Humboldt State University President Rollin Richmond said Gov. Arnold Schwarzenegger's agreement with California State University and University of California officials is "good for our state and for Humboldt State University."

Schwarzenegger announced the deal on Tuesday. It trades spending cuts and fee increases now for future financial support.

While the agreement with universities saves the state only about $660 million next year -- out of an estimated budget shortfall of $17 billion -- it may help Schwarzenegger pass the first budget on time since 2000.

The deal with the universities would impose a 14 percent increase on student fees next year and another 8 percent increase each of the next two years.

The governor promised to begin restoring university funding starting with a 3 percent increase in 2005-2006.

If lawmakers approve the deal as part of the budget, it will mean the lifting of the cap on enrollments in CSU schools next year, said CSU Chancellor Charles Reed.

"Students and their families will have a clear understanding of their costs to attend Humboldt, and the university will have a more predictable budget to try to accommodate student and faculty needs," Richmond said. "The agreement provides a clear statement that Gov. Schwarzenegger understands the importance of higher education to the state and its people."

Some Democrats, whose party controls both houses of the Legislature, denounced the deal, saying it limits university enrollments and breaks a 40-year promise to students of a state-supported higher education to qualified students.

They also criticized the governor's budget agreements with interest groups before delivery of the proposal to the Legislature. Already the governor has agreements with the state's powerful teacher's union as well as with trial judges. On Wednesday he is expected to announce an agreement that locks in $2.6 billion in cuts to local government over the next two years.

On another front, Treasurer Phil Angelides -- a likely Democratic challenger of Schwarzenegger in 2006 -- also warned Tuesday that the administration's budget plan may do nothing to solve California's fiscal problems. He said unless the governor proposes tax increases along with deep spending cuts, the state will face a $10 billion deficit in 2005-2006.

The 20,000-member California Faculty Association also criticized the latest agreement.

"We cannot sustain more cuts," said union President John Travis, a Humboldt State University government and politics professor, in a statement.

"The CSU is in a crisis mode," Travis said. "Any further cuts on top of the millions the CSU has already lost will strangle its ability to educate the future leaders and workers of the state."

Despite the criticism, Schwarzenegger said he looked forward to working with legislators after he releases his budget plan Thursday afternoon.

The governor's $99 billion budget draft released in January called for about $9 billion in cuts and savings, and another $5 billion in borrowing and fund shifts along with a variety of other moves and savings. But the governor proposed no new taxes.

Although the administration has not revealed many details about the revised spending plan, lawmakers in both parties have said they do not expect to see any major changes from Schwarzenegger's original proposal.

But if the January draft isn't changed dramatically, Angelides said, the state will face up to a $10 billion deficit that will begin building in 2005. Also, he said the deals Schwarzenegger has made with interest groups to restore money in the future only add to the problem.

"I'm mystified at the governor's approach," Angelides said.