The 1999-2000 state budget signed into law Tuesday by Gov. Gray Davis provides significant new funds that will allow the University of California to continue its investment in quality academic programs, maintain access for qualified students and become an even more affordable institution for California students. The budget, the first signed before July 1 in six years, funds the UC Board of Regents' basic budget request for 1999-2000. The regents asked the state to pay for the university's core needs, including enrollment growth, compensation for faculty and staff, and cost increases for current programs. The enrollment growth funded will allow 5,500 more students in 1999-2000, a 3.7 percent increase over 1998-99. The spending plan also provides additional funding for UC in the critical areas of deferred maintenance, instructional technology, in-structional equipment and library collections. The budget also provides funding for other initiatives at UC, including $17 million in new funding for outreach programs and K-12 academic improvement initiatives. "This budget preserves the excellence of the University of California," said UC President Richard Atkinson. "We are grateful to Gov. Davis and the Legislature for the commitment they have demonstrated to maintaining the university as one of the world's great institutions of learning. This budget makes a solid investment in quality teaching and research, access and affordability for our students, and collaborative efforts to help improve K-12 education in California." The budget increases state general fund spending for UC by $189 million to a total of $2.7 billion, or 7.5 percent above the 1998-99 level. Under the budget plan, mandatory systemwide fees for resident undergraduates will fall 5 percent, from $3,609 per year to $3,429. Mandatory systemwide fees for resident academic graduate students also will fall 5 percent, from $3,799 per year to $3,609. (These fee levels do not include campus miscellaneous fees.) The Board of Regents will be asked to take action on these fee reductions at its July meeting, along with a 4.5 percent ($420) increase in nonresident tuition, consistent with state policy on tuition for out-of-state students. The fee cut for resident undergraduates is the second 5 percent reduction in as many years. This marks the fifth consecutive year that fees for UC resident undergraduates have not been raised. Already, these fees are more than $1,000 per year below the average at UC's public comparison institutions around the nation. "These fee reductions will be welcomed by our students and their families," Atkinson said. "We also are pleased that while fees are being reduced, the governor and Legislature have maintained the state's contribution to financial aid." The budget provides funds for increased salary costs for eligible UC employees--an average of 2 percent plus normal merit increases. The actual distribution of funds will vary depending upon the employee's compensation program and upon collective bargaining requirements. The budget also includes funding for competitive market-based salary adjustments for faculty members, Cooperative Extension specialists and information technology professionals. Also included in the UC budget is funding for several programs proposed by the governor to assist California's K-12 educational system. These programs include Reading Professional Development Institutes to provide summer instruction in the teaching of reading for up to 6,000 K-3 teachers; Teacher Scholars, a 15-month program for prospective teachers leading to a teaching credential and master's degree from UC; and the Principal Leadership Institute, a two-year curriculum to train school principals. The budget also provides funding for the development of online Advanced Placement courses for high school students; for the Summer School for Math and Science, an academic development program to enrich some of the state's brightest students; for English Language Learners, a professional development program for teachers; and for summer pre-intern teaching academies serving teachers who have emergency credentials. Additionally, $1.5 million in new funding is provided for UC outreach programs to prospective graduate and professional school students. Other items in the budget include: Nearly $21 million in new funding for research initiatives in areas including alcohol and substance abuse, brain injury, neurological disorders, AIDS and violence prevention. Also included in this figure is a $5 million augmentation for the Industry-University Cooperative Research Program, which promotes research partnerships between UC and private industry in fields critical to the state's economy. A $2 million augmentation for Cooperative Extension programs, which provide important services to California farmers. An increase of $1.5 million for the California Digital Library, which collaborates with the UC campuses to provide electronic access to scholarly resources. An allocation of $400,000 for Merced County planning associated with the planned development of UC Merced, the university's 10th campus. The budget continues $9.9 million provided in 1998-99 for UC planning and development of the campus. About $215 million in bond funding from voter-approved Proposition 1A to finance UC facilities projects. Most of these projects involve seismic repairs or construction of new buildings to help accommodate enrollment growth, particularly in the sciences.