Cal Grant legislation Assembly Bill 2447 receives initial approval from Assembly Committee on Higher Education
By Nouschka van der Meijden
April 26, 2010 10:17 p.m.
A bill set up to ensure student financial aid passed the first approval committee on April 20.
Assembly Bill 2447, which aims to maintain and improve the Cal Grant financial aid program, was passed by the Assembly Committee on Higher Education ““ the first step toward getting the bill approved by Gov. Arnold Schwarzenegger.
The bill, supported by the University of California Student Association and Assemblyman Warren Furutani, D-Calif., aims to tie financial aid to the rate of inflation. If fees increase, aid will grow accordingly.
The bill also aims to maintain the Cal Grant Competitive Awards and to institutionalize Cal Grants in general.
The aid used by students to pay student fees is already tied to the rate of inflation, but aid meant specifically for living expenses is currently stagnant.
“The financial aid for campus is the same as it was in the ’90s, while living expenses, textbooks and transportation are increasingly getting more expensive,” said Victor Sanchez, president of the UCSA.
Ronald Johnson, UCLA Financial Aid office director, said between 6,200 and 6,500 UCLA students currently receive Cal Grants, which equals around $54 million. Statewide, 22,500 students receive Cal Grant Competitive Awards, including 200 UCLA students.
This is not the first time Cal Grants are being threatened. Ever since the financial crisis hit California two years ago, the grants have been at risk.
In July 2009, Schwarzenegger proposed to eliminate the state-sponsored aid altogether to help California out of its $42 million deficit.
Schwarzenegger called for suspending the Competitive Cal Grant in his January budget proposal, which is important mainly for transfer students coming from community colleges, Sanchez said.
Currently, Cal Grants fall under the discretionary budget, meaning that whoever is in office has the power to increase, decrease or eliminate the awards.
The bill aims to institutionalize the grants, making them part of the locked budget, which cannot be touched, according to Christopher Santos, chairman of the Undergraduate Committee of the UCSA and a third-year psychobiology student.
The institutionalization of the grants is expected to be the most complicated aspect.
Johnson said he believes the current situation and proposed cuts are a serious threat to higher education in California.
“How are we going to have this economy recover if we do not invest in education, if we do not have individuals to work in this economy and pay the future taxes?” Johnson said.
He added, “Some priorities are going to have to be set, and Cal Grants should be one of the highest priorities.”
If the financial aid system does not improve, students will have to work more and take out higher loans, and some will not be able to go to college altogether, Sanchez said.
Santos added, “I have a deep trust in students and what they can accomplish. We apply pressure whenever pressure is needed.”
The next step for the bill is the Appropriations Committee. The final fate of Cal Grants will be determined during the May budget revision.
Members of the UCSA, including Sanchez, are scheduled to meet the governor next week to discuss Cal Grants and the May revision.
