BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 27
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 27 (Medina) - As Amended:  March 21, 2013 

          Policy Committee:                              Higher  
          EducationVote:12-0

          Urgency:     Yes                  State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill annually appropriates $15 million from the General  
          Fund (GF) to the University of California Riverside (UCR) School  
          of Medicine.

           FISCAL EFFECT  

          Annual $15 million GF appropriation for the medical school,  
          which would become part of UC's base budget.

           COMMENTS  

           1)Background  . The U.S. Department of Health and Human Services'  
            Council on Graduate Medical Education recommends that a given  
            region have 60 to 80 primary care physicians and 85 to 105  
            specialists per 100,000 residents. The Inland Empire has about  
            40 primary care doctors and 70 specialists per 100,000  
            residents-the largest deficiencies in California.

            In 2008, the UC Regents approved establishment of a School of  
            Medicine at UCR-the state's first new public medical school in  
            more than four decades. The 2010-11 Budget Act included a  
            provision requiring UC to redirect $10 million from existing  
            resources, on a one-time basis, for start-up costs associated  
            with the medical school. In the summer of 2011, the school  
            failed to gain accreditation from the Liaison Committee on  
            Medical Education (LCME), the US and Canadian accrediting body  
            for educational programs leading to the Medical Doctor degree.  
            LCME withheld accreditation due to a lack of recurring state  
            funding support for the school.









                                                                  AB 27
                                                                  Page  2

            In October 2012, after securing substantial new funding from a  
            variety of non-state sources, UCR received notification of  
            "preliminary accreditation," which enables prospective  
            students to begin applying to potentially enroll in the  
            inaugural class of 50 in August 2013. UCR is planning a number  
            of policies to encourage its graduates to remain in the Inland  
            Empire and practice primary care medicine.

           2)Purpose  . In each of its budget requests since 2009-10, UC has  
            proposed $15 million from the GF for the UCR School of  
            Medicine to provide a "secure base of recurring resources to  
            open, operate, grow and maintain the medical school on an  
            ongoing basis?" UC asserts this permanent core support is  
            essential for the school to move forward in developing the  
            educational, research, and clinical service aspects of the  
            medical school program. This funding has never been included  
            in the governor's budget proposal nor in the enacted budgets.

           3)Budget Issue.  The relative merits of providing state GF for  
            this medical school would best be considered in the context of  
            the budget process, wherein the Legislature's overall budget  
            priorities are established.

           4)Related Legislation  . An identical bill, SB 21 (Roth), is  
            pending in the Senate Education Committee.

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