Gov. Arnold Schwarzenegger vetoed the California DREAM Act Tuesday night for the second time in two years, barring hundreds of undocumented UC students from scholarships and university funding.

The act would have allowed undocumented students to access scholarships and aid administered by the UC system, CSU system and state community colleges. Under the amended version of the bill, authored by Sen. Gilbert Cedillo, D-Los Angeles, undocumented students would not have been able to access state financial aid.

Despite the amendment, the governor said in his veto message that he could not pass the bill due to the current condition of the state's economy.

"I share the author's goal of making affordable education available to all California students, but given the precarious fiscal condition the state faces at this time, it would not be prudent to place additional demands on our limited financial aid resources as specified in this bill," he stated.

His decision is a blow to undocumented students throughout the UC system, of whom there are more than 450, said UC spokesperson Ricardo Vazquez.

"We are disappointed. These are very bright students who have earned the opportunity to (attend) UC, and not being able to receive financial aid is definitely a barrier," he said.

An undocumented UC Berkeley sophomore, who was granted anonymity because of her legal status, said she was saddened by the news.

"There is no reason why we should be going through this," she said. "It gets me really mad that we don't get anything, even if you're the smartest person in your high school."

Xochitl Arellano, spokesperson for Cedillo, said the veto surprised the senator.

"It doesn't really make sense to us because this bill is based on campus money, not state money," she said.

The veto follows a recent state appellate court ruling that AB 540 was in violation of federal law. Under AB 540, undocumented students are able to pay in-state tuition.

"We support AB 540, we're demanding that it be upheld, and we're going to make sure that we're at that court house in Sacramento," said Ronald Cruz, a Boalt Hall School of Law student and organizer for the Coalition to Defend Affirmative Action, Integration and Immigrant Rights and Fight for Equality By Any Means Necessary.

Despite support among students and state legislators, some UC Berkeley students felt the veto was justified.

"The DREAM Act would just subsidize the breaking of the law. It would encourage people to come to this country to go to college," said senior Rick Chen.

But Claudia Rodriguez, a member of the Hispanic Scholarship Fund, said it is unfair to link the bill to wider fears about illegal immigration.

"The DREAM Act is in no way saying that illegal immigration is a good thing," she said. "The students who would benefit from the DREAM Act have been attending California high schools, making efforts towards their own legalization."

Arellano said it is too early to determine whether or not the act will be amended again, but that supporters plan to redouble their efforts to get the bill passed next year. The undocumented UC Berkeley sophomore said she is hoping for the best.

"Even if we weren't able to get it this time, it has to happen," she said.

Tags: CALIFORNIA DREAM ACT, UNDOCUMENTED STUDENTS