A message from UC President James B. Milliken on Governor Newsom’s budget proposal

University of California President James B. Milliken today (Jan. 16) issued the following message to the UC community on Gov. Gavin Newsom’s proposed 2026–27 state budget:

Last week, Governor Newsom introduced his 2026-27 state budget proposal. I am deeply grateful to Governor Newsom for his continued support for UC, particularly in the face of federal cutbacks and uncertainty, rising labor and health care costs, and a potentially challenging budget year for the state. He has been a consistent champion of higher education, California’s students, and UC’s innovation and research enterprise, always recognizing our graduates as essential to the state’s goals.

This initial proposal is a very positive first step in this year’s budget process: a 7 percent base budget increase of $350.6 million in ongoing funding for the University. UC’s Compact with the Governor and Legislature is an especially important part of our commitment to expand access to Californians, educate the state’s future workforce, and drive innovation. Last year, the Governor deferred UC’s Compact payment due to ongoing state budget deficits. This year, he is proposing an important step to fund both the final year of the Compact payment and a portion of last year’s deferral to continue serving a record 301,000 UC students.

The Governor’s budget proposal will support UC in numerous other ways, but this remains a deeply challenging time for the University, especially as the federal government continues to reduce its support of higher education and research. Federal policy changes and reductions to federal financial aid and student opportunity programs continue to threaten our ability to serve all Californians. Together, we have already taken steps to contain costs, including implementing a systemwide hiring freeze, significantly reducing travel expenditures, and restructuring research support functions. But these actions alone will not resolve the challenges we face.

I am especially gratified by the work of our faculty and administrative leadership through UCAD Plus, the Academic Senate-Administration Task Force on UC Adaptation to Disruptions, led by Academic Senate Chair Palazoglu and Provost Newman, as well as the parallel effort addressing administrative expenses and revenue—the UC Administrative Transformation project—led by Executive Vice Presidents Brostrom and Nava. Today I met with a group of finance and operations vice chancellors from across UC to support their important work. I am encouraged by their recognition that we have to look at all areas of the University in our efforts to most effectively serve the people of California. The state budget process is in its early stages. A lot can still change between now and June, when the state will finalize its budget for the next fiscal year. As we collaborate with the Governor and Legislature over the coming months, we will also need to seriously consider new and innovative ways to meet our mission.

I want to reiterate my gratitude for all you do on behalf of this University. I know these are difficult times, and the stakes could not be higher. Your work is critical to securing UC’s future. I look forward to the work ahead to ensure that UC remains an extraordinary University serving California for generations to come.

Fiat Lux,

James B. Milliken
UC President