BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1349


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          Date of Hearing:  May 6, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1349 (Weber) - As Introduced February 27, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires the California State University (CSU)  
          Trustees and requests the University of California (UC) Regents  
          to:









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          1)Guarantee undergraduate admissions, though not necessarily at  
            a campus or major of an applicant's choice, to all California  
            residents who apply on time and satisfy the respective  
            systems' undergraduate admission eligibility requirements.


          2)Report to the Legislature, by July 1, 2017, and annually  
            thereafter, for each campus and systemwide, total  
            undergraduate applications received, the number admitted and  
            the number not admitted for the coming academic year.


          FISCAL EFFECT:


          1)CSU indicates that, in the fall of 2014, it denied admission  
            to about 30,000 fully eligible California residents due to  
            lack of funding. Assuming that, through redirection and  
            required admission to the system, the CSU experienced an  
            enrollment increase of 15,000 full-time equivalent students,  
            the impact in the first year would exceed $100 million. The  
            cost for this cohort would be on-going for at least four-years  
            as these students complete their studies at CSU.  In future  
            years, there would be additional costs for each cohort of  
            students that were admitted beyond state funding. In addition,  
            there could be significant capital outlay costs to accommodate  
            the additional enrollment.



            In addition, CSU does not have a centralized admission  
            process, and would thus require several million dollars for  
            technology upgrades and procedural changes to implement a  
            redirection of CSU-eligible applicants to other CSU campuses.


          2)UC contends that it is currently meeting the bill's  
            requirement, in part by offering many eligible students  








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            admission to the Merced campus rather than a campus of their  
            choice, and most of these students do not accept admission. To  
            the extent Merced and other UC campuses eventually reach their  
            enrollment capacity, and eligible students could no longer be  
            redirected, the bill could create cost pressure to accommodate  
            additional eligible students, including new capital outlays.


          3)The reporting requirements for both segments are minor and  
            absorbable.


          4)A new eligibility study would be needed, at a cost of at least  
            $1 million, so that the segments could ensure that they  
            accepting admission for the correct cohort of applicants  
            pursuant to the state's Master Plan for Higher Education.


          COMMENTS:


          1)Purpose. According to the author, as the economy improves and  
            funding for our public postsecondary educational institutions  
            increases, it is time for the state to enshrine a critical  
            principal of the Master Plan in state law.  This bill is  
            intended to guarantee undergraduate admission for all eligible  
            California resident applicants and ensure reporting to the  
            Legislature on resident undergraduate admission.  The author  
            believes this bill appropriately reaffirms and refocuses CSU  
            and UC on educating California students, while still  
            maintaining the beneficial infusion of talent from  
            nonresidents.


          2)Admissions. In addition to other admission criteria for each  
            respective system, the state's Master Plan calls for freshman  
            eligibility pools for UC and CSU.  UC is to draw its incoming  
            freshman class from the top 12.5% (one-eighth) of public high  
            school graduates and CSU is to draw from the top 33%  








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            (one-third) of this cohort. UC and CSU currently report on  
            whether they are accommodating eligible freshman students; UC  
            asserts it has been admitting all eligible students, although  
            not necessarily to the campus and program of choice.  CSU  
            claims it has denied access to over 18,000 eligible freshman  
            applicants.  However, according to the LAO, because an  
            eligibility study has not been conducted since 2007, UC and  
            CSU have no way of knowing if they are actually admitting or  
            denying students in compliance with the Master Plan.


            The Master Plan calls for UC and CSU to accept qualified  
            transfer students who complete 60 units of transferable credit  
            at a community college and meet minimum GPA requirements.  For  
            UC the minimum GPA is 2.4 and for CSU the minimum GPA is 2.0.   
            UC indicates it is currently admitting all eligible transfer  
            students, however not all students are being accepted into  
            their campus or program of choice.  CSU reports denying  
            admission to 11,800 eligible transfer students in fall 2014.


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