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Calif. families want chance at 9/11 scholarships

SACRAMENTO — Many of the relatives of Californians killed in the Sept. 11 attacks say they never knew that millions of dollars were raised in their name for college scholarships. Now lawmakers want to give them another chance to apply for money that an Associated Press investigation and subsequent audit found was poorly administered.

The state collected more than $15 million from selling 9/11 memorial license plates after the terrorist attacks, but only a sliver of it went to scholarships, partly because a state agency failed to notify everyone who was eligible to apply for the $5,000 stipends. The state auditor reported last week that dozens of California families were not told about the scholarship fund in time to apply.

"To think that they preyed on people's emotions to sell these plates, and then they lied to us about it. It really bugs me," said Neda Bolourchi, 46, whose mother, a retired nurse, died when her return flight from Boston was hijacked.

Residents of California, where all four jetliners were bound when they were hijacked, have bought or renewed the memorial license plates more than 200,000 times since 2002, spending $50 apiece to buy the plates and $40 a year to renew them. They believed they were helping family members of Sept. 11 victims attend college as part of a law passed in May 2002.

The audit confirmed the findings of an AP investigation last year that found a lack of accountability in California's multimillion-dollar special license plate program and specific examples of misappropriation in the memorial license plate fund.

About 15 percent of the money from the 9/11 plates was to be earmarked for the family members of Sept. 11 victims to attend college. That would have made $2.25 million available for scholarships, but the AP's review found that just $21,381 has reached the children and spouses of the three dozen California residents killed then. The scholarship program closed to new applicants in 2005.

Bolourchi, who lives in Los Angeles, began attending law school shortly after her mother was killed but has not completed her degree. She said $5,000 would help her finish.

She said she believes the California Victim Compensation and Government Claims Board, whose responsibility it was to notify eligible participants, tried to deceive her and used Sept. 11 family members "as props."

A spokesman for the victim compensation board, Jon Myers, said state officials determined Bolourchi was not eligible for a scholarship because she was not a dependent at the time of the terrorist attacks. Bolourchi said she was unemployed then and relying on her parents for help, and would have liked to plead her case.

Myers said that officials sent a broad notification letter in 2003 to about 300 potential applicants, then sent a follow-up letter with more details in 2005 to the 43 people it eventually determined were eligible to apply. It is unclear whether the letters went to addresses that were current.

The audit found that the 20-year-old program that raises money for a variety of causes from arts education to environmental protection is rife with errors, and that the DMV failed to collect $22 million in the past two fiscal years.

It also affirmed that the victim compensation fund failed to notify people who were entitled to the scholarships by the July 2003 deadline prescribed in the law, doing so only in April 2005, just three months before the program ended.

Myers said the bureau did notify everyone who was eligible, and it disputes the auditor's methodology.

The AP investigation found that Gov. Brown and former Gov. Arnold Schwarzenegger had diverted $3 million from the scholarship fund to help fill the state's budget deficit.

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