BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 451
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          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                   AB 451 (De Leon) - As Amended:  April 13, 2009 

          Policy Committee:                              Education  
          Vote:11-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill establishes a process for local education agencies  
          (LEAs) that have schools in federal program improvement (PI)  
          under the No Child Left Behind Act (NCLB) to receive technical  
          assistance to improve the academic achievement of their pupils,  
          as specified.  Specifically, this bill: 

          1)Deletes the Early Warning Program, which provided fiscal  
            resources to LEAs at-risk of being identified for PI under  
            NCLB.  

          2)Increases existing one-time grant amounts for LEAs in  
            corrective action under NCLB by $50,000 for each level of  
            intervention.  This measure also ensures that LEAs receiving  
            corrective action and technical assistance funding prior to  
            January 1, 2009 also receive the grant increases for the  
            2009-10 fiscal year (FY) only. 

          3)Authorizes a LEA that has schools in year four or five of PI  
            under NCLB to apply for a one-year non-renewable grant of  
            federal improvement funding to assist in improving these  
            schools.  

          4)Authorizes  LEAs to contract with an outside entity on behalf  
            of schools in year four and five of PI under NCLB, including a  
            schoolsite intervention and assistance team (SAIT), to assist  
            with the assessment of the schoolsite plan.  

          5)Requires LEAs, as a condition of receiving funding for their  
            schools in year four and five of PI under NCLB, to do all of  
            the following: (a) provide these schools with funding to  








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            implement technical assistance to examine and reassess their  
            schoolsite plan with the focus on improving academic  
            achievement; (b) establish a school district liaison team to  
            coordinate with these schoolsites on the assessment of their  
            plan; and (c) ensure that pupils in these schools continue to  
            provide the option for pupils to transfer to another public  
            school and receive supplemental educational services as  
            required under NCLB.  

           FISCAL EFFECT  

          1)One-time federal fund costs of approximately $153 million in  
            the 2009-10 FY and $104 million in the 2010-11 FY to the State  
            Department of Education (SDE) to implement this measure.  The  
            federal government, via Title I allocations and federal  
            stimulus funds, provides states with funding exclusively for  
            purposes outlined in this measure (see comment #3 below).   
            This enactment of this measure is contingent upon funding  
            provided for its purposes.  

            States can spend up to a certain percentage of their total  
            federal Title I grant on intervention activities related to  
            the accountability provisions of the law. California is able  
            to utilize up to 4% of its total grant for these activities.   
            This is on-going funding and it equates to approximately $65  
            million each FY, depending on the state's federal Title I  
            allocation.  This measure proposes to utilize this funding.     
                 

           SUMMARY CONTINUED

          6)Requires the assessment of the schoolsite plan to include  
            recommendations on addressing deficiencies in academic  
            achievement and a description of how existing state and  
            federal schoolsite and district resources will be used to  
            implement the improvements, as specified.  

          7)Establishes a school district liaison team to coordinate with  
            schools in year four and five of PI under NCLB to improve  
            academic achievement at each school.  This measure further  
            requires the school district liaison team to ensure that the  
            assessment of the schoolsite plan is consistent with the LEA  
            plan required under NCLB.  

          8)Requires LEAs, subject to the availability of funds, to  








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            receive $150,000 per school in year four and five of PI under  
            NCLB to implement the requirements of this measure.  This bill  
            also requires the SDE to give first priority in allocating  
            funds to schools in year five of PI under NCLB.  

          9)Authorizes LEAs to provide funds to schools in year four and  
            five of PI under NCLB to implement the recommendations of the  
            schoolsite assessment.  
           
          COMMENTS  

           1)Background  .  In 2001, the federal government passed NCLB,  
            which requires the state to adhere to a federal accountability  
            system because California will receive approximately $2.7  
            billion in K-12 federal NCLB funds in the 2009-10 FY. Of this  
            amount, $1.64 billion are Title I funds, which serve the  
            state's poorest students.


            The federal accountability system is governed by a status  
            model, as measured by Adequate Yearly Progress (AYP), academic  
            targets as measured by state assessments. Under this model,  
            LEAs and schoolsites are identified as PI based on failing to  
            meet AYP targets. PI LEAs and schoolsites that do not meet AYP  
            for two consecutive years are subject to one or more  
            corrective actions. 


            NCLB requires PI schoolsites that are Title I (i.e., primarily  
            serve poor pupils) to adhere to a series of  
            requirements/sanctions that become more severe as the  
            schoolsite advances in PI status.  For example, PI year one  
            requires parents to be notified that they can transfer their  
            pupil to another schoolsite within the district that is not  
            PI.  PI year two requires schoolsites to offer supplemental  
            education services to pupils.  If a schoolsite advances to PI  
            year four, it must continue to offer parental choice and  
            supplemental education services while at the same time prepare  
            a plan for corrective action/alternative governance.  Federal  
            law provides several corrective actions options, including  
            placing a trustee at the school; converting it to a charter  
            school; replacing staff; state takeover; and implementing a  
            new curriculum.  The corrective action decision for a PI  
            school lies solely with the LEA.  









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            NCLB also requires the state and LEA to provide technical  
            assistance to schoolsites during the PI process.  According to  
            the SDE, there are 2,253 schools in PI under NCLB in 2008-09.   
            Of this number, 1,182 are in PI year four and five.  This bill  
            establishes the technical assistance process for schoolsites  
            in year four and five of PI under NCLB, which includes  
            providing funding for this purpose.  

           2)AB 519 (Budget Committee), Statutes of 2008  , established a  
            process for implementing the federal NCLB PI corrective action  
            for LEAs.  Federal law requires states to choose a sanction  
            for an LEA in corrective action (i.e., has failed to meet AYP  
            after two consecutive years).  These sanctions may include  
            reconstituting the district, replacing district personnel,  
            placing a trustee in the district, and requiring the district  
            to implement a new curriculum.  In addition to the sanction,  
            federal law requires states to provide LEAs with technical  
            assistance in implementing the sanction.    

            State law requires the Superintendent of Public Instruction  
            (SPI) to recommend a sanction to the State Board of Education  
            (SBE) for approval.  According to SDE, there are 246 LEAs in  
            PI under NCLB in 2008-09.  To date, the SBE has sanctioned 147  
            LEAs.  Each LEA received the same sanction: to implement a new  
            curriculum.  In addition, AB 519 authorizes the SPI to  
            recommend, with SBE approval, that the LEA contract with a  
            district assistance and intervention team (DAIT) or other  
            technical assistance provider to aid in implementing the  
            sanction.  

            LEAs may receive between $150,000 and $50,000 per PI school  
            within their district to contract with a DAIT or other  
            technical assistance provider.  This funding is condition upon  
            the availability of federal funds.  

            This bill increases the existing grant amounts for LEAs by  
            $50,000 each, which makes the range of available funding  
            between $200,000 and $100,000 per PI school.  This measure  
            also provides this funding increase for the 147 LEAs already  
            sanctioned by the SBE.  

           3)Federal American Recovery and Reinvestment Act (ARRA) funding  .  
             In February 2009, the federal government passed the ARRA,  
            which allocated approximately $100 billion nationwide for  
            education programs with the purpose of stimulating the  








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            economy.  Of this amount, California is expected to receive  
            approximately $8 billion.

            According to SDE, California is expected to receive  
            approximately $1.1 billion in one-time funds for Title I  
            pupils (i.e., poor and needs students), based on the existing  
            federal formula.  Of this funding, approximately $46 million  
            is reserved for school improvement activities required under  
            NCLB.  This bill proposes to utilize this funding to support  
            school improvement activities for LEAs and schoolsites in PI  
            under NCLB.    

            In April 2009, the Department of Finance (DOF) issued a  
            Section 28.00 letter to allocate $562.5 million in federal  
            ARRA Title I funds.  Section 28.00 is a provision in the  
            annual budget act that authorizes the Director of DOF to  
            augment the expenditure of unanticipated federal funds.  Of  
            this funding, approximately $23 million is available for  
            school improvement activities.  This funding represents  
            one-half of the expected funding available for these purposes.  
             The federal government is expected to provide the remaining  
            Title I allocation in the fall of 2009.    

            ARRA also allocated $383.3 million for the existing School  
            Improvement Grants (SIG) program.  The federal government  
            established the SIG program, a competitive grant available to  
            states in 2008, to provide technical assistance for Title I  
            schools in PI under NCLB.  Federal law establishes grant  
            amounts between $50,000 and $500,000 per Title I PI school.   
            ARRA SIG program funding is expected to be available in the  
            fall of 2009.  This bill proposes to utilize this funding to  
            provide technical assistance to LEAs in year three of PI and  
            schools in year four and five of PI under NCLB.  

           4)Related legislation.  
           
              a)   AB 683 (Chesbro), pending in this committee, authorizes  
               an LEA in corrective action that received a sanction, but  
               does not have any PI schools, to receive federal funding to  
               implement the sanction, as specified.   

             b)   AB 519 (Mendoza), pending in this committee, requires  
               that members of SAITs and DAITs to possess a high degree of  
               knowledge, skills, and expertise in order to meet the needs  
               of the students they serve.








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           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081