Courtesy of Massive fiscal problems confront California once again. Let’s start with a look at California students hit with 32% hike in tuition.
California undergraduates and their parents just got hit with a 32% increase in tuition by next summer.
With hundreds of angry students chanting outside their meeting at UCLA, the California Board of Regents approved the $2,500, two-step fee hike, which will raise the basic tuition at the 10-campus University of California system to $10,300 a year. That’s three times what it cost a decade ago. Other fees, books, and room and board adds an additional $16,000.
With the state $21 billion in the hole and slashing funding for education, the regents said they had no choice. At the same time, UC is restricting new admissions in a bid to save money.
More increases seem inevitable.
UC President Mark Yudof has asked for $913 million more next year for the UC system and says he "can’t make any promises" to not raise fees again if the state doesn’t come through. "When you have no choice, you have no choice," Yudof said after a regents’ committee endorsed the fee plan Wednesday. "I’m sorry."
California Deficit Hits $21 Billion
California is back in another deep hole. A $21 Billion Fiscal Shortfall Could Mean More Cuts, Higher Taxes and the Return of IOUs to Meet Obligations. Please consider Budget Gap Widens in Sacramento.
California is deep in red ink again, according to a new report projecting that the cash-strapped state faces a $21 billion budget shortfall through June 2011.
Facing so much fiscal red ink, Californians could see another round of spending cuts and tax increases. Since September 2008, state lawmakers have enacted three budgets to close a cumulative $77 billion shortfall. They closed the gap largely through spending cuts and tax increases, but also with federal-stimulus funds and one-time accounting gimmicks. At one point, California was so close to insolvency it was forced to issue IOUs.
The report’s conclusions now raise the likelihood of another lengthy impasse among the state’s hyper-partisan legislators that could threaten California’s solvency and force officials to again
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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...
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