BILL ANALYSIS Ó AB 1172 Page 1 ASSEMBLY THIRD READING AB 1172 (Mendoza) As Amended January 26, 2012 Majority vote EDUCATION 7-4 ----------------------------------------------------------------- |Ayes:|Brownley, Ammiano, | | | | |Buchanan, Butler, Carter, | | | | |Eng, Williams | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Norby, Beth Gaines, | | | | |Halderman, Wagner | | | | | | | | ----------------------------------------------------------------- SUMMARY : Makes changes to the charter school approval process. Specifically, this bill : 1)Specifies that a chartering authority may deny a charter petition if it makes a written factual finding that the charter school would have a negative fiscal impact on the school district. 2)Specifies that a negative fiscal impact on a school district may only be established, and is deemed to be established, if any of the following conditions are met: a) The school district has received a negative financial certification; b) The school district has received an emergency apportionment or loan and is operating under the oversight of a state administrator or trustee; or, c) The school district, due to the declining enrollment of pupils, is in the process of closing a school that a charter school petition has identified as the proposed site for its charter school and has received a qualified financial certification or would receive a qualified financial certification if the charter school is approved. EXISTING LAW : Current law establishes the Charter Schools Act of 1992 which authorizes a school district, a county board of AB 1172 Page 2 education or the State Board of Education (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, increased learning opportunities for all students, with special emphasis on expanded learning experiences for students who are identified as academically low achieving, holding charter schools accountable for meeting measurable student outcomes, and providing the schools with a method to change from rule-based to performance-based accountability systems. FISCAL EFFECT : This bill is keyed non-fiscal by the Legislative Counsel. COMMENTS : Charter schools are part of the state's public education system and are funded by public dollars. A charter school is usually created or organized by a group of teachers, parents and community leaders, a community-based organization, or an education management organization. Charter schools are authorized by local education agencies (LEAs) or the SBE. A charter school is generally exempt from most laws governing school districts, except where specifically noted in the law. Specific goals and operating procedures for the charter school are detailed in an agreement (or "charter") between the sponsoring board and charter organizers. The Charter Schools Act of 1992 originally authorized an LEA or the SBE to approve a petition for a charter school. Subsequent legislation, AB 544 (Lempert), Chapter 34, Statutes of 1998, requires the LEA or SBE to approve a petition for a charter unless it makes one or more of the following findings: 1)The charter school presents an unsound educational program. 2)The petitioners are demonstrably unlikely to successfully implement the program set forth in the petition. 3)The petition does not contain the required number of signatures. 4)The petition does not satisfactorily address requirements regarding admissions policies and employment practices. 5)The petition does not contain reasonably comprehensive descriptions of the school's educational program, measurable AB 1172 Page 3 pupil outcomes, governance structure and other operational requirements. This change shifted the burden of proof in the petition process from the petitioners to the LEA or SBE. Districts are required to support their decision to deny a charter petition with written, factual findings, and the decision to deny may be appealed to the county board of education. This bill adds the finding that the proposed school would have a negative fiscal impact on the district to the list of reasons for which a petition may be denied. Arguments in support: Proponents argue that this bill is needed to allow districts to deny a charter petition if creating the school would have a negative impact on the district's ability to maintain programs and services for its remaining, non-charter students. They argue that "funding of charter schools should not negatively impact the educational program of the school district in which the charter school is located" and that the "bill is necessary to ensure the fiscal solvency of school districts." Arguments in opposition: Opponents say the bill is too broadly written and that most districts would be able to claim a negative financial impact under its provisions. In addition, the financial impact on the school district, regardless of how it would be measured, should not be a factor in the charter school approval process. They argue that this undermines the original intent of the charter school law by taking away "parental and student choice whenever a school district decides that a charter would have a negative fiscal impact on the district." Previous legislation: AB 2954 (Liu) of 2006, would have added negative fiscal impact to the reasons that a school district may cite as the basis for refusing to initially approve a charter school, but prohibited this as a basis to deny renewal of a charter. Further, the bill authorized a school district to require that a charter school describe how it will provide free and reduced price meals to eligible pupils as a condition for initial charter approval. The bill was vetoed by the Governor with the following veto message: While I understand the plight of school districts faced with fiscal challenges of declining enrollment and other AB 1172 Page 4 management issues, I cannot condone allowing them to deny parents and students their rights to petition for the establishment of a charter school. In essence, this bill would grant school districts the authority to punish charter petitioners because of problems caused by their own fiscal management issues or their unwillingness to make tough decisions, or both. In addition, allowing school districts to require, as a condition of approval, that the petition describe how the charter school will provide free and reduced-priced meals to eligible pupils would simply provide districts with another pretext on which to deny a charter. Charter schools are generally exempt from most laws and regulations governing school districts and they should continue to be exempt from this one. In sum, this bill runs counter to the intent of charter schools, which is to provide parents and students with other options within the public school system and to stimulate competition that improves the quality not only of charter schools, but of non-charter schools as well. Analysis Prepared by : Rick Pratt / ED. / (916) 319-2087 FN: 0003076