MADISON, Wis. -

Gov. Scott Walker says he is not looking to cut funding for the University of Wisconsin System in his proposed budget despite a report that it has amassed a huge tuition surplus.

A memo given to lawmakers Friday by the nonpartisan Legislative Fiscal Bureau said the system finished the last fiscal year with nearly $650 million in reserve.

System officials asked the governor for an additional $37 million in his budget for the next fiscal year. He included an additional $181.3 million.

Walker said Monday during a news conference in Milwaukee that much of that money is for economic development initiatives that he considers essential.

But he also says the surplus should allow the university system to freeze or even reduce tuition, and he will push for that.