Gov. Schwarzenegger is expected to fully fund the half-built University of California at Merced this year, allowing it to open as planned in 2005.

Lawmakers said Wednesday that Schwarzenegger likely will include $20 million -- the entire amount requested -- for UC Merced in his budget proposal to be released Friday. In his State of the State address Tuesday, Schwarzenegger said he will fund the UC system's 10th campus but did not specify to what extent.

"I have no reason to believe that it's not the full funding," said Assembly Member Barbara Matthews, a Democrat from Tracy.

Sen. Jeff Denham, a Salinas Republican, would not publicly guess at the amount in Schwarzenegger's budget but said it will be enough for UC Merced to open on time.

"It is still a very sensitive issue," Denham said Wednesday. "Obviously, it is a big victory the governor mentioned it in his speech last night."

The pledge for UC Merced came among plans to cut state spending and borrow billions of dollars to dig California out of debt. The reference to UC Merced was a surprise to some UC leaders, who didn't expect such bold support for their new campus.

Now, they eagerly await Friday's budget unveiling and are gearing up to persuade the Legislature to preserve the funds in future budget revisions. The budget will undergo many changes before the Legislature is required to approve it by June 15.

Supporters expect a fight but believe that adequate funding for UC Merced will survive the budget ax.

"There's nobody that doesn't know about UC Merced. We don't have to educate anybody on that," Matthews said. "I want to make sure the message is clear this is not just about creating a new school in Merced County, but that there's a broader context to this. I think our members will understand that."

A Schwarzenegger aide said the governor singled out UC Merced in his speech because education is a top priority.

"He recognizes the importance of the opportunity for higher education for all Californians," said Ashley Snee, a spokeswoman for Schwarzenegger. "He said he did not want this dream to bypass the people of the Central Valley."

Snee said it wasn't just a political ploy to appear as though he supports the Valley.

Matthews also said she believes Schwarzenegger truly cares about UC Merced.

"I don't think he's trying to snooker anybody," Matthews said. "I think he was sincere that he recognizes the merit" of UC Merced.

Larry Salinas, director of governmental relations for UC Merced, said he believes Schwarzenegger understands the new university is a good investment that will pump millions of dollars into the state economy and create jobs.

In the past three years, UC Merced has funneled $200 million into the economy and, since last year, has attracted $6 million in research grants.

In the next 25 years, UC Merced will create more than 6,000 jobs, Salinas said.

The university has hired 15 faculty members and hopes to have 1,000 students in its inaugural year.

"Our job in trying to be fiscally responsible with the dollars the state provides us is to make good use of the funds and show the state it is going to get its money back and then some," Salinas said.

Since 1997, the state has invested $350 million in UC Merced.

If funding comes up short this year, UC leaders could pare the number of faculty members or students or hold off on library or technology center finishing touches. But they don't want to push back the opening. The Legislature delayed UC Merced's opening from fall 2004 until fall 2005.

"I'm pretty confident that we will find a way to open the institution and present a credible program for students," said Lindsay Desrochers, vice chancellor for administration at UC Merced.

Valley educators said they are happy for UC Merced and don't expect it to negatively affect their institutions' coffers.

Tom Crow, chancellor of the State Center Community College District in Fresno, Madera and Tulare counties, said he looks forward to working with UC Merced. He said the new UC campus will enhance community college students' ability to transfer to four-year colleges and universities.

President Ned Doffoney of Fresno City College conceded community colleges' fiscal difficulties but supported continued funding for UC Merced.

"Having a UC in the Valley is good if you take the longer view," he said. "We are having certain financial troubles, but it is good to have UC Merced. We do very well and will continue to do well with UC Merced as a viable partner."

His and other community colleges have suffered financial cuts, Doffoney said, but fiscal responsibility must accompany educational responsibility. In both respects, "UC Merced is a responsible thing to do."

The governor's intention to continue funding UC Merced is "great news for the Central Valley," said Allen Carden, executive director of the Central Valley Higher Education Consortium and former president of Reedley College. "This makes the University of California more real for our area."

Even potential students look forward to the new UC campus.

"I wasn't sure if he would cut it altogether," said Chris Butler, who is taking lower-division classes at Fresno City College and plans to transfer to UC Merced next year. "I was real excited to hear it will go on schedule or at least that [Schwarzenegger] is standing behind it."