BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 284
                                                                  Page  1

          Date of Hearing:   April 1, 2009

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                    AB 284 (Garrick) - As Amended:  March 23, 2009
           
           [This bill has been double referred to the Assembly Higher  
          Education Committee and will be heard as it relates to the  
          issues under its jurisdiction.]
           
          SUBJECT  :   Charter schools.

           SUMMARY  :  Allows the president of a campus of the California  
          State University, or the governing board of a community college  
          district to authorize a petition to establish a charter school  
          within the county in which the educational entity maintains a  
          campus; and, requires these charter schools to be funded  
          directly.  Specifically,  this bill  :  

          1)Allows the president of a campus of the California State  
            University, or the governing board of a community college  
            district, to authorize a petition to establish a charter  
            school within the county in which the educational entity  
            maintains a campus.

          2)Requires the president of a campus of the California State  
            University and the governing board of a community college  
            district that grants a charter petition to assume all of the  
            duties, responsibilities, functions and obligations that the  
            governing board of a school district assumes when it grants a  
            charter petition.

          3)Requires a charter school established pursuant to this section  
            to receive the state aid portion of the charter school's total  
            general-purpose entitlement, categorical block grant, other  
            state and federal categorical aid, and lottery funds directly.  
             

          4)Specifies that the process for directly funding the charter  
            schools pursuant to this section shall follow the existing  
            process established in the Education code.

           EXISTING LAW  : 

          1)Establishes the Charter Schools Act of 1992 which authorizes a  








                                                                  AB 284
                                                                  Page  2

            school district, a county office of education or the State  
            Board of Education (SBE) to approve or deny a petition for a  
            charter school to operate independently from the existing  
            school district structure as a method of accomplishing, among  
            other things, improved student learning.  

          2)Establishes a process for the submission of a petition for the  
            establishment of a charter school.  Authorizes a petition,  
            identifying a single charter school to operate within the  
            geographical boundaries of the school district, to be  
            submitted to the school district.  Authorizes, if the  
            governing board of a school district denies a petition for the  
            establishment of a charter school, the petitioner to elect to  
            submit the petition to the county board of education.   
            Authorizes, if the county board of education denies the  
            charter, the petitioner to submit the petition to the SBE.   
            Authorizes a school that serves a countywide service to submit  
            the charter petition directly to the county office of  
            education.  Authorizes a school that serves a statewide  
            purpose to go directly to the SBE.

          3)Authorizes a charter to be granted for not more than five  
            years.  Authorizes a charter granted by a school district,  
            county board of education or SBE to be granted one or more  
            renewals by that entity for five years.  Requires the renewals  
            and material revisions of the charter to be based on the same  
            standards for the original charter petition.

           FISCAL EFFECT  :  Unknown 

           COMMENTS  :  According to the California Department of Education  
          (CDE), the 2007-08 count of operating charter schools is 675  
          with student enrollment of more than 248,000.  This includes 4  
          statewide benefit charters and 8 State Board of Education  
          charters.  Some charter schools are new, while others are  
          conversions from existing public schools.  Charter schools are  
          part of the state's public education system and are funded by  
          public dollars.

           Current involvement of postsecondary education institutions in  
          charter schools  .  California's current system allows for  
          university involvement.  Several universities are already  
          involved in the operation of charter schools.  CSU Northridge  
          operates closely with the Vaughn Learning Center; CSU Dominguez  
          Hills has a relationship with New Millennium Charter School of  








                                                                  AB 284
                                                                  Page  3

          Carson; CSU Fresno has the University High School Charter  
          located on their campus;  CSU Sacramento has relationships with  
          three charter schools in the Sacramento Unified School District;  
          CSU Santa Jose has a relationship with Pacific Collegiate School  
          in Santa Cruz; CSU Los Angeles has partnered with and plays an  
          active role in the operation of at least two charter schools; UC  
          San Diego has the Preuss Charter School located on their campus;  
          and, the University of Southern California (USC) works with  
          various magnet schools and provides teacher and technical  
          assistance to several nearby inner-city charter schools.  The  
          examples above demonstrate the ability of universities and  
          colleges to have close involvement and even partner with local  
          school districts to operate charter schools on their campuses,  
          under the existing charter authorizing laws.  With such  
          extensive involvement in charter schools already, why do  
          universities and community colleges need to be charter  
          authorizers to be involved with charter schools?  

