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.
