SUBJECT:

1996-97 University Budget Plan

For your information, the following is the official news release from
the Office of the President - University Relations, regarding the
1996-97 University budget plan.

If you have any questions concerning this notice, please call Pamela
Sanford at 534-3480.

Margaret F. Pryatel Assistant Vice Chancellor

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FOR IMMEDIATE RELEASE
Friday, November 17, 1995
News Office (510) 987-9200

REGENTS APPROVE UC BUDGET REQUEST

A 1996-97 budget plan, which would require a minimum $130 million or
4.8 percent increase in funding, was approved today (Friday, Nov. 17)
by the University of California Board of Regents.

"It is critical that this budget request be funded. It is what we
believe is minimally required to ensure that the university can
sustain its excellence and honor its commitment to take all qualified
California high school graduates," Associate Vice President Larry
Hershman, the university's budget director, said.

After the governor announces his budget proposal Jan. 10, Hershman
said any proposals for modification of the plan and "any
recommendations with respect to student fees needed to meet the
university's expenditure plan" will be presented to the Regents.

Buoyed by reports that state revenues are up, the Regents set three
priorities if additional state funds are made available by the
governor and the legislature.

-- Accelerate the rate at which UC is closing the gap between UC
  faculty salaries and those of comparison institutions.

-- Set the goal of no student fee increase.

-- Seek greater funding for student outreach programs.

The expenditure request is consistent with the four-year funding
compact with higher education announced last year by Gov. Pete Wilson.
Under the compact, UC could expect a 4.5 percent, or $83 million,
increase in state funding. Another $35.5 in state funding would be
needed to prevent any general fee increase next year and to accelerate
the returning of faculty salaries to the level of comparison
universities. A proposal for expanded outreach is still under
development.

The spending plan seeks funds to cover inflation and an estimated 1
percent increase in enrollment. UC is requesting the equivalent of a 2
percent cost-of-living adjustment for all university employees and
funding equivalent to an additional 3 percent salary increase for
faculty. The total faculty increase is the first step in a three-year
plan to restore by 1998-99 faculty salaries to the averages at
comparison institutions. Accelerating the closing of gap to two years
would mean a 4.5 percent parity increase for faculty beyond the general
2 percent increase for all employees. UC faculty salaries currently lag
about 10 percent behind comparison institutions.

Also consistent with the governor's compact, the proposed budget calls
for a $10 million expenditure savings through productivity
improvements.

It provides reassurances that for the near term UC will sustain the
excellence of its programs, that all eligible Californians seeking
undergraduate admission will be offered a place, and that classes will
be provided to enable students to graduate in a timely fashion.

The plan also anticipates a continuation of the differential fee
structure for professional schools as previously agreed by the Regents
as well as an increase in nonresident tuition.