Higher Education

Higher Education provides the adult population with basic and career skills, postsecondary, graduate and doctoral instruction, and research to develop the workforce, intellectual capital, and innovations necessary to promote the economy and well being of the state's citizenry.

Drawing from the top 12.5 percent of the state's high school graduates, the University of California (UC) provides graduate and undergraduate instruction and is the primary segment authorized to independently award doctoral degrees as well as professional degrees in law, medicine, dentistry, and veterinary medicine. In addition to providing instruction, UC is the primary state-supported academic institution for research, operates teaching hospitals and clinics, research institutes and laboratories, agricultural field stations, and the Cooperative Extension program.

The California State University (CSU) provides undergraduate instruction and graduate instruction through the master's degree, awards the doctoral degree in education, and is authorized to award other doctoral degrees in conjunction with UC or a private institution. Students from the top one-third of the state's high school graduates, as well as transfer students who have successfully completed specified college work, are eligible for undergraduate admission to CSU. Many CSU students are older and/or employed and attend part-time, especially at the graduate level.

The California Community Colleges (CCC) are publicly supported local education agencies that offer academic and vocational education at the lower division level for recent high school students and returning adult students; advance California's economic growth and global competitiveness though education, training, and services that contribute to continuous workforce improvement; and provide remedial instruction for hundreds of thousands of adults across the state through basic skills courses and adult non-credit instruction.

The California Student Aid Commission (CSAC) administers state financial aid to students attending all segments of public and private postsecondary education. Working together with EdFund, which is the auxiliary loan guaranty agency that operates with oversight by CSAC, the Commission administers federal and state-authorized financial aid, including state-funded grants, work-study programs, and federally guaranteed loans. In addition to serving as California's student loan guaranty agency, EdFund serves as a guaranty agency for colleges and universities located throughout the United States.


GOVERNOR'S HIGHER EDUCATION COMPACT
In 2004, the Governor entered into an agreement with the UC and the CSU called the Higher Education Compact (Compact). The Compact provides a six-year resource plan for the UC and the CSU that addresses annual base budget increases including general support increases of up to 5 percent, enrollment growth of 2.5 percent, student fee increases that may not exceed 10 percent, and other key program elements through 2010-11. In exchange for long-term fiscal stability, the UC and the CSU have committed to preserving and improving student and institutional performance in numerous program areas including program efficiency, utilization of systemwide resources, and student-level outcomes. The resources provided through the Compact enable the UC and the CSU to accomplish their missions outlined in the Master Plan for Higher Education as described above.

The Governor's Budget reflects total funding of $19.8 billion, including $14.1 billion General Fund and Proposition 98 sources for all major segments of Higher Education (excluding infrastructure and stem cell research), which reflects an increase of $1.1 billion ($846.4 million General Fund and Proposition 98 sources) above the revised 2006-07 budget. These amounts represent a 5.7-percent total funding increase including a 6.4-percent increase in General Fund and Proposition 98 sources above the revised 2006-07 budget. The funding by major segment is shown in Figure HED-01. Notable funding changes are further described later in this chapter.

Pie chart displaying Proposed Higher Education Expenditures for 2007-08 (All Funds).  Dollars in Millions.  Community Colleges is $8,616.1 (43.6%).  Student Aid Commission is $930.3 (4.7%).  Other Higher Education is $391.5 (2.0%).  University of California is $5,452.4 (27.6%).  California State University is $4,364.2 (22.1%).


CHAPTER HIGHLIGHTS for Higher Education Back to Top

 Major Accomplishments in 2006-07
 Proposed Higher Education Spending for 2007-08
 Program Enhancements and Other Budget Adjustments

PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - Higher Education (pdf * - 181K) -
Provides this entire Higher Education Chapter in pdf format.


ADDITIONAL INFORMATION Back to Top
Proposed Budget Detail - Higher Education
Displays Proposed Budget Detail information for Higher Education.