Statement of Concern by the Presidents of La Sierra University, Loma Linda University, and Pacific U
The presidents of the three Adventist colleges/universities located in California would like Church members to be aware of two important ballot initiatives to be voted on March 2 in the California primaries.
For several decades, the State of California has offered financial assistance to families with incomes not adequate to finance their childrens college education. The current program, called Cal Grant, benefits nearly 700 students on our campuses with grants up to $9,708 annually.
Governor Arnold Schwarzeneggers initial budget proposes that for new recipients this be cut by 44 percent to $5,482 and that the maximum allowable family incomes for future Cal Grant recipients be reduced by 10 percent. Students already receiving Cal Grant funds would continue to receive the higher amounts previously approved.
The Association of Independent California Colleges and Universities is working closely with legislators, and we are confident these proposed reductions will be largely reversedif Propositions 57 and 58 are both approved in the upcoming primary.
Prop 57 would create a bond to restructure the debt of the state resulting from recent years of economic downturn. In essence, voters are being asked to extend the term of the debt and fix its cost.
If Prop 57 is not adopted, the state may be forced to make significant reductions in state programssuch as the Cal Grant. Moodys, the bond rating agency, also suggested in a recent report that if the bond is not adopted, the state would tumble into a liquidity crisis, and the states credit rating could be downgraded, resulting in higher costs for all borrowing.
Supporters of the measure argue that the bond will help get state finances into balance without drastically reducing state programs such as Cal Grant. Opponents argue that refinancing the debt will only postpone the problems.
Prop 58 establishes new requirements for future budgets, including a spending reserve and a prohibition against using debt to finance the budget. Proponents of this measure argue that it complements Prop 57 by creating limitations that should prevent the drastic problems we have experienced in the last two budgets. Opponents argue that such a provision will put too many restrictions on state budget operations.
In our opinion, the two measures are a balanced approach to solving the states fiscal problems without drastically reducing the states programs.
The Cal Grant has enabled thousands of Adventists in California to attend LSU, LLU and PUC. Some may suggest we should not rely on the state for such assistance, but many students will tell you this program opened the door for their Christian education. On our campuses, we are only able to offer limited institutional aid through tuition discounts. Loans, other government grants, family assistance, student work opportunities and local church scholarships would often be inadequate to make up for a reduced Cal Grant. And alternatives are becoming harder to find as public colleges and universities increase tuition and reduce admissions, while community colleges are completely full.
We appreciate your serious consideration of these concerns as you go to the polls on March 2.
Lawrence Geraty
President, La Sierra University
Richard Hart
Chancellor, Loma Linda University
Richard Osborn
President, Pacific Union College