BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON EDUCATION
                             Alan Lowenthal, Chair
                           2011-2012 Regular Session
                                        

          BILL NO:       SCA 22
          AUTHOR:        Rubio
          AMENDED:       May 15, 2012
          FISCAL COMM:   Yes            HEARING DATE:  June 27, 2012
          URGENCY:       No             CONSULTANT:Kathleen Chavira

          NOTE:   This bill 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.
           
          SUBJECT  :  University of California Admissions.
          
           SUMMARY  

          This bill proposes to add a new section to Article IX of 
          the State Constitution that would require that out-of state 
          undergraduate students make up no more than 10 percent of 
          the total undergraduate enrollment, and no more than 10 
          percent of the incoming class at each campus of the 
          University of California, beginning with the 2013-14 
          academic year.

           BACKGROUND  

          Current law generally requires that a student classified as 
          a nonresident pay nonresident tuition. Current law 
          authorizes both the UC and the CSU to establish nonresident 
          student tuition policies and methodologies to be developed 
          by each institution's governing body. The annual fee rate 
          is prohibited from falling below the marginal cost of 
          instruction and the rates at comparison institutions, as 
          identified by the California Postsecondary Education 
          Commission, must be considered. (Education Code � 68050-� 
          68052) 

          The California Constitution establishes the University of 
          California (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 




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          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 bill  proposes to place before the voters an amendment 
          to the California Constitution that, beginning in the 
          2013-14 academic year:

          1)   Constitutionally prohibits out-of-state undergraduate 
               students from exceeding 10 percent of the total 
               undergraduate enrollment of each campus of the UC.

          2)   Constitutionally prohibits out-of-state undergraduate 
               students from exceeding 10 percent of the total 
               incoming class at each campus of the UC.

          3)   Defines "out-of-state undergraduate student" as a 
               student whose residence was outside of California at 
               the time he or she initially applied for enrollment in 
               the UC. 

           STAFF COMMENTS  

           1)   Need for the bill  .  According to the author, SCA 22 
               will ensure that California residents and taxpayers 
               continue to have access to these world renowned UC 
               schools and will put an end to the trend of the UC 
               actively seeking out-of-state students. Not only does 
               this trend limit opportunities for in-state students, 
               whose taxes help fund the UC system, it also 
               contributes to the perceived privatization of the 
               system and undermines public support for restoring 
               funding.  SCA 22 will simply ensure that UC abides by 
               its core mission and does not enroll more out-of-state 
               students for purely financial reasons.

           2)   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. 




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           3)   UC Commission on the Future report  . In 2009, UC 
               President Yudof  announced the creation of the UC 
               Commission on the Future, charged with developing a 
               vision for the future of the UC that would reaffirm 
               its role in sustaining California's economy and 
               cultural life while recognizing that limited state 
               resources required the UC to be creative and strategic 
               in meeting that mission. The final report of the 
               Commission was adopted in November 2010. 

               Among other things, the Commission recommended that 
               the UC allow campuses to increase the number and 
               proportion of undergraduate nonresident students to 
               generate additional resources to sustain current 
               instructional capacity and quality.  The Commission 
               also requested that:

               a)        Campuses establish targets that did not 
                    displace  funded  California residents eligible for 
                    UC admission.

               b)        The President of the UC monitor enrollments 
                    to ensure that these students were fairly 
                    apportioned among campuses. 

               c)        The President ensure that the proportion of 
                    nonresidents systemwide did not exceed 10 percent 
                    and annually report on the systemwide proportion 
                    to the Regents.  

               While it is clear that the pressures of the state's 
               budget situation compel the UC to consider sources of 
               revenue outside the general fund in order to meet 
               their needs/priorities, how much of a publicly funded 
               infrastructure should be used for the education of 
               individuals other than California residents and 
               taxpayers? Is the responsibility of a public, land 
               grant institution to serve the taxpayers and citizens 
               of California met by limiting those students and 
               families that can be accommodated based upon the 
               funding provided specifically for this purpose by the 
               Legislature and Governor?  
           
          4)   Policy/rationale for nonresident students  . According 
               to the UC, the University sets enrollment targets for 




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               California students based on the funding it receives 
               from the state. Each campus then sets enrollment 
               targets for nonresident students over and above 
               California-resident enrollment based on its remaining 
               physical and instructional capacity. According to the 
               UC Commission on the Future report, in 2010, this 
               strategy/policy proposal called for the possibility of 
               increased enrollment of 7,600 nonresident 
               undergraduates as replacements for existing resident 
               students enrolled above the 2007-08 enrollment 
               targets, as "the state provides no funds for these 
               over-enrolled students."   According to the UC, the 
               state did not provide enrollment growth funding in 
               2008-09 and 2009-10, while the UC admitted all 
               eligible California residents, resulting in the 
               enrollment of 11,000 students that were not funded by 
               the state. In response, the UC reports that it has 
               been making an effort to reduce resident enrollments 
               to match available state resources. 

           5)   Non-resident students  . Non-resident students pay 
               roughly $23,000 per year more than California-resident 
               students. According to the UC, it uses these funds to 
               recruit and retain faculty, offer additional courses 
               to reduce class sizes and improve access to core areas 
               of the curriculum, expand library collections and 
               student services and renew instructional equipment and 
               technology. 

               According to the UC, the majority of its domestic 
               nonresident are from Washington, Texas, Oregon and 
               Nevada, and the highest proportion of its 
               international students come from China and South Korea 
               with a substantial portion of students from Canada, 
               Taiwan, and India. These nonresident students are 
               required to meet higher academic thresholds (at least 
               a 3.4 GPA). Nonresident students can also qualify for 
               UC need-based grants, some scholarships, and if 
               domestic students, federal aid. 

           6)   Current status of out-of state-admissions  .  The UC 
               reports that it caps its undergraduate enrollment of 
               nonresident students at 10 percent systemwide. The UC 
               reports that for fall 2012, approximately 6.9 percent 
               of UCs  enrolled  undergraduate population hail from 
               outside California. Staff notes that the definition in 




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               this bill captures international and domest7)ic 
               nonresident undergraduates  enrolled  . The chart below 
               outlines the number and proportion of freshman  admits  
               at each campus for the last three years. 


          The proportion of non-resident undergraduate students 
          enrolled at each of the individual campuses in 2010 and 
          2011 ranges from highs of 18% and 14% at Berkeley and UCLA, 
          respectively, to between 2% and 9% at other UC campuses. 

           SUPPORT  

          AFSCME Local 3299
          American Federation of State, County and Municipal 
          Employees, AFL-CIO
          One individual letter

           OPPOSITION

           University of California