Crazy.

If I were a state of California taxpayer, I'd be ticked.

Cal State schools are threatening to disallow admission of in-state grad students (because out of staters bring in more bucks in terms of tuition, and they "can't afford" to serve the in-staters any more. Or so it's claimed).

Um, wasn't the reason a state university system was set up, was to educate the residents of that state?

And at any rate: if I were a prof in a department and was told, "We don't care how qualified this person is, and how good they'd be, you can't bring them in because we won't make enough tuition or fees off of them," I'd be seriously considering another line of work. Or at least another university system.