It will take a few years to transition from a MPT to a DPT program. They have to basically re-write the curriculum, get it approved & accredited, and then implement it. I don't think we'll see the first Cal State DPTs graduate until about 2013 or 2014 at best. But still GREAT news for the profession (and for the CSU system in general as they would have otherwise been forced to close the PT departments due to non-accreditation by the APTA). And even though the overall cost of a PT degree will increase, the CSU system will still offer a very affordable option (at less than ~5k/semester) for students pursuing a PT degree (like me!!).
Finally, the Governator is doing something beneficial for the education system in CA amidst all the crazy budget cuts to schools!