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California governor Gavin Newsom’s proposed 2022–23 state budget promises hefty funding increases for the state’s higher education systems. The total $39.6 billion higher education budget includes a 5 percent annual increase in base funding for five straight years for the University of California and California State University systems, as well as $1.6 billion in new funding for the state’s 116 community colleges.

Over all, UC would gain $307.3 million in ongoing funding and CSU $304.1 million.

However, the money is contingent upon the institutions meeting certain targets—including closing the achievement gap among underserved students, increasing graduation rates, lowering student costs and boosting enrollment by California residents.

To that end, the budget proposes increasing funding to add 9,434 California students at Cal State and 7,132 at UC campuses—including 902 seats at UCLA, UC Berkeley and UC San Diego currently reserved for nonresident students. The budget allocates $31 million to those three campuses to compensate for the higher out-of-state tuition nonresidents pay, the Los Angeles Times noted.