November 28th, 2010 11:26 EST
Illegal Aliens Invade California Universities
California OKs in-state rates for aliens
California`s Supreme Court ruled unanimously last week that illegal aliens can continue attending California colleges at the cheaper in-state tuition rates, while Gov. Schwarzenegger called a special session of the Legislature to address the state`s projected deficit of $25 billion over the next 18 months.
California, voting to return Democrat Jerry Brown to the governor`s office and to retain far-left Sen. Barbara Boxer, remains in a state of denial, with voters somehow continuing to believe open borders and the continuance of a more than generous social welfare state will bring the Golden State back to prosperity, despite continuing budget deficits and mounting debt.
Democrats are clearly trying to reward Hispanic voters by extending higher education opportunities to illegal immigrants, without concern for how much added tuition costs add to the already increasing burden of budget deficits being faced in states like California, as well as the nation as a whole.
Illegal aliens in California universities
In reporting on the recent California Supreme Court Decision, the Los Angeles Times noted that California is one of several states that permit illegal immigrants to take advantage of lower in-state tuition at colleges and universities, provided the students attend high school and graduate in the state.
Right now, about 25,000 illegal immigrants are estimated to receive in-state tuition rates in California.
Last week, the California Department of Education released data indicating that for the first time Latinos now make up the majority of California`s public school students, cracking the 50 percent barrier for the first time in state history, the San Francisco Chronicle reported.
Even though the California Department of Education did not sort out the data to indicate what percentage of the Latinos were illegal immigrants, the report suggests the California Supreme Court decision could be costly to California taxpayers having to subsidize illegal immigrants at colleges and universities in the state.
The U.S. Supreme Court has yet to decide if allowing illegal immigrants the lower, in-state tuition rate for college and universities violates federal law.
Meanwhile, the Democrats have scheduled the lame-duck session of Congress to consider yet again passing what is known as the Development, Relief and Education for Alien Minors Act, or DREAM Act.
The DREAM Act, long a favorite of the political left in a desire to extend amnesty to illegal immigrants, would establish a federal program requiring taxpayers to subsidize the college and university education of illegal immigrants by making illegal immigrants eligible at rates reserved for in-state students without regard to state residence.
The DREAM Act also provides a path to citizenship for illegal aliens by allowing citizenship to be conferred on illegal immigrants who attend two years of college, provided they were in the U.S. before the age of 15 and have been residents for five years before the enactment of the law.
California debt woes continue
The Financial Times reported that California has been planning to sell $14 billion of municipal bonds to investors.
On Wednesday, the Financial Times reported California sold $4 billion in the first day of the debt offer, as yields on triple-A rated 30-year municipal bonds rose 11 points on the day to 4.31 percent, the highest level since November of 2009, according to an index compiled by the Municipal Market Advisors.
Investors described the demand as decent but not overwhelming, according to the Financial Times report.
By Thursday, investors were describing the demand for California`s bonds as "tepid," according to the Wall Street Journal.
The Financial Times also reported that on Nov. 16 municipal bonds had their biggest one-day sell-off since the height of the financial crisis, prompting some borrowers to delay financing plans.
"The market declines have made investors, who are mostly wealthy individuals benefiting from tax breaks on muni debt, nervous about an uptick in defaults," the Financial Times noted. "Munis historically have been a relatively safe place to invest, but budget deficits and unfunded public pensions have created widespread concern that local entities could struggle to pay their debts."
California`s decision to enter the bond market now was prompted by the looming expiration at the end of the year of federal subsidies for the Build America Bonds program that has brought down borrowing costs from crisis levels to historical lows, the newspaper noted.
The Build America Bonds program was part of President Obama`s stimulus program designed to help states and municipalities meet their financing needs during the economic crisis.
The $2.8 trillion municipal bond market where states and municipalities raise money has been under pressure since the Fed announced $600 billion in purchases of Treasury debt as part of what is known as "Quantitative Easing 2," or more simply, "QE2," causing a rise in the yields of U.S. Treasury bonds.
Even if California raises the planned $14 billion in sales of municipal bonds, the budget crisis will continue until California`s Legislature either makes massive reductions in state-funded programs or raises taxes.
Neither alternative is attractive, as California has already cut back on many key state services and higher taxes would only further depress California`s already struggling economy.
ABOUT THE AUTHOR: Jerome R. Corsi received a Ph.D. from Harvard University in political science in 1972. He is the author of the #1 New York Times bestselling books THE OBAMA NATION: LEFTIST POLITICS AND THE CULT OF PERSONALITY and the co-author of UNFIT FOR COMMAND: SWIFT BOAT VETERANS SPEAK OUT AGAINST JOHN KERRY. He is also the author of AMERICA FOR SALE, THE LATE GREAT U.S.A., and WHY ISRAEL CAN`T WAIT. Currently, Dr. Corsi is a Senior Managing Director in the Financial Services Group at Gilford Securities as well as a senior staff writer for WorldNetDaily.com.
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ABOUT RED ALERT: Jerome Corsi`s RED ALERT is your weekly, global financial strategies newsletter. Designed to be your guide to economic trends in the best of times and the worst of times, it is edited by New York Times best-selling author Jerome Corsi, Senior Managing Director of the Financial Services Group at Gilford Securities as well as a WND senior staff writer and columnist. For 25 years, Corsi worked with banks throughout the U.S. and the world developing financial services marketing companies to assist banks in establishing broker/dealers and insurance subsidiaries to provide financial planning products and services to their retail customers. Corsi developed three third-party financial services marketing firms that reached annual gross sales levels of $1 billion in annuities and equal volume in mutual funds. Corsi received his Ph.D. in political science from Harvard University in 1972.
By Dr. Jerome Corsi
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