BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 24
                                                                  Page  1

          Date of Hearing:   April 1, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 24 (Block) - As Amended:  February 26, 2009 

          Policy Committee:                              Higher  
          EducationVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the California State University (CSU), by  
          January 1, 2011, to complete a study regarding the feasibility  
          of a CSU campus in Chula Vista (San Diego County).  The study is  
          to include 12 specified elements and be funded solely from  
          private sources.

           FISCAL EFFECT  

          One-time non-state cost of around $600,000 for the feasibility  
          study, which would include physical and academic planning and  
          environmental and traffic studies.  Development of a new CSU  
          campus would probably require initial capital outlays of tens of  
          millions of dollars and at least several million dollars  
          annually in start-up costs.

           COMMENTS  

           1)Background  .  During development of Chula Vista's land-use plan  
            for Otay Ranch in the early 1990s, approximately 375 acres was  
            set aside for a four-year university.  The city and members of  
            the community have worked since that time to recruit a  
            university for the property.  In 2005, it was reported that  
            the city was looking at a multi-school campus model where the  
            schools would share facilities such as classrooms and a  
            library, the institutions could be either public or private.

           2)Purpose  .  The author argues that the current 23 CSU campuses  
            lack sufficient capacity to accommodate the growing demand for  
            a four-year college degree.  The author indicates that for the  
            fall 2008 semester, San Diego State University (SDSU) turned  








                                                                  AB 24
                                                                  Page  2

            away almost 70% of the 50,000 first-time freshmen who applied,  
            and of the 62,330 total undergraduates that applied, only 34%  
            were admitted.  The author notes that CSU is currently  
            overenrolled by 10,000 students, and maintains that building a  
            CSU campus in Chula Vista would create an option for tens of  
            thousands of Southern California students who are being turned  
            away from impacted campuses such as SDSU. 

           3)Comment  . It should be noted that all qualified students from  
            the San Diego area were offered admission to SDSU in 2008, and  
            that CSU's overenrollment is not related to a lack of  
            systemwide physical capacity but rather to the system having  
            insufficient resources to sustain current enrollment levels.   
            The CSU plans to reduce enrollment in 2009 to better match its  
            budgeted resources.  Moreover, the Legislative Analyst has  
            recently reported that, due to the state's deteriorating  
            economy and the temporary nature of some of the recent budget  
            solutions, the state's operating shortfalls are projected to  
            grow dramatically in 2010-11 and beyond, which implies  
            continued budget stress for CSU and a significant challenge  
            just to maintain current programs.  Given this outlook, it is  
            difficult to envision expansion of the CSU system at this  
            time.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081