BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 284
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          Date of Hearing:   January 13, 2010

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                   AB 284 (Garrick) - As Amended:  January 4, 2010
           
           [This bill has been double referred to the Assembly Higher  
          Education Committee and was heard as it relates to the issues  
          under its jurisdiction.]
           
          SUBJECT  :   Charter schools.

          SUMMARY  :  Allows the governing board of a community college  
          district (CCD) to authorize a petition to establish a charter  
          school within the county in which the district maintains a  
          campus; authorizes a maximum of ten charter schools be accepted  
          state-wide by the California Community Colleges (CCC); requires  
          these charter schools to be funded directly; and, requires the  
          California Department of Education (CDE) to prepare an analysis  
          of the program by January 1, 2013.  Specifically,  this bill  :  

          1)Allows the governing board of a CCD to authorize a petition to  
            establish a charter school within the county in which the  
            district maintains a campus.

          2)Requires the governing board of a CCD 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.

          5)Requires the governing board of a CCD that decides to accept a  
            petition for a charter school to inform the state board of  
            education (SBE); specifies that once the SBE receives notices  
            from CCDs that ten petitions for charter schools have been  
            accepted, the board shall inform the California Community  








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            Colleges that no community college district is authorized to  
            accept any additional petitions for a charter school.

          6)Requires, by January 1, 2013, the CDE to prepare an analysis  
            of the efficacy of CCDs approving petitions for charter  
            schools and provide the analysis to the SBE, the Governor, the  
            Chancellor of the California Community Colleges and the Senate  
            and Assembly Education Committees.

           EXISTING LAW  : 

          1)Establishes the Charter Schools Act of 1992 which authorizes a  
            school district, a county office of education or the 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 CDE, the 2008-09 count of operating  
          charter schools is 746 with student enrollment of more than  
          285,000 in this state.  This includes 4 statewide benefit  








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          charters and 8 SBE-approved 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  
          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  
          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 the California Community Colleges choose to authorize  








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          charter schools  ?  It is not clear if CCCs will choose to become  
          charter school authorizers, especially since the measure  
          requires community colleges to assume all the responsibilities  
          of school districts when they authorize a charter school.  CCCs  
          are suffering budget reductions, and have been hit hard during  
          the current economic crisis.  Why would a CCC choose to  
          undertake a new and significant responsibility?  CCCs have  
          expertise in educating adults, the committee should consider  
          whether CCCs equally have the expertise and are adequately  
          prepared to educate children in 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 community colleges if they are not  
          responsible for charter facility obligations?  This measure  
          would allow community 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  
          community 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 community colleges to  
          consider charter applications for approval or denial.  This  
          means that each community college district would be at liberty  
          to create their own unique charter approval process.  This could  
          potentially mean that the charter approval process at a  
          community 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 community 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  








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          community colleges.  This assumes that charter schools  
          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 charter  
          schools, but these funds will ultimately be transferred to the  
          community college for oversight.  Would this be an inappropriate  
          cross over of the split in Proposition 98 funds from funds  
          allocated to K-12 to the community colleges?  

           Lack of Sunset Date  .  The bill requires CDE to complete an  
          analysis of the community college authorization program by  
          January 1, 2013, but the bill does not have a sunset date.   
          Generally, an evaluation of a program accompanies a sunset date  
          so the Legislature can review the results of the program  
          evaluation while they consider whether or not to extend the  
          program.  The committee should consider whether to include a  
          sunset date for the program.

           State-wide limit of 10 Charter schools accepted by the CCCs ?   
          The bill specifies that once 10 charter school petitions have  
          been accepted by the CCCs, the SBE shall inform the CCCs that no  
          CCD is authorized to accept any additional charter school  
          petitions.  It is unclear whether the term "accept" refers to  
          the CCD receiving an application to review, or whether it refers  
          to the charters school "approval" process clearly outlined in  
          the Education Code.  As written, it is unclear whether the  
          author intends to authorize CCCs to approve 10 charter school  
          petitions state-wide, or whether the intention is to authorize  
          CCCs to receive 10 charter school petitions for review.  If this  
          measure is passed by the committee, the committee should  
          consider clarifying the term "accept." 

           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 CDE to develop basic criteria that  








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          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, "Community Colleges 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.  Community Colleges 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.  Central to  
          many successful charter schools is innovative pedagogy."

          The 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.  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."  The  
          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  








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          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  
          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. 








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

           REGISTERED SUPPORT / OPPOSITION on the March 23, 2009 version  :    


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

           Opposition 
           
          Association of California School Administrators 
          Board of Governors of the California Community Colleges
          California County Boards of Education
          California Federation of Teachers 
          California School Boards Association 
          California Teachers Association 
          Faculty Association of California Community Colleges
          Los Angeles Unified School District (Previous Version)
          Superintendent/President of the College of the Sequoias
           
          Analysis Prepared by  :    Chelsea Kelley / ED. / (916) 319-2087