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California Lawmakers Propose Cutting Scholarships To Avoid UC Tuition Hike

Lawmakers Propose Cutting Scholarships To Avoid UC Tuition Hike
Reuters
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University of California Berkeley student Cameron Morgan, center, holds up a sign as he protests with students against tuition increases in Berkeley, Calif., Monday, Nov. 24, 2014. Students protesting tuition hikes in the University of California system staged walkouts at multiple campuses after the UC Board of Regents voted 14-7 to approve increases of as much as 5 percent in each of the next five years unless the state devotes more money to the system on Thursday, Nov. 20. (AP Photo/Jeff Chiu)

By Sharon Bernstein

SACRAMENTO, Calif., Dec 2 (Reuters) - A group of California lawmakers has proposed gutting a much-touted middle-class scholarship program for students at California's two public university systems, the latest salvo in tense negotiations over funding.

Democrats in the state Senate on Tuesday proposed shutting down the scholarship program and using the money to avoid controversial tuition hikes approved for the prestigious University of California, increasing funding for that system as well as the California State University.

"Today's proposal provides an alternative to raising University of California tuition and fees for California students," said Kevin de Leon, the top Democrat in the Senate, said at a news conference at the state Capitol in Sacramento.

A bill developed by de Leon and introduced by Democratic Senator Marty Block of San Diego would use savings from ending the middle-class scholarship program along with other sources to increase grants and state funding for the two university systems by about $250 million above what is already planned.

It would raise tuition for out-of-state students, using the money to fund more places for California applicants, and offer additional grants to students who graduate in four years.

The bill raised eyebrows in Sacramento, where the leader of the Assembly was a key supporter of the middle-class scholarship program when it passed last year.

Assembly Speaker Toni Atkins, a San Diego Democrat whose plan to avoid the tuition hike would expand the scholarship, said DeLeon briefed her on his proposal, but did not say it would eliminate the scholarship.

"It does concern me," Atkins said. "We just got up and running and gave assistance to more than 73,000 students this last year."

The two university systems have been asking for additional money for the past year, but California Governor Jerry Brown, a fiscally moderate Democrat, has opposed it.

He pledged to increase funding for the systems by 4 percent a year, but only if tuition is frozen.

In a move widely seen as a challenge to Brown, UC President Janet Napolitano released a plan, approved last month by the Board of Regents, to raise undergraduate tuition by 5 percent annually for five years if the state does not increase funding by $100 million over Brown's pledge.

Napolitano praised de Leon's proposal, calling it a "promising first step" while declining to comment on the details.

Brown declined to comment, saying he would release his budget plan in January. (Editing by Eric Walsh)

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Before You Go

People Who Paid Off Their Student Debt Super Fast
Brian McBride: $26,500 In Two Years(01 of02)
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However, Brian McBride, an associate producer at CNN and a 2010 graduate out of Arizona State University, managed to pay off $26,500 in debt in just two years. He explained his plan on CNN Money's website.McBride owed $20,500 in student loan debt and $6,000 for his 2003 Honda Civic. He said he tackled his car loan first to pay down a higher interest rate during a six-month grace period following graduation on his student loans. In his first job out of college as a local reporter in Green Bay, Wisc., he lived frugally while working for $13 an hour. Read more here. (credit:Twitter: @BrianDMcBride)
Stephanie Hood: $90,000 In Three Years(02 of02)
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From her story:
I started by making a budget for each of my expenses, and then made it a point to look at my bank account and my budgets spreadsheet once a week to categorize all of the money going in and out.I also calculated my monthly expenses, and tried to determine what it would take to put $500 to $1000 extra each month–on top of the $800 in minimum payments I was already making–toward putting a further dent in my loans. Since I couldn’t do it based on how much I was earning, I got creative:- Rent: I gave up my Dupont neighborhood studio and found a roommate in a cheaper neighborhood, which halved my rent.Cable I canceled my subscription, and streamed shows for free on my computer instead.- Gym: Rather than pay $95 a month for health club membership (D.C. gyms are expensive!), I started using the free facility at work, joined a running club on Meetup and streamed free workout videos online during rainy days.- Phone Bill: I limited my data usage and calls, and switched to a plan that cut my monthly bill by $30. I even told friends not to text me!- Entertainment: Instead of relying on happy hours and dinners out, I found free events on Meetup, like hiking trips and book clubs. Or I’d invite friends over for food, and they’d bring their own beer. I also only ate out if it was beneficial to my career, like networking lunches.- Travel: I went to Peru in the winter of 2010, and this year, I’m planning on Malaysia — both countries where the exchange rate is great. I stayed in hostels, and ate where locals do instead of going to pricier tourist spots. Plus, I put a little aside each month, so the expense is built into my budget and doesn’t take away from my savings. (Make travel a Priority Savings Goal in your own budget.)
Read the whole thing here. (credit:Via LearnVest)
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