Representative Zoe Lofgren (from a district in Silicon Valley) is arguing that the university "is training software engineers at the same time they're outsourcing their own software engineers. What message are they sending their own students?"
Same message as the law schools: "We're happy to take your money. If you can't find a job after you graduate, tough shit. You should have thought carefully about your major's future potential before taking on $100K in student loans."
To be really clear, though, this is only UCSF, not the entire UC system. UCSF does not train software engineers--UCSF is a medical school. They only trains doctors, pharmacists, nurses, and dentists.