Three days after saying he wanted to "work to expand the dream of college," Gov. Arnold Schwarzenegger's budget reveals plans that appear to make it tougher to earn a higher education degree in California.

The state's colleges and universities are poised for a roughly $750 million hit under the Schwarzenegger proposal -- a wallop that educators and students fear will keep thousands from entering what has been touted as the nation's most accessible and affordable public higher education system.

Fees for everyone -- more than 1 million undergraduates and graduates at the University of California and California State University and 3 million community college students -- would rise at least 10 percent and as much as 44 percent under the Republican governor's proposal.

State-funded financial aid would shrink, most notably in the generous Cal Grant program that has guaranteed free college money to eligible students since 2000.

Space for students would disappear at UC and CSU. The state's 108 community colleges would be asked to absorb at least 7,000 students next year who would otherwise go to UC or CSU.

The timing of Schwarzenegger's plans for higher education, which still needs legislative approval, could be troublesome as California produces record numbers of high school graduates who will be college-bound.

"There is no question that this will mean less investment in higher education in California than ever before and at a time when demand pressures are increasing significantly," said CSU Chancellor Charles Reed. "For CSU, we are looking at keeping 20,000 students from our campuses. When things get better, will they come back and reinvest in higher education?"

The governor has said that all segments of state government need to make sacrifices, and higher education, which accounts for 11 percent of the general fund, was no exception.

State money for UC and CSU would be slashed, forcing larger class sizes and wiping out decades-old programs that help prepare poor and minority students for college. More than $500 million would be carved from the two systems that together have lost nearly $1 billion in state support over the last two years.

And Schwarzenegger's call to stabilize student fees by tying increases to growth in personal income would be postponed at least until 2005-2006.

Although the Republican governor pledged to limit college fee increases to no more than 10 percent in one year, his promise won't extend to thousands of UC and CSU graduate students and millions of community college students. Many graduate students would pay 40 percent more next fall, an increase that would follow a 40 percent hike in fees since December 2002.

Graduate students in academic and teaching programs feel particularly vulnerable.

"The assumption for graduate students is that we will be able to pay it all off later, but that's not necessarily the case," said Ellen Pyatt, a UC Davis graduate student who is working on her Ph.D. in hydrological science. "Some of us will be in careers where we feel like we are giving something back, but we won't get paid that much."

Schwarzenegger was most generous to the 108 community colleges, pledging $125 million to fund enrollment growth of 3 percent in the 3 million-student system. Still, community college students would pay higher fees as well, up 44 percent by fall.

Students already pay $18 per unit -- up from $11 last spring. Schwarzenegger's proposal calls for the two-year colleges to charge $26 per unit, compared to the national average of $64.

Schwarzenegger's director of finance, Donna Arduin, said the higher community college fees would for the first time make students eligible for the maximum federal Pell Grant award, currently $4,000 a year. The governor's proposal also keeps intact the state's fee-waiver program for the poorest students.

"Overall, we feel like the governor has made community colleges a priority," said state Chancellor Thomas J. Nussbaum. "But such a steep fee on the heels of another steep increase is a concern for our most fragile students who may not know that fee waivers and grant money would be available to them."

Schwarzenegger's adjustments to the state Cal Grant program could have far-reaching consequences, even for students who attend California's private colleges and universities.

The governor wants to reduce Cal Grant awards for students who attend private schools from $9,708 to just over $5,000. At a school like Stockton's University of the Pacific, which already adds $10,000 to a Cal Grant recipient's award, such a change would put pressure on the school to make up the difference.

"We're not sure how we would do it," said Tom Rajala, associate provost for enrollment at UOP. "We will have to think hard about how we stay healthy financially and still be able to serve disadvantaged students."

The governor wants to lower the income eligibility threshold by 10 percent, a change that would make fewer middle-income students eligible for Cal Grants.

"That will leave many students to borrow more money for college," said Diana Fuentes-Michel, executive director of the California Student Aid Commission. "Or maybe to choose schools that are out of state."

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At a glance
Fees
• 10 percent increase proposed for University of California and California State University undergraduates - UC fees would be $5,482 per year and CSU fees would be $2,251.

• 40 percent increase proposed for graduate students in academic programs - UC fees would be $7,307 per year and CSU fees would be $3,158.

• Governor proposes that state support of professional schools such as law and medicine be reduced by an average of 25 percent. UC estimates that the resulting fee increase would cost students about $5,000. Nursing would be exempt.

• 20 percent increase for non-resident students - UC undergraduates would pay $16,474 per year, and CSU undergraduates would pay $10,152.

• Community college fees would rise to $26 per unit from $18. Students who already have a bachelor's degree would be required to pay $50 per unit.

Enrollment
• 10 percent reduction in freshman enrollments next year, keeping 3,200 students out of UC and 3,800 students out of CSU.

Financial aid
• Reduce the maximum Cal Grant award for students who choose private college from $9,708 per year to $5,482.

• Freeze Cal Grant award levels for UC and CSU students.

• Lower income levels for Cal Grant eligibility by 10 percent.

• Higher fees at community .colleges would allow eligible students to qualify for maximum federal Pell Grant award of $4,000 per year.

Spending cuts
• $372 million in overall cuts to the UC, including total elimination of funds for college prep programs that help bring poor and minority students to UC.

• $240 million in overall cuts to California State University, including total elimination of funds for college prep programs for poor and minority students.