Proposed Higher Education Spending for 2007-08
Workload Adjustments

The 2007-08 Governor's Budget continues the Governor's objectives for providing access and preserving quality instruction through full funding for basic budget support and enrollment growth in accordance with the Higher Education Compact; full funding for enrollment growth and COLA for the CCC within the growth in the Proposition 98 Guarantee in accordance with the new funding formula contained in Chapter 631, Statutes of 2006; and full funding for the Cal Grant Program. While fee increases within the limitations of the Compact are proposed, the UC and the CSU will set aside sufficient fee revenue to offset tuition increases in accordance with the Compact to ensure no additional financial hardships for needy students. Significant General Fund and Proposition 98 related workload and baseline adjustments are detailed for each major segment as follows:


UNIVERSITY OF CALIFORNIA
 Budget Year

  • $116.7 million increase (4 percent) for basic budget support consistent with the Compact.
  • $54.4 million increase (2.5 percent) for enrollment growth consistent with the Compact. This funding will enable UC to enroll an additional 5,000 state-supported students.
  • $104.7 million increase in fee revenue associated with the 7-percent fee increase for undergraduate, graduate, and professional school students. Fees for certain law and business programs will increase by 10-percent. One-third of the revenue generated by the fee increases for undergraduate and professional programs and 45 percent of the revenue generated by the graduate fee increase will be set aside for financial aid.
  • $14 million continuation of one-time funds for costs associated with sustaining UC Merced operations for a total funding level of $24 million.
  • $757,000 to restore nursing funding for expansion of entry-level master's nursing programs pursuant to Chapter 592, Statutes of 2005 (SB 73).
  • $570,000 increase for the next cohort of 38 students for the PRIME Program, which targets prospective medical doctors for underserved populations.
  • $10.5 million increase for annuitant health benefits.
  • $15.8 million increase for lease purchase payments.
  • $19.3 million reduction by eliminating the legislative augmentation for Student Academic Preparation and Education Programs.
  • $6 million reduction by eliminating the legislative augmentation for the Labor Institutes.
Current Year

  • $1.3 million increase for lease purchase payments.

CALIFORNIA STATE UNIVERSITY
 Budget Year

  • $108.7 million increase (4 percent) for basic budget support consistent with the Compact.
  • $65.5 million increase (2.5 percent) for enrollment growth consistent with the Compact. This funding will enable CSU to enroll an additional 8,355 state-supported students.
  • $97.8 million increase in fee revenue associated with a 10-percent fee increase for undergraduate, graduate, and teacher credential candidates. One-third of the revenue generated by the fee increases will be set aside for financial aid.
  • $2 million increase for the next phase of the Science and Math Teacher Initiative that began with the 2005 Budget Act.
  • $120,000 increase (4 percent) for the Capitol Fellows Program consistent with the Compact.
  • $23.3 million to continue the increase for retirement costs.
  • $2.7 million reduction for lease purchase payments.
  • $7 million reduction by eliminating the legislative augmentation for Student Academic Preparation and Education Programs.
Current Year

  • $23.3 million increase for retirement costs.
  • $2.0 million reduction for lease purchase payments.

CALIFORNIA COMMUNITY COLLEGES
 Budget Year

  • $109.1 million increase (2 percent) for enrollment growth for Apportionments. This funding will enable CCC to enroll an additional 23,000 full time equivalent (FTE) students. This level exceeds the 1.65-percent change in the adult population, equally weighted between the 19-to-24 and the 25-to-65 age groups, the new statutory index factors relevant in 2007-08 pursuant to Chapter 631, Statutes of 2006.
  • $224.9 million increase for a cost-of-living increase (4.04-percent COLA) for general-purpose Apportionments.
  • $19.6 million increase for Categorical Program enrollment growth and COLA (2 percent and 4.04 percent, respectively). These programs provide essential services to special populations and include Basic Skills, Matriculation, Disabled Students Programs and Services, Campus Childcare Tax Bailout, and Extended Opportunity Programs and Services.
  • $33.1 million redirection of surplus Basic Skills overcap incentive funding to support additional Matriculation and support services for community college students. Of this amount, $19.1 million is specifically dedicated to additional counseling and tutoring services for those students most at risk of failing to complete a program (See Program Enhancements and Other Budget Adjustments section for additional detail).
  • $9 million one-time current year funding and $9 million in ongoing funding to support additional nursing program investments in community colleges. These funds are available in the community colleges base from 2006 Budget Act set-aside actions and are now proposed to assist colleges in expanding enrollments by providing startup funding for new nursing programs, funding new clinical simulation laboratories, expanding services that will reduce attrition, and funding incentives to add additional prerequisite science courses. (See Program Enhancements and Other Budget Adjustments section for additional detail).
  • $33.2 million increase to offset the remaining fee revenue reduction incurred by colleges in the budget year due to the reduction in student fees from $26 per unit to $20 per unit in the spring of 2007 and other workload adjustments.
  • $197.2 million reduction to Apportionments to reflected estimated growth in local property taxes of an identical amount.
Current Year

  • $4.1 million increase in property tax revenue based on revised estimates.
  • $6.6 million estimated increase in fee revenue reflecting an increase in the average number of credit units taken per FTES.

STUDENT AID COMMISSION
 Budget Year

  • $61.3 million increase over the revised 2006-07 level for anticipated growth in the Cal Grant Program, reflecting increased participation and the anticipated undergraduate fee increases of 7 percent and 10 percent at UC and CSU, respectively.
  • $2.9 million increase over the revised 2006-07 level for anticipated growth in costs in the Assumption Program of Loans for Education (APLE).
  • Authorization for 600 new warrants for the APLE program for students participating in the Governor's Science and Math Teacher Initiative.
Current Year

  • $19.7 million in savings in the Cal Grant and APLE programs.
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CHAPTER HIGHLIGHTS for Higher Education Back to Top

 Major Accomplishments in 2006-07
 Proposed Higher Education Spending for 2007-08
  Funding by Segment for 2007-08
  Higher Education Student Enrollment
  Student Fees
 image of black pointing arrowWorkload Adjustments
 Program Enhancements and Other Budget Adjustments
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - Higher Education (pdf * - 181K) -
Provides this entire Higher Education Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Proposed Budget Detail - Higher Education
Displays Proposed Budget Detail information for Higher Education.