Gov. Jerry Brown offers relatively stable funding for UC in his 2012-13 budget proposal, dependent on voter approval of his tax initiative.

“This ballot measure will not solve all of our fiscal problems, but it will stop further cuts to education and public safety and halt the trend of double-digit tuition increases,” the governor said in his budget cover letter.

UC officials applauded the governor's proposal. “The administration’s focus on protecting higher education from further budget reductions is a welcome relief, and the governor’s stated desire for a long-term state investment is encouraging,” said Patrick Lenz, vice president for Budget and Capital Resources.

“It appears the governor is moving in the right direction after cuts totaling $750 million this year alone.”

This includes last month’s $100 million “trigger” cut, a remnant of the 2011-12 budget negotiations. The state pulled the trigger when revenue fell short of projections. For 2012-13, Brown proposes to make the $100 million cut permanent; when allocated proportionately to the campuses, UC Davis’ share would be about $15 million.

On the flip side, Brown proposes to augment the UC budget with $90 million and he suggests that the money could be used for employer contributions to the UC Retirement Plan. (UC Davis’ share of the $90 million would be about $13.5 million.)

In addition, Brown would eliminate some of the budget’s UC “set-asides” that allocate funding to certain programs (for example, AIDS research, and the California State Summer School for Mathematics and Science, or COSMOS).

“We applaud the governor’s willingness to grant UC leadership maximum flexibility in navigating these fiscal times," Lenz said, "and also his recognition that, after a 20-year hiatus, the state has a responsibility to resume paying for a portion of retirement costs."

Employee contributions resumed in 2010, and UC has been paying into the system since then as well, with no help from the state. The state, on the other hand, pays the employer share of retirement costs in the California State University system and in the California Community Colleges.

UC to continue its advocacy

The governor’s spending plan, which he released early after the state posted it online prematurely, is only the first step toward a state budget for 2012-13; the Legislature now has until June 15 to submit a final budget to the governor for his signature.

As the Legislature deliberates the spending plan over the coming months, Lenz said, UC will continue to make the case that public higher education is not a cost but the best investment an innovative state like California can make.

He said UC also will continue to seek out and implement administrative efficiencies that already are saving hundreds of millions of dollars a year — “savings that go straight to our core mission.”

“We also are working hard to identify alternative revenue sources that could help us preserve quality and access,” Lenz said.

“Finally, we intend to press forward with the governor and Legislature to develop a long-term plan that would give the university much-needed financial stability, help the families of students and benefit Californians in every part of the state.”

Nothing emphasizes the need for stability more than Brown’s proposal for a budget “trigger” linked to his tax initiative: If it fails, or does not even get on the ballot, he would cut $200 million from UC and $200 million from the California State University system.