The expansion of financial aid for California’s college and university students may not happen next year as planned due to insufficient revenue, according to state analysts.
Gov. Gavin Newsom pledged in his 2022-23 fiscal year budget to expand access and eligibility to Cal Grant, the state’s financial aid program for college and university students, beginning in 2024.
When Newsom enacted the state’s 2022-23 budget last summer, there was, at that time, “a notable surplus,” analysts wrote in the memo.
However, because the state didn’t know whether it would be able to support program expansions like those for the Cal Grant reform in the coming years, the state made such actions contingent upon the state’s budget revenue, the memo said.
For the upcoming 2023-24 fiscal year, the state faces a $22.5 billion deficit—and analysts estimate ongoing deficits through 2027.
“Based on our budget projections, Cal Grant reform is very unlikely to be triggered,” analysts wrote in the memo.
As such, analysts recommended the state delay the planned reforms by one year and revisit them while planning the 2024-25 fiscal budget.
Additionally, the analysts said the state could increase current Cal Grant awards instead of expanding the program.
“These options would result in certain students receiving more assistance with their living costs, which has been a legislative priority over the past few years,” they wrote.
Legislators didn’t decide on the issue at the March 14 committee hearing.
Under the changes, awards would be guaranteed to students if they meet the income eligibility thresholds—and requirements based on age, time since high school graduation, and grade point average would be removed.
