Speaker Pérez, Assembly Democrats Take Lead on Ending Unfair Burden on Middle Class from Rising Public College Fees

Sacramento - Today, Assemblymember Roger Dickinson (D-Sacramento) unveiled new legislation to create the Middle Class Scholarship program. Introduced by Speaker John A. Pérez, (D-Los Angeles) and co-authored by Dickinson, the proposal is designed to keep more money in the pockets of middle-income families with students attending the state’s public colleges and universities.

"Investing in California's students is an investment in our future educated workforce. For every $1 we spend on higher education, the state gets a $3 return on its investment. All Californians, including those from middle class families, deserve access to an affordable college education," said Assemblymember Dickinson.

Since the 2003-2004 school year, CSU fees have increased 191%, UC fees have increased by 145%, and community college student fees have also increased significantly. Many middle income families have been forced to turn to student loans to cover the thousands of dollars in fee hikes. This leads to years of chronic debt, or worse, some students give up on the promise of higher education altogether and in turn, damaging the long term health of the economy.

"Due to the national recession and chronic budget shortfalls, fees have risen dramatically over the last decade and the middle class has been forced to bear the unfair burden of higher costs. It's time to close this tax loophole that only benefits out-of-state corporations so that we can make public universities and colleges affordable again," Dickinson added.

Through this proposal, all students at the CSU or UC with family incomes less than $150,000 that do not already have fees covered will receive a Middle Class Scholarship that cuts costs by 2/3. Community College districts will have local discretion to allocate funds to best meet their individual needs, including reducing fees, expanding the use of fee waivers, or providing grants to cover the costs of books or other educational expenses.

Under this proposal:

• Approximately 150,000 CSU families will save more than $4,000 per year;
• Nearly 42,000 UC families will see a savings of $8169; and
• Community Colleges will receive $150 million to expand affordability efforts.

The costs for the Middle Class Scholarship will be covered by eliminating the Single Sales Factor, the tax loophole that benefits out-of-state corporations. That will bring in $1 billion for the Middle Class Scholarship. This will require a 2/3 vote of the Legislature, which means some Republican legislators will have to join Democrats in supporting the plan.

For more information, please call (916) 324-4676.

Contact: Taryn Kinney, (916) 319-2009