SACRAMENTO -- The half-built University of California at Merced campus should open as planned next year despite state budget woes that threaten higher-education funding, a budget committee chairman indicated Wednesday.

"I do think it is important to make sure we stay on the timeline," state Assembly Member Joseph Simitian, a Palo Alto Democrat, said after a presentation on the new campus to the Budget Subcommittee on Education Finance.

Simitian's comment was the first formal indication that lawmakers might retain $20 million for the UC Merced campus allotted in Gov. Schwarzenegger's 2004-05 budget proposal.

The six-member committee took no action Wednesday but will vote on the funding at a future hearing.

Carol Tomlinson-Keasey, chancellor of UC Merced, said she was encouraged by Simitian's statement but understands lawmakers will have to make tough budget decisions. The chancellor said the campus needs at least $20 million to open in fall 2005 with 1,000 students. UC Merced was scheduled to open in fall 2004, but the Legislature delayed the date.

In February, state Legislative Analyst Elizabeth Hill recommended UC Merced receive $10 million -- half of Schwarzenegger's suggestion -- to save the state money and because the university had not presented her office with a detailed spending plan.

University officials have since supplied the information, which staffers in Hill's office are reviewing.

Tomlinson-Keasey said chances are slim that lawmakers will allocate just $10 million: "I would be very, very surprised if that was the outcome of this."