BILL ANALYSIS Ó AB 790 Page 1 Date of Hearing: May 11, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 790 (Furutani and Carter) - As Amended: May 4, 2011 Policy Committee: Education Vote:7-3 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill, commencing with the 2012-13 school year, establishes the Multiple Pathway Pilot (MPP) program for the purpose of implementing districtwide multiple pathway learning approaches, as specified. Specifically, this bill: 1)Requires the State Department of Education (SDE) to administer the program and contain requirements related to small-sized schools within existing high schools; concurrent enrollment and dual credit with community colleges and universities; sequence of courses; and pupil mastery of grade-level, standards-based performance benchmarks. 2)Requires the MPP program to be implemented within existing school district resources and requires districts to involve local business, labor, parent, and community partners to advise the district on the development, implementation, and ongoing evaluation of the program. 3)Requires participating school districts to receive priority for appropriate competitive grant funds distributed by SDE. 4)Authorizes a school district maintaining grades 9-12 to apply to the Superintendent of Public Instruction (SPI) to operate a MPP program and authorizes the SPI to initially approve up to 20 applications and additional applications on an annual basis thereafter. 5)Requires the SPI, on or before September 30, 2016, to transmit a report to the Legislature and the governor that documents an independent evaluation of the costs of the program, pupil AB 790 Page 2 outcome data, and recommendations regarding the need for additional statutory changes to expand the program. 6)Authorizes the SPI to develop recommendations to implement this program and sunsets this program on July 1, 2017. FISCAL EFFECT 1)GF/98 cost pressure, likely between $100,000 and $200,000, to school districts to implement the MPP program. This bill requires school districts to use existing state and federal resources to implement this program. 2)The 2010 Budget Act allocated approximately $500 million for CTE purposes, including $135 million in federal Carl Perkins program funding and $353 million GF/98 for the Regional Occupational Centers Program (ROC/P), which is one of the main funding sources for school district CTE programs. Under current law, school districts may use ROC/P funding for any educational purpose it deems appropriate until 2015. 3)GF administrative costs to SDE, likely between $100,000 and $200,000 to administer and provide a report that includes an independent evaluation of the MPP program. The language in the bill is unclear as to whether SDE will need to contract out for the report. The bill refers to an "independent" evaluation and as such, SDE would not be completing this work. The author may wish to clarify this language. COMMENTS 1)Purpose . AB 2648 (Bass), Chapter 681, Statutes of 2008, defined multiple pathway programs as multi-year, comprehensive high school programs of integrated academic and technical study organized around a broad theme, interest area, or industry sector. This program ensures that all pupils have curriculum choices to prepare them for career entry and a full range of postsecondary options, including two and four-year colleges, apprenticeship, and formal employment training, Chapter 681 also required the SPI to develop a report that explores the feasibility of establishing and expanding multiple pathway programs in high schools, including the costs and merits associated with expansion of these programs. On May 12, 2010, the SPI released the final report, which contained AB 790 Page 3 several policy recommendations that are incorporated in this bill, including developing small schools within existing high schools, encouraging school districts to develop comprehensive policies on current enrollment, and establishing standards-based performance benchmarks that measure grade-level pupil mastery. Specifically, the report recommended the state take a number of action items to provide a strong foundation for substantially improving California's high schools through the establishment and expansion of the multiple pathways approach. This bill implements the second action item by establishing the MPP program. 2)Too much authority to the SPI ? This bill requires participating school districts to receive priority for "appropriate competitive grant funds distributed by SDE." It is the Legislature's responsibility to appropriate funding, including establishing the policy regarding its distribution. While the majority of federal education funding has pre-established requirements, there are instances in which the state has discretion regarding distribution. Pursuant to language in this bill, SDE has full discretion, without legislative input, to determine which state and potentially federal competitive grant funds participating school districts will be given priority. Likewise, this bill authorizes the SPI to initially approve up to 20 applications (with more added later) until 2017. There are approximately 1,000 school districts in the state and the majority will not participate in this program. Also, given the severe fiscal reductions the majority of districts have made over the last several years, it is unclear how many are able to establish a pilot program within existing resources, as required by this measure. Without knowing which competitive grant funds SDE will prioritize, it may be unfair to provide a small number of districts with funding priority in these difficult fiscal times. The author may wish to consider addressing these issues. 3)Previous related legislation . a) AB 2172 (Carter) required the SPI to convene an advisory board composed of leaders from education, business, labor, civic organizations, and the community to review the AB 790 Page 4 recommendations of the multiple pathways report required by AB 2648 (Bass), Chapter 681, Statutes of 2008, and advise the SPI on the implementation issues. This bill was held on this committee's suspense file in May 2010. b) AB 2445 (Furutani) required the SPI, by December 31 of each year, to report to the Legislature on the status of the advisory board proposed to be established pursuant to AB 2172 (Carter) (2010) to review recommendations of the multiple pathways report. This bill was held on this committee's suspense file in May 2010. Analysis Prepared by : Kimberly Rodriguez / APPR. / (916) 319-2081