May 4, 2001

$600-Million Student-Aid Program in California Has More Money Than Applicants

With an annual budget of more than $600-million, the Cal Grants program is near the head of the class among state need-based financial-aid programs. But for California, giving all that money away is proving to be no easy task.

Gov. Gray Davis, a Democrat, set aside funds in his 2001-2 budget proposal for 72,570 awards for recent high-school graduates. According to the California Student Aid Commission, only 43,500 have been awarded so far.

An overhaul of the program last year