Budget Crisis and Background Information
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California Budget Brief - January 16, 2004
On January 9, 2004, Governor Schwarzenegger proposed his administration's first budget.  Remarkably, it was very similar to former Governor Davis' approach to resolving our state's fiscal crisis, and included a mix of questionable new revenues and a variety of program cuts and more borrowing from our future.  Missing from this new budget proposal was any mention of increasing taxes on the most affluent families-those making more than $250,000 per year.  The end result is a budget that would slash education, health, and social services, yet still result in a budget deficit of about $6 billion in the following fiscal year. 

The State Legislature will soon begin to consider the Governor's proposed budget.  A revised budget proposal will be made by the Governor in May, and the State Legislature will draft the final budget in May, June, and possibly into the summer until it can pass a budget with the required two-thirds vote. (Click her to read more)


Primary Principles for The 2004-2005 Budget
The Regents are committed to two Primary Principles for the 2004-05 Budget as follows:

I.  The quality of the University shall be maintained and enhanced - Quality is the basic ingredient of its mission and the most important asset that the university of California offers the State.

II. The University shall maintain access and affordability, and honor the master plan.  The State needs the highly-skilled, well-educated graduates that are produced by the University of California.

In order to support these Principles, the University recognizes that, due to the current funding challenges, it is necessary to establish certain priorities.  These priorities are as follows, organized within the context of the two Primary Principles. (Click here for more details)


Budget Cuts would End UC's Educational Outreach to Underserved Students
The Governor plans to eliminate all funding for UC Outreach programs that help prepare educationally disadvantaged students for college, effective next month.  This action would server a lifeline that for 30 years has led thousands of poor and minority students around the state to enroll in college.

Following a 50% cut earlier this year, the Governor's budget would take away the remaining $12.2 million from University of California Outreach program on January 1.  Although UC's Department of Educational Outreach comprises less than 1% of the University's budget, it supports roughly 28 UC programs and 650 UC staff, and provides effective, direct assistance to more than 110,000 elementary and secondary school students in California.  Eliminating this vital assistance places students, their schools and the state at risk.  (Click here for more details)


Talking Points - Impact on Elimination of UC Outreach Programs
The Governor plans to eliminate all UC Outreach programs, including EAOP, that support Educationally disadvantaged students, effective January 2004.  These programs already received a 50 percent cut this year.  The Governor's budget would take away the remaining $25 million from UC and CSU outreach on January 1.  This elimination of funds will have the following impact: (Click here to read more)


UC's Budget Crisis and Staff Administrative Professionals
State Budget Cuts Hit Hard and Fast

  • The California budget faces a shortfall of approximately $34 billion for FY 2002-2003.
  • UC's share is approximately $373 million over an 18 month period, including $299 million in FY 2003-2004
  • UC receives approximately 25% of its operating budget from the State of California.
Tidal Wave II Approaches

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  • In January, 2000, the Regents were told to expect to accommodate an additional 63,000 full-time students between 2000 and 2010.  This represents an increase of 43 % in enrollment.
  • This equals the system's total enrollment growth over the preceding 30 years, and matches current enrollment at UC Berkeley and UCLA combined. (Click here to read more)                                                            

Governor's Proposed and Actual Cuts to Outreach: Impacts January 7, 2004
by Jeannie Oaks, Professor UCLA, Director UC Accord