2001-02

Higher Education

"For the first time in California, every student at every high school who works hard to maintain grades high enough to gain admission to college or university but needs financial assistance will be guaranteed financial aid to pursue an advanced degree."

Governor Gray Davis,
announcing the historic financial aid agreement

The University of California (UC), California State University (CSU), and the California Community Colleges (CCC) together open the doors of opportunity to the next generation of California leaders. In his very first budget, the Governor committed that California's higher education systems would provide a world class education, universal access, and remain affordable to all qualified students. In just two years, this Administration has focused resources in each of these areas:

• High Quality—In his 2000 State of the State Address, the Governor proposed one of the most ambitious scientific research initiatives ever undertaken by the State of California. In December, the Governor announced the selection of the California Institutes for Science and Innovation at three University of California campuses. These world-class research centers will ensure that California continues to attract and train the next generation of leaders in technology and innovation. Additionally, this Administration has made a major funding commitment to the Internet2 _ the next generation of the Internet. This financial support has enabled UC to continue expansion of this high-speed national data transmission network that will support cooperative research initiatives within UC as well as with other institutions and countries. The State is now also investing significant resources to enable UC to enhance its research capacity in areas of key economic importance to the State, especially those areas where California is a clear leader.
• Affordability—In the key area of affordability, California ranked among the top in the nation, scoring an "A" in a recent report on higher education from the National Center for Public Policy and Higher Education. Fees and tuition at CSU and UC have not been increased in six years. The State's grade was boosted by the exceptionally low tuition—$11 per unit—at California's community colleges, which account for 48 percent of student enrollment statewide.
• Access—In an historic expansion of the State's scholarship program, every student with good grades that demonstrates financial need will receive financial assistance to receive a higher education. Additionally, because several of our university campuses are reaching enrollment capacity, the Administration supports conversion of those campuses to year-round operation, ensuring additional enrollment space for the growing number of students.
• Accountability—The Administration has reached an agreement with both UC and CSU, referred to as the Partnership for Higher Education, that provides funding stability in exchange for progress toward certain goals, particularly the goals of quality and access. One of the most significant of these goals is increasing community college transfer rates to our four-year universities and colleges. Both UC and CSU have increased this rate by more than 6 percent in the first year of the Partnership.

Dramatic enrollment growth in California's higher education systems presents both challenges and new opportunities. California's increasing diversity and an ever-greater reliance on a high-tech economy means that higher education segments must work hand-in-hand with the K12 system to help young students who aspire to higher education. One of the Administration's priorities is to foster the intersegmental teamwork that ensures that our young students are provided every opportunity to achieve, and exceed, their own goals. The Budget meets these challenges in a number of ways.

California Institutes for Science and Innovation—California's economic strength today is powered by cutting edge industries such as computer technology, biomedicine, and information sciences. But our continued success is dependent upon our education systems keeping pace with the expanding frontiers of science and industry. This Administration has committed to keep California on the cutting edge of innovation through historic partnerships with industry and our institutions of higher education. Last year, the Governor proposed a scientific research initiative to create three world-class research centers to concentrate on complex scientific challenges that demand multidisciplinary strategies and state-of-the-art equipment and facilities.

The California Institutes for Science and Innovation will not only spark a new generation of technologies that are key to California's competitive economic position, but with private industry partners they are also intended to speed the movement of innovation from the laboratory into peoples' daily lives. Enacted into law in 200001, three institutes are being developed with funding of $75 million annually for four years, to be matched on a two-to-one basis by non-State funds. Sites for the institutes were recently chosen through a competitive, merit-based peer review process. The following three institutes will be launched immediately:

• The California NanoSystems Institute, at UCLA in collaboration with UC Santa Barbara, will enable design and construction of functional devices and materials with components that measure no more than a billionth of a meter.
• The California Institute for Telecommunications and Information Technology, at UC San Diego in collaboration with UC Irvine, will develop innovative new materials and devices and radically expand the capacities of communications and information infrastructures.
• The California Institute for Bioengineering, Biotechnology and Quantitative Biomedicine, at UC San Francisco in collaboration with UC Berkeley and UC Santa Cruz, will bring together scientists in biomedical research, engineering, and physical sciences to seek breakthroughs in diagnosis, treatment and prevention of disease.

The Governor's Budget provides the second year funding for the three institutes. Additionally, the Budget proposes funding for a fourth institute: the Center for Information Technology Research in the Interest of Society at UC Berkeley. This new Institute will design large-scale information technology systems that will help create solutions to major social and commercial problems in transportation, life-safety, medicine, and education. The Budget includes $33 million as the first increment in a three-year plan to fund the fourth institute. At the end of the three years, funding for the fourth institute will equal the funding provided for the first three institutes and will also be matched on a two-to-one basis by non-State funds. UC indicates that total non-State commitments to date exceed $1.2 billion compared with $400 million in State funding—close to a three-to-one matching basis.

Partnership Agreements and Accountability—In Spring 2000, UC and CSU each entered into a Partnership Agreement with the Governor that embodies both funding and accountability principles. The funding principles are critical to the systems' ability to plan for the dramatic enrollment growth expected in the coming decade. The accountability principles are important to ensure that the quality and vitality of programs are maintained as they grow. Both the State and the segments have more than exceeded their commitments under the Partnership. The systems have enrolled more students than anticipated, and the State has funded them. The State has also provided funding above the level envisioned in the Partnership to support high priority programs and to avoid fee increases—there have been no increases in mandatory systemwide student fees for six consecutive years, and fees for undergraduates are 10 percent lower than they were in 199596.

The 200102 Budget proposes a seventh consecutive year of funding sufficient to avoid student fee increases. UC and CSU are improving student outcomes with respect to graduation and retention rates; increasing enrollments in teacher credentialing programs, engineering, and computer science in order to meet the State's workforce needs; and assuming a greater responsibility in working with K12 schools to improve student and teacher performance. UC and CSU are also expanding the number of joint programs among the higher education segments including more joint doctoral degree programs between UC and CSU and improving productivity and utilization of existing facilities.

Partnership for Excellence—In addition to the Partnerships with UC and CSU, the Budget provides total funding of $300 million, including a base increase of $155 million authorized in 200001, for the Partnership for Excellence program within the CCC. These discretionary funds will assist local community colleges in improving student outcomes through performance goals in five areas: transfer, degrees and certificates, successful course completion, workforce development, and basic skills improvement. Preliminary data reported in the Chancellor's Office "2000 Report on Local Investments of Partnership Funds, Expenditures for 199899 and 199900" indicate that CCC have generally spent the funds for professional development and technology, expanding the hours of operation, additional faculty and staffing, offering new programs, or augmenting core areas of curriculum. While data are not available at this time to fully assess whether the program is successful, anecdotal information suggests that CCC are using the resources effectively to improve performance in the intended goal areas.

Commencing on April 15, 2001, existing law requires the Chancellor's Office to annually assess and report on the extent to which achievement of system goals has been successful. The Administration will continue to work with the Chancellor's Office and the Board of Governors to evaluate the program and ensure that it is successful in improving student outcomes and increasing accountability for Californians.

Access to Higher Education—The Budget supports increased access in a number of ways.

• UC Admissions—UC has established a new path to freshman eligibility, effective for students applying for admission for fall 2001. Students will be eligible for admission to UC if, as high school juniors, they are in the top 4 percent of their class based on their grade point average in 11 of the 15 units in UC-specified academic courses. This is in addition to the historic path to eligibility, as envisioned in the Master Plan, whereby the top 12.5 percent of students statewide are eligible for admission to UC.
• An additional path to eligibility—the "dual admissions" program—is currently under review within the University. If approved, this path will promote transfer to UC from CCC. Students who are within the top 12.5 percent of their high school class, but who do not meet eligibility requirements through either the statewide eligibility or the 4 percent paths, would be admitted simultaneously to a CCC campus and a UC campus. After satisfactorily fulfilling their freshman and sophomore requirements at a CCC campus, students will enroll at the UC campus that admitted them when they were first identified as eligible for this program. This program would not expand the freshman eligibility pool beyond the established 12.5 percent Master Plan level. It would, however, create a closer link between the UC and CCC systems and ensure a more effective transfer process as envisioned by the Master Plan.
• Community College Transfers to UC and CSU—The new Partnership Agreement includes commitments from both UC and CSU to step up their efforts to increase the number of transfer-ready students who transfer from the community colleges. UC has committed to a 6 percent per year increase, CSU to 5 percent. Both UC and CSU exceeded this commitment in 199900; transfers from CCC increased by 6.6 percent at UC and 6.1 percent at CSU. Both segments have programs in place that work cooperatively with the community colleges to strengthen and articulate community college courses to better prepare students, inform students of transfer requirements, and assist students in becoming prepared for a four-year program.
• Cal Grant Expansion—The Governor, by signing into law the single largest expansion of financial aid in California history (Chapter 403, Statutes of 2000), has underscored the Administration's commitment to ensuring access to higher education for all qualified students. Chapter 403, Statutes of 2000, provides financially needy high school graduates who earn a grade point average of 3.0 or above with an entitlement to a Cal Grant A tuition award for an amount equal to the mandatory systemwide fees at UC or CSU, or up to $9,703 at a private institution. Students who earn a high school grade point average of 2.0 or above are entitled to a Cal Grant B subsistence award of up to $1,551 annually for up to four years along with a tuition award in years two through four. Cal Grant C awards of up to $2,592 for tuition and fees plus up to $576 for training-related costs will continue to provide educational opportunities to students who choose short-term occupational or training programs. Cal Grant T awards in an amount equal to the mandatory systemwide fees at UC or CSU, or up to $9,703 at a private institution, will continue to support students who choose to work toward a teaching credential.
• Affordable Education For All Students—Even students who do not qualify for financial aid will find that California offers excellent value in publicly-funded higher education. Here, college students pay only a fraction of the total cost of their education. For the seventh consecutive year, there are no proposed increases to systemwide mandatory student fees. The Budget provides $38.1 million to ensure that these fees do not rise.
• Merced Campus—Development of a tenth UC campus in Merced is part of the University's strategy to increase its enrollment capacity and provide the benefits of a research university to Californians in the San Joaquin Valley. In November 1999, the Governor proposed that the opening date for the campus be accelerated to fall 2004, a year earlier than originally planned. The University has accelerated its planning effort, and the 200102 Budget proposes funds for construction of the initial buildings and infrastructure, and for startup costs associated with recruitment of faculty needed to meet the new timeline.
  Teams of representatives from State and federal agencies are working with UC to facilitate the planning and permitting process for the new campus, and major recruitment efforts for key leadership positions on the campus are either completed or underway. Specifically, the Budget includes $160.4 million in capital outlay funding: $158.6 million to construct library, lecture, laboratory, and support facilities and the first phase of infrastructure, plus $1.8 million for planning instructional and faculty office facilities. In addition, $2 million in one-time funds is provided for start-up expenses associated with recruiting faculty in time for the accelerated opening date.
• Year-Round Operations—Both UC and CSU rely on a variety of strategies to help them accommodate expected enrollment growth. Chief among these is the efficient use of existing facilities. Both UC and CSU have embarked on initiatives to move toward year-round operations. All campuses within UC and CSU have historically offered summer sessions. Summer terms on five CSU campuses are currently State_supported; the rest in both UC and CSU have historically been self-supporting.
  
  The 2000 Budget Act contained funds to reduce summer session fees charged in UC and CSU summer sessions to a level equivalent to those charged during the regular year. This was the first step in a plan to phase in State-supported summer instruction at all campuses within both higher education systems.
  
  The Governor's 200102 Budget provides $20.7 million for State-supported summer instruction at UC's Berkeley, Los Angeles, and Santa Barbara campuses (3,422 full-time equivalent [FTE] students) and $12.4 million for CSU's Long Beach, San Diego, Fullerton, and San Francisco campuses (3,138 FTE students). Funds will be used to ensure that course offerings are similar in quality to those during the regular year and financial aid is provided that is equivalent to that provided during the regular academic year. Future funding will be proposed to convert additional campuses statewide as they approach enrollment capacity.

K12 Linkages—The 200102 Budget continues several efforts initiated in the current year to assist K12 teachers and students, such as the Governor's Teacher Professional Development Initiative, Advanced Placement On-Line Initiative, Summer School for Math and Science, and UC's Algebra and Pre-Algebra Academies. In addition, the Budget provides $37.5 million to augment higher education's linkages with the K12 system in the following ways:

• $17.5 million, for a total of $21 million, for CSU's Governor's Teaching Fellowships, which provide nonrenewable graduate teaching fellowships to students who agree to teach at low-performing schools.
• $18.5 million, for a total of $25 million, for CSU's Governor's K12 Technology Training Initiative to train teachers to use technology in the classroom to enhance student performance.
• $1 million to expand CSU's Diagnostic Writing Service, which provides feedback to high school students about the strengths and weaknesses of their writing skills.

Research—In addition to its value as a training tool for students, research and development is becoming more important as California's economy increasingly depends on knowledge-based industries. The Budget provides funding for a variety of research supporting the State's continued economic vitality:

• $5 million to UC for cutting edge research efforts in engineering and computer science to help keep California's high-technology industries in the forefront of a highly competitive international marketplace.
• $5 million to UC for environmental science research to assess the impact of generation, utilization, and distribution of energy on California's atmosphere, and transform environmental field stations into observatories for California's environment.
• $4 million to UC for biomarker research through the Center for the Medical Investigation of Neurodevelopmental Disorders (the MIND Institute), and $2 million for related research in the areas of animal models, immunology, brain damage, molecular biology, and genetics.
• $3 million to UC for research into long-term solutions to Pierce's disease, caused by an insect-transmitted bacterium that threatens California's wine, table, and raisin grape industry.
• $3 million to CSU to expand applied research efforts in the areas of biotechnology (CSUPERB), agricultural research, and marine studies ($1 million each).

Capital Outlay—In addition to funding for Merced and the Institutes, the Budget proposes $243.3 million for capital outlay expenditures at UC. UC requested $203.3 million from available Proposition 1A general obligation bond funds, approved by the voters in November 1998. This amount includes $10 million to equip six projects; $109.1 million to design and construct facilities needed for planned enrollment growth; $78 million for correction of seismic and life-safety deficiencies; $5.7 million for facility renovation and modernization; and $500,000 for an infrastructure project. Additionally, the Budget includes $10 million General Fund for development of the Heckmann Center for Entrepreneurial Management as part of UC Riverside's A. Gary Anderson Graduate School of Management, and $30 million General Fund to construct a teaching facility for the UCSF/Fresno Medical Center.

The Budget proposes $207 million for CSU from general obligation bonds for capital outlay expenditures. This amount includes $103.6 million for CSU to complete 13 previously approved projects at 12 campuses; $96.6 million to allow CSU to address 14 major new projects at 11 campuses; and $6.7 million for minor projects.

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