SACRAMENTO (CBS SF) – California Governor Jerry Brown and the University of California have reached a long-term funding agreement, capping resident tuition at its current level for the next two years.

The announcement comes as Governor Brown introduced his revised budget proposal on Thursday.

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The agreement with UC President Janet Napolitano includes a 4 percent base budget increase for each of the next four years, a one-time infusion of $436 million over three years for UC’s pension obligation from funds set aside under Proposition 2, allocations in 2015-16 of $25 million for deferred maintenance and $25 million in funds from the state’s cap-and-trade program to support energy efficiency and allows regents to authorize the university to increase nonresident supplemental tuition up to 8 percent annually.

This comes after months of negotiations and lobbying by President Napolitano for more funding from the state, to avoid tuition hikes of up to 5 percent in each of the next five years.

“Governor Brown and I were both focused on the future of California as we worked toward this agreement, which will enable the University of California to continue its role as the nation’s preeminent public research university,” Napolitano said in a statement. “Now the University of California will turn to our state legislators for their much-needed support of the proposed budget and for funding to enroll more California students.”

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The terms of the agreement will be presented to the UC Board of Regents at its May 21 meeting.

Governor Brown’s revised proposal features a record $115.3 billion spending plan that will send more money to public schools, set aside reserves and create a new state tax credit for the working poor.

The revised budget reflects $6.7 billion in new revenue that has come in to the state since January.

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