           Higher education authorizers in other states  .  Currently there  
          are 15 states that allow multiple entities to authorize charter  
          schools.  A smaller number of states currently incorporate  
          higher education institutions into their charter authorizing  
          system.  The key difference is that universities and colleges  
          are often the primary authorizers of charter schools in most of  
          these states which include: Indiana, Michigan, Missouri, New  
          York, Ohio and Wisconsin.  In New York, charters are primarily  
          authorized by the State University of New York (SUNY) which may  
          authorize up to 100 schools.  In Michigan, the state's colleges  
          and universities monitor the majority of the charter schools.   
          In Missouri, charter schools are limited to St. Louis and Kansas  
          City, but public universities in both cities are allowed to  
          authorize charter schools.  
                   
           Would public postsecondary education institutions choose to  
          authorize charter schools  ?  It is not clear if the CSU's and  
          community colleges will choose to become charter school  
          authorizers, especially since the measure requires universities  
          and colleges to assume all the responsibilities of school  
          districts when they authorize a charter school.  All segments  
          are suffering budget reductions, and have been hit hard during  
          the current economic crisis.  Why would any segment choose to  
          undertake a new and significant responsibility?  Universities  
          and colleges have expertise in educating adults, the committee  
          should consider whether universities and colleges equally have  
          the expertise and are adequately prepared to educate children in  








                                                                  AB 284
                                                                  Page  4

          grades K-12.

           Proposition 39 Obligations  .  Would this measure include  
          Proposition 39 obligations to provide appropriate facilities as  
          well all oversight responsibilities?  Is it appropriate to give  
          charter authorizing power to universities and colleges if they  
          are not responsible for charter facility obligations?  This  
          measure would allow universities and colleges to authorize  
          charter schools within the boundaries of existing school  
          districts, however, the districts would not have any input into  
          the charter authorization process; and, districts would still be  
          obligated to provide furnished facilities for these new  
          charters?  The committee should consider if it is appropriate to  
          grant universities and colleges with the authorization to grant  
          charter schools without also taking on the facilities  
          obligations of those schools.
           
          Charter Approval and Denial Process  .  The current version of the  
          bill does not specify a process for universities and colleges to  
          consider charter applications for approval or denial.  This  
          means that universities and colleges would be at liberty to  
          create their own unique charter approval process within each  
          segment.  This could potentially mean that the charter approval  
          process at a university or college could be vastly different  
          than the current system set up for school districts to authorize  
          charter schools.  Would charter petitions be held to the same  
          standards in terms of the assurances they are required to meet  
          under existing law with regard to student outcomes, racial and  
          ethnic balance, admission requirements, and school governance?   
          The committee should consider the process by which universities  
          and colleges could approve or deny charter petitions, and how a  
          different system might affect student outcomes in these schools.  
           

           What about Proposition 98 funding issues  ? The bill requires  
          charters to be "direct-funded," which retains all Proposition 98  
          funds with the charter school.  No funds are allocated to the  
          CSU or community colleges.  This assumes that charter school  
          authorized by these intuitions would then be required to set up  
          contracts with these entities for all oversight payments  
          necessary under existing law.  This bill will set up a system  
          where the state appropriates Proposition 98 funds to university  
          charter schools, but these funds will ultimately be transferred  
          to the CSU for oversight.  Would this be an inappropriate cross  
          over of Proposition 98 funds to the CSU for oversight  








                                                                  AB 284
                                                                  Page  5

          responsibilities?  

           Minimum criteria and safeguards should be established prior to,  
          or in conjunction with, expanding the pool of authorizers  .  In  
          their January 2004 publication "Assessing California's Charter  
          Schools" the Legislative Analyst's Office (LAO) made  
          recommendations regarding multiple authorizers.  They  
          recommended the Legislature modify charter school law to (1)  
          permit school districts to opt out of charter authorizing, (2)  
          allow for multiple authorizers, and (3) create safeguards  
          against potential misconduct.  
           
          To promote stronger accountability, the LAO recommended the  
          Legislature direct the California Department of Education (CDE)  
          to develop basic criteria that organizations must meet to become  
          charter authorizers.  The CDE would then be directed to submit  
          these criteria back to the Legislature in the following  
          legislative session for review and codification. (At a minimum,  
          the criteria should include an understanding of contracts and  
          fiscal management as well as school assessment and  
          accountability.)  These codified criteria would provide the  
          state the means by which to remove authorizing power from a  
          particular entity without having to institute a complex  
          licensing or regulatory process for approving charter  
          authorizers.  Should the committee consider adopting these basic  
          criteria before expanding the pool of authorizing entities?

          According to the sponsor of the bill, the California Charter  
          Schools Association, "Colleges and universities provide an often  
          more solid foundation for the creation and oversight of a  
          charter school.  They are often incubators for innovative and  
          creative programs and in many ways are better positioned to  
          provide guidance and oversight for charter schools that school  
          districts cannot.  Colleges and universities provide linkages  
          that can foster the development of model charter schools.   
          Community colleges already provide overlap services for young  
          people who are enrolled in both high school and community  
          college.  California State University is the focus of teacher  
          preparation in our state.  Central to many successful charter  
          schools is innovative pedagogy."

          California Federation of Teachers opposes the bill and argues,  
          "First, California already provides a plethora of opportunities  
          for approval of charter schools which includes local boards,  
          county offices of education, and the State Board of Education.   








                                                                  AB 284
                                                                  Page  6

          Second, the bill is not necessary in order to further the idea  
          of partnerships between higher education and local schools,  
          current law already provides great opportunities.  Finally,  
          there is no evidence that shows that charter schools as a group  
          are any better at obtaining increased achievement as measured by  
          state tests than traditional public schools."  California School  
          Boards Association opposes the bill and argues, "Locally elected  
          school board members play an important role in the evaluation of  
          charter school petitions.  School board members are members of  
          the community and understand the needs of the student  
          population.  Existing law focuses on these assets - local  
          accountability, experience, and expertise - on the review of  
          charter school petitions in the best interests of students."  

           Previous legislation  :  AB 39 (Walters) from 2005 would have  
          authorized a pilot project for the chancellor of a campus of the  
          UC, the president of a campus of the CSU, or the governing board  
          of a community college district to approve a petition submitted  
          to establish a charter school within the county in which that  
          entity is located or maintains a campus.  The pilot would have  
          permitted each segment of higher education to administer 1  
          charter school per campus, not to exceed 10 charter schools per  
          segment.  The bill was referred but never heard by the Assembly  
          Education Committee.

          AB 2764 (Bates) from 2004 would have authorized a pilot project  
          for the chancellor of a campus of the UC, the president of a  
          campus of the CSU, or the governing board of a community college  
          district to approve a petition submitted to establish a charter  
          school within the county in which that entity is located or  
          maintains a campus.  The pilot would have permitted each segment  
          of higher education to administer 1 charter school per campus,  
          not to exceed 10 charter schools per segment.  AB 2764 was held  
          on the Assembly Appropriations Suspense File.  According to the  
          Assembly Appropriations Committee, AB 2764 (Bates), was analyzed  
          as having "Potentially significant annual General Fund costs,  
          likely in excess of $400,000, to CSU and UC to adhere to the  
          various provisions outlined in the bill, including approval and  
          oversight of charter schools.  Significant reallocation of  
          General Fund (Proposition 98) funds, likely in the tens of  
          millions from school districts, to CSU and UC.  The actual  
          amount would depend on how many charter schools each of these  
          two segments authorized and the number of students enrolled."   

          AB 1464 (Bates) from 2003 would have authorized non-profit  








                                                                  AB 284
                                                                  Page  7

          charitable organizations, the governing body of a private  
          university or college that offers a specified teacher training  
          program, the chancellor of a campus of the UC, the president of  
          a campus of the CSU, or the governing board of a community  
          college district to approve a petition submitted to establish a  
          charter school within the county in which that entity is located  
          or maintains a campus.  That bill would have also authorized the  
          mayor of a city having a population of 250,000, or more, to  
          approve a petition submitted to establish a charter school  
          within that city.  AB 1464 was held in the Assembly Education  
          Committee at the request of the author.

          AB 1137 (Reyes) Chapter 892, Statutes of 2003 repealed the  
          sunset on the charter school general purpose block grant,  
          specified several oversight duties of each chartering authority  
          and established criteria for renewal. 

          AB 1994 (Reyes) Chapter 1058, Statutes of 2002 made numerous  
          substantive changes to charter school statutes to address  
          oversight concerns.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Charter Schools Association (Sponsor)
          Opportunities for Learning and Options for Youth Charter Schools

           Opposition 
           
          Association of California School Administrators
          California Federation of Teachers
          California School Boards Association
          California Teachers Association
          Los Angeles Unified School District
           
          Analysis Prepared by  :    Chelsea Kelley / ED. / (916) 319-2087