And it delivered the first significant crack in the state's 1960 Master Plan for Higher Education, which promises a spot in California's public universities to all qualified applicants.

"It is probably just the beginning because we are overenrolled," said UC Regent Ward Connerly. "We are in a pickle. The state isn't able to honor its agreement to fund UC. If the state is not funding enrollment growth, UC has to do what it has to do. So we are probably breaking the Master Plan."

In the Master Plan, the state guarantees a spot in the UC system for all community college students who make the grades and for the top 12.5 percent of the state's high school students.

But with a crush of students descending on the universities at the same time that the state's support has diminished, the UC system has broken that promise for winter applicants, and it appears it will be impossible to keep next fall.

"It just breaks your dreams," said Diana Lyster of San Rafael whose daughter Alice is applying to UC schools for the fall. "Students work hard all the way through school with aspirations and dreams. To get to the top and not to get in because of budget cuts is a betrayal."

The implications of the budget cuts for future college hopefuls extend beyond the nine UC campuses to the California State University system -- which guarantees a spot for the top one-third of the state's high school students and eligible transfer students in the Master Plan -- to the community colleges.

Both the UC and CSU systems have been told by the Legislature that they won't get funding to increase enrollments next year, contrary to a state agreement that provides for 4 percent growth.

UC plans to admit about 47,000 new students in the 2004-05 school year, but budget cuts may force it to reduce that enrollment by at least 5,000. CSU may also have to cut its expected enrollment, although numbers are not yet available.

If the UC and CSU systems have to turn away eligible students, it will further overcrowd the community colleges, some of which had to cut classes this year because of tight budgets.

"It is already pretty cutthroat competition as it is, so to cut back . . . it would be very disappointing," said Olga Anaya, 25, a student at City College of San Francisco who planned to transfer to a UC school next fall. "I've debated transferring out of state, and that may be my new option."

UC Regent Judith Hopkinson said she was shocked that the state Legislature would break the agreement to provide funding for enrollment because it has such extreme implications.

"It will mean fewer students who are eligible will be able to come to UC," Hopkinson said.

Jiwon Lee, 31, a City College student, said that if she could not transfer to a four-year institution next fall as she planned, she may just have to be satisfied with a two-year associate's degree.

"I would finish the A.A. degree and maybe find a job," Lee said.

Sneha Patel, 19, said she had gone to City College out of high school because she was told she would have a better chance of getting into UC Berkeley or UCLA as a transfer student. Now, she says her hopes have been deflated.

"It is just not fair. That is false advertising," she said. "That really limits my choices."

The problem will seep down to those who have been working hard to improve public schools to get all students prepared for college, said Patrick Callan, president of the nonprofit National Center for Public Policy and Higher Education, which has an office in San Jose.

"We are giving the signal to people that we can't be counted on," Callan said. "We are saying study hard, stay in school, and you will go to college. Now, we are saying 'maybe not.' "