RE: Question 3: Student Fees-What's in the Plan?

Yes, I remember seeng estimates that California loses between $300 million and $600 million per year of uncaptured federal tax credits.  That is, California could raise community college fees and the full amount of the fee increase would be fully refundable to tax-paying residents.  The state could then figure out a way to make those too poor to pay taxes whole with either a fee exemption or a financial aid award.

But this isn't just a community college issue.  The federal tax credits and other forms of federal tax assistance are being captured by almost all the other states in the form of fee increases for their public colleges and universities.  In the last 4 years, 47 states have raised their tution and fees by an average of 21% (6.5% per year).  Only 3 states have reduced their fees--California, Virginia, and Massachusettts.  And Virginia and Mass still charge average fees higher than California. [source: Washington Highe Ed. Coordinating Board study, Jan 2002)

So California's policy of low fees means we are losing out on our share of federal funding as well as subsidizing a lot high income folks(California ranks in the top 10 state in per captial income.  If we could capture some of those funds, we could do a better job of subsidizing needy students through financial aid.