of Regents are looking closely at this issue, as well as health insurance costs for 2009, and expect to clarify in the next few weeks what the final state budget dictates in terms of employee compensation and benefits.
For more information about UC and the state budget, please click here.
|
