The Executive Director of the California Student Aid Commission, Diana Fuentes Michel, says that more than 200,000 students could be kept out of classes this fall. She sites Governor Arnold Schwarzenegger’s plan to do away with new Cal Grant aid for lower income students who want to go to college, but cannot afford it.

Chancellor Charles Reed of California State University stated that the cuts were equivalent to slashing enrollment by 60,000 students at their 23-campus network. Reed and Mark Yudof, president of the University of California, urged budget conference committee members to allow university officials to determine how budget cuts will be imposed as lawmakers approve cuts in attempts to balance the state’s budget.

The impact of cuts to education has long-reaching arms into the state’s economic future. Young people who could be making a substantial income in four years may now not be able to obtain a college education. Instead of contributing significantly to the economy after their graduation, they may not even have a graduation.

This could potentially be a huge impact on the local economy, in the long run, including a negative effect on business and real estate sales and values. Approximately 60,000 students will be affected. That’s a medium-sized city. The trickle-down effect could end in devastating results for the community and the state.

There is one question that has yet to be asked. What did these young people do to pay for education before the Cal Grant aid, though? That would be interesting to know, indeed.