A proposed scholarship act, the middle class scholarship act, would slash fees by two-thirds for students with family incomes of less than $150,000 who do not already have their fees covered and are not eligible for other forms of aid, such as Cal and Pell Grants. The act consists of two separate bills proposed to legislature, AB 1500 and AB 1501.

The act, proposed by Speaker of the Assembly John A. Perez, would close tax loopholes for out-of-state companies that operate in California, which would generate additional revenue for the state that would be given to the UC, CSU and community college systems. Specifically in the CSU’s, there would be enough so that every middle-class student would be able to receive a two-thirds scholarship from the program.

AB 1500 would remove an accounting loophole in California’s tax code that permits out-of-state companies operating in California to not pay taxes in the state they conduct business in, but rather in their base state, and AB 1501 would create the actual scholarship. Effectively, AB 1501 wouldn’t work without AB 1500. The money for the scholarship would come from the revenue gained from AB 1500, which would be around $1 billion annually.

Katelyn Smathers, Commissioner of Public Records with the ASSC, had this to say about the proposed act: “Over the past couple of years we’ve been able to protect the poorest students by maintaining the Cal Grant system, but as fees have increased we’ve gotten to a point where middle-class families are being squeezed and pressured, where they make too much money to qualify for the current system of aid, like me, but I know plenty of people who would definitely benefit from this,” Smathers said.

California’s community colleges will receive $150 million to expand their affordability efforts, and every local community college district will be allowed to disperse the funds in the best way to serve their individual district’s needs.

The legislation is paid for in full by closing an out-of-state corporate loophole.

Eli Santos, a full-time student at Skyline, feels that the act is vital to helping students stay in school.

“(Students) aren’t thinking long term, and this act I think (this act) would benefit those who want that education but cannot quite reach it”said Santos. Skyline student Zachary Simon felt that the legislation could have a positive influence.

“We definitely need more cash for transfering students.” said Simon.