Updated

California's auditor says the University of California has undermined residents by admitting a growing number of nonresident students, some of whom were not as qualified as in-state students.

Out-of-state students pay more than in-state students, providing much-needed money to the financially beleaguered University of California. But in a scathing report released Tuesday, Auditor Elaine Howle says those admissions come at the expense of California students who are meant to benefit from the public university system.

UC President Janet Napolitano blasted the audit as unfair and misleading.

In a written response, she says the university has consistently provided a spot for the top one-eighth of California's high school graduates.

She says nonresident fees help keep doors open for resident students at a time when state assistance has dropped considerably.