California Nears Automatic Education Spending Cuts With Revenue $705 Million Short (Making the Dream Act Signed by Brown Look Even Sillier)

Today the "Dream Act" Became Law in California.

In California, illegal immigrants enrolling in college will be eligible for state scholarships and financial aid beginning next July.

Over the weekend, Gov. Jerry Brown signed the second portion of the state’s Dream Act into law. The legislation allows illegal immigrants who graduate from high schools in California to apply to the state’s public universities as residents, granting them a reduced tuition rate. (Students must prove themselves to be “on the path to legalization,” meaning that if they are undocumented, they must apply for lawful immigration status or swear to do so.)

The law also affords such students the right to both private loans and public aid to help in paying for their education.

California Nears Automatic Education Spending Cuts

In light of the "Dream Act" passage, please consider California Nears Automatic Spending Cuts With Revenue $705 Million Short

California’s revenue for the fiscal year that began three months ago has fallen $705 million below what Governor Jerry Brown and Democrats projected, approaching a level that may trigger automatic university spending cuts and higher community college fees.

The $86 billion general-fund spending plan Brown signed in June included a series of cuts activated if higher revenue doesn’t materialize by mid-December. The first, if the shortfall is $1 billion, would trim University of California and California State University budgets each by $100 million and increase community-college fees by $10 million.

Under a $2 billion gap, the contraction would mean a seven- day reduction in the school year to save $1.54 billion and an end to $248 million in home-to-school busing subsidies.

“The potential for revenue shortfalls is precisely why the Governor and Legislature included trigger cuts in this year’s state spending plan,” Chiang said in a statement. “September’s revenues alone do not guarantee that triggers will be pulled. But as the largest revenue month before December, these numbers do not paint a hopeful picture.”

Education costs are poised to rise for everyone in California except illegal aliens who get a reduced rate. Is this a dream or a nightmare? The answer depends on whether or not you are an illegal alien (or a politician who gets elected pandering to them).

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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