For all of the amazingly progressive and innovative things that come out of California — most of which are fueled by highly-educated people — it’s shocking how dysfunctional the state’s college and university system is. On average it takes six years to finish school, in part because many students are also working. But it’s also because they simply can’t get into the courses they need to graduate, thanks to the decline in state education funding.

The supply-demand imbalance is even worse at the community college level, where some 470,000 students are wait-listed.

Although Udacity has a mission of bringing free higher-education to the world, it’s also working to solve the problems very specific to the company’s home state of California, as CEO Sebastian Thrun explains in this clip.

[ICYMI: Check out our earlier clips from our sit down with Thrun including his thoughts on whether you need to be a teacher to change education, how Udacity is trying to fix computer science, Udacity's business model, and what makes Thrun such a radical thinker.]