Cost of higher education

Students at California public universities who complained so loudly about their recently increased tuition might be even more agitated if they realized that 30 percent of what they pay doesn’t have anything to do with what the schools provide them. Instead, it subsidizes other students, who pay less or nothing at all.

State Sen. Bob Huff,R-Diamond Bar, calls this a "hidden shell tax on California families." We agree.

"The little secret is that 30 percent of the fees charged by both (the University of California and California State University systems) are, in fact, set aside for financial-aid programs for other students," Huff wrote in an opinion column. "When fees go up at these universities, as they will go up again this year, the amount of money diverted to fund financial-aid programs for other students also goes up."

A fee charged by a public agency, as historically recognized by California courts, must have a relationship to the government service it pays for. Not only do the dollars diverted from these students’ fees not pay for the classes they take, Huff contends the way the money is collected makes them taxes, not fees. Again, we agree.

Increased "fees" diverted to the benefit of someone other than who paid them effectively are taxes, not fees. They also run afoul of the state constitutional requirement that any tax increase must have voter approval or two-thirds’ approval of the state Legislature. The extra fees to be collected in the fall received neither.

"Since the diversion of tuition doesn’t meet the fee-for-service model, it’s clearly a tax," Huff says.

 A report from the non-partisan Legislative Analyst’s Office spells out what is going on. It is a classic government transfer of wealth from those who pay tuition to those who don’t.

Almost half the students attending the Cal State and University of California systems pay no fees or tuition. The percentage is increasing, rapidly. As recently as 2009 that figure was "more than one third."

The degree to which this transfer of wealth is progressing should alarm taxpayers. "Fee-paying families pay hundreds of millions for other students," according to the Republican state Senate caucus.

A 2010-11 resident undergraduate UC student will pay $10,302 while CSU students each will pay $4,429. Some campuses charge additional fees. More than $1 billion will be spent to provide state Cal Grant entitlements to students earning up to $29,400 for an individual and $80,200 for a family of four. This aid can be in addition to federal Pell Grants, also collected from taxpayers.

The Republican caucus describes this wealth transfer as "from each according to his ability ... to each according to his need." If this sounds familiar, it’s because it was coined by Karl Marx. We wonder how many of those from whom the money is taken agree with the concept. We know it should not be done without the consent of those paying the fee.