* Students rally on campuses across California

Bonds

* Fee hikes stoke concerns of reduced diversity
(Adds Berkeley march details, financial details)

By Peter Henderson

SAN FRANCISCO, March 4 (Reuters) – Students and faculty at
California’s public universities rallied across the state on
Thursday to protest steep fee hikes they say have damaged a
system of higher education long the envy of the nation.

More than 100 such events in over 30 states were scheduled
for a “Day of Action” in support of public education across the
country, prompted by tuition hikes and program cuts that
reflect financial problems affecting nearly every U.S. state.

Weakening of the education system is considered particularly
severe in California, one of the states hardest-hit by the
recession.

Several hundred students, faculty and staff rallied at the
University of California at Berkeley, the 1960s hub of Vietnam
war protests. Yoga students there held classes outside to avoid
crossing picket lines.

A UC Santa Cruz radio broadcast advised the public to avoid
that campus after protesters blocked a traffic entrance.

Thousands were expected to rally at public schools and at
state university and community college campuses up and down the
state.

Students are not alone in their dissatisfaction with cutbacks.
Polls show that voters see the quality of life in California in
decline with a gaping budget shortfall, legislative gridlock,
slashed social services and double-digit unemployment.

The protests also reflected a growing debate about whether
Californians should temper their aspirations or be willing to
pay more to maintain universities and other hallmark institutions
like state parks and social services.

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“They are not prioritizing education. That should be at the
top of the list — on top of everything,” said Yesenia
Castellanos, 18, a Berkeley freshman heading for a march with a
sign reading, “Do UC what I see? Injustice.”

PUBLIC EDUCATION SEEN GOING PRIVATE

Newly approved fee hikes of more than 30 percent will lift
education costs at University of California campuses to over
$10,000 per year, making the UC system more expensive than
rival public schools in many other states, students said.

Escalating fees also make it more difficult for
less-affluent, minority students to attend, adding to the
effects of a 1996 state ballot initiative that banned
affirmative action at state institutions. Students see the
trend as a form of privatization that also reduces diversity.

“When you disinvest from public institutions, it is by
definition privatization,” grad student Shad Small, 23, said.

California faces a $20 billion budget shortfall after closing
an even bigger gap last year.

The current budget provided the UC system 20 percent less
than the year before, and Governor Arnold Schwarzenegger’s
proposal for next year would only partially reverse that cut,
leading to fee hikes and fewer classes.

The state also is facing the possibility of record layoffs in
public schools, from kindergarten through 12th grade, spurring
Thursday’s joint action between educators and students at all
levels. The California Teachers Association said more than 18,000
teachers have been notified that their jobs could be eliminated
next school year.

Financial pressure is mounting in other states, as well.
The public university system in Illinois, a state facing an $11
billion deficit, has seen its tuition triple over the past
decade, with another 20 percent hike possible.

“You could end up with an institution where the kids come
from wealthy families,” University of Illinois professor James
Barrett said at a march by several hundred protesters.

Students, parents and teachers rallied on the steps of New
York City Hall to protest the impending closure of 19 failing
city schools and the expansion of charter schools.

Under the state budget proposed by New York Governor David
Paterson, state and city universities and colleges would lose
$208 million in funds, and tuition aid would be cut, to help
close a state deficit of several billion dollars.

(Additional reporting by Andrew Stern in Chicago, Jim
Christie in San Francisco and Steve Gorman in Los Angeles;
Editing by Philip Barbara)