In 2004 Gov. Schwarzenegger and UC officials agreed on a compact developed within the context of the fiscal crisis currently confronting the state of California. The agreement promised less funding from the state compared to prior years, increased fees for students and the need for outside funding sources.

The compact, which outlines years 2005-06 through 2010-11, says, “In order to help maintain quality and enhance academic and research programs, UC will continue to seek additional private resources and maximize other fund sources available to the University to support basic programs.”

The student fee policy of the compact assumes that UC will continue to collect student fees even “without a corresponding reduction in state funds.”