News
Elimination of cal Grant funding threatens UC
June 1, 2009
As California's fiscal situation continues to deteriorate, the state's higher education systems – representing more than 3.5 million students – are facing a dramatic budget crisis.
President Yudof was scheduled to testify before the state Conference Committee on the Budget today (June 1).
California Community Colleges Chancellor Jack Scott and California State University Chancellor Charles Reed joined President Yudof. The leaders were expected to detail the immediate and long-term consequences of the drastic cuts outlined in Gov. Arnold Schwarzenegger's latest budget proposal on enrollments, student fees, academic programs, student services and on affordability if the proposal to phase out the Cal Grant program is implemented.
Under the governor's most recent budget proposal, in 2009-10 CSU and UC face reductions in state support between 16 percent and 20 percent.
Both CSU and UC have already announced enrollment cuts for fall 2009, and the California Community Colleges anticipate access to more than 250,000 students will be denied as a result of the proposed $825 million budget reductions that are coupled with an additional $115 million in deferrals.
In a joint letter to the members of the Joint Legislative Budget Committee, released in advance of the hearing, the leaders of California's three segment's of public higher education, spoke out forcefully about the Governor's proposal to eliminate the Cal Grant Program.
"The proposals to decouple Cal Grants from fee increases and prohibit new Cal Grant awards for the coming year is extremely troubling. Students have already been accepted for the fall of 2009 based on certain University, State, and federal financial aid assistance. The number of UC students not receiving a new Cal Grant award in 2009-10 would be about 14,000 but the impact would extend to all 60,000 UC grant recipients because UC grants would be redistributed to equalize the impact among all grant-eligible students. The total dollars associated with lost Cal Grant funding would be $100 million, including a $90 million funding reduction due to no new awards and a $20 million reduction due to no coverage of the $662 fee increase for continuing recipients."
"We understand the State must consider drastic actions to address its budget shortfall. But this proposal seems particularly severe, given the reliance students already have placed on promises of student aid in accepting admission from the University. We believe this action requires more notice to students and their families. We urge you to reject the proposal for 2009-10."
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