Skip to main content

Investor submits signatures to split California

JULIET WILLIAMS
Associated Press

SACRAMENTO, Calif. (AP) — Silicon Valley venture capitalist Tim Draper began submitting signatures Tuesday for a ballot initiative that would ask voters to split California into six separate states, a move he said would create governments that are more manageable and responsive to residents’ needs.

Draper and a bipartisan team of political consultants delivered what he said were 44,000 signatures to the Sacramento County registrar of voters. The signatures are among 1.3 million the Six Californias campaign plans to submit statewide this week.

If enough signatures are verified, voters in November 2016 would be asked to divide the nation’s most populous state into six states called Jefferson, North California, Silicon Valley, Central California, West California and South California. The regions would vary greatly in size, demographics and incomes.

Draper said the state of 38.3 million people has become ungovernable and that there are too many diverse interests for politicians to effectively represent their constituents.

“We’ve got all of these constituents, 38 million of us, all trying to talk to the same state,” Draper said during a news conference outside the registrar’s office. “They’re hearing noise coming from all different sides. There is not a concentrated effort to get jobs into the Central Valley because there are so many other issues around all of these different people.”

Critics note that the plan would separate the wealthiest and poorest Californians, potentially creating some of the poorest states in the nation. But Draper, who wore a tie with the initiative’s proposed new map of the states, brushed away such concerns, saying the individual states could pursue new revenue and jobs when they are freed from other burdens.

“Those places are poor under the current regime. They don’t have to be poor. These can be wealthy states,” he said.

It’s too bad that California’s initiative process subjects voters to the whims of an eccentric billionaire, said Steve Maviglio, a Democratic political consultant and spokesman for OneCalifornia, a group formed to oppose Draper’s initiative.

“If you have $30 million, you can put anything you want on the ballot in California,” he said. “It’s just a tragedy of the initiative system that the voters have to go through this kind of debate and our state will have to go through this kind of debate for now two years, not just a regular campaign season, just to gratify his ego.”

California has the world’s eighth-largest economy, right behind Brazil, according to the U.S. Department of Commerce’s Bureau of Economic Analysis, and it outpaced the U.S. in growth last year.

Among the problems the new states and their leadership would face: Whether to grant in-state tuition rates for university systems that would now be out-of-state for some students, how to fund billions of dollars in state public employee pension plans and divvying up crucial resources such as water, much of which is shipped from Northern California to the south.

Draper said residents in the six states could decide whatever they want through social-media platforms that will be hosted by the campaign.

When asked how the geographic boundaries were chosen, Draper gave only a vague answer about grouping like-minded voters together. Counties that are contiguous to other states could choose to align with a different state, he said.

Voters in two Northern California counties in June weighed in on a longstanding effort to create a 51st state called Jefferson. Tehama County voters joined four other counties that are considering breaking away, while Del Norte County voters rejected the idea.

Critics also have questioned whether Draper is tying his political aspirations to the oddball initiative, which most people believe has little chance of passing. He already has spent nearly $2 million of his own money to collect signatures.

“I’m not running for anything, don’t want to,” said the Republican-turned-Democrat-turned nonpartisan.

Even if voters approve it, Congress would have to give its approval.

“The chances of that happening are, like, less than zero,” Maviglio said.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story