BILL ANALYSIS Ó SENATE COMMITTEE ON EDUCATION Alan Lowenthal, Chair 2011-2012 Regular Session BILL NO: SB 361 AUTHOR: Berryhill INTRODUCED: February 15, 2011 FISCAL COMM: Yes HEARING DATE: March 23, 2011 URGENCY: No CONSULTANT:Daniel Alvarez SUBJECT : Funding for the Center for Advanced Research and Technology (CART) a joint program of the Clovis and Fresno Unified School Districts. SUMMARY This bill makes permanent the funding formula for the Center for Advanced Research and Technology (CART), by deleting the July 1, 2012 sunset for this formula. BACKGROUND Current law specifically as it relates to CART: Provides, commencing in 2008-09, the minimum schoolday for a pupil concurrently enrolled in regular secondary school classes and classes operated pursuant to a joint powers agreement (JPA) that became effective prior to January 1, 2008, is 180 minutes and provides further that a pupil must attend the full 180 minutes of class to generate a "day of attendance "for purposes of funding. (Education Code 42238.20) Provides that the 180 minute schoolday described above will generate only three-quarters (75 percent) of a day of attendance for the purpose of calculating average daily attendance (ADA) but that the ADA generated by the pupil's attendance may be claimed as part of a school district's ADA. Requires, starting in 2008-09, the Superintendent of Public Instruction (SPI) shall compute funding for each pupil, enrolled in classes pursuant to the JPA, by multiplying the SB 361 Page 2 pupil's annual clock hours of attendance, up to a maximum of three clock hours per schoolday, by an hourly rate that is computed to represent an hourly equivalent of the pupil's home district revenue limit. Requires the SPI to add the funding computed (in #3 above) to the revenue limit of the school district of attendance of the pupil. Deems for the purposes of computing attendance that a pupil, in classes operated pursuant to the JPA, satisfies the requirement that the pupil be under the immediate supervision and control of a district employed teacher. Requires as part of a school district's annual audit to insure attendance funding is in compliance with conditions specified for each school district that is party to the JPA and funding reduced for noncompliance when applicable. Requires that the number of hours of instruction at regional occupational centers or programs that are claimed for funding be used, in addition to specified hourly rates, in the computation of the ADA of the regional occupational center or program. Sunsets the above provisions July 1, 2012. Prohibits, commencing with the 2008-09 fiscal year, the Center for Advanced Research and Technology operating pursuant to a JPA between Clovis and Fresno Unified School Districts from being eligible for funding under charter school funding laws. The prohibition sunsets July 1, 2012. (EC § 47612.7) ANALYSIS This bill eliminates the July 1, 2012 CART funding formula sunset date and makes the funding formula of the program permanent. STAFF COMMENTS 1) The Center for Advanced Research and Technology (CART) is a highly recognized linked-learning career technical education center that is a partnership between the Clovis and Fresno Unified School SB 361 Page 3 Districts. The CART provides instruction to 11th and 12th grade pupils from both districts, with the pupils spending half of their instructional day at the CART and the other half in their regular district high school. The CART model combines rigorous academics with career clusters including professional sciences, engineering, advanced communications and global dynamics. A preliminary findings, recently released (January 2011) by the Irvine Foundation shows that from 2002-2008 students who participated in CART had higher percentage of enrollments in community colleges after completing grade 12 and one year after high school. After grade 12, 71 percent of students who participated in CART attended a community college, while 60 percent of a demographically similar group of non-CART students attended community college. The same percentage difference holds true one year after high school. 2) The genesis of current statute was due to funding irregularities that were deemed inappropriate. The Center for Advanced Research and Technology (CART) was established as a charter school in 1997 by a joint powers agreement established between the Clovis Unified School District and the Fresno Unified School District. The CART ran afoul of the law in that (1) the pupils were in charter school classrooms only 50% of the day, although they attended regular high school classes during the other 50% (statute requires charter schools to enroll pupils in classroom instruction for at least 80% of the school day); and (2) teachers from both districts taught at the CART so pupils were not always being instructed by employees of their home district or the CART charter school (statute also provides that school districts, and charter schools, may not claim general purpose funding for the attendance of pupils in classes that are not under the supervision and control of a teacher that is an employee of the district or charter school). In 2006, the State Controller's auditors determined SB 361 Page 4 that the charter school could not claim any funding for that year, or any later year until the charter school either complied with the law or was granted an exception. The school's funding for 2006-07 was authorized by Chapter 524 (SB 345, Aanestadt). The 2006 audit was settled without penalty, but a long term solution was still needed. In 2008, Chapter 762 (AB 2246, Villanes) codified the current funding formula for the CART program. CART no longer is charter school and AB 2246 contained a provision specifying CART is not eligible to receive funding under charter school funding provisions. 3) Eliminating the funding sunset is parallel to creating entitlement funding for CART. As mentioned, the preliminary findings indicate that CART holds promise as a model for improving the college readiness of high school graduates; however, the fiscal condition of the state and with it the overall funding of K-12 education are facing perilous times, given this condition it seems more prudent to extend, rather than eliminate the sunset. Staff recommends, rather than eliminating the funding formula sunset as envisioned by this bill, ostensibly creating a programmatic funding entitlement for the CART program, extension of the current funding formula for the CART program for a period not to exceed 5 years is a more reasonable alternative. In addition, staff recommends that the sunset provision of Education Code § 47612.7 (which prohibits CART from receiving charter school funding) also be extended for the same period of time. SUPPORT Clovis Unified School District OPPOSITION None received. SB 361 Page 5