Why the Middle Class Scholarship could get cut this year

Some of the only state money available to incoming college students could get cut under Gov. Jerry Brown's proposed budget. The Middle Class Scholarship, established in 2012, can pay out anywhere from a few hundred to over $5,000 for families that make under $155,000. Students like Morgan Mitchell, who goes to California State University Sacramento, were able to get money to offset tuition, loans books and fees. The governor's budget states, "To maintain the broad Cal Grant entitlement for the state’s neediest students, the Budget proposes a phase‑out of the Middle Class Scholarship Program. Beginning in 2017‑18, awards will be renewed only for the approximately 37,000 students who received awards in 2016‑17, with no new awards for the program. By 2020‑21, this proposal will reduce annual General Fund costs by $115.8 million." This would be one of several cuts that the governor wants to make in spending from the general fund. The overall budget faces a $1.9 billion deficit. HD Palmer, with the California Department of Finance, said that is because the state's financial projections were far higher than the money the state took in. They also hadn't anticipated more than a million people signing up for MediCal under the Affordable Care Act. Added to that, the General Fund is short by $1.8 billion due to accounting errors from last year, which is money that the state owes the federal government. The low-income Cal Grant and the Dream Act funds for unnaturalized immigrant students would remain. Only the Middle Class Scholarship would be cut. If the budget passes, no new middle class scholarship money would be distributed for new 2017-18 students. Palmer says they hope that students already getting the Middle Class Scholarship will continue to get their funds, hopefully in full.

Some of the only state money available to incoming college students could get cut under Gov. Jerry Brown's proposed budget.

The Middle Class Scholarship, established in 2012, can pay out anywhere from a few hundred to over $5,000 for families that make under $155,000.


Students like Morgan Mitchell, who goes to California State University Sacramento, were able to get money to offset tuition, loans books and fees.

The governor's budget states, "To maintain the broad Cal Grant entitlement for the state’s neediest students, the Budget proposes a phase‑out of the Middle Class Scholarship Program. Beginning in 2017‑18, awards will be renewed only for the approximately 37,000 students who received awards in 2016‑17, with no new awards for the program. By 2020‑21, this proposal will reduce annual General Fund costs by $115.8 million."

This would be one of several cuts that the governor wants to make in spending from the general fund.

The overall budget faces a $1.9 billion deficit. HD Palmer, with the California Department of Finance, said that is because the state's financial projections were far higher than the money the state took in. They also hadn't anticipated more than a million people signing up for MediCal under the Affordable Care Act.

Added to that, the General Fund is short by $1.8 billion due to accounting errors from last year, which is money that the state owes the federal government.



The low-income Cal Grant and the Dream Act funds for unnaturalized immigrant students would remain. Only the Middle Class Scholarship would be cut.

If the budget passes, no new middle class scholarship money would be distributed for new 2017-18 students.

Palmer says they hope that students already getting the Middle Class Scholarship will continue to get their funds, hopefully in full.