Assembly hearing spotlights proposed UC cuts and deferred compact funding; LAO urges rejection of deferrals

Chair David Alvarez convened the Assembly Budget Subcommittee No. 3 hearing on UC finance to review the governor’s 2025 budget proposals that would reduce and defer parts of the multi‑year compact with the University of California. The administration’s Department of Finance described the budget as maintaining the compact but deferring certain payments and continuing efficiency reductions; the Legislative Analyst’s Office recommended the Legislature reject the proposed base deferrals.

“The governor's budget maintains the multi year compact with the university of California in exchange for clear commitments to expand student access, equity and affordability,” Jessica Deichman of the Department of Finance told the committee, while also explaining that a payment planned…