SAN FRANCISCO (AP) — The University of California’s governing board has approved a tuition increase for out-of-state undergraduate students of 3.5 percent, or $978 a year, starting in the 2018-19 school year.

The Board of Regents voted 12-3 in favor of the increase Thursday and will decide in May whether to raise tuition for California residents.

Thursday’s vote increases supplemental tuition for out-of-state undergraduate students to nearly $29,000, up from about $28,000 currently.

The supplemental tuition is an extra cost that out-of-state students pay on top of $12,630 in “system-wide tuition and fees.”

The increase will bring tuition and fees for out-of-state undergraduates to nearly $42,000 next year.

The university says the increase will generate nearly $35 million and help compensate for lower than expected state funding at a time of record-high enrollment.

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