Regents: Proposed Budget Cuts Would Violate Compact

The 1 percent decrease in expected funding would be equivalent to $30 million in basic funding, said Bruce Darling, the executive vice president for university affairs.

The university’s statement declared that the decrease in funding would pose an obstacle for the university in achieving its educational and research goals.

“The resulting reduction in funding for the UC system further degrades UC’s ability to prepare tomorrow’s workforce and conduct vital research,” the statement read.

During the meeting, regents said the funding decrease would violate a compact between the university and Schwarzenegger that stated the university would receive a 4 percent increase in funding for the 2007-08 year.

According to the compact, which took effect in 2005-06, the state will provide a general fund increase of 3 percent to the prior year’s base in 2005-06 and 2006-07.

But starting in 2007-08, the compact says that the state will provide a general fund increase of 4 percent to the prior year’s base for basic budget needs, including salary increases, health benefits, maintenance and inflation. The compact is valid through 2010-11.