BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2401
                                                                  Page  1

          Date of Hearing:   May 12, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 2401 (Block) - As Amended:  March 24, 2010 

          Policy Committee:                              Higher  
          EducationVote:6-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the California State University (CSU) to  
          provide applicants residing in the local service area (LSA)  
          admission to the applicant's local CSU campus over other  
          California residents or out-of-state applicants entering as  
          first-time freshman or sophomores. Specifically, this bill:

          1)Modifies legislative intent language by stating that it is  
            intent with respect to CSU and University of California (UC)  
            admissions, rather than admission priority practices, for the  
            segments to follow in numerical order the categories of  
            students as enumerated in current law.  (See Comment #3  
            below.)

          2)Modifies legislative intent by stating it is intent that,  
            within the existing categories of students, specified groups  
            be granted admission, rather than receive priority  
            consideration in admissions practices of CSU and UC.

          3)Requires CSU to provide admission, within existing enrollment  
            categories, to applicants residing in the LSA of a CSU campus  
            over other California residents or out-of-state applicants  
            entering as first-time freshman or sophomores, provided they  
            meet relevant admissions criteria.

          4)Defines an LSA as the CSU service area for the campus as set  
            forth in the CSU Coded Memorandum AA-2005-05, dated February  
            23, 2005. 

           FISCAL EFFECT  









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          To the extent impacted CSU campuses are unable to serve  
          non-local students because of priority admission for local  
          students, and to the extent more campuses become impacted due to  
          the enrollment demands of local area students and to budget  
          limitations, there could be pressure to replicate certain  
          high-demand or specialty programs at non-impacted campuses.  
          Depending on the type of program, start-up costs for each could  
          range from several hundred thousand dollars to a few million  
          dollars depending on the need for facilities and equipment.

          As written, the bill could have a similar impact on UC, however,  
          the author indicates it is not his intent to have the bill apply  
          to UC and that he will amend the bill accordingly should it move  
          forward.

           COMMENTS  

           1)Background  . General Fund support for CSU has declined by about  
            $620 million (20%) between 2007-08 and the current year.  As a  
            result, CSU intends to admit no students in spring 2010 and  
            has set a goal to reduce overall enrollment by about 40,000  
            students over a two-year period.  To accomplish this  
            reduction, CSU has employed various strategies. According to  
            CSU, campuses are still required to admit all local  
            CSU-eligible first-time freshmen and local upper-division  
            transfer students per the usual established admissions policy,  
            unless the campus declares itself impacted.

            Campus impaction means that a campus has exhausted existing  
            enrollment capacity in terms of the instructional resources  
            and physical capacity of the campus, and because the campus  
            receives more eligible applicants during the Fall admission  
            application filing period than can be accommodated, the campus  
            must therefore restrict enrollment to the campus for a  
            specific enrollment category (i.e. first-time freshmen). As of  
            November 2009, Fullerton, Long Beach, Cal Poly Pomona, San  
            Diego, and Sonoma are designated as impacted CSU campuses.  
            Students interested in an impacted major or campus must apply  
            for admission during the Fall filing period for admission in  
            the following Fall. 

            Of the five impacted CSU campuses, only SDSU has ended its  
            policy of admitting every qualified applicant in its LSA. SDSU  
            is continuing to give special preference to high school  
            seniors from this area by guaranteeing they constitute at  








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            least 37% of incoming freshmen. This is the average  
            representation over the last 11 years, but is considerably  
            lower than the 54% in the past two years. While SDSU has  
            acknowledged that dropping the admission guarantee for seniors  
            in SDSU's LSA would disrupt the plans of many students-the  
            number of local freshmen admitted to SDSU could go down by as  
            many as 1,000 next fall-the campus has noted that the seniors  
            who will be denied admission under this policy still will be  
            provided a guarantee of subsequent admission to SDSU if the  
            student completes general education course work and earns a  
            GPA of at least 2.4, or the GPA required for their intended  
            major, within three years.

           2)Purpose  .  According to the author, despite CSU's assertion  
            that local students would be given priority in admissions,  
            "San Diego State University (SDSU) denied 1,740  
            fully-qualified local students admission. These 1,740 students  
            are young men and women that have followed all of the  
            established rules and met the all requirements only to have  
            the rules changed on them after it was too late to do anything  
            about it. To close the doors of admission on local students  
            who have done nothing but follow published admissions  
            guidelines is principally unfair. Students who are forced to  
            attend other schools may not receive acceptance in their  
            program of choice and can sometimes face tens of thousands of  
            dollars in additional costs." 
           
          3)Current law  requires the University of California (UC) and CSU  
            to: 

             a)   Maintain a student body comprised of 60% upper-division  
               students and 40% lower-division students and states  
               legislative intent that both systems do the following:

               i)     Provide priority enrollment, in numerical order, to  
                 the following categories of students:
                  (1)       Continuing undergraduate students in good  
                    standing.
                  (2)       CCC transfer students who have successfully  
                    concluded a course of study in an approved transfer  
                    agreement program.
                  (3)       Other CCC students who have met all of the  
                    requirements for transfer, giving preference to  
                    students from historically underrepresented groups or  
                    economically disadvantaged families to the fullest  








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                    extent possible in transfer admissions decisions.
                  (4)       Other qualified transfer students. 
                  (5)       California residents entering at the freshman  
                    or sophomore levels.

             b)   Provide priority consideration in admissions practice to  
               the following groups of applicants within each of the  
               enrollment categories described above:

                  (6)       California residents who are recently released  
                    veterans of the armed forces, with priority to those  
                    veterans previously enrolled in good standing.
                  (7)       CCC transfers.
                  (8)       Applicants previously enrolled at the campus  
                    to which they are applying, provided they left this  
                    institution in good standing.
                  (9)       Applicants who have a degree or credential  
                    objective that is not generally offered at other  
                    public institutions of higher learning within  
                    California.
                  (10)      Applicants for whom the distance involved in  
                    attending another institution would create financial  
                    or other hardships.

           4)Opposition  .  According to CSU, AB 2401 would "fundamentally  
            change the role of the system within the state's Master Plan  
            for Higher Education. If this measure is enacted, we expect  
            that most of our campuses would no longer serve the state but  
            only their local regions and in turn, limit real access to  
            thousands of students for years to come.

            "The Master Plan and current statutes provide that California  
            students have access to the system not a specific campus, and  
            guide us on priorities for admission and enrollment management  
            strategies?AB 2401 is a blunt instrument for a problem brought  
            on by severe budget cuts. It will forever change the role CSU  
            plays in serving the community college students by requiring  
            each campus to take every local student period. This means the  
            UDT [upper division transfer students] and FTF [first-time  
            freshman] have equal standing in admissions decisions even in  
            light of fiscal resources, our transfer mission and the  
            directive that we maintain balance of 60:40 of UDT and  
            freshman in our student body."

            It appears CSU may be in part misreading the bill, however, as  








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            the bill provides priority admission for local students within  
            each enrollment category.  Under current law UDTs are in a  
            higher category than FTF. The bill, therefore, would likely  
            change the mix of local to non-local students within each  
            category, but would not necessarily change the number of  
            students from each category. Nevertheless, AB 2401 does appear  
            to usurp administrative authority in a very significant way.

           5)Related Legislation  .  AB 2402 (Block), also on today's  
            committee agenda, requires CSU to follow specified public  
            notice criteria prior to adopting a change in the admissions  
            criteria that affects students in the CSU campus local service  
            area (LSA) and requires such changes to become effective only  
            after a period of at least one year has elapsed after approval  
            of that change by the CSU Board of Trustees.

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