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