California Governor Gavin Newsom has released the state’s 2024-25 budget proposal plan, which includes a tentative funding increase to a collaborative UC Compact fund once fiscal uncertainty within California subsides.
On Jan. 10, the UC Office of the President published a statement from UC President Michael V. Drake regarding the budget proposal. Drake stated that the governor issued a deferred budget increase of 5% — $216 million — to go toward the joint compact.
In his message, Drake explained that the delay is a result of “thoughtful decisions during an extraordinarily difficult budget period” which “will position our state and its students for a prosperous future once budgetary challenges subside.”
Newsom’s budget proposal has deferred millions of dollars in state funding that would have otherwise been allocated to the UC system; however, the campuses are allowed to spend up to the deferred budget increase’s dollar amount until it is officially granted after the deferral period.
Drake remarked that the funding and base budget increase beginning in the 2024-25 cycle will allow the UCs to admit more students while fostering a campus of quality staff and facilities. According to the 2024-25 Summary of Budget Request presented to UC Regents for approval, Newsom will also consider granting additional funding to areas including enrollment growth and graduate science programs to widen healthcare access in medically underrepresented populations.
The multi-year compact, which will continue to receive funding once the deferral period ends, was established in May 2022 as a joint effort between the University of California and the Newsom Administration. In the 2022-23 period, the 5% base increase amounted to around $200 million in the General Fund. It will see increases in budget funding by the state annually over the next few years, serving as “a commitment to advance multiple student-focused goals shared by the Governor and the University.” The compact’s terms detail more specific goals, such as to increase UC accessibility through increased financial aid funding, promoting greater enrollment to California residents specifically, with a goal “to achieve a share of nonresident students at every UC campus that is no more than 18% of the campus’ undergraduate enrollment” at UC San Diego, UCLA, and UC Berkeley.
According to its 2019 Economic Impact Report, UCSD alone generated $16.5 billion in economic impact annually for the State of California, with a projection to have reached $18.8 billion in 2023. Drake’s letter acknowledged the increased budget as a testament to the ongoing support the California government holds for the UC systems — through a commitment to further education, research, and service.
Over the next few months, the UC system and California legislature will finalize the intricacies of the budget, as the two public entities continue to maximize their limited resources.
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On Jan. 10, the UC Student Association also published a statement regarding the budget proposal, stating that they were “disheartened” to see Governor Newsom’s proposal. The UCSA highlighted how the proposed budget suspends funding for several programs, including the Cal Grant Reform Act, which “would have alleviated [the burden of the cost of living] for thousands of Californians who would have become eligible.”
The CA Student Housing Revolving Loan Fund Program also saw its funding suspended. The program would have allocated funds for California colleges and universities to more easily build student housing. The UCSA says is “especially disappointing,” as “students were promised by the Governor [that this] would be continually funded,” amidst increasing levels of homelessness among students during the housing crisis.
