SUBJECT:

1999/00 State Budget

For your information, the following is an official news release from the
Office of the President regarding the 1999/00 State budget.

If you have any questions concerning this notice, please call Dawn Buttrell
at 534-3482.

Margaret F. Pryatel Assistant Vice Chancellor

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FOR IMMEDIATE RELEASE
Tuesday, June 29, 1999
Brad Hayward (510) 987-9195
brad.hayward@ucop.edu

BUDGET INVESTS IN UC ACCESS, QUALITY, AFFORDABILITY

The 1999-2000 state budget signed into law today (June 29)
by Gov. Gray Davis provides significant new funds that will
allow the University of California to continue its investment
in quality academic programs, maintain access for qualified
students and become an even more affordable institution for
Californians seeking a higher education.

The budget plan funds the UC Board of Regents' basic budget
request for 1999-2000, which provides additional funding for
core needs including enrollment growth, compensation for
faculty and staff, and cost increases for current programs.
The budget funds UC enrollment growth of 5,500 students in
1999-2000, a 3.7 percent increase over 1998-99. The spending
plan also provides additional funding for UC in the critical
areas of deferred maintenance, instructional technology,
instructional equipment and library collections. The budget
also provides funding for other initiatives at UC, including
$17 million in new funding for outreach programs and K-12
academic improvement initiatives.

"This budget preserves the excellence of the University of
California," said UC President Richard C. Atkinson. "We are
grateful to Governor Davis and the Legislature for the
commitment they have demonstrated to maintaining the university
as one of the world's great institutions of learning. This budget
makes a solid investment in quality teaching and research, access
and affordability for our students, and collaborative efforts to
help improve K-12 education in California."

The budget increases state General Fund spending for UC by $189
million to a total of $2.7 billion, or 7.5 percent above the
1998-99 level.

Under the budget plan, mandatory systemwide fees for resident
undergraduates will fall 5 percent, from $3,609 per year to
$3,429. Mandatory systemwide fees for resident academic graduate
students also will fall 5 percent, from $3,799 per year to $3,609.
(These fee levels do not include campus miscellaneous fees.)
The Board of Regents will be asked to take action on these fee
reductions at its July meeting, along with a 4.5 percent ($420)
increase in nonresident tuition, consistent with state policy on
tuition for out-of-state students.

The fee cut for resident undergraduates is the second 5 percent
reduction in as many years. This marks the fifth consecutive year
that fees for UC resident undergraduates have not been raised.
Already, these fees are more than $1,000 per year below the
average at UC's public comparison institutions around the nation.

"These fee reductions will be welcomed by our students and their
families," Atkinson said. "We also are pleased that while fees
are being reduced, the governor and Legislature have maintained
the state's contribution to financial aid."

The budget provides funds for increased salary costs for eligible
UC employees -- an average of 2 percent plus normal merit increases.
The actual distribution of funds will vary depending upon the
employee's compensation program and upon collective bargaining
requirements. The budget also includes funding for competitive
market-based salary adjustments for faculty members, cooperative
extension specialists and information technology professionals.

Also included in the UC budget is funding for several programs
proposed by the governor to assist California's K-12 educational
system. These programs include Reading Professional Development
Institutes to provide summer instruction in the teaching of
reading for up to 6,000 K-3 teachers; Teacher Scholars, a 15-month
program for prospective teachers leading to a teaching credential
and master's degree from UC; and the Principal Leadership Institute,
a two-year curriculum to train school principals.

The budget also provides funding for the development of online
Advanced Placement courses for high school students; for the Summer
School for Math and Science, an academic development program to
enrich some of the state's brightest students; for English Language
Learners, a professional development program for teachers; and for
summer pre-intern teaching academies serving teachers who have
emergency credentials.

Additionally, $1.5 million in new funding is provided for UC outreach
programs to prospective graduate and professional school students.

-- Nearly $21 million in new funding for research initiatives in
areas including alcohol and substance abuse, brain injury, neurological
disorders, AIDS, and violence prevention. Also included in this figure
is a $5 million augmentation for the Industry-University Cooperative
Research Program, which promotes research partnerships between UC and
private industry in fields critical to the state's economy.

-- A $2 million augmentation for Cooperative Extension programs, which
provide important services to California farmers.

-- An increase of $1.5 million for the California Digital Library, which
collaborates with the UC campuses to provide electronic access to scholarly
resources.

-- An allocation of $400,000 for Merced County planning associated with the
planned development of UC Merced, the university's 10th campus. The budget
continues $9.9 million provided in 1998-99 for UC planning and development
of the campus.

-- Approximately $215 million in bond funding from voter-approved
Proposition 1A to finance UC facilities projects. Most of these projects
involve seismic repairs or construction of new buildings to help accommodate
enrollment growth, particularly in the sciences.