Gov. Brown proposes holding funds for UC until audit suggestions are met

Gov. Jerry Brown proposed reserving $50 million for the University of California as part of the revised May budget he announced Thursday.

Brown said he would hold the funds until the UC Office of the President implements recommendations that state auditor Elaine Howle made following her report. The audit claimed UCOP had misleading budget practices, interfered with the auditing process and paid excessive salaries. Brown also asked for updates on two cost-reduction programs UC President Janet Napolitano agreed to implement in 2015.

The revised budget would increase funding for Cal Grant by $4 million by reducing UC funding by the same amount in response to the tuition increase the UC Board of Regents passed in January.

Additionally, the budget proposes allocating $5 million to the UC to conduct transportation-related research, as part of an appropriation from Senate Bill 1, which funds other transportation and infrastructure projects.

[Related: Gov. Jerry Brown proposes UC budget increase, financial aid changes]

The January proposal included $131.2 million, or a 4 percent increase in UC’s general funds as part of a 2015 agreement between Brown and Napolitano, and $169 million to help pay down the unfunded liability of the UC Retirement Plan, on top of the 2016-2017 budget.

In the January budget, Brown also proposed phasing out the Middle Class Scholarship, which UC officials and lawmakers had asked him to consider keeping. Under Brown’s proposal, only students who currently receive the scholarship could renew it, and the program would not take new applicants.

Overall, the UC would receive $3.69 billion in state funding, if the budget is approved. The state legislature will discuss Brown’s budget and must pass it by June 15. Brown must sign the budget into law by July 1.