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| Office of the Chancellor / Public Affairs |
Thursday, January 8, 2004
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Sacramento Bee 1-8-04 Many intrigued by bid to cap college fee hikes |
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| In his bid to stabilize student fees, Gov. Arnold Schwarzenegger could trade California's reputation as a provider of cheap, world-class higher education for something maybe more valuable to parents: more predictability about how much it will cost to send their child to college. The Republican governor will push to tie fees at the University of California and California State University to increases in per capita personal income -- an idea that would virtually guarantee fee increases every year, ending the state's tradition of lowering or keeping tuition flat during good economic times. In his State of the State speech Tuesday, Schwarzenegger promised to cap fee increases at 10 percent in any one year. A 10 percent cap would give Schwarzenegger's plan plenty of upside flexibility: California hasn't seen per capita income grow by more since 1980. Schwarzenegger's proposal was intriguing enough to educators, lawmakers, financial planners and parents that everyone was clamoring for more details Wednesday. Administration officials promised those Friday when the governor unveils his budget proposal for 2004-2005. From the little she heard Wednesday, Sacramento parent Debbie Meyer said she was encouraged. "Right now, I don't feel like I know from year to year what will happen with college fees other than knowing that they will be tremendous by the time my child graduates," said Meyer, a legal secretary who is socking away college money for her daughter, now in the eighth grade. Sacramento financial adviser Carol Van Bruggen said many of her clients postpone retirement plans to instead save money for their child's education. "Everybody, particularly middle income families who don't have access to financial aid, could benefit from something like this if it works," Van Bruggen said. California's status as the state that offered an excellent college education at a bargain price took a major hit last year when the UC and CSU systems raised fees by 40 percent. Community college students saw their fees jump to $18 from $11 per unit -- more than 60 percent. More increases at all three systems are expected this year given the continuing budget crisis. "It's that kind of sticker shock that the governor wants to do away with," said H.D. Palmer, spokesman for the state Department of Finance. "He wants to bring some stability and predictability to students and their parents." UC and CSU officials for years have tried to make fee increases predictable, while governors and lawmakers have mostly favored the more politically popular route of keeping fees low and state subsidies high. Still, higher education officials worry that limiting fee increases to 10 percent would hamper their ability to raise revenues should the governor decide also to order deep subsidy cuts to UC and CSU. The two systems have already seen state contributions shrink nearly $1 billion and are vulnerable to more: Higher education is one part of the budget where the governor and Legislature have discretion to cut. "We share the desire for moderate and predictable fee increases, but those need to be tied to overall state support for the university," UC spokesman Brad Hayward said. "We don't want a situation where fees are set by a formula and at the same time, the state is divesting in higher education." CSU officials and Democratic lawmakers share the concern. "If we continue down this path of cutting universities and then turn around and cut their ability to raise fees, what will happen to the quality of a UC or CSU education?" said Assemblywoman Carol Liu, a Pasadena Democrat with degrees from both systems who chairs the higher education committee in the lower house. "I don't think it will be a good result." While the governor's fee proposal generated positive reviews, students and college officials remained focused on his earlier proposal to eliminate state support for programs that help bring poor and minority students to UC and CSU. Nearly 300 supporters of such programs aimed at public high schools came to the Capitol to protest the governor's call to eliminate them. It was the second large turnout by students and college officials since Schwarzenegger announced his plan in November. Members of the Legislature's Latino, African American and Asian-Pacific Islander caucuses pledged to protect the outreach programs, warning that axing them would keep students out of college and plunge the state into further economic decline. "Our competitive advantage is our higher education system," said Assemblyman Marco Antonio Firebaugh, D-South Gate. "I'm surprised that the governor who has made economic recovery a cornerstone would turn his back on the engine of that economic growth." Schwarzenegger's proposed cuts to outreach -- dozens of programs are run by UC and CSU -- would save the state general fund more than $100 million over the next 17 months and are part of his campaign pledge to close the state's $15 billion budget gap without raising taxes. Palmer, spokesman for the finance department, said the budget that comes
out Friday will reveal Schwarzenegger's "comprehensive vision for
higher education in California." |
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These news clips are provided by the Public Affairs Department of The California State University. They are intended for the internal use of The California State University system and should not be redistributed. Questions and submissions may be sent to publicaffairs@calstate.edu. |
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