BILL ANALYSIS Ó SENATE COMMITTEE ON EDUCATION Senator Carol Liu, Chair 2015 - 2016 Regular Bill No: SCA 12 ----------------------------------------------------------------- |Author: | Runner and Huff | |-----------+-----------------------------------------------------| |Version: | April 13, 2016 Hearing | | |Date: April 20, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: | No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:| Kathleen Chavira | | | | ----------------------------------------------------------------- Subject: University of California: students NOTE: This measure has been referred to the Committees on Education and Elections and Constitutional Amendments. A "do pass" motion should include referral to the Elections and Constitutional Amendments Committee. SUMMARY This measure proposes to modify Article IX of the State Constitution to require the Regents of the University of California (UC) to ensure that priority in admissions is given to applicants who are California residents. BACKGROUND The California Constitution establishes the UC, a public trust to be administered by the Regents of the UC and grants the Regents full powers of organization and government, subject only to such legislative control as may be necessary to insure security of its funds, compliance with the terms of its endowments, statutory requirements around competitive bidding and contracts, sales of property and the purchase of materials, goods and services. (Article IX, Section (9)(a) of the California Constitution) ANALYSIS This constitutional amendment proposes to place before the SCA 12 (Runner) Page 2 of ? voters a change to the California Constitution to require that the Regents act in the best interests of the people of California and honor a fiduciary duty to California residents, as specified by ensuring that priority in admissions is given to applicants who are California residents. STAFF COMMENTS 1) Need for the bill. According to the author, while UC admission websites proclaim that the UC prioritizes admission of California residents, at several UC campuses non-residents are granted admission at a dramatically higher rate than California students. Increasingly, students and parents share the perception that California students are being passed over for less qualified non-residents willing to pay more. This constitutional amendment would reiterate that the primary purpose and obligation of the UC is to serve the students of California. 2) Current status of out-of-state admissions. The UC reports that for the 2014-15 academic year, 13 percent of its undergraduates systemwide were non-residents. The UC also notes that the average for other comparable public institutions nationally is 26 percent. The chart below summarizes the level of enrollment of non-residents at all University of California (UC) campuses for the 2012 and 2013 academic years. According to the UC, non-resident enrollment for 2015-16 was capped at those campuses that have seen the largest growth, Berkeley (25 percent), Los Angeles (19 percent), and San Diego (17 percent) was directed to cap their enrollment of non-residents at 20 percent. SCA 12 (Runner) Page 3 of ? 3) BSA Audit. On March 29, 2016, the California State Auditor released a report, The University of California, Its admissions and Financial Decisions have Disadvantaged California Resident Students. The report lists as its key findings that the university has undermined its commitment to residents in an effort to increase its revenue by recruiting and enrolling non-residents. The report specifically cites that: a) Despite a 52 percent increase in resident applicants, resident enrollment increased by only 10 percent over the last 10 years while non-resident SCA 12 (Runner) Page 4 of ? enrollment increased by 432 percent. b) The University lowered the admission standard for non-residents and admitted nearly 16,000 non-residents over the past three years with academic scores that fell below the median of admitted residents. c) Admitted residents were increasingly denied their campus of choice, yet admitted non-residents were always admitted to one of their campuses of choice. d) Mandatory fees doubled for residents while they increased for non-residents at a much lower rate. According to the report, in 2011, the UC Board on Admissions and Relations with Schools (BOARS) eliminated wording in its 2009 nonresident undergraduate admissions principles that nonresidents "should demonstrate stronger admission criteria than CA residents by generally being in the upper half of those ordinarily eligible" for admission. BOARS revised its principles to state that admitted nonresidents should "compare favorably to California residents admitted" and left application of this standard to campuses. In response, the UC asserts that its admissions policies overwhelmingly favor Californians, and that state funding determines how many California residents the UC enrolls. 1) Constitutional amendment requirements. As a proposed Constitutional Amendment, this measure would not go into effect unless approved by the majority of voters at a statewide election. This proposal requires a 2/3 vote of each house in order to be submitted to the voters. It does not require approval by the Governor. 2) Conflicting Legislation? Legislative counsel has noted a potential conflict between this bill, and SCA 1 (Lara), also on the Committee's agenda today, as both propose changes to Section 9, Article IX of the California SCA 12 (Runner) Page 5 of ? Constitution. While the provisions of each proposed Constitutional amendment do not appear to be in conflict, this bill has been referred to the Senate Committee on Elections and Constitutional Amendments which has jurisdiction over bills to amend the constitution and can appropriately determine any necessary amendments to address a conflict. 3) Related legislation? While this Committee has heard several bills that propose to restrict undergraduate non-resident enrollment this measure imposes no such restriction. In response to recent policies adopted by the UC in regard to non-resident admissions, this bill imposes a broad responsibility on the Regents to ensure that California resident students who apply to the UC are extended priority in admissions. SUPPORT None received. OPPOSITION None received on this version. -- END - SCA 12 (Runner) Page 6 of ?