Have a rule. Our republic, and the California state government, is based on rule of law. One group makes the laws, another enforces it, and a third interprets the conflicts. This works. What we have here is a 'no rules' set of actions. How about rules that say "we will take any student for $200K/year". This is enough money to supply extra supervision and also give a full scholarship to another student.
The idea that we have to "tear it all down" and institute Marxism is backward and self-contradictory.
As you said, we need to identify where and how rule of law is lacking and fix it, making sure that representative government and separation of powers remains intact (or is put in place again).