This is the greatest public commitment to educational opportunity in a quarter century

Thomas Nussbaum, Chancellor of California Community Colleges

For the first time, from next year if students have the necessary qualifications for a university place, the state authorities are promising to provide a scholarship to all those who are eligible.

This will assist with expenses such as the average annual fees of $3,903 for undergraduates at the University of California.

"You do your job well to get the grades, college will be a reality," said the governor.

Five years ago, less than a quarter of students eligible for grants received any support - and this year, only 53% of eligible students received scholarships.

This number is now intended to rise to 100% in the next few years, as the scholarship fund offers support to all those suitably qualified.

The means-testing is based on factors including parental income and the number of other dependent children in the household. The cut-off point for any financial support for a family with four children is an income of $64,100.

The move was welcomed by higher education institutions in the state. The chancellor of California Community Colleges, Thomas Nussbaum, described the measure as "the greatest public commitment to educational opportunity in a quarter century".