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