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 AB 400 Page 2 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 AB 400 Page 3 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: AB 400 Page 4 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 AB 400 Page 5 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