California's public colleges are facing steep cuts in state appropriations after lawmakers finally agreed on a state budget that closes most of a record $38-billion deficit.

Gov. Gray Davis, a Democrat, has said that he would sign the $100-billion spending plan, which was approved on Tuesday, nearly a month after the state's fiscal year began. Although the governor is expected to make some small changes to the budget, he is unlikely to restore any of the major spending cuts that legislators recommended for higher education.

In all, lawmakers slashed more than $700-million from the $9-billion the state spends annually on higher education. Those cuts come on top of a series of reductions that were made in the last year. After reviewing the Legislature's plan on Wednesday, college leaders in the state were blunt in their assessment of what it means for them.

Charles B. Reed, chancellor of the California State University System, warned the presidents of his 23 campuses not to exceed enrollment goals for the 2003-4 academic year.

"Of paramount importance is the unquestionable fact that California State University funding has declined to a level at which quality will erode," Mr. Reed told the presidents. "Adding more students to already inadequate funding will only exacerbate this problem."

The president of the University of California system, Richard C. Atkinson, said the budget "clearly threatens" the university's "historic promise of access and quality."

Under the budget approved by the Legislature, Cal State would see its state appropriations drop by $345.2-million, or 13 percent. The University of California would face an 8-percent reduction, or $248-million, in state funds. Even though the number of students graduating from California high schools is skyrocketing, lawmakers told both systems not to expect any new dollars for enrollment growth in 2004-5. Lawmakers also voted to delay the opening of the University of California's Merced campus, its 10th, until 2005.

As a result of the budget, Mr. Atkinson said on Wednesday that he would go ahead with an additional 5-percent increase in tuition for 2002-3, a plan that had been on hold. The increase would be on top of a 25-percent raise approved this month by the system's Board of Regents.

The state's community colleges fared better than the four-year institutions in the budget negotiations. State spending on the community colleges would be reduced by $86-million, or 1.7 percent.