SACRAMENTO The state spending plan crafted by Gov. Jerry Brown and legislative leaders includes $15 million for UC Riversides school of medicine, after budget writers told UC to allocate the money out of a $125 million increase designated for the system.

This weeks compromise means the medical school is poised to finally receive long-sought state assistance. The approach has the support of the Brown administration, which did not include any money for the school in its January spending proposal or May revision.

That $15 million is within their existing appropriation rather than needing additional dollars, Michael Cohen, the chief deputy director of Browns Department of Finance, said of UC during testimony to the Joint Legislative Budget Conference Committee late Monday.

Supporters call the medical school vital to increasing the number of primary-care physicians in the underserved Inland region, particularly as the federal healthcare overhaul takes effect. Without a state financial commitment, they said, the school could not open as scheduled and would have trouble with its accreditation.

Education subcommittees in both houses of the Legislature last month approved $15 million augmentations for the medical school, over and above Browns proposed $125 million increase for UC. Lawmakers also have passed separate, non-budget legislation to appropriate the money.

The Legislatures budget conference committee took a different approach Monday.

The panel voted to allow the UC system to restructure its bond debt, a move that will generate $80 million annually for the next decade.

The system plans to target that money at its employee retirement obligations -- something that otherwise would have consumed the bulk of the extra $125 million for 2013-2014. And a separate budget bill earmarks $15 million of the $125 million for the school of medicine.

Patrick Lenz, UCs vice president for budget, said the system preferred the $15 million augmentation passed by the subcommittees but supports this weeks conference committee action.

State Sen. Bill Emmerson, R-Redlands, the top Republican on the budget conference committee, voted for the compromise.

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MEDICAL SCHOOL: $15 million in budget package