On Dec. 22, State Controller John Chiang sent a letter to Gov. Arnold Schwarzenegger warning legislators of the consequences of California’s $42 billion budget deficit.
Chiang projected that by March, the state would be devoid of cash. As a result, taxpayers expecting a refund would instead receive IOUs, and Cal Grants for students would be temporarily cut.
The proposal is part of a larger package that also involves raising taxes and giving IOUs to state legislators.
Garin Casaleggion, Controller Chiang’s deputy communications director, said that the proposal represents a “worst case scenario” and that the state “needs immediate budget solutions or the controller will be forced to take action.”
Chiang also realizes that the proposal would carry unintended consequences for students and families.
However, his office assured that schools are the state’s top spending priority.
As a result of the proposal, the University of California system and students alike would be left to cover the difference in financial aid, said UC Spokesman Ricardo Vazquez.
He assured that the UC system’s own financial aid would offset many costs, but overall, students’ need to work and borrow money would increase.
He said that UC representatives are still analyzing Controller Chiang’s proposal and will “get a better sense (of its implications) in the next few days.”
Because Controller Chiang’s proposal is still hypothetical, even California state legislators are unsure of its consequences.
State Senator Jenny Oropeza has consistently been an outspoken supporter of public school funding and higher education and served on the Assembly Education Committee.
However, Oropeza’s Communications Director Ray Sotero said that they have little insight or information on the proposal since it has not been finalized yet.
Although the proposal has not yet reached a decision, the response has been largely negative from UCLA students.
The Undergraduate Students Association Council’s Financial Support Commissioner Elaine Reodica said that there were “no excuses” for such a proposal.
“Education is a right, not a privilege. UCLA students deserve an education and need support from their government,” she said.
Stephen Searles, political director for the undergraduate student government’s Financial Support Commission, said California’s industries need a highly educated workforce; therefore, the state must continue to support education.
“Investing in education is investing in California’s future,” Searles said.
The commission’s Chief of Staff Aresha Martinez fears for students’ financial future.
Martinez warned, “Now if the state backs out on Cal Grants, future generations of students may miss out on the opportunity to attend our institutions.”
The commission said they are working diligently to combat potential financial obstacles for students.
Reodica said her office’s textbook scholarship, which awarded $250 to 30 students for winter quarter books, will lower costs for struggling students.
She plans on increasing next quarter’s scholarship to aid 36 students.
Reodica also stressed promoting financial literacy among students.
For example, workshops will help students fill out the Free Application for Federal Student Aid correctly and get every cent of financial aid.
“Being financially smart will affect decisions on everyday expenses,” Reodica said.
While her office will determine an official plan of action at their upcoming retreat, Reodica does have general goals for the commission.
“We want to increase outreach and meet with students face-to-face. We are advocating for students within and outside the university,” she said.
In addition, Martinez announced a project the commission’s Political Affairs Committee is compiling, entitled “The True Cost of UCLA.”
“We believe that many students and their families are facing hardships that the financial aid system is not addressing; this survey will allow us to collect data to prove or disprove that,” she said.
Lastly, she revealed that beginning in winter, the commission will produce “Bruin Bucks,” a biweekly newsletter with tips for saving money and coupons from local businesses.
“While these programs don’t directly address the Cal-grant issue, they will be able to give the individual student some relief and assistance from fee increases and budget cuts,” she said.