UA officials said they are pleased with the 2007 budget proposal released on Tuesday by Governor Janet Napolitano, though it fell short of meeting every university request.

"You never get everything you want," said Greg Fahey, UA vice president for government relations.

As the chief lobbyist for the UA, Fahey said if the proposal passes, it would allow the UA to increase student financial aid, offer competitive salaries to its top professors and offer a raise to a majority of UA faculty and staff.

Napolitano told the Arizona Daily Wildcat that the three major universities were a priority in her budget because they are crucial to the health of Arizona's economy.

The governor said an important portion of her budget was to increase the amount the state contributes to student financial aid. There is a need to increase the capacity of ASU, NAU and the UA, she said, and her budget would help the top three universities expand the number of students they serve.

To address the problem of "brain drain," a term referring to the loss of top professors to other universities, Napolitano set aside $10 million in her budget for a new fund designed specifically for new recruitment and retention pay, and to attract high-profile faculty and researchers.

Governor, lobbyists disagree on formula

The budget also offered $1.3 million to pay for increased enrollment at the UA. To determine the enrollment growth, the governor's recommendation uses a funding formula that pays for one faculty position, half of a support position and related operating and equipment costs for every 22 full-time students, according to the budget released by the governor.

Fahey argued that the $1.3 million was close to the UA's request of $1.5 million, but said her proposal fell short of meeting the 22-to-1 funding formula. Fahey did not offer specifics.

Napolitano said she believed the UA was fully funded according to the formula.

Napolitano to regents: Keep tuition low

The cost of student tuition was also addressed at a recent meeting between Napolitano, the three Arizona university presidents and members of the Arizona Board of Regents. She told them she wanted the 2007 tuition proposals, expected at the end of January, to be as low as possible.

"They got the message clear," Napolitano said.

An additional $2.5 million was allocated for the creation of three performance incentives at the UA, a dramatic increase from the $800,000 the UA had requested, according to the budget.

The first incentive would add $150,000 to the UA budget for each 0.1 percent reduction in the time it takes for a full-time student to graduate.

The second incentive would provide $75,000 for each 0.1 percent improvement in the percentage of full-time students who earn a bachelor's degree in less than six years. The third incentive would provide between $3,000 and $5,000 for each 1 percent improvement in the number of degrees awarded relative to the number of students enrolled.

There are also separate funding awards depending on whether the UA can increase the number of degrees awarded in education, engineering and nursing.

The budget also sets aside $5 million for an economic-development program to be administered at the Eller College of Management.

The dean of the Eller College, Paul Portney, said the program would enable Eller students to pair with students in other UA colleges who have ideas with commercial potential but lack the economic tools to market a product.

"We had some success with a primitive program," Portney said.

The new program was similar to the McGuire Entrepreneurship Program, which won the $150,000 first prize in the Honeywell Growth Challenge last May.

Portney said the funding would need to be renewed every year to make the program viable.