Grateful (as always)

As predicted, the UC response to the governor's budget allocation is (as always) official gratitude. We are likely to hear similar expressions from the Regents during their meetings which start today through Thursday.

University of California President Michael V. Drake, M.D., [last Friday] issued the following statement on Gov. Gavin Newsom’s revised 2023-24 budget proposal:

I am grateful that Gov. Newsom’s revised budget proposal maintains critical funding for the University of California. This budget reflects our strong partnership with the Governor and his recognition of the University’s role in maintaining the state’s economic competitiveness and solving California’s most urgent issues. This level of funding is particularly extraordinary given the many competing priorities the Governor must balance this year.

If supported by the state Legislature, this budget will provide funding for the urgent priorities we share, increasing California undergraduate and graduate student enrollment, expanding on-campus student resources, building additional student housing, and hiring more faculty and staff. 

We are also pleased that the Governor’s budget includes $100 million for the California Institute for Immunology and Immunotherapy at UCLA and $2 million for the UC Riverside School of Medicine. These investments will translate into lifesaving research and patient care for many Californians.

The University of California looks forward to working with the Governor and state legislative leaders to achieve a final budget that maintains this critical funding. This state support will allow the University to continue educating the next generation of leaders, producing cutting-edge research for the benefit of our communities, and delivering high quality health care to Californians.

Source: https://universityofcalifornia.edu/press-room/uc-statement-gov-newsoms-2023-24-revised-budget-proposal.

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The Legislative Analyst's Office (LAO) is less keen about the overall May Revise budget proposed by the governor last week. (We haven't seen specific LAO comments on higher ed or UC.) Basically, LAO is projecting about $7.6 billion less in general fund revenue for the current year and $3.3 billion less in revenue for 2023-24. So, it cautions the legislature that come next January, the budget the governor will propose then for 2024-25 will have sharp cuts. See:

https://lao.ca.gov/Publications/Report/4769 and https://lao.ca.gov/LAOEconTax/Article/Detail/774.

On the other hand, state senate Democrats issued a budget plan in late April with a more ambitious agenda which included an increase in corporation taxes on larger firms. In his May Revise news conference, the governor rejected tax increases. However, the senate Democrats' proposal included:

• Rejection of funding delays for campus projects at UCLA, UC Berkeley, UC Riverside and UC Merced and instead shift to Housing and Infrastructure Fund.
• Increases in funding for basic needs, rapid rehousing, disabled students support, and mental health supportive services for CCC, CSU, and UC students.
• Provision for a COLA for UC Division of Agriculture and Natural Resources, and categorical programs at community colleges such as Puente, Mathematics, Engineering, Umoja, Science Achievement (MESA), Student Equity and Achievement Program, Part-time faculty office hours and Part-time faculty compensation. 
• Funding for a statewide UC based depository & public database for police records.

So, even if new taxes are off the table, there could be some legislative adjustments to the final UC allocation.

The senate Democrats' proposal is at:

https://sbud.senate.ca.gov/sites/sbud.senate.ca.gov/files/Protect%20Our%20Progress%20Senate%20Budget%20Plan.pdf.