Cal Grants on life support?

Colleges and Universities A-Z University of California - GENERAL
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<p>"… Yudof said Thursday that UC will use $125 million in short-term accounts to cover state-funded Cal Grants for 46,000 low-income students. The governor called for suspending the program while the state grapples with a $26 billion shortfall, but Yudof said he expects reimbursement." (mercurynews.com 7/17)</p>

<p>Yudof has cried about how short UC is of funds and yet he can magically find $125 mil?
Why would UC dip into their petty cash fund to declare they will underwrite Cal Grants?
Possible answer:
- Keep the Cal Grant recipients from thinking about quiting their UC enrollment. He needs to protect the cash flow coming from 47,000 Cal Grant students- I think it’s huge.</p>

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<p>Last sentence should read 46,000 not 47,000.
Please excuse my error.</p>

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<p>Uh, so that 46,000 will be able to attend UC as is planned and their grants are disbursed on time? I don’t see any shady motives here…</p>

<p>It’s easier for the UC system to pay $125mil upfront and be reimbursed by the state later than for each individual cal grant recipient to do the same.</p>