BILL ANALYSIS Ó SB 361 Page 1 Date of Hearing: June 22, 2011 ASSEMBLY COMMITTEE ON EDUCATION Julia Brownley, Chair SB 361 (Berryhill) - As Amended: May 31, 2011 SENATE VOTE : 40-0 SUBJECT : School funding: minimum schoolday: Center for Advanced Research and Technology SUMMARY : Extends, for five years, the sunset on provisions that prohibit the Center for Advanced Research and Technology (CART) from receiving funding as a charter school, and that establish the formula for calculating the authorized apportionment of revenue limit funding for pupils concurrently enrolled in regular secondary school classes and classes operating pursuant to a joint powers agreement (JPA) put in place prior to January 1, 2008. EXISTING LAW : 1) Establishes the minimum day for a pupil enrolled in regular day classes to be 240 minutes in grades 4 through 12. 2) Establishes the minimum day for a pupil concurrently enrolled in regular secondary school classes and classes operated pursuant to a JPA that became effective prior to January 1, 2008, to be 180 minutes and requires that a pupil must attend the full 180 minutes of class to generate a "day of attendance "for purposes of funding. 3) Provides that the 180 minute school day 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. 4) Requires, starting in 2008-09, the Superintendent of Public Instruction (SPI) to compute funding for each pupil, enrolled in classes pursuant to a JPA that became effective prior to January 1, 2008, by multiplying the pupil's annual clock hours of attendance, up to a maximum of three clock SB 361 Page 2 hours per school day, by an hourly rate that is computed to represent an hourly equivalent of the pupil's home district revenue limit. 5) Requires the SPI to add the funding computed pursuant to 4) above, to the revenue limit of the school district of attendance of the pupil. 6) Deems for the purposes of computing attendance that a pupil, attending classes operated pursuant to a JPA that became effective prior to January 1, 2008, satisfies the requirement that the pupil be under the immediate supervision and control of a district employed teacher. 7) 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 a JPA that became effective prior to January 1, 2008, and requires funding to be reduced for noncompliance, when applicable. 8) 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. 9) 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. 10) Makes these provisions inoperative on July 1, 2012, and repealed as of January 1, 2013. FISCAL EFFECT : According to the Senate Appropriations Committee, "the funding provided in AB 2246 is in excess of what the pupils would otherwise generate relative to current law. FUSD and CUSD have revenue limits of approximately $769 less per pupil than the amount this bill would provide to the CART. Assuming 1,300 units of average daily attendance at CART, this bill would cost $999,700 General Fund annually." COMMENTS : CART was established as a charter school in April of SB 361 Page 3 1998 by a joint powers agreement established between the Clovis Unified School District (CUSD) and the Fresno Unified School District (FUSD). CART is a career technical education center that provides instruction to pupils in grades 11 and 12 from both districts, where the pupils spend half of their instructional day at CART and the other half in their regular district high school. The instructional model at CART combines rigorous academics with career clusters that include professional sciences, engineering, advanced communications and global dynamics. Within each cluster are several career-specific laboratories in which students complete industry-based projects and receive academic credit for advanced English, science, math, and technology. Data produced and analyzed by CART in a self-published study, shows that from 2002-2008, students who participated in CART's Linked Learning program were more likely to graduate from high school, had a higher rate (by 11 percentage points) of enrollment in community colleges, and had a higher rate (by 2 percentage points) of enrollment in universities, than a comparison group of similar students drawn from CUSD and FUSD. These results held for pupils upon completion of grade 12 and in follow-up surveys completed one year after high school. Current law requires charter schools to enroll pupils in classroom instruction for at least 80% of the school day, or be considered "non-classroom based" charter schools subject to special review and reduced funding. Current law 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 the mid-2000s, CART ran afoul of both of these laws in that the pupils were in charter school classrooms only 50% of the day, although they attended regular high school classes during the other 50%; also, though teachers from both districts taught at CART, so pupils were not always being instructed by employees of their home district or the CART charter school. In 2006, the State Controller's auditors determined 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. In 2007, CART's funding for the 2006-07 fiscal year was specifically authorized by SB 345 (Aanestadt), Chapter 524, Statutes of 2007. The 2006 audit was settled SB 361 Page 4 without penalty, but a long term solution was still needed; AB 2246 (Villines), Chapter 762, Statutes of 2008, provided that longer term solution and codified the current funding formula for CART. AB 2246 established a July 1, 2012, inoperative date and a January 1, 2013 repeal date on those special funding provisions; this bill extends those dates five years further into the future. Previous legislation: AB 2246 (Villines), Chapter 762, Statutes of 2008, codified the current funding formula for CART, by making CART ineligible to receive funding under charter school funding provisions and establishing a specific funding formula for calculating additional ADA based funding to be included in CUSD's and FUSD's revenue limit apportionments. SB 345 (Aanestadt), Chapter 524, Statutes of 2007, authorizes CART to receive the charter school general-purpose funding for the 2007-08 fiscal year for a total ADA not to exceed CART's ADA as determined at the second principal apportionment for FY 2006-07. REGISTERED SUPPORT / OPPOSITION : Support Clovis Unified School District Fresno Unified School District Opposition None on file Analysis Prepared by : Gerald Shelton / ED. / (916) 319-2087