Gov. Gray Davis proposed a 2001-'02 state budget Jan. 10 that would fund the enrollment of 5,700 more University of California students, maintain affordable student fees and boost employee salaries. The state-funded operating budget would rise 6.3% to $3.4 billion.

"This is a budget that will allow the UC to continue admitting all qualified students and providing them an education of the highest quality, while also focusing on the economic and social needs of California," said UC President Richard C. Atkinson.

Highlights of the budget include:

• Funding for an additional 5,700 students, including 1,000 students in engineering and computer science and 500 in education credential programs. The budget also boosts graduate enrollment by 1,000 students;
• No increase in mandatory systemwide student fees for the seventh consecutive year;
• State support for summer instruction, to be phased in first at UCLA, UC Berkeley and UC Santa Barbara;
• Funding for an average 2% employee salary increase and merit increases for eligible employees. The budget would provide an additional $10 million to improve compensation for staff positions where pay levels currently lag the market. (Salary increases vary by compensation program and are subject to collective bargaining requirements);
• An additional 1% increase to keep faculty salaries competitive;
• $75 million as the second of four installments for the California Institutes for Science and Innovation, including the California NanoSystems Institute at UCLA and UC Santa Barbara. The budget also proposes $33 million as the first of three installments for a fourth institute, focusing on information technology;
• Funding to strengthen undergraduate education by reducing class sizes, offering additional lower-division seminars and academic advising, providing more undergraduate research opportunities, among other things;
• A $203-million, bond-funded capital budget for facilities projects at UC.
  The budget will be considered by the Legislature and revised by the governor in May, when new revenue forecasts become available. Final action on the budget generally occurs in June.