The California State University, University of
California and Gov. Arnold Schwarzenegger today reached
agreement on a six-year "compact" that will ensure quality,
access and affordability to the nation's top public university
systems.
The Higher Education Compact proposes to fund 2.5
percent annual enrollment growth through 2010/11, ensuring
educational opportunities for an additional 8,000 CSU students
and 5,000 UC students per year. These funds will allow both
systems to stem the student enrollment decreases that each has
been experiencing due to the state's fiscal crisis.
The compact, which will take effect in 2005/06 and
continue through 2010/11, will provide the CSU and the UC
systems a 3 percent state General Fund increase in 2005/06 and
2006/07.
Beginning in 2007/08 and through 2010/11, the state
will provide an increase of 4 percent to the prior year's base
budget for basic needs including salary increases, health
benefits, maintenance and inflation.
"Gov. Schwarzenegger is to be congratulated for his
exceptionally strong commitment to higher education. He
clearly recognizes that to keep the state strong, higher
education must continue to produce graduates for the workforce
and to provide research capabilities and community service
that benefit the state and its residents," said CSU Chancellor
Charles B. Reed.
"We also want to thank members of the state Legislature
for their continued support of the CSU. We look forward to
working with them on this year's budget and into the coming
years when the compact is in effect," Reed said.
In exchange for the commitment of funds, both CSU and
UC have agreed to a series of accountability measures and will
make annual reports to the Governor, Secretary of Education,
fiscal committees of the Legislature, the Legislative
Analyst's Office and the Department of Finance by October of
each year.
Although most of the compact does not apply to 2004/05,
it does propose specific student fees
including:
