BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                               Jack Scott, Chair
                           2007-2008 Regular Session
                                        

          BILL NO:       AB 400
          AUTHOR:        Nunez
          AMENDED:       July 3, 2007
          FISCAL COMM:   Yes            HEARING DATE:  July 11, 2007
          URGENCY:       No             CONSULTANT:James Wilson

           SUBJECT  :  Academic Performance Index
          
           SUMMARY  

          This bill requires the Superintendent of Public Instruction  
          (SPI) to add dropout rates and course completion rates to  
          the Academic Performance Index (API) for high schools  
          through a process that begins in 2009-10 and ends with  
          these indicators making up 50% of the high school API by  
          2013-2014.  

           BACKGROUND  

          The Academic Performance Index (API) was established  
          pursuant SB 1 X (Alpert, Ch. 3 of 1999). The index was  
          proposed as a means of combining multiple indicators of  
          school performance into one easy to compare index. Current  
          law still reflects this intention by declaring that the  
          "API shall consist of a variety of indicators ?including,  
          but not limited to, the results of achievement tests  
          ?attendance rates?and graduation rates for pupils in  
          secondary schools."  Current law also declares that test  
          results must constitute at least 60% of the value of the  
          index, but to date test scores have been the only data  
          taken into account, thereby, comprising 100% of the API for  
          every school. 

          Current law specifies that secondary school graduation  
          rates for use in the API shall be calculated by dividing  
          the number of pupils graduating on time, as defined, by the  
          number of pupils in 9th grade 3 years earlier adjusted for  
          transfers in and out during those 3 years.

          Current law requires that school districts with schools  
          teaching grades 7 -12, offer all qualified pupils courses  




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          that fulfill the requirements for admission to UC and CSU  
          ("A to G" courses), and further offer all qualified pupils  
          courses that provide an opportunity to attain entry-level  
          employment skills in business or industry upon graduation  
          from high school.  Current law specifies that any 
          school district that adopts a curriculum that meets or  
          exceeds standards
          developed by the State Board,  or that adopts alternative  
          means for pupils to complete the prescribed course of  
          study, may substitute pupil demonstration of competence in  
          the prescribed subjects through a practical demonstration  
          of these skills in a regional occupational center or  
          program, work experience,
          interdisciplinary study, independent study, credit earned  
          at a postsecondary institution, or other outside school  
          experience.
           ANALYSIS
           
           This bill:  

          1)   Commencing with 2009-10, requires the Superintendent  
               of Public Instruction (SPI), in consultation with the  
               state board, to incorporate the following indicators  
               into the API of schools serving any grade 9 through12:

               a)        High school graduation rates calculated  
                    according to current law.

               b)        Rates of "A to G" course completion at a  
                    level that meets the requirements for admission  
                    to the University of California (UC) or the  
                    California State University (CSU).

               c)        Rates of career tech course completion that  
                    provides the skills and knowledge necessary to  
                    attain entry-level employment, as indicated by  
                    one or more of the following:

                    i)             Satisfactory completion of a  
                         designated career and technical education  
                         course or series of courses that meet the  
                         career technical education standards adapted  
                         by the state board.  

                    ii)            The number or percentage of pupils  
                         who earn a certificate, license, or the  




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                         equivalent in the designated occupation for  
                         which it is issued.

                    iii)           The scores of pupils on valid and  
                         reliable assessments, including portfolio  
                         assessments, that are designed to assess the  
                         degree to which pupils have acquired the  
                         skills and knowledge necessary to be  
                         successful in a specific occupation or in  
                         the general workforce.

          2)   Provides that workforce outcomes for pupils graduating  
               from high school may include, but are not limited to,  
               employment rates and earnings.

          3)   On or before the 2013-14 fiscal year, the SPI is  
               required to assure that: 

               a)        Test results constitute 50 percent of the  
                    value of the API.

               b)        The indicators added by this bill, including  
                    graduation rates and course completion rates,  
                    collectively constitute 50 percent of the value  
                    of the API, provided that these indicators are  
                    assigned equal weight in the API, except that  
                    pupils who complete courses that count towards  
                    UC/CSU admission and career tech objectives may  
                    be given additional weight.

          4)   Suggests that the SPI convene an advisory committee of  
               recognized experts to recommend means of revising the  
               API.

          5)   Repeals the requirement that test scores constitute at  
               least 60% of the API (replacing it with a 50%  
               requirement, see 3.a. above).

          6)   Repeals the requirement to include student attendance  
               rates in the API.

           STAFF COMMENTS  

           1)   Related legislation.   SB 219 (Steinberg) requires  
               that, by July 1, 2008, the SPI and the State Board  
               revise the API to include:




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               a)        The test scores of pupils from that school  
                    are, or have been, in an alternative education  
                    program, such as a community school or  
                    independent study.

               b)        8th and 9th grade drop out rates if reliable  
                    data is available. 

               c)        High school graduation rates when reliable  
                    data becomes available.

               SB 219 also requires that the SPI establish a  
                    representative advisory committee on revising the  
                    API and requires the SPI to include outcomes  
                    related to college and career readiness as  
                    recommended by the advisory committee.
                 
           2)   Related legislation.   AB 519 (Mendoza) requires the  
               SPI to define the term "dropout" and prepare a plan by  
               July 1, 2008, to include data on dropouts in the API.  
               AB 519 was heard and passed by the Senate Education  
               Committee on June 27, 2007.

           3)   Previous legislation.   AB 2167 (Arambula), Chapter 743  
               of 2006, established a specific methodology for  
               including graduation rates, as previously required, in  
               the API; also requires the SPI to report annually to  
               the Legislature on graduation and dropout rates in the  
               state.

           4)   What about middle school?   The most recent amendments  
               change the grade span of the API affected by this bill  
               from grades 8 to 12 to grades 9 to 12, thereby  
               preventing the APIs of middle schools, and K - 8  
               schools, from being revised by the bill. This change  
               makes sense because 12th grade graduation rates and  
               college or career tech course completion rates are  
               rather remote from 7th and 8th grade.  Still, the  
               previous grade span recognized that the API of all  
               schools should eventually be based on multiple  
               measures and not just test scores.  SB 219 calls for  
               8th grade drop-out rates to be incorporated in the  
               API, and other measures such as completion of high  
               school pre-requisite courses might be included in the  
               middle school API.  Staff recommends that the bill be  




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               amended to charge the expert advisory committee,  
               authorized by the bill, with developing  
               recommendations for the inclusion of multiple measures  
               in the APIs of middle schools.

           5)   Too much advice?   The Education Code still contains  
               authorization for an advisory committee charged with  
               advising the SPI on the API.  This authorization in  
               Education Code Section 52052.5 was established by 
          SB 1X in 1999.  Given the new advisory committee authorized  
               by this measure staff recommends that the old  
               authorization be repealed as the new authorization  
               takes effect.

           6)   Fiscal impact.   According to the Assembly  
               Appropriations Committee administrative costs to the  
               SPI are likely in excess of $300,000 to collect  
               indicators regarding entry-level employment and there  
               are potential unknown costs of at least $50,000 to  
               local education agencies to collect data.

           SUPPORT  

          California Alliance for Arts Education 
          California Business Education Association
          California Coalition for Construction in the Classroom
          California Manufacturers and Technology Association
          California Space Authority
          California State PTA
          California State University
          Johnson & Johnson
          Public Advocates
          State Building and Construction Trades Council
          State of California Auto Dismantlers Association

          OPPOSITION

           Department of Finance