MIDDLE CLASS SCHOLARSHIP ACT COULD REDUCE COLLEGE FEES FOR CALIFORNIA STUDENTS BY TWO-THIRDS

Bill would be paid for by closing a tax loophole for out-of-state corporations

By Megan McGlamery

February 14, 2012 (Sacramento)--In an effort to make college more accesible for students of all economic backgrounds, Assembly Speaker John Pérez (D- Los Angeles) has introduced the Middle Class Scholarship Act. This groundbreaking piece of legislation could cut fees in the California State University (CSU) and University of California (UC) systems by two-thirds for students whose family incomes are less than $150,000 and who do not already receive financial aid.

“Too many families are getting squeezed out of higher education. For students whose families make $150,000 a year or less, too much to qualify for our current financial aid system, but not enough to be able to write a check for the cost of education without feeling that pinch, the Middle Class Scholarship Act reduces fees at the UC system and at the CSU system by two-thirds, giving tremendous assistance to those families to make college affordable again,” Pérez stated at the Democratic Convention in San Diego last weekend. 

If it passes, the Middle Class Scholarship Act, also known as Legislation AB 1500 and AB 1501, would be funded by closing a tax loophole enacted in 2009 that has allowed out-of-state corporations to take $1 billion out of California every year.

However, before this legislation to recover those lost funds is approved, it must gain at least a two-thirds majority vote, which may be difficult.

Senate Republican Leader Bob Huff (R-Diamond Bar) believes that the state should focus on pension reform and balancing the state’s finances before altering the public education budget.

“Republicans have long argued that the low income students are heavily subsidized and that the UC and CSU are relative bargains for the more affluent students. It’s always the middle class that gets squeezed as legislative Democrats continue to prioritize welfare programs and public employee salaries and pensions,” declared Huff.

If enacted, the Middle Class Scholarship Act would allow approximately 150,000 CSU students to save $4,000 per year and approximately 42,000 UC students to save $8,169 per year. An additional $150 million would be allocated to various community colleges throughout the state.

“We will make college accessible and affordable for the middle class,” Pérez concluded.  

For more information about the Middle Class Scholarship Act, or to register your support, visit http://asmdc.org/issues/middleclassscholarship/.