New 2006-07 state budget allows for much-needed salary increases for UC staff, faculty
BY BRAD HAYWARD
UC Office of the President
Gov. Arnold Schwarzenegger signed a 2006-07 state budget June 30 that funds enrollment growth at UC, provides state funding to “buy out” student fee increases, and enables UC to offer much-needed salary increases to faculty and staff.
The budget also preserves funding for UC’s academic preparation programs for K-12 students.
The state budget, combined with other university revenue sources, will fund an average 4% increase in employee compensation in 2006-07, subject to collective bargaining requirements where applicable.
“The salaries of UC faculty and staff continue to lag those at institutions we compete with, putting us at a serious disadvantage in recruitment and retention,” said UC President Robert C. Dynes. “This funding increase is very welcome because it
allows us to reward our hard-working employees and prevent the salary gap from further widening.
“This issue will need continued attention in the budget next year and for the next several years, however,” Dynes continued. “This year’s increase is only a first step toward bringing all faculty and staff up to market-competitive compensation,
as endorsed by the regents last November in adopting RE-61.”
The final budget provides state funding above the minimum outlined in the governor’s 2004 “compact” with UC. The university’s state-funded budget in the fiscal year beginning July 1 will total $3.08 billion, an increase of $234 million, or 8.2% above the 2005-06 level.
“I want to thank the governor and the Legislature for the support they have given to the students, faculty and staff of the University of California,” Dynes said.
The budget includes the following for the UC system:
• Enrollment growth: Funding for enrollment growth of 2.5% in 2006-07, at a level of $9,900 per student. This increase allows UC to continue meeting its obligations under the Master Plan for Higher Education.
• Academic preparation and expansion of transfer programs: The final budget preserves $17.3 million in state funding for UC's academic preparation programs.
• Community college transfer programs to UC: As a result of efforts by Assembly Speaker Fabian Nunez, the budget adds $2 million in new funding to expand community college transfer programs to UC. This funding will be used to provide advising and academic support to students preparing for transfer to UC.
• Student fees: The budget provides $75 million in state funding to avoid a student fee increase for 2006-07. Mandatory systemwide fees for resident undergraduates in 2006-07 will remain at $6,141 per year. Resident graduate academic students will pay $6,897 in mandatory systemwide fees.
The state buyout of student fees does not apply to a 5% nonresident tuition hike already approved by the UC Board of Regents for undergraduates only. Nonresident students will pay an estimated average total of $25,486 at the undergraduate level and $23,669 at the graduate level to attend UC in 2006-07.
The state buyout eliminates the need for a 5% increase in professional school fees in 2006-07, but it does not eliminate a one-year, temporary $350 increase for professional students approved by the regents last year to help cover lost revenue associated with a lawsuit regarding professional fees.
• Research: Funding of $6 million is provided for UC labor research, restoring state support for this program to its 2000-01 level.
• Capital improvements: The budget calls for $340 million in general-obligation bond funding for construction and renovation of UC facilities to address enrollment growth,
life safety and infrastructure renewal needs. These funds are dependent upon Proposition 1D, an education facilities bond on the November ballot.
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