BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
AB 736 (Fox) - California State University: Antelope Valley
Campus
Amended: June 26, 2014 Policy Vote: Education 7-0
Urgency: No Mandate: No
Hearing Date: August 4, 2014
Consultant: Jacqueline Wong-Hernandez
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 736 requires the California State University
(CSU) to conduct a study, as specified, regarding the
feasibility of CSU satellite program, and ultimately, an
independent CSU campus in the Antelope Valley.
Fiscal Impact:
Feasibility study: Cost pressure of approximately $600,000
(federal or private funds) for the CSU to conduct the
authorized study.
Formal study: If the feasibility study concludes that there
is a "need" for a new campus or center, there will be
General Fund cost pressure of $1 million - $2 million to
conduct a formal study, as specified.
CSU Antelope Valley: To the extent that the feasibility
study concludes that there is both need and utility, there
will be General Fund cost pressure to create a satellite
program or an independent campus. The construction of a new
CSU campus will likely require a capital investment of
approximately $1 billion. Operating a CSU campus would have
an annual cost of approximately $95 million; a satellite
program, would have operational cost of approximately $1
million, and construction or leasing costs would depend on
local conditions and infrastructure.
Background: Existing law declares the intent of the Legislature
that sites for new institutions or branches of the CSU shall not
be authorized or acquired unless recommended by the California
Postsecondary Education Commission (CPEC) and that CPEC should
advise the Legislature and the Governor regarding the need for,
and location of, new institutions and campuses of public higher
education. (CPEC disbanded when the Governor vetoed its funding
AB 736 (Fox)
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from the 2011-12 budget.)
(Education Code � 66900 and � 66904)
Existing law also provides the the CSU Board of Trustees shall
have the full power over the construction and development of any
CSU campus and any buildings or other facilities or
improvements. (EC � 89030, et. seq.)
Proposed Law: This bill authorizes the Chancellor of the
California State University to conduct a study, as specified,
regarding the feasibility of CSU satellite program, and
ultimately, an independent CSU campus in the Antelope Valley.
This bill requires the study to include all of the following: a)
Ten-year enrollment projections and physical capacity analysis;
b) regional workforce needs; c) prospective economic impact and
job creation in the region; d) infrastructure availability; e)
the potential alleviation of overcrowding and traffic at the
Bakersfield and Northridge campuses; f) consideration of
plausible alternatives; g) academic planning and program
justification; g) description of proposed student services and
student outreach programs; h) support and capital outlay budget
projections; i) geographic and physical accessibility; j)
environmental and social impacts; and, k) effects on other
educational institutions.
This bill requires funding for the study to be derived solely
from nonstate sources, and requires the Chancellor to complete
and submit the study to the Board of Trustees within 18 months
after sufficient funds are available to conduct the study. If
the CSU Trustees determine there is a need for a new campus or
satellite campus in the Antelope Valley, the Trustees are
authorized to conduct a formal study identical in content to the
study of a proposed new postsecondary educational program that
would have been conducted by the CPEC.
Related Legislation: AB 24 (Block, 2009) proposed a study
regarding the feasibility of establishing a CSU satellite
program and campus at Chula Vista. That bill was vetoed by
Governor Schwarzenegger.
AB 500 (Conway, 2009) would have required a feasibility study
for a CSU campus in the High Desert. That bill failed passage in
the Assembly Higher Education Committee
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Staff Comments: While this bill will not result in direct state
costs, it creates substantial cost pressure on the CSU to
complete several activities that are geared toward the eventual
creation of a new CSU campus in Antelope Valley.
This bill "authorizes" the CSU to conduct two studies. The first
is a feasibility study that will likely cost $600,000, and which
is required to be funded entirely by nonstate funds, to be
presented to the CSU Board of Trustees. The CSU already has the
authority to conduct such a study, and this bill creates cost
pressure for the CSU to seek funding to do so. The funding
source is unclear, but the bill prohibits that it be the state.
If this study is presented to the Trustees and they agree that
there is a need for a new campus or satellite in Antelope
Valley, the CSU is "authorized" to conduct a formal study of the
type previously conducted by the CPEC. That study is likely to
cost $1 million - $2 million, and there is no prohibition
against the use of state funds. This will create cost pressure
to appropriate General Fund monies for this study. This level of
formal study is essentially a plan for establishing a satellite
program or campus.
To the extent that the studies outline the arguments and plan
for a CSU campus, there will be cost pressure to build one,
which would likely require a capital investment of approximately
$1 billion. The last CSU campus to be built was CSU San Marcos,
founded in 1989. That project cost approximately $700 million
(in 1989 dollars), and was funded through state funds, nonstate
bonds, and local support.