University of California, San Diego

July 16, 1996
SUBJECT: 1996-97 State Budget
For your information, the following is a press release regarding the 1996-97 State budget signed yesterday by Governor Wilson and a statement by President Atkinson.
If you have any questions regarding this notice, you may contact me at 534-6590.
Margaret F. Pryatel
Assistant Vice Chancellor
The following is a news release issued today regarding UC's 1996-97 state unding.
Mike Lassiter
Director, News & Communications
------------------------------------------ FOR IMMEDIATE RELEASE Monday, July 15, 1996
News Office (510) 987-9200
Gov. Pete Wilson today signed a 1996-97 state budget that ensures for now that the University of California will be able to maintain the quality of its programs and begin to make progress on a three-year plan to restore faculty salaries to competitive levels.
With the funding provided by the governor and the legislature, general student fees will remain frozen for the second consecutive year, students will continue to get the classes they need to graduate in a timely fashion, and UC will continue to admit at the undergraduate level all eligible California students who wish to attend.
In addition to funding the university's basic needs, the governor and the legislature also provided funding for several high priority initiatives, including increased university-industry cooperative research and expansion of academic outreach programs.
This budget is good news for the University of California," said UC 
President Richard C. Atkinson.  The governor and the legislature have 
demonstrated a wholehearted commitment to higher education and the need to 
safeguard UC quality and access. This budget clearly recognizes the 
important role UC plays in a healthy California economy."
UC will receive $2.06 billion in state general funds in 1996-97, an increase of $130 million or 6.7 percent over last year. While this marks the largest increase in state funding for UC in the 1990s, it is still less state funding than the university received in 1989-90. The state funds, combined with student fee revenues, will provide for about a 5 percent increase in overall university spending in 1996-97.
The budget adds $5 million in 1996-97 to the $3 million Atkinson had already earmarked for the Industry-University Cooperative Research Program. Through the program, UC will expand its activities to facilitate and speed the transfer of ideas from the laboratory to the marketplace. The program leverages state dollars by requiring matching funds from industry for research that shows promise for the development of new products and processes.
"California urgently needs to invest in the emerging industries that are 
replacing our defense-related and other declining industries," Atkinson said. Investments in research are investments in economic growth."
In addition, the budget provides another $1 million to the $2 million in 
extra funding for UC academic outreach programs identified by Atkinson. Of 
the $1 million increase, $250,000 will be earmarked for outreach programs in 
the Central Valley. The budget also provides $1 million to bolster 
California's chance of successfully competing for one of the two new National 
Science Foundation computer centers.
The one disappointment is the governor's vetoing of $7.5 million for the 
first year of a multi-year plan to provide necessary funds for building 
maintenance. This funding shortfall has led to a backlog of deferred 
maintenance projects that now totals $480 million.
Nonetheless, the budget reflects the Board of Regents' intentions to close 
the faculty salary gap with comparison institutions, avoid an increase in 
basic student fees and provide greater funding for outreach programs.
Funding equivalent to a 2 percent cost-of-living increase is provided for 
all employees and additional funding equivalent to 3 percent parity 
adjustment is provided for faculty.  This will bring faculty salaries within 
5.5 percent of the average of comparison institutions. The budget also 
includes funds for merit increases for eligible employees.
Under the budget, mandatory student fees for California residents will 
remain at $3,799 next fall. This amount does not include miscellaneous fees 
which vary by campus, nor does it reflect increases in out-of-state tuition 
or increased fees for entering students in selected professional graduate 
The budget provides funds to cover inflation in ongoing costs and to meet 
enrollment growth of about 1,500 full-time students.
The state budget also provides UC with $152 million in voter-approved 
general obligation bonds to fund seismic, infrastructure, life-safety and 
renovation projects, including $5 million in deferred maintenance projects.
UC students will also benefit from a $20 million increase in overall funding 
for the Cal Grant program. UC students can expect to receive about $3 
million of this increase.
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