California Budget Project says state should invest more in UC

A public policy research group recently said the state should invest more in its public higher education institutions, despite an increased funding level in the governor’s proposed budget.

In its annual briefing conference of the governor’s budget proposal Wednesday, the California Budget Project said the governor’s budget for 2014-2015 focuses on fiscal sustainability, including paying off debt and creating a rainy-day fund. But the group said the state should instead prioritize services and programs that contribute to “broadly shared prosperity,” such as the University of California and the California State University. The California Budget Project is a nonpartisan organization that produces state fiscal and policies analyses with a goal of advocating for low- and middle-income Californians.

“The governor’s proposal leaves too many core public systems and services operating at diminished levels, and it presents false choices between fiscal prudence and reinvestment,” said Chris Hoene, California Budget Project executive director, at the conference.

Gov. Jerry Brown’s 2014-2015 proposal allocates $3 billion to the UC, which includes a $142 million, or 5 percent, increase from the current fiscal year. Raising state support was part of an informal agreement between the governor and the UC that stipulated the University freeze its tuition until 2016-2017.

Although the UC Board of Regents asked the state for a greater increase at its bimonthly meeting in November – as much as $120.9 million on top of the 5 percent raise – the University is “thrilled” the governor is making progressive moves to invest in the UC, said Brooke Converse, a UC spokeswoman.

On Wednesday, the California Budget Project argued that while the proposed increase will stabilize the short-term trend of diminished state support coming out of the recession, a bleak picture remains for the fiscal security of the UC.

The inflation-adjusted general fund spending per full-time student in the UC remains at its lowest point in decades and UC tuition and fees have more than quadrupled since 1990-1991 according to a report from the California Budget Project.

“Here is the broader picture: The state is bearing historic low levels of cost for the state’s higher education, and we want to ask policymakers: is this a new norm that we want to operate in?” said Phaelen Parker, a policy analyst at the California Budget Project.

The governor’s proposal would pay down outstanding debt and strengthen the rainy-day fund to “make some fiscal space for the state,” Hoene said.

But with the 2012 passage of Proposition 30, California Budget Project officials said rising state revenues and an improved fiscal outlook means the state can and should spend more on programs affecting a wide range of Californians, particularly those of lower income, according to a report from the California Budget Project. Proposition 30 temporarily raised sales taxes and income taxes for high-income earners.

The California Budget Project suggested a boost in spending for the UC and CSU as one key approach to investing in the state’s long-term prosperity. Hoene said the state budget would inject dollars into local communities by supporting the UC, which has long been important for fostering economic growth and opportunity in California.