Gov. George E. Pataki of New York wants the state's private colleges to be able to compete, for the first time, for public funds to help pay for capital projects. The governor, a Republican, made the proposal on Tuesday as he released his 2004-5 budget plan.

Private-college officials in New York have spent the past several months advocating for such funds from the state, arguing that their institutions have a strong public mission, enrolling many low-income and minority students from New York and generating jobs that improve the state's economy. Only two states, Maryland and New Jersey, now provide capital funds for private colleges, the officials say.

But some faculty members at public universities oppose Mr. Pataki's plan, arguing that the state's two public-university systems, the State University of New York and the City University of New York, face many unmet needs in their facilities that should be taken care of first.

Specifically, Mr. Pataki's budget would allocate $350-million in state funds over five years for a new program, dubbed "21st Century Higher Education Facilities Capital Matching Grants." Public and private universities in the state would be allowed to compete for the money, which would go primarily for campus projects that are deemed critical for academic facilities or that are related to economic development, high technology, historical preservation, or urban renewal.

Under the program, recipients of the public funds would have to match every state dollar with $3 of private money. A new board, chosen by the governor and state lawmakers, would decide how to distribute the money.

"We're delighted the governor has advanced the proposal," said Abraham M. Lackman, president of the New York Commission on Independent Colleges and Universities. "It's a major win."

In lobbying for capital funds from the state, Mr. Lackman has pointed out that one in three full-time students from New York who is enrolled at one of the state's private colleges is from a family whose annual income is less than $40,000 a year.

Independent institutions also graduate more black and Hispanic students than either of the state's public university systems, private-college officials have argued. (Proportionally, however, a much higher percentage of the graduates of CUNY are minority students.)

Private colleges generate about $40.2-billion each year in economic activity for New York State, independent-college officials have said.

Mr. Pataki's budget would also set aside funds for capital projects at SUNY and CUNY, separate from the money the public university systems could receive under the new competitive program. The governor proposed spending $1.8-billion over five years for projects at SUNY and $1.1-billion over five years at CUNY.

Susan O'Malley, chairwoman of CUNY's Faculty Senate, said that $1.1-billion is not enough to fully equip and adequately fix the university's facilities. CUNY had sought more than $1.4-billion in capital funds from the state over five years, a request that Ms. O'Malley said fell far below the true needs of the university's 19 campuses.

Given those needs, Ms. O'Malley argued that the state should not be spending scarce public dollars on private institutions' projects. "It's a bad precedent," she said.

CUNY administrators themselves are still reviewing the details of Mr. Pataki's budget plan, said Jay Hershenson, the system's vice chancellor for university relations. But, he added, "the general view of university officials at CUNY remains constant -- that the unmet capital needs of the public higher-education system should be addressed first, as a priority."

SUNY officials did not provide any public comments Tuesday on the matching-grants plan in Governor Pataki's budget.

On other higher-education matters, the governor proposed maintaining tuition at current levels at CUNY and SUNY in the 2004-5 academic year. To help avoid a jump in rates, Mr. Pataki proposed increasing general funds for SUNY by 5 percent, or $75.4-million, and providing an increase of 4.9 percent, or $28.5-million, in general funds for CUNY.

The governor once again sought to delay the payment of some funds under the state's need-based Tuition Assistance Program, until students eligible for the money have completed their degree programs. Under the plan, similar to proposals that have failed to pass the Legislature in past years, the governor would give students two-thirds of their aid upfront but pay them the rest only after they have graduated.