BILL ANALYSIS AB 284 Page 1 Date of Hearing: January 11, 2010 ASSEMBLY COMMITTEE ON HIGHER EDUCATION Anthony Portantino, Chair AB 284 (Garrick) - As Amended: January 4, 2010 SUBJECT : Charter schools: petitions. SUMMARY : Allows the governing board of a California Community College District (CCCD) to authorize a petition to establish a charter school (charter) within the county in which the CCCD maintains a campus. Specifically, this bill : 1)Allows a petition to establish a charter to be submitted for approval to a CCCD governing board, if the petition proposes to establish a charter within the county in which the CCCD maintains a campus. Authorizes the CCCD governing board to grant approval of the petition. 2)Requires the CCCD governing board 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 established pursuant to this legislation to receive the state aid portion of the charter's total general-purpose entitlement, categorical block grant, other state and federal categorical aid, and lottery funds directly and specifies that the process for directly funding the charter pursuant to this section shall follow the existing process established in the Education code. 4)Requires the CCCD governing board that decides to accept petitions for charters to inform the State Board of Education (SBE) and provides that once SBE receives notices from CCCD that they have decided to accept ten petitions for charters, SBE shall inform the California Community Colleges (CCC) that no CCCD may agree to accept any additional petitions for a charter. 5)Requires the California Department of Education to prepare an analysis of the efficacy of CCCDs approving petitions for charters and requires the analysis to be provided to SBE, the governor, the CCC Chancellor, and the Senate and Assembly Education Committees by January 1, 2013. AB 284 Page 2 EXISTING LAW 1)Establishes CCC with the primary mission to offer academic and vocational instruction at the lower division level of postsecondary education for students, including those persons returning to school, and not beyond the second year of college. 2)Establishes the Charter Schools Act of 1992, authorizing a school district, a county office of education or SBE to approve or deny a petition for a charter to operate independently from the existing school district structure as a method of accomplishing, among other things, improved student learning. 3)Establishes a process for submitting a petition for the establishment of a charter. Authorizes a petition, identifying a single charter 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, 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 SBE. Authorizes a school that serves a countywide service to submit the charter petition directly to the county office of education. Authorizes a charter that serves a statewide purpose to submit the petition directly to SBE. 4)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 : Double referral : This bill is double referred to the Assembly Education Committee. Thus, this analysis will focus only on the role of CCC included in this bill and will not discuss the broader issues related to K-12. AB 284 Page 3 COMMENTS : Background : According to information provided by the Assembly Education Committee, the 2008-09 count of operating charters is 746 with student enrollment of more than 285,000 in this state. Charters are part of the state's public education system and are funded by public dollars. Purpose of this bill : According to the author, existing law fosters a conflict of interest in most cases. School districts have their own schools to run, often placing charters on a much lower priority; often don't have the resources or capacity to oversee charters effectively; and, for some school districts that are having difficulty meeting the educational needs of its students, it is incongruous to be judging the ability of a charter to educate its students. The author argues that colleges provide an often more solid foundation for the creation and oversight of a charter. They are often incubators for innovative and creative programs and in many ways are better positioned to provide guidance and oversight for charters that school districts cannot. Colleges and universities are authorizers in other states : Currently there are 15 states that allow multiple entities to authorize charters. 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 charters 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 charters. In Michigan, the state's colleges and universities monitor the majority of the charters. In Missouri, charters are limited to St. Louis and Kansas City, but public universities in both cities are allowed to authorize charters. California colleges are currently involved with charter schools : Several universities are already involved in the operation of charters. 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 charters in the Sacramento Unified School District; CSU San Jose has a relationship with Pacific Collegiate School in Santa Cruz; CSU Los Angeles has partnered with and plays an active role in the AB 284 Page 4 operation of at least two charters; 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. These examples demonstrate the ability of universities and colleges to have close involvement with charters under the existing charter authorizing laws. With such extensive involvement in charters already, the committee should consider if CCCDs need to be authorizers in order to be meaningfully involved with charters. Are CCCDs appropriate charter authorizers ? A CCCD governing board is elected to oversee and develop policies that deal with community college issues. Under this bill, a CCCD that authorizes a charter school would assume significant fiscal and legal responsibilities associated with monitoring the charter's performance. The committee may wish to consider whether CCCD governing boards are prepared or have the staffing capacity to take on this new responsibility. Additionally, it is not clear as to whether any CCCD would choose to become a charter school authorizer. The CCC system is suffering budget reductions and has been hit hard during the current economic crisis. The Committee may wish to consider whether it is appropriate for CCCDs to undertake new and significant responsibilities in the current budget climate when the CCC system is being forced to issue staff layoffs and eliminate large numbers of course sections. There is potential for inconsistencies in charter approval and denial processes : This bill does not specify a process for CCCs to use in considering charter applications for approval or denial. This means that each CCCD could be at liberty to create its own unique charter approval process. Additionally, this could mean that the charter approval process at a CCC could be vastly different than the current system set up for school districts to authorize charters. This raises questions as to whether charter petitions would 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 may wish to consider the process by which CCCDs could approve or deny charter petitions, and how a different system might affect student outcomes in these charters. Role of the CCC Chancellor's Office : This bill does not specify AB 284 Page 5 a role for the CCC Chancellor's Office but raises questions about how the Chancellor's Office would oversee various activities associated with this proposal. For example, the bill requires that CCCDs notify SBE whenever there is a new charter school petition approved by a CCCD. It is unclear if the Chancellor's Office would be expected to perform this duty on behalf of CCCDs, which is typically how state reporting is handled. This bill also raises question about whether Proposition 39 facilities funds are made available to CCC-approved charter schools and how to disperse Proposition 98 education funds. Each of these issues would have to be analyzed and overseen by the Chancellor's Office. The Committee may wish to consider whether it is appropriate to add a significant new responsibility to the Chancellor's Office, which has been hard hit by budget cuts in recent years. Previous efforts : AB 39 (Walters) of 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 CCCD 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 one charter school per campus, not to exceed 10 charter schools per segment. The bill was referred to but never heard by the Assembly Education or Higher Education Committees. AB 2764 (Bates) of 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. 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 CCCD 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 AB 284 Page 6 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. REGISTERED SUPPORT / OPPOSITION : Support California Charter Schools Association (Sponsor) Opposition California Community Colleges Chancellor's Office California County Boards of Education California Federation of Teachers California School Boards Association Faculty Association of California Community Colleges Analysis Prepared by : Laura Metune / HIGHER ED. / (916) 319-3960