BILL ANALYSIS                                                                                                                                                                                                    




                                                                  SB 651
                                                                  Page A
          Date of Hearing:   August 19, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    SB 651 (Romero) - As Amended:  July 15, 2009 

          Policy Committee:                             Education   
          Vote:10-0

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

           SUMMARY  

          This bill requires the Superintendent of Public Instruction  
          (SPI) to submit the Annual Report on Dropouts in California (the  
          dropout report) to the governor, the Legislature, and the State  
          Board of Education (SBE) on or before August 1, 2011 and  
          annually thereafter.  Specifically, this bill: 

          1)Requires the dropout report to be based on data produced by  
            the California Longitudinal Pupil Achievement Data System  
            (CALPADS) and include specified information related to the  
            number of dropouts calculated over periods of time and by  
            different grade spans (i.e., grades 7-12).  

          2)Requires the dropout report to include information related to  
            pupil promotion rates, alternative schools, graduation rates,  
            and completion of coursework (i.e., career technical education  
            and college-prep).  This measure also requires the data to be  
            provided by subgroup (i.e., English learner, Latino, African  
            American, etc.) and type (i.e., state, county, school  
            district, and schoolsite).  

          3)Requires the SPI to make the report available on the State  
            Department of Education's (SDE) website.     

          4)Repeals the requirement for local education agencies (LEAs) to  
            receive a per pupil allocation, prior to the 2010-11 fiscal  
            year (FY), for the implementation of CALPADS before specified  
            data regarding pupil dropouts and alternative schools may be  
            included in the calculation of the Academic Performance Index  
            (API).  This language was in SB 219 (Steinberg), Chapter 731,  
            Statutes of 2007.  









                                                                  SB 651
                                                                  Page B

           FISCAL EFFECT  

          1)GF administrative costs of approximately $150,000 to complete  
            the report, as specified. 

          2)Potential GF administrative costs, likely less than $150,000,  
            to the SDE to meet the data collection requirements and  
            modifications to the API set forth in SB 219 (Steinberg),  
            Chapter 731, Statutes of 2007 (see comment #3 below).  


          3)Potential GF/98 costs, likely less than $200,000, to school  
            districts to collect and report data pursuant to the  
            requirements of SB 219 (Steinberg), Chapter 731, Statutes of  
            2007 (see comment #3 below).  


           COMMENTS  

           1)Purpose  .  According to the California Dropout Research Project  
            (CDRP) March 2009 statistics, the statewide graduation rate is  
            71.5%, which falls between the two rates reported by the  
            SDE.<1>   The graduation rate for Asians exceeds 90%, while  
            the graduation rate for Whites is 80%. Graduation rates for  
            African American and Hispanic students are at 60%. 

            According to the CDRP's report: The Economic Losses of High  
            School Dropouts in California (Belfield and Levin, August  
            2007), California experiences $46.4 billion in total economic  
            losses from each cohort of 120,000 20-year-olds who never  
            complete high school; this is the equivalent of 2.9% of the  
            Annual State Gross Product. The authors further state that the  
            average high school graduate earns $290,000 more over a  
            lifetime than a high school dropout, and pays $100,000 more in  
            federal, state, and local taxes. Likewise, more the two-thirds  
            of high school dropouts will use food stamps during their  
            working lifetime and a high school graduate is 68% less likely  
            to be on any welfare program. 

            According to the author, this bill "would make smarter use of  
            existing student data to shine a spotlight on one of our most  

            --------------------------
          <1> In February 2009, the SDE reported a 9th grade to graduate  
          rate of 67.7% and a No Child Left Behind rate of 80.6%. 









                                                                  SB 651
                                                                  Page C
            pressing education and economic challenges [the high school  
            dropout crisis]."

           2)The CALPADS  , established by SB 1453 (Alpert), Chapter 1002,  
            Statutes of 2002, required the SDE to track student  
            achievement to comply with the federal No Child Left Behind  
            Act of 2001. A longitudinal database requires individual  
            student identifiers be given to each student enrolled in the  
            public K-12 system. In the 2004-05 fiscal year, school  
            districts were provided incentive funding to create these  
            identifiers and establish systems to maintain them. To date,  
            all students have been assigned individual student  
            identifiers. The system is expected to be fully implemented by  
            in 2009-10 school year. 

           3)SB 219 (Steinberg), Chapter 731, Statutes of 2007  requires the  
            API, beginning July 1, 2011, to include additional information  
            regarding test scores and other data of pupils who were  
            referred by the school or school district of residence to an  
            alternative education program (i.e., juvenile court,  
            continuation, or community day school ).  Chapter 731  
            specified that these provisions are to be implemented only if  
            LEAs receive a per pupil allocation prior to the 2010-11 FY  
            for implementation of CALPADS. 

            This committee inserted the operative funding language  
            referenced above into the bill to control GF/98 costs  
            associated with implementation.  This bill repeals this  
            language.  While CALPADS will be fully operational in the  
            2009-10 school year, it is unclear as to the amount of costs  
            LEAs would incur to implement SB 219 requirements.  The  
            committee may wish to consider whether or not, given the  
            state's current fiscal crisis, it is appropriate to require  
            the additional duties associated with SB 219.  

           4)Related legislation  .  AB 374 (Block), pending in the Senate  
            Appropriations Committee, requires the SPI to produce a notice  
            to pupils about the consequences of dropping out of school  
            before reaching 18 years of age or graduating from high  
            school. 


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