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SPECIAL COVERAGE: Living With Wildfires: San Diego Firestorm 10 Years Later

Close Tax Loophole to Fund Middle-Class UC/CSU Scholarships

The Speaker of the California Assembly is proposing big reductions in UC and CSU fees for students from middle-class families. He would pay for those scholarships by requiring businesses to pay taxes based on their in-state sales.

The Speaker of the California Assembly is proposing big reductions in UC and CSU fees for students from middle-class families.

Democrat John Pérez wants to cut those fees by two-thirds for students whose families earn too much to qualify for financial aid - but less than $150.000.

The speaker would pay for those scholarships by requiring businesses to pay taxes based on their in-state sales.

Right now, they can choose between that and a different formula which critics say discourages out-of-state companies from hiring Californians.

"We're closing that loophole that only benefits out-of-state corporations at the expense of the rest of us in the state. And we're taking that benefit and directing it to middle-class families who are struggling to put their kids through college," said Pérez.

But that's considered a tax increase - and would therefore require Republican votes.

Senate Minority Leader Bob Huff said lawmakers should reduce pension costs and balance the budget before addressing the state's tax system.

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