Gov. Arnold Schwarzenegger released a $143 billion budget
Wednesday that seeks to eliminate the state’s $5.5 billion
deficit through fiscal restraint.
The budget provides $103.1 billion for general fund spending and
sets aside $2 billion in reserves and for limited spending, as well
as imposing cuts on programs such as welfare.
“In this new budget, our net operating deficit has been
reduced to zero,” Schwarzenegger said in a statement.
“This is a budget that lives within our means but still
provides crucial services.”
The $143 billion budget allocates nearly $20 billion for higher
education, of which 28 percent will go to the University of
California, an increase of $345 million from last year and a
record-level increase in education spending.
According to the governor’s budget Web site, $61 million
of the increase would go toward boosting total student enrollment
at the UC by 5,149.
This follows the Governor’s Higher Education Compact, an
agreement with the UC Board of Regents that promises to increase
student enrollment by 2.5 percent per year, with no more than 10
percent in fee hikes.
Last year, Schwarzenegger bought out UC fee increases by giving
$75 million to the UC. But this year’s budget proposes a 7
percent hike that would raise total average fees from $6,852 a year
to $7,347, while UC graduate schools would see a 10 percent
increase in fees. No official increase will be approved until the
UC regents meeting in March.
Some students were apprehensive about further fee increases.
“In previous statements, the governor said that affordable
education was crucial for the state. But when it came time to
provide support for students, his actions (in this year’s
budget proposal) did not speak true to his words,” USAC
external vice president Tina Park said.
“To put it mildly, the fee increase will have a negative
impact,” Park said.
Besides raising education fees, the budget proposes to shrink
the deficit by cutting more than $1 billion from transportation
services and slicing welfare programs by nearly $500 million.
The budget also limits general fund increases to less than 1
percent in the fiscal year 2007-2008, the smallest increase in five
years. The general fund is composed of various state taxes such as
cigarette and sales taxes.
One proposal included in the budget is to borrow $43 billion to
go to the construction of schools, prisons and other projects,
which would also reduce the deficit. As a result, overall state
spending would increase by 9 percent from last year.
According to a press release from the UC Office of the
President, an increase in fees would also be followed by a proposal
to increase financial aid in order to keep the university
affordable.
“This budget does not include everything we asked for …
(but) we are grateful for the support the governor has provided in
his budget for some of our key priorities at the University of
California,” UC President Robert Dynes said in a
statement.
The budget still faces opposition in the legislature, which has
the ability to make its own revisions and suggestions.
Assembly Speaker Fabian Nuñez praised
Schwarzenegger’s attempt to balance the budget, but
criticized his proposed welfare cuts, saying it would take too much
away from the state’s neediest residents.
“The last thing we want to do is balance the budget on the
backs of single mothers and their children,” he said.
Some applauded the budget for its fiscally conservative nature,
praising the governor for trying to reduce the state’s
debt.
But some Democrats and educators expressed concern, particularly
regarding the plan to divert money from schools to fund a child
care program for welfare recipients.
With reports from the Bruin wire services.