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Gov. Jerry Brown signs California Dream Act, qualifying undocumented students for financial aid

By Andra Lim

Oct. 8, 2011 1:30 p.m.

Hundreds of undocumented students will be able to receive state-funded financial aid after Gov. Jerry Brown signed the second half of the California Dream Act Saturday morning.

AB 131 makes qualified undocumented students eligible for Cal Grants ““ which can help cover tuition, living expenses and books ““ as well as fee waivers from the Board of Governors of the California Community Colleges.

“The Dream Act benefits us all by giving top students a chance to improve their lives and the lives of all of us,” Brown said in a statement.

The money for AB 131 will come from the state’s general fund and from revenue earmarked for education through Proposition 98, said Luis Quinonez, a legislative aid for the office of Assemblymember Gil Cedillo (D-Los Angeles), who authored the bill.

To qualify for aid under the Dream Act, students must meet AB 540 requirements, which allows eligible students to pay in-state tuition. These requirements include attending a California high school for three years and graduating. Students must also affirm that they are in the process of applying for citizenship.

The majority of students who benefit from the bill are citizens from other states who moved to California while in high school.

There are about 2,240 AB 540 students in the University of California, Quinonez said. Of those, about 672 are undocumented, he said.

In July, Brown signed the first part of the California Dream Act, which would allow such students to receive privately funded financial aid from the UC, California State University and California Community College systems.

The passage of AB 131, which will take effect in January 2013, brings years spent battling over the legislation to a close. Similar bills were vetoed multiple times by Gov. Arnold Schwarzenegger.

Opponents of the Dream Act argue that it drains a dwindling state budget. Assemblymember Tim Donnelly (R-Twin Peaks) tweeted, “Brown chose to fund illegal dreams over funding our school, pub safety & veterans.”

AB 131 could cost from $15 million to $40 million annually, Quinonez said. He added that a chunk of this money is already accounted for California’s budget.

Of the Cal Grant budget, $13 million that would typically return to the state will be distributed among AB 540 students. That number is one percent of the program’s total budget, Quinonez said.

Every student who is eligible for the Cal Grant entitlement program, including AB 540 students, will get need-based aid, Quinonez said.

In contrast, competitive Cal Grants are capped ““ students who are legal residents and citizens would get the money they need before AB 540 students could apply, Quinonez said.

The California Dream Act will likely increase the number of undocumented students who attend a California college. That rise would make the legislation more expensive to enact, said Justin Garosi, an economist at the Legislative Analyst’s Office.

Garosi added that there is a benefit to the cost: With more students going through higher education, there will be more skilled workers for the state.

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