The budget deadlock in the state Legislature may hit some
California students close to home if an agreement is not reached
before the beginning of fall classes.
Cal Grants, usually distributed in the first two weeks of
August, have been delayed as the state continues to operate without
a budget. Until a budget is signed, the California Student Aid
Commission will not disburse $212 million in Cal Grant funds unless
Gov. Gray Davis orders a release of the funds.
Spokespersons in Davis’ Sacramento, Los Angeles and San
Francisco offices would not comment on his current plans for Cal
Grants. The spokesman familiar with the issue was away on business
in the Channel Islands.
If the delay continues, students may find themselves working
more or going into debt.
“(Late grants) would mean working more hours and needing
to get more loans,” said Mary Dang, a third-year economics
and sociology student.
A delay could be a harder blow for students needing Cal Grants
for expenses outside of school fees.
“Without being supported through Cal Grants I can’t
pay my rent,” said Benjamin Rodriguez, a fourth-year
political science student.
The University of California said UC students will not be hurt
by budgetary politics.
Right now the UC only needs to worry about covering Cal Grants
for UC Berkeley students, who begin classes in August. The UC will
need to provide money for students at other campuses only if a
budget is not passed by late September.
About 35,000 UC students receive $125 million in Cal Grants each
year. The UC is prepared to draw from internal funds to cover
system-wide students if there is no budget in late September, said
UC spokesman Hanan Eisenman.
California has gone without a budget since July 1, as
legislators cannot agree how to handle a $23.6 billion
shortfall.
The California State University also has measures to help
students if the budget deadlock continues.
If the budget is not signed before school starts, the CSU will
credit students waiting for Cal Grants for institutional charges
like tuition and housing, said CSU spokeswoman Clara
Totes-Fellow.
Since CSU campuses have cash reserves, the system does not see
this as a major problem, she said.
At California community colleges, students eligible for Cal
Grants also receive fee waivers. To assist students with expenses
like books, community colleges will offer vouchers and loans even
though the system has no money on reserve, said spokeswoman Linda
Michalkowski.
Private schools such as the University of Southern California
also plan to lend students a hand. USC will credit student accounts
until the money is released, foregoing income until the issue is
resolved, said financial aid officer Cathy Thomas.
Assembly Higher Education committee chair Elaine Alquist, D-San
Jose, meanwhile, has formally requested that Davis work with CSAC
and the Department of Finance to release the Cal Grant funds. In a
letter to Davis, Alquist said the state has managed to pay
California employees, “we can … ensure that Cal Grant
awards are made in a timely manner.”
Assemblyman Rod Pacheco, R-Riverside, the only state legislator
to serve on both the budget and higher education committees, also
plans to enter the Cal Grant fray. As of Aug. 16, Pacheco’s
staff was working on a request for the release of Cal Grants, said
Pacheco spokeswoman Karrie Watson.
CSAC has also made contact with Davis, providing him with
information on likely effects of the Cal Grant delay on students,
said CSAC spokeswoman Susan Skeoch.
Within the Assembly, the issue reflects the highly partisan
character of the current budget debate.
“If the governor would negotiate, we could reach a deal
and we wouldn’t have to worry about Cal Grants,” said
Assemblyman John Campbell, R-Irvine, ranking party member in the
budget committee.
The Cal Grant delay is the consequence of “the Republican
budget blockade,” said Jenny Oropeza, D-Long beach, chair of
the budget committee.
With reports from the Associated Press.