California's public-university leaders and Gov. Arnold Schwarzenegger announced on Tuesday that they had struck a deal in which the institutions agreed to absorb many of the budget cuts the governor had already proposed for the next fiscal year and to meet new accountability standards. In exchange, the governor endorsed annual increases in state funds in each of the following six years for the University of California and California State University to pay for general operations and enrollment growth.

Mr. Schwarzenegger, a Republican, also agreed to abandon some of the sharpest tuition increases he had proposed in his original 2004-5 budget plan, which he released in January. And he backed away from a proposal to delete all state funds for university programs that provide college-preparation services and other outreach to students at public elementary and secondary schools.

The budget deal does not specify how much state money those programs should receive, saying that state lawmakers and officials will determine that amount through the annual budget process.

"Everyone knows that this budget crisis demands tough choices, but I have said from Day 1 that we have to do everything we can to protect education," Mr. Schwarzenegger said. "Together, we have found a compromise that will protect the quality of our world-renowned higher-education system."

All of the provisions in the higher-education agreement, however, are subject to review by the California Legislature.

Several Democratic lawmakers voiced concerns about the deal on Tuesday and said they would not feel bound to follow it. They spoke out against the agreement's plans to preserve cuts in university enrollment that the governor has proposed for 2004-5, and they criticized the plan's call for continued tuition increases, even if some of the increases are not as great as what Mr. Schwarzenegger originally proposed.

"Somebody has to fight for these students, and I intend to do so," said State Sen. Jack Scott, a Democrat and chairman of the Senate's education-budget subcommittee. "The State Legislature was not party to this agreement. Therefore, I intend to explore the options for preserving access for all eligible students."

State and university leaders, meanwhile, praised one another and the budget deal on Tuesday. They said that mapping out a long-term plan for the university systems' operating budgets and tuition increases would help university administrators better manage their budgets and help families better plan for college expenses.

"After years of deep budget cuts with no end in sight, this compact brings the promise of renewed fiscal stability for public universities in California," said Robert C. Dynes, president of the University of California system. "Under the compact, UC will receive funding to preserve its internationally acclaimed academic programs, to provide broad accessibility for promising California students, and to sustain its deep impact on the economy, health, and quality of life in California."

Specifically, the budget agreement calls for increasing state funds for the University of California and California State University by 3 percent in 2005-6 and in 2006-7, and by 4 percent annually from 2007-8 through 2010-11.

However, for the 2004-5 fiscal year, which begins in July, the governor has proposed cutting state funds to the University of California by 7.9 percent, or $228-million, and to the California State University System by 9 percent, or $240-million. In announcing the compact, Mr. Schwarzenegger vowed not to advocate spending cuts any greater than that for the university systems when he releases his revised state budget plan for 2004-5 later this week.

The budget deal announced on Tuesday also includes the governor's previous proposal to reduce the number of new freshmen at the four-year universities by 10 percent, or about 7,000 students, in the 2004-5 academic year. The universities already have announced plans to direct those students, who would otherwise be eligible to attend, to community colleges. The students would then be guaranteed spots on the university campuses if they wanted to transfer after two years.

Beginning in 2005-6, the agreement calls for providing the universities with enough money to increase enrollment by 2.5 percent each year through 2010-11. That would pay for about 5,000 more students annually at the University of California and about 8,000 more students each year at Cal State.

On tuition, the budget compact proposes nearly halving the 40-percent increase Mr. Schwarzenegger had planned for graduate students in 2004-5. The agreement calls for increasing tuition by 20 percent for graduate students at the University of California and those in teacher-education programs at Cal State. For other graduate students at Cal State, the plan proposes raising rates by 25 percent.

For undergraduates at both university systems, the deal calls for increasing tuition by 14 percent in 2004-5 and by 8 percent in 2005-6 and in 2006-7.

Finally, under the agreement, university officials agreed to make annual reports to state officials and lawmakers on efforts to meet a series of performance measures. Among other things, the universities said they would work to increase the number of high-quality mathematics and science teachers they place in the state's public schools, do more to encourage students to participate in community-service projects, ensure that students can get into the courses they need to graduate, and demonstrate that they use resources efficiently.