Following a somber discussion of the University of California’s fiscal outlook, the UC Board of Regents took action on July 18 to help the university stave off a possible $375 million in budget cuts.
In a single vote, regents endorsed the state’s appropriation for UC for 2012-13, supported a revenue measure on the November ballot and agreed to freeze mandatory systemwide student charges at 2011-12 levels, contingent on passage of the initiative.
The ballot initiative, sponsored by Gov. Jerry Brown, would raise roughly $8.5 billion through temporary increases in the state sales tax and the personal income tax rate paid by those earning $250,000 or more.
Shortly after the vote, Brown dropped in to the meeting to thank regents for their support of his measure — on the ballot as Prop. 30 — and told them that if it passes, the additional revenue could help return stability to both California and the university.
“If we keep an even keel, I think [the state] can renew the kind of support the university has long enjoyed,” Brown said.
Should the initiative fail, both UC and the California State University would see their state appropriation automatically cut by $250 million in January. The university would also lose an additional $125.4 million in state funds that lawmakers pledged to include in UC’s 2013-14 budget in exchange for holding mandatory systemwide student charges at current levels.
“Gov. Brown’s 2012-13 budget package, in tandem with his revenue intiative, contains an implicit deal for UC. It is an imperfect deal, and it is not without risks,” President Mark G. Yudof said. “Still, it is a better deal than we anticipated. And it is our best shot at taking an important step toward the financial stability that this university so desperately needs.”
Go to the UC Newsroom for UCOP Content Strategy Manager Carolyn McMillan’s complete story, which includes a graphic and links to more information about Prop. 30.