California lawmakers and Gov. Schwarzenegger have finally reached a deal to close a remaining $26 billion budget gap and in the process higher education took brutal cuts. California State University trustees have voted to adopt a 20 percent fee increase (on top of 10% approved earlier this year), and the University of California system has warned of another significant increase in the fall. Furloughs and class reductions are also in the mix. Because the new budget package counts on an economic rebound, many are warning that future cuts (and fee increases) are likely down the road.
Also, here is a New York Times story putting the California budget situation into a broader context.