From Dateline (May 20, 2004)

CSU, UC Reach Agreement With Governor

Leaders of the California State University and University of California, meeting May 11 with Gov. Arnold Schwarzenegger, reached agreement on a six-year “compact” to ensure funding for the state’s public university systems.

The Higher Education Compact, which would go into effect in 2005-06, proposes to fund 2.5 percent annual enrollment growth through 2010-11; pro-vide the CSU and the UC systems a 3 percent state General Fund increase for 2005-06 and 2006-07; and beginning in 2007-08 through 2010-11, provide an increase of 4 percent to the prior year’s base budget for basic needs, such as salary increases, health benefits, maintenance and inflation. In exchange for the commitment of funds, both CSU and UC agreed to a series of accountability mea-sures and will make annual reports to key state agencies.

The compact also proposed a series of increases over the course of three years for CSU and UC undergraduates. In 2004-05, undergraduate fees would increase by 14 percent, followed by 8 percent increases each year in 2005-06 and 2006-07. Graduate student fees would increase by 25 percent for 2004-05 with teacher credential candidate fees increas-ing by 20 percent. UC graduate fees will increase by 20 percent in 2004-05. For the following two years, it is expected that both CSU and UC graduate fees will increase by no less than 10 percent.

CSU trustees must vote on the 2004-05 fee increases, with action expected at the May 19 board meeting